The life cycle of product display rack can be generally divided into four stages: input stage, growth stage, saturation stage and decline stage
1. Product display shelf input period
When the product display shelf is put into the market, it will enter the investment period. At this time, customers do not understand the product display, only a few customers who pursue novelty may buy, and the sales volume is very low. In order to expand sales, a lot of promotion costs are needed to publicize the product display. At this stage, due to technical reasons, the product display rack can not be mass produced, so the cost is high, the sales growth is slow, the enterprise not only can not get profits, but may lose money. The product display rack also needs to be further improved.
2. The growth period of product display rack
At this time, customers are already familiar with the product display, a large number of new customers began to buy, and the market gradually expanded. With the mass production of product display shelves, the production cost is relatively reduced, and the sales volume and profit of the enterprise increase rapidly. When competitors see that it is profitable, they will enter the market one after another to participate in the competition. As a result, the supply of display shelves of similar products will increase, the price will drop, and the growth rate of enterprise profits will gradually slow down, reaching the peak of life cycle profits.
3. Product display shelf saturation period
The market demand tends to be saturated, the potential customers are few, the sales growth is slow until it turns to decline, which indicates that the product display frame has entered a mature period. At this stage, the competition is gradually intensified, the price of product display shelves is reduced, the promotion cost is increased, and the profit of enterprises is decreased.
4. Decline period of product display rack
With the development of science and technology, the emergence of new product display shelves or new substitutes will change customers' consumption habits and turn to other new product display shelves, which will make the sales and profits of the original product display shelves drop rapidly. As a result, the old product display shelf entered the recession.