PRODUCT CLASSIFICATION

To efficiently manage inventory, launch products and improve sales retailers should continuously study and understand their products. The knowledge gained through such continuous analysis will help in achieving good inventory turnover, reduce inventory holding cost and better understand customer's needs.

CLASSIFICATION BASED ON MANUFACTURING (applicable for "private labels")

1. Core or Flagship products
2. Basics

CLASSIFICATION BASED ON PURCHASE AND SALES TYPES

1. Consignment
2. Concession
3. Regular
4. Deposit
5. Non-Trading

CLASSIFICATION BASED ON SALES

1. Top Selling
2. A Class , B Class and C Class products based on average sales in descending
3. Clearance goods

CLASSIFICATION BASED ON SEASONALITY

1. New Launch - Specific Season
2. Continued - All Season
3. Continued - Specific Season

CLASSIFICATION BASED ON FLOOR PLANNING

1. Preferred Category
2. Impulse Category
3. Destination Category

CLASSIFICATION BASED ON BUSINESS STRATEGY

1. High Volume Goods
2. High Value Goods
3. High Margin Goods
4. Footfall drivers
5. Image Building Goods

CLASSIFICATION BASED ON INVENTORY TURNOVER
1. Runners
2. Repeaters
3. Strangers