Brief Summary
This video features a conversation with Shruti, a seasoned category manager, who sheds light on the world of e-commerce and retail, specifically focusing on category management. She explains what category management is, how one can venture into this field, the daily responsibilities of a category manager, and career growth opportunities. The video also offers valuable advice for aspiring category managers.
- Category management is about organizing a business into smaller units for a focused approach.
- An MBA can be an easy entry point, but it's not mandatory.
- Key skills include being good with numbers, negotiation, and communication.
- E-commerce offers faster career growth compared to traditional retail.
- Understanding customer needs is crucial for success in category management.
What is category management
Shruti explains that category management is a retail concept applicable to e-commerce, involving breaking down a large business into smaller, manageable units. This allows for a more focused approach, from understanding customer needs to delivering targeted products. For example, Amazon divides its offerings into categories like electronics, home, fashion, and mobiles. Managing these smaller business units is what category management is all about.
Shruti's journey as a category manager
Shruti shares that her entry into category management was organic, stemming from her fashion background as a NIFT graduate. Retail was a natural career path for her, and driving business in retail requires understanding customer needs and building an assortment accordingly. Her experience working with various brands, both in and outside of fashion, paved the way for her career in category management.
How to venture into category management
To enter category management, Shruti advises identifying with a specific category. Her fashion background made it easier for her to enter the fashion retail sector. Similarly, someone with experience in electronics or mobiles can leverage that knowledge to enter those industries. Understanding the customer's requirements for a particular category is essential for managing it effectively.
Venturing into category management without a marketing / fashion background
For those without a direct background in marketing or fashion, Shruti suggests that an MBA can be a helpful entry point. Alternatively, one can start from entry-level positions like merchandiser, buyer, or retail owner before moving into category management. These roles involve forecasting demand, planning, buying, and pricing, which are crucial aspects of managing a category. Category management is essentially a customer-centric business development role.
Who should consider category management
Category management is ideal for individuals who enjoy owning an entire business, from procuring suppliers to ensuring customer satisfaction. It involves managing everything end-to-end within a specific category. A key aspect is driving sales to make the category bigger, requiring strong numerical skills to chase both top-line and bottom-line growth. Category managers are essentially P&L owners of their category.
Day-to-day of a category manager
A typical day for a category manager involves checking the previous day's sales to identify missed opportunities. It's crucial to ensure that the supply matches the demand generated by the marketing team. Challenges such as product gaps, delivery issues, and incorrect pricing need to be addressed. Category managers also work on building assortments for the year, managing supplier contracts, and developing new strategies to meet customer demands and ensure profitable growth.
Career growth as a category manager
In e-commerce, category managers typically start with a smaller business unit and gradually take on more responsibility as they perform well. Growth is measured by the increasing share of business they manage. While there isn't a fixed hierarchy, there are category leaders and heads who oversee smaller business units. The industry is relatively new, offering faster career progression, with some leaders reaching C-level positions within 8-10 years.
Advice for aspiring category managers
Shruti advises aspiring category managers to stay connected with customer needs and aspire to be marketers. Matching customer demands with the right products at the right place and time is crucial. It's important to continuously improve knowledge, understand the company's direction, and be passionate about the category being represented. A strong understanding of marketing principles is also beneficial in this business role.
