Thousands of people shop online every day looking for as much information as possible to decide between one product or another. What happens when there is no data on the measurements of a shirt or the size of a desk?
Simple, they go to another store's page.
This requires increasingly efficient management and, therefore, faster responses to changes.
For companies dedicated to e-commerce, having this type of solution can make the difference in selling a greater number of products on different channels and creating better experiences for their customers.
Currently, the PIM solutions market and its adoption is projected to grow by 15.41% annually, reaching a value of $15.62 billion by 2024. Today, it is an indispensable solution that companies such as Amazon, IBM, Riversand, SAP, among others, are using and developing for businesses around the world.
In this article, we explain what PIM is, how it benefits companies in the integration and organization of their stock, as well as why PIM software that streamlines all these processes is important.
What does PIM mean?
A PIM (Product Information Management) system is a tool for centralizing and managing all of a business's product information . This system allows product data to be stored, updated, and distributed across multiple channels, such as marketplaces, digital or physical catalogs, and e-commerce stores, in an efficient and accurate manner.
As we mentioned in the introduction, product information management is vital in the e-commerce environment, because consumers cannot physically interact with products. To make purchasing decisions, they rely entirely on the information provided by the online store.
This is where the PIM system plays a crucial role, ensuring that every detail of the product is complete, accurate and consistent across all channels.
In this way, a PIM allows you to manage all the relevant information about the product design, from descriptions, technical specifications, and prices, to high-quality images, videos or even 360º photographs. By integrating all this data in one place, companies can offer their customers a consistent and reliable shopping experience, regardless of the channel they use.
Whenever product information is created, updated or published in the PIM system , the changes are automatically reflected across all connected platforms. This means that manufacturers, distributors and sellers can keep their catalogue up to date without having to make manual changes on each channel.
The result is significant savings in time and resources, while ensuring data accuracy.
Benefits of a PIM system for e-commerce
Implementing a PIM system not only optimizes product information management, but also provides multiple benefits for e-commerce companies:
- Time saving : Updating data on a single platform avoids duplication of efforts and reduces human errors.
- Information consistency : Product data, being centralized, is consistent across all points of sale.
- Improved conversion : Accurate and detailed information helps customers make faster purchasing decisions, increasing conversion rates.
- Optimizing the customer experience : By providing clear and complete information, you increase customer confidence, which reduces returns and abandoned carts.
How PIM works and what results it offers
Now, all this information is very useful when it comes to learning what a PIM is, but it is also important to clearly understand how it works in order to get the most out of it.
A PIM solution works by streamlining internal processes so that organizations can deliver consistent, accurate, and high-quality product information to customers.
Imagine that you are a shoe manufacturer, and due to the increase in the cost of raw materials, you need to increase the selling price of your products from $40 to $45 .
With a PIM, you can make this adjustment in one place, and thanks to the centralization of information, the new price is automatically updated across all your sales channels, such as your ecommerce store, marketplaces, and printed or digital catalogs . Not only can you change the price, but you can also update descriptions, images, sizes, colors, and any product feature instantly and accurately.
That is, each piece of information associated with a product lives in a master profile within the system. Designated users or a system administrator can import product data from external systems or sources into the PIM platform .
For this very reason, product details need to be accurate, usable and support the growing need to use multiple platforms. This makes product information management (PIM) one of the biggest challenges for online retailers today.
Who should use a PIM system
Any company that sells products online can benefit from a PIM system. Although it is also true that some companies need it more than others.
PIM systems are generally used in B2B (Business to Business) businesses; by wholesalers and manufacturers, offering a wide range of products in different channels and markets. However, many companies that benefit from this solution do not necessarily fall into these two categories.
To help you understand how a PIM fits into your marketing strategy, we explain the business characteristics where a PIM can be applied .
Offer a large number of products
If your company manages thousands of products, getting a 360° overview of all product information is invaluable.
This is where having a PIM system can be essential, as it manages the information of each product efficiently. In addition, it facilitates its distribution to different channels, all from a single platform.
Sell products with many attributes
A PIM system simplifies and centralizes all of your product data, helping you improve your product strategy, work faster, and accomplish more in the same amount of time. If you work with products with complex information, this system will be even more beneficial to you.
By complex information we mean the different features that can be integrated into the product. For example, size or color variations increase its complexity. As well as whether there are different elements that accompany each product; such as attached digital assets or special categories.
The more varied your product information is, the harder it will be to keep everything under control, and a PIM will be a great help.
Sell through different channels
PIM systems are especially useful for companies that sell products through multiple online channels such as e-commerce, retail outlets and distributors.
We can see it as the common thread that runs through marketing and sales, as well as the supply chain and services. In this way, it incorporates and manages product information that is dispersed across multiple manufacturers, suppliers and departments, to establish a single, holistic data ecosystem.
Having all your product information in one place makes it easier to update and customize it depending on the channel and market. Plus, you can save time, effort, and money by storing, managing, and publishing product data.
Selling in different languages
If you offer products internationally, you understand that it is key to display your product information in the local language and comply with the regulations of each market. This process is challenging enough on its own, especially if you have to manage dozens of languages and countries.
A PIM helps you manage product translations and adapt their distribution to different channels and markets.
Sharing data with partners
Finally, a PIM solution centralizes all product information, so that the company can establish clear work structures with third parties, for efficient and agile management of the flow of information.
What data does a PIM system need?
Now that we have seen the different uses of product information management, it is also important to show you what information is placed in this system.
Below, we explain the main aspects that a PIM must integrate.
Product data
This category includes basic fundamental data such as:
- SKU (Stock-keeping unit).
- Weights.
- Sizes.
- Catalog Assignments.
- Colors.
- Ingredients.
- Materials , among others.
It is typically managed by engineering and product teams within ERP and product lifecycle (PLM) tools, which are then synchronized with a PIM system.
We will explore this topic in depth a few lines later.
Digital resources
As we have already mentioned, digital assets are another type of key information that is linked to product design and visualization.
These are resources such as
- Videos.
- Photographs.
- 360° images.
- Illustrations.
- Logos and content such as user manuals.
- Size charts.
- Sell sheets and more.
Teams can even import product-related digital assets into product profiles in a PIM system and combine digital assets with other information to create higher-converting customer experiences.
Marketing content
Marketing content includes everything from the description on a product detail page to sell sheets with features and benefits.
It is a combination of objective facts with brand-driven messages to inspire different types of ecommerce customers on their purchasing journey.
Marketing data
Marketing data includes SEO (search engine optimization) keywords , personas, and brand guidelines.
This information is useful for driving higher search engine rankings, increasing on-site results, and creating more consistent keyword usage across all channels.
Localized and regionalized information
Some products have attributes specific to a market or geographic location that distinguish them.
As we said above, if you sell in different countries you have to consider language variations for marketing or legal copy, currency and measurement translations, images that fit cultural norms, and more.
Differences between a PIM system and an ERP
A PIM (Product Information Management) system and an ERP (Enterprise Resource Planning) are two types of software that play key roles in the management of a company, but they have different and complementary functions.
An ERP is a central system that manages and coordinates all of a company’s processes, from manufacturing to distribution, accounting, and human resources. In short, it acts as the heart of the organization, encompassing the integration of all departments and processes.
A PIM, on the other hand, focuses solely on product information management . Its role is to ensure that product data is accurate, complete and up-to-date across all distribution channels, whether it is an e-commerce site, marketplaces or printed catalogues.
Despite their differences, these systems are connected and feed off of each other. An ERP can provide the PIM with important product data such as pricing, inventory, and SKUs (Stock-Keeping Units), while the PIM is responsible for enriching this information with additional details such as descriptions, images, and technical specifications.
For example, the ERP could store the available stock of a product, while the PIM is responsible for managing the images and descriptions associated with that product across all sales channels.
Therefore, the biggest difference between the two systems lies in their approach:
- ERP : covers all of the company's operational processes, from the supply chain to accounting and human resources.
- PIM : Specializes in product information management , ensuring that data related to each product is consistent, up-to-date and available across all distribution channels.
Other platforms that also carry the name PIM
In addition to PIM systems used for product information management, there are intelligent maintenance platforms that also use the same acronym, although their approach is completely different.
These platforms are designed to manage preventive and predictive maintenance of machinery and business assets.
The objective of smart maintenance platforms is to monitor the status of equipment and anticipate possible failures before they occur, thus optimizing operating times and reducing costs associated with unforeseen repairs.
Although they share the name PIM , their function is not related to the management of product information, but to the maintenance of assets within organizations, ensuring that equipment and machinery are kept in optimal condition.
PIM integration with other systems
A PIM system also seamlessly integrates with other key tools to improve operational efficiency and optimize customer experience. These integrations allow data to flow between different platforms automatically, ensuring that product information is always up-to-date and consistent across all company systems.
- Integration with eCommerce platforms: The main benefit of integrating a PIM with an eCommerce platform is the ability to improve website performance and increase online sales. When product information is centralized in the PIM, any changes made, such as updating prices or images, will automatically be reflected in the online store.
- CRM (Customer Relationship Management) Integration: CRM systems focus on managing customer relationships, and when integrated with a PIM , this relationship is strengthened. By integrating the PIM with the CRM, the sales and customer service team has immediate access to accurate product information, allowing them to provide faster and more personalized responses to queries.
- Integration with ERP (Enterprise Resource Planning): As we mentioned above, the integration of a PIM with an ERP system is one of the most powerful, since it allows both systems to share key information, such as inventories, prices and product descriptions.
Other key integrations
In addition to eCommerce, CRM, and ERP systems, a PIM can integrate with many other business tools, such as digital asset management (DAM) systems, digital marketing platforms, and sales automation software.
These integrations allow information to flow efficiently between different departments in the company, eliminating information silos and improving collaboration between teams.
The growth of PIM systems
The use of PIM systems has seen remarkable growth in recent years, driven by digital transformation and the rise of e-commerce. This is mainly due to the need to manage large volumes of product data efficiently and accurately.
Companies, both retailers and manufacturers, are recognizing the importance of centralizing product information to stay competitive in today's market. Let's take a closer look at its growth in the market and how it has been adopted in Latin America.
Global expansion of the PIM market
According to recent estimates, the global product information management market size will reach $15.62 billion by 2024, and is expected to grow to $31.98 billion by 2029, growing at a compound annual growth rate (CAGR) of 15.41% during this period.
This growth reflects the growing need for digital solutions that optimize product data management and accelerate sales processes across multiple channels.
In terms of adoption, North America has been the region with the largest share in the PIM market in 2023, while Asia-Pacific is projected to be the fastest growing region between 2024 and 2029.
This is due to the increase in companies seeking to integrate their digital platforms with systems that improve product information management, from small businesses to large corporations.
PIM adoption in Latin America
In Latin America, the product information management market is experiencing significant growth due to several factors. The growing demand for digital transformation in the region, combined with the rise of e-commerce, is driving companies to look for PIM solutions that allow them to manage their product data more efficiently and cost-effectively.
This growth is also driven by the expansion of the middle class and rising disposable income, which has increased demand for consumer goods in the region.
As more businesses embrace online sales and digitize their operations, implementing PIM systems has become a priority to improve customer experience and streamline internal processes.
Furthermore, many small and medium-sized enterprises (SMEs) in Latin America are increasingly turning to PIM solutions to manage their products efficiently, thereby improving their competitiveness and access to new markets. This trend has positioned the region as a key emerging market for PIM growth in the coming years.
Challenges and trends in the PIM sector in the coming years
The product information management (PIM) market is booming, driven by businesses’ growing need to improve data accuracy and deliver more engaging experiences to consumers. However, as PIM solutions become more established, a number of challenges and trends are emerging that will shape the direction of the industry in the coming years.
Challenges of the PIM sector
Although adoption of PIM systems is growing, the industry faces some key challenges that may limit its expansion:
Lack of knowledge about PIM
Many companies are still unaware of the advantages offered by a PIM system, which delays its adoption. Lack of awareness of the benefits, such as improved product data accuracy and increased operational efficiency, prevents more companies from implementing this technology into their daily operations.
Implementation costs
The high costs associated with implementing a PIM system, such as software licenses, hardware installation, and consulting services, represent a major barrier for many businesses, especially small and medium-sized ones. In addition, investment in employee training is crucial to ensure effective use of these solutions.
Data security concerns
The growing amount of data managed by companies brings with it greater concerns about information security and privacy . PIM systems, when handling large volumes of data, must guarantee protection against potential security breaches.
Emerging trends in the PIM market
Despite the challenges, the future of the PIM sector presents significant opportunities, driven by technological evolution and the new demands of e-commerce:
PIM powered by artificial intelligence (AI)
One of the main trends is the incorporation of AI and machine learning in PIM solutions. These technologies allow automating processes such as data classification, enrichment and cleansing, improving operational efficiency .
Integration with the Internet of Things (IoT)
The rise of IoT is transforming the way businesses manage their product data. Connected devices generate data in real time, and PIM systems are evolving to integrate with these technologies, enabling seamless, real-time distribution of information across multiple platforms. This is key for businesses looking to adapt to omnichannel commerce and deliver consistent experiences across all their channels.
Cloud-based PIM systems
Cloud-based architecture is gaining ground as it allows businesses to quickly scale their PIM solutions in line with their growing needs. Modern PIM systems, built in the cloud, provide the flexibility to manage ever-expanding product catalogs and maintain their performance across multiple sales channels.
Growth of affordable PIM solutions for SMEs
As the PIM market matures, we are seeing the development of more affordable and flexible solutions targeted at small and mid-sized businesses looking to improve their product information management. These solutions offer more intuitive interfaces and streamlined workflows, allowing non-technical teams to manage and update product information with ease.
Conclusion
A PIM system is the engine that drives e-commerce success, improving the accuracy and consistency of product information presented to customers.
Implementing a PIM optimizes data management and ensures that each sales channel, whether online or physical, offers clear, complete and up-to-date information. As a result, the customer experience is improved, increasing conversions and sales.
If you want to improve your catalog management and gain a competitive advantage, now is the time to consider implementing a PIM system . At Compara Software , we offer you a complete guide to the best PIM systems available, so you can find the solution that best suits your business needs.
Check out our list of PIM tools and receive expert advice to make the best decision.
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