What does the 'product life cycle' in retail refer to?

The concept of the 'product life cycle' in retail fundamentally refers to the stages that a product goes through from its initial introduction to the market all the way to its eventual decline. This cycle typically includes four key phases: introduction, growth, maturity, and decline. During the introduction phase, awareness is built, and the product is launched. As the product gains traction, it enters the growth phase, characterized by increased sales and market acceptance. Eventually, sales plateau during maturity, as the market becomes saturated. Finally, the product reaches the decline stage due to changes in consumer preferences, increased competition, or technological advancements, leading to a decrease in sales.

Understanding this cycle is crucial for retailers and marketers as it influences strategy, inventory management, and marketing efforts tailored to each stage of the product's life. The focus on the progression of the product through these stages allows for more informed decision-making regarding product development, promotional activities, and pricing strategies at each phase.