4 Category Management Tools You Need To Merchandise Like A Pro
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4 Category Management Tools You Need To Merchandise Like A Pro

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Category management is the process of managing assortments in retail stores, where assortments are divided into groups or categories which have common features. Category management tools help fashion retailers organize their stock-keeping units (SKUs) in groups so that they can be supplied and priced as an integrated identity. Furthermore, it assists the retail teams and optimizes how they manage buyer-supplier relationships or carry out the product procurement process. 

Category management is a proven method used by retailers to increase sales of goods and profitability of sales. Furthermore, it makes the retail space more convenient and efficient for customers and company employees alike. 

4 Ps of category management

Category management is built upon four fundamental principles. These essential category management strategies lead to an increase in sales of products. These principles are as follows:


Category performance begins with procuring goods and bringing them to stock shelves. Category management involves a detailed analysis of product data to bring the right product at the right time in the stores. Category managers study the previous sales reports and latest trends combined with seasonal forecasting to get the right products for the retail store. Moreover, category management can give the best results when paired with a product lifestyle management strategy. 


Category managers ensure that a retail store gets products at the right price. They do this by purchasing for a whole category at a time, driving down the prices of the items. Furthermore, it is their job to look around for suppliers and compare the range of products and prices that are available to them. Pricing is done at two pricing points: wholesale price and retail prices, which are B2B and B2C in nature, respectively. Thus, by doing category management, retail stores can get better margins than their competitors for the same product and make better profits. 


This is where category management tools like planogram software come in. Category managers collaborate with merchandisers at the store to plan out ways to organize the assortments into categories in the store. Category management ensures that one keeps track of assortments or SKUs and helps in the strategic placement of products in logical continuity. Thus, retailers need a good category management process that combines SKU planning and merchandising to bolster their sales. 


Retail promotion is an important marketing technique fashion retailers use to boost their sales. This is because these campaigns appeal to the logical and emotional needs of customers, urging them to buy products. To execute the promotion successfully, they need to use category management. So first, the category management team forecasts the performance of each category in the past. Next, they look for opportunities to promote every category and adjust the promotion plan based on every product’s performance in sales. 

Category management tools that help to merchandise like a pro

Category management tools are software programs that help organizations oversee and optimize their product categories. These tools streamline the category management process by automating critical tasks, such as data collection and analysis, category planning, and supplier performance management.

Category management tools can provide insights into category performance, identify opportunities for improvement, and track its progress over time. They can also help organizations keep tabs on their competitors’ activities and spot emerging trends. There are several category management tools on the market, each with unique features and capabilities. To choose the right tool for your organization, it’s important to understand your needs and objectives.

Category Management

1. Assortment optimization software

One of the best category management tools is assortment optimization software. This software can help organize and manage the products by category, brand, and style. It can also help create effective marketing campaigns for each of the products.

Retailers can create a centralized location for all product information using Assortment Optimization Software. This will make it easy to find the information needed when creating product marketing campaigns.

Additionally, this software can help determine which products are selling well and which need to be updated or revised. Retailers can use this information to create a more effective product assortment and marketing campaigns.

2. Planogram software

Planogram software is an excellent tool for merchandising products. It helps retailers to organize and manage products efficiently. It also improves the customer experience as people can easily find the products they need.

Fashion retailers can use a planogram to create categories, assign products to a specific category, and track sales data. It also helps set up different ordering systems for other parts of the world. Planogram also includes features that make designing and printing product labels easy and give products a professional look.

In addition to this, planogram software helps to find what merchandisers are looking for, helping them arrange products on shelves quickly. 

3. Promotion planning software

To merchandise the items deftly, it is vital to have promotion planning software. This software will help plan and execute promotional campaigns. It helps increase sales and reach the target market.

There is numerous promotion planning software available in the market, so it is important to compare features and prices before making a purchase. Some are subscription-based, while others are available for purchase outright. When selecting promotion planning software, it is vital to consider the business's needs and the available budget.

Numerous sophisticated promotion planning software packages are available in the market, but not all are suitable for every retail store. Therefore, fashion retailers must select the right software package and ensure that it meets the needs of the business and doesn’t bust the budget.

These programs are easy to use and allow customized marketing efforts. These programs also track results and measure progress over time. Therefore, fashion retailers should use good promotion planning software to ensure that their products reach the target market and boost their sales figures.

4. Retail analytics software

Retail analytics software can help analyze sales data. This helps in making better decisions about merchandising the products. This software can help identify which products are selling well and which products are not selling.

This software can also help brands configure displays and signage. This maximizes the impact on consumers. It can also help identify which sections of the store are the most popular. This information can help create new product lines or modify existing product lines' merchandising to appeal to more customers.

Further, it helps identify how customers interact with the products. This information can help improve the design of the packaging and labels. It can also help in improving the design of websites and social media pages.


Category management is a must for every fashion retailer who wishes to improve the sales of their stores and empower themselves with the ability to manage their stocks effectively. However, despite having a sound category management system, retailers face problems while replenishing their stocks primarily due to an inefficient product delivery system. If you are facing the same issue, you can connect with Fashinza

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Fashinza helps clothing brands to manufacture their collections by connecting them with suppliers. Our chief offering is the platform which allows brands to place manufacturing orders for their collections and have them delivered, with options to track, communicate, and make payments along the way.


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