What does the concept of "category lifecycle" describe?

The concept of "category lifecycle" specifically refers to the stages of a product category's progression. It involves understanding how a product category evolves over time, typically characterized by phases such as introduction, growth, maturity, and decline. This lifecycle helps retailers and manufacturers make strategic decisions related to marketing, inventory management, and product development based on where the category currently stands.

Recognizing the category lifecycle is crucial for effective category management, as each stage requires different approaches to optimize sales and profitability. For instance, during the introduction phase, the focus may be on building awareness, while in the growth phase, strategies might shift to expanding distribution and increasing market share. By comprehending the lifecycle of a category, businesses can align their resources and efforts accordingly to capitalize on opportunities and mitigate risks associated with each stage.