Category management has evolved significantly over the years, but right now retailers, brands and suppliers still face several challenges as they try to optimize their product assortment and drive profitability. New technologies offer innovative options, but understanding how to harness and seamlessly integrate new solutions can be daunting. Let’s take a look at some areas where category managers often run into challenges.
Here are the three biggest pain points in category management today:
- Data Overload and Integration Challenges
With the sheer volume of data available from various channels (online, in-store, social media, etc.), retailers are struggling to make sense of it all. The difficulty lies not just in the data collection, but in integrating it into a cohesive strategy. Disconnected systems and siloed data make it challenging to identify trends and make informed decisions that can drive category growth. - Evolving Consumer Preferences and Trends
Consumer behavior continues to shift rapidly in 2025, driven by factors like personalization, sustainability, new product introductions and convenience. Retailers are finding it increasingly difficult to predict these shifts and respond accordingly. Categories that were once stable are now facing volatility, and staying ahead of trends requires continuous adaptation, making effective category management more complex than ever. - Supply Chain Disruptions and Inventory Management
Supply chain issues continue to plague retailers, especially in the wake of today’s global disruptions. Category managers are tasked with balancing inventory levels while dealing with delayed shipments, stockouts, and shifting lead times. These challenges create tension in ensuring product availability while maintaining optimal stock levels and minimizing markdowns.
To thrive in 2025, category managers must embrace smarter data integration, stay agile with consumer preferences, and find innovative ways to navigate supply chain complexities. The good news is that InContext can help teams adapt to these challenges.
Our decades of virtual shopper research and our industry-leading digital twin retail technology has allowed us to become the experts when it comes to helping brands and retailers grow their businesses. In particular, we offer research consulting services to help category managers tackle these top pain points in a way that makes sense. We can take a look at your biggest hurdles and leverage our experience and technology to put your teams ahead of the competition.
