Category management software allows organizations to effectively manage their product assortment and supply chain by applying analytical insights. These solutions help predict consumer demand, analyze sales performance, and optimize pricing strategies. These also facilitate better management of suppliers, products and categories. With digital transformation and growing popularity of e-commerce, there has been huge demand for such software as businesses aim to provide personalized shopping experiences to customers. Artificial intelligence and machine learning capabilities in newer category management platforms enhances forecasting accuracy and automate routine tasks.
Market Dynamics:
Global category management software market growth is driven by growing need for data-driven decision making among retailers and CPG companies. Precise demand forecasting and optimized product assortment enabled by these solutions help businesses to increase revenues and profits. However, high initial costs of deployment and integration challenges with legacy can hamper the market growth. Rising adoption of cloud-based SaaS models and increasing collaboration between manufacturers, retailers and suppliers through shared category management platforms can offer market growth opportunities. Emerging trends like headless commerce and voice commerce boosts capabilities of new age category management solutions.
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