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Summary: CFR Early Insight #21

CATEGORY MANAGEMENT IN ONLINE RETAILING

1. Category Management (CM) is a crucial part of the retailing ecosystem and extant research shows that it leads to improved financial performance. The key drivers of CM success are category-based operations, customer centricity, and supplier-retailer collaborations.

2. In the online channel, the existing logic for assortment organization, new product introductions, and promotions may be challenged, but research on this topic is unfortunately scant. There are indications that shoppers respond to innovative ways of presenting assortments online and that category management in this channel will be linked to complement-based assortments and personalized categories.

3. For retailers and suppliers, it is important to revisit how their categories may be organized and prioritized online. Important questions to address are: Are the same categorization principles relevant across online and offline stores? Do categories fulfil different roles online and offline? And, what benefits does “endless aisles” with hundreds of SKU’s offer customers?

2021-02-17

Contact


Lange, Fredrik
Assistant Professor
Department of Marketing and Strategy