In somewhat challenging economic times, retailers need to innovate more to attract and retain consumers. Enter category management: this strategic approach focuses on taking a product category, such as oral care, and optimising it's shop-ability and financial performance.
There are various ways that category management can address and improve the shopping experience. A few of these include
- Competitive pricing;
- Attractive promotions;
- Relevant assortments; and
- Appealing visual merchandising
All of above aspects lead to better customer value propositions. That said, it is important to highlight that category management should be a collaborative approach between retailers, suppliers and consumers. In truth, a big part of category management is aimed at the relationship between retailer and supplier.
So, with the top retail trends for 2016, how can category management meet the needs of the various role players?
1. The omnichannel environment
The retail space has changed dramatically in the last few years. Currently, the retail environment consists of three distinct elements: the so-called click (online), brick (physical store) and mobile (mobile devices).
As more and more consumers move to online platforms, it is critical that the in-store experience is as optimal as can be. Here category management can facilitate the shopping experience by optimising the store format and increasing the appeal of product display by making use of planograms and other tools.
Moreover, with the move to online shopping, the consumer expects greater efficiency and immediate availability of products. As a result, it is highly important that stock in store is up to date with current demand and that retailers can efficiently anticipate consumers' needs.
2. Consumer personalisation
Our current culture expects personalisation and emphasises fostering of the individual. Shoppers expect a personalised in-store experience. Here assortment planning is of the utmost importance.
With relevant data insight, category management can optimally manage assortment decisions and ensure that product categories are targeted as best possible to local and individual tastes and needs.
3. E-influence
Social media has greatly influenced the retail sphere. While consumers still enjoy going to physical stores to buy products, price comparison and reviews are conducted online and influence consumers' decision to a large extent. Category management can hone in on the critical stage of buying, i.e. that of gathering relevant product information and making the ultimate buying decision.
Intelligently targeted promotions and social media influence from suppliers and retailers can gain positively influence in-store buying decisions.
All in all category management thrives on information and communication. With increased relevant knowledge and data of consumers' demands and desires, retailers, in conjunction with suppliers, can alter and improve their offering and value proposition to shoppers.
