What Is a Market Growth Rate?
Market growth rate refers to the growth rate of market sales or sales of products or services during the comparative period.
Market growth rate
Right!
- Chinese name
- Market growth rate
- Foreign name
- Market Growth Rate
- Calculation formula
- Comparative market sales-previous market sales
- Explanation
- Growth ratio of labor market sales
- Features
- Growth stage, the product has great growth potential
- Market growth rate refers to the growth rate of market sales or sales of products or services during the comparative period.
- Market growth rate = [comparative market sales (amount)-previous market sales (amount)] ÷ previous market sales (amount) × 100%
- Example: [(Market sales in August of this year) 800 pieces-(Market sales in July of the same year)] / (Market sales in July of the same year) x 100% = Market growth rate during this period
- The market growth rate index is the basic index for judging the life cycle of a product. The market growth rate of a product in different life cycle stages shows different characteristics:
- In the growth stage of the product, the product has huge growth potential and the market growth rate remains at a high level. This stage is the best time for companies to win new customers and expand market share. It can create conditions for more stable profits in the next stage. Enterprises can only increase sales growth and market share, increase product sales, Reduce costs to achieve economies of scale.
- During the maturity stage of the product, the market size of the product tends to be stable and the market growth rate is very small. At this time, the customers are relatively fixed, and it is difficult for the company to increase its market share. However, the company must pay attention to maintaining its market share. Efforts should be made to stabilize sales income, and to strengthen the management of production links, and strive to reduce production costs.
- During the decline period of the product, the market size of the product is gradually shrinking, and the market growth rate is negative. For this reason, the profit of the product has gradually fallen below the average profit of the industry. Therefore, even if the company has a high market share, it should make a gradual exit Decision. Enterprises should launch new products as soon as possible in order to gain new product market share.