Retail Store Life Cycle
- Introduction Stage. As the name implies, the introduction is the beginning stage of any business, characterized by innovation and industry expansion.
- Growth Phase. Once your store catches on, it enters the growth phase. ...
- Maturity Phase. ...
- Decline. ...
Full Answer
What is the retail lifecycle?
The retail lifecycle is comprised of four distinct stages, with each based on the sales and profit growth experienced during that stage. For example, a highly successful emergent company will experience rapid growth because sales are going so well.
How do retailers deal with the buyer’s life cycle?
In particular, to explain the customer life cycle, retailers deal with the buyer’s life cycle by targeting customers to convert them from leads into customers, with certain content and experiences.
What are the four stages of the retail cycle?
Retail Life Cycle. A theory of retail competition that states that retailing institutions, like the products they distribute, pass through an identifiable cycle. This cycle can be partitioned into four distinct stages: (1) innovation, (2) accelerated development, (3) maturity, and (4) decline. Rate this term.
What is the customer life cycle?
Put the customer life cycle definition another way, it's the journey from Point A to Point B that a customer takes until they make the final purchase. They will move from stages to stages, which makes them become more and more familiar with your services or products.
What is retail life cycle meaning?
A theory of retail competition that states that retailing institutions, like the products they distribute, pass through an identifiable cycle. This cycle can be partitioned into four distinct stages: (1) innovation, (2) accelerated development, (3) maturity, and (4) decline. +10 -18.
What stage of the life cycle is the retail industry in?
The different segments within Retail Industry are in various phases of their life cycles. Typically, an industry or industry segment is considered to be in a decline phase of its life cycle when growth falls below GDP.
What are the stages of the wheel of retailing?
Wheel of RetailingDefinition: The wheel of retailing refers to a hypothesis, which depicts the life cycle of a retail organization. ... Entry Stage. ... Growth Stage. ... Maturity Stage. ... Decline Stage.
Which of the retail life cycle that needs to maintain their market share?
Market Maturity As the product life cycle reaches this mature stage there are the beginnings of market saturation. Many consumers will now have bought the product and competitors will be established, meaning that branding, price and product differentiation becomes even more important to maintain a market share.
What are the 5 stages of life cycle?
Key Takeaways. A life cycle in business follows a product from creation to maturity and decline. There are five steps in a life cycle—product development, market introduction, growth, maturity, and decline/stability.
What are the 5 stages of product life cycle with examples?
The 5 stages of the product life cycleMarket development. The first stage in the product life cycle is development. ... Market introduction. When your product launches, you've entered the introduction stage of the life cycle. ... Market growth. ... Maturity. ... Market decline.
What is retail theory?
Retail marketing theories focus on attracting customers to different store forms and online sales. The retail mix should be the most suitable one to attract maximum customers to enhance revenue for the firm. Attracting customers involve efficient customer relationship management to win their trust and loyalty.
What is strategic retail planning process?
In a strategic retail planning process, a business identifies and sets its goals for a definite period and prepares a strategic plan to achieve them efficiently. The right strategic plan will help you bridge the gap between where you are right now and where you want to be.
What is retailing and its types?
Types of Retailing Store Retailing: Department store is the best form of store retailing, to attract a number of customers. The other types of store retailing includes, speciality store, supermarket, convenience store, catalogue showroom, drug store, super store, discount store, extreme value store.
How do you explain the product life cycle?
There are four stages in a product's life cycle—introduction, growth, maturity, and decline. The concept of product life cycle helps inform business decision-making, from pricing and promotion to expansion or cost-cutting. Newer, more successful products push older ones out of the market.
What does a life cycle describe?
life cycle, in biology, the series of changes that the members of a species undergo as they pass from the beginning of a given developmental stage to the inception of that same developmental stage in a subsequent generation.
What is the example of product life cycle?
Product life cycle examples The home entertainment industry is filled with examples at every stage of the product life cycle. For example, videocassettes are gone from the shelves. DVDs are in the decline stage, and flat-screen smart TVs are in the mature phase.
What is the growth phase of a store?
Growth Phase. Once your store catches on, it enters the growth phase. As you grow, your profits increase and customers rave about your brand. While this phase may feel like Christmas, business professor David Gerth warns that competitors begin to copy you at this point, diluting your brand and taking away some of your edge.
What is the maturity phase of a business?
Maturity Phase. Once you are fully established, you have a rhythm and you've gotten pretty good at keeping the store stocked so customers can count on you. In this stage, you also have a lot of competition and your store defines your industry instead of feeling new and different.
What is the introduction stage of a business?
As the name implies, the introduction is the beginning stage of any business, characterized by innovation and industry expansion. Entrepreneurs in this phase of development either introduce a new retail store model, for example a particular product mix combined with a new service, or a new direction for an existing store. Introductory stage stores should be prepared for low profits due to high development costs. Retail expert Bob Phibbs notes that business owners can often reenergize a failing business by returning the introductory stage with a new approach.
What is retail life cycle theory?
Retail life cycle theory explains how the existing retail formats develop and why the retail formats develop in this way. Many different factors, such as price cycle, market environment and macroeconomic fluctuations and so on, are attributed to the influence of retail life cycle, which makes the theory more convincing.
Who introduced the retail life cycle?
The theory of retail life cycle is first introduced by William Davidson W. R, Betas A. D and Bass S. J in 1976.
What happens to retail formats in decline?
In decline stage, the new formats have become the traditional ones and with the change of consumers' buying behavior and the appearance of newer formats, the market begins to shrink and traditional formats (original new formats) could not make any profit but may suffer great loss due to the decreasing sales. During this period, some companies decide to leave the market. As a result, the competition among the same retail formats is not serious but the competition of different formats will get increasingly intense.
What is the innovation stage?
In the innovation stage, in which the reformation and development of business methods promote the emergence of new retail formats, the operating characteristics of new formats have not been understood by both consumers and the industry, lowering market share. Moreover, because of the development cost of new formats, it is hard for retail companies, which apply the new methods, to make profit at this stage.
What is the competition of different retail formats?
The competition of different retail formats is unique and increase the vitality in the market. Later in the stage, with the wide application of new formats, the competition of companies which accept new formats will emerge and augment. The competition of different retail formats does not take the main role in the market.
Is the competition among the same retail formats serious?
As a result, the competition among the same retail formats is not serious but the competition of different formats will get increasingly intense. Companies of the traditional format compete through the price, which makes their profit get less and less.
Marketing dictionary
A theory of retail competition that states that retailing institutions, like the products they distribute, pass through an identifiable cycle. This cycle can be partitioned into four distinct stages: (1) innovation, (2) accelerated development, (3) maturity, and (4) decline.
Retail Life Cycle
A theory of retail competition that states that retailing institutions, like the products they distribute, pass through an identifiable cycle. This cycle can be partitioned into four distinct stages: (1) innovation, (2) accelerated development, (3) maturity, and (4) decline.
Why is customer life cycle important?
The importance of Customer Life Cycle. A thorough understanding of this life cycle is imperative to the growth or success of a business. As you can see, the importance of the customer life cycle lies in the fact that it's nonlinearity, which means that it ultimately follows a cyclical pattern. Customer retention is the final goal in growing strong ...
Why is the customer life cycle called an ellipsis?
It is often defined as an ellipsis because theoretically, this is a process your customers should move through repeatedly. Managing and sustaining the life cycle is essential for businesses to continue to be competitive in the present-day marketplace.
When do businesses need to stay in touch with customers?
Once that first purchase is paid for, your business needs to stay in touch with the customer. This is when you build up a relationship with the customer, ensuring they're perfectly content with their early transaction.
How does customer retention work?
Customer retention starts with satisfying a consumer's needs, keeping an eye on them, and cultivating the relationship. If you can take a customer's feedback and use it to improve a product or service, you make them feel as if they were a part of the process.
What Is the Customer Life Cycle?
The customer life cycle is a term used in customer relationship management, and it describes the phases a customer goes through to reach brand or product loyalty. The life cycle begins the moment a potential customer becomes aware of your brand.
What Are the Consumer Life Stages?
Here are the various stages customers go through as they interact with your brand:
Why Is the Customer Life Cycle Important?
By understanding what stages your customers are in, you can develop effective marketing strategies and grow their lifetime value. A customer’s lifetime value is the profit you gain during their relationship with your company. For example, a one-time customer has a low lifetime value, while a repeat customer usually has a high value.
How Does the Customer Life Cycle Apply to Retail Displays?
You can design your retail display with the customer life cycle in mind to connect with shoppers in various phases. Here are some ideas:
