Product lifecycle describes the stages a product goes through from its introduction to its eventual decline or discontinuation. It typically consists of four phases: introduction, growth, maturity, and decline.
During the introduction phase, a new product is launched and market awareness is built. In the growth phase, sales and customer demand increase as the product gains popularity.
The maturity phase is characterized by stable sales and market saturation. Finally, the decline phase occurs when sales start to decline due to factors such as market saturation, competition, or changing consumer preferences. Understanding the product lifecycle is crucial for retailers as it helps them make strategic decisions regarding pricing, promotion, inventory management, and product development to maximize profitability and stay competitive in the market.