Should a slow-moving SKU be removed from the catalog? Should the price of sunscreen be adjusted before a major sale? When working with brands, what should Category Managers rely on to propose additional promotional budgets or changes to partnership policies?
These are common decisions in the beauty industry on e-commerce platforms. Internal sales reports show how products are performing within the store, but they don’t fully explain what’s happening outside. Market insights provide additional perspectives on pricing, competitor activity, and market demand, helping Category Managers assess issues within a broader context before choosing a course of action.
Why Category Managers Need Market Insights
When managing hundreds of SKUs from various brands, Category Managers typically combine three sources of information: internal sales data, information from suppliers, and personal experience.
- Internal sales reports: These indicate which SKUs are selling well, which products are slow-moving, inventory levels, and the profitability of each item. However, these reports do not fully reflect demand for products the company does not currently carry or how the current product portfolio’s pricing compares to competitors on Shopee, Lazada, and TikTok Shop.
- Information from suppliers and brands: Helps understand product features, business plans, and support programs offered by brands. However, since each brand typically focuses on its own goals and product portfolio, the information received may not fully reflect the broader industry landscape.
- Personal experience: Useful for evaluating products and handling unexpected situations. But as the product portfolio expands, relying solely on experience makes it difficult to keep up with all changes in pricing, promotions, and market competition.
Market insights fill in the missing information by tracking observable market data (such as selling prices, promotional programs, product visibility, reviews, inventory status, and estimated sales) when data sources support it.
For example, when an SKU is selling slowly, a Category Manager can compare the product’s performance with other SKUs in the same segment to determine whether overall demand is declining or the product is losing its competitive edge. Before adding a new SKU, data on search trends, competition levels, and products currently available on the platform also helps provide a clearer assessment of the opportunity.
It’s important to note that market insights only reflect what the collected data allows us to observe. Publicly available data on the marketplace does not reveal competitors’ exact profit margins, operating costs, or actual wholesale sales figures. Therefore, this information should be used to validate assumptions and identify market issues, then cross-referenced with internal data before making a decision.
A Framework for Turning Market Insights into Business Decisions
To avoid wasting time tracking metrics that do not directly support their work, Category Managers can start with a specific business question and then follow a four-step process: define the decision, select the data, set action criteria, and evaluate the results.
1. Define the Decision to Be Made
A goal such as monitoring competitor prices remains too broad unless it is clearly defined what that information will be used to decide.
Before the 11.11 sale, for example, the question might be whether to lower the price of Sunscreen X to compete with similar products. In next month’s category plan, the issue might be whether to continue stocking Serum Y when sales are slow.
Defining the right question from the start helps narrow the scope of the analysis and avoid collecting unnecessary data.
2. Select the Right Market Data
The data to track depends on the decision being considered.
For pricing analysis, the Category Manager might examine post-coupon prices, promotion frequency, and trends among products in the same segment. When comparing, it’s essential to ensure consistency in volume, variants, and the timing of data collection, while distinguishing between list prices and discounts from e-commerce platform coupons or seller promotions.
If you’re considering expanding your product portfolio, search trends for niche product categories, the number of products meeting that demand, and the level of competition on the platform will be more useful than price metrics that aren’t directly relevant.
Refer to: How to Scrape E-commerce Data in 2026 (Methods, Tools, and Use Cases)
3. Determine the Conditions for Action
Market data shows what competitors are doing, but not every move requires an immediate response.
If a competitor lowers the price of sunscreen, the Category Manager should assess how long the price cut will last, whether it affects the competitiveness of the SKUs under their responsibility, and whether the new price still meets profit targets. If matching the price causes profits to fall below an acceptable threshold, the company may consider alternative strategies rather than engaging in a price war.
Establishing criteria before taking action leads to more consistent decision-making, especially when the market experiences short-term volatility.
4. Evaluate Results After Implementation
After adjusting prices or changing the product lineup, compare the results with the previous situation and the overall trends in the industry during the same period.
Suppose sunscreen sales increased by 20% following a sale. This increase is not sufficient to conclude that the decision was successful if the entire segment grew at a faster rate. When reliable data is available, the Category Manager should also examine market share, actual selling prices, and profit margins to assess whether the product has improved its market position.
Documenting decisions, supporting data, and results after each cycle also helps the team identify which strategies have been effective in specific situations, thereby shortening the analysis time for future cycles.
Refer to: Ecommerce Analytics Metrics Every Beauty Brand Should Track for Growth
Category Management Decisions You Can Improve with Market Insights
Market insights can support Category Managers in many day-to-day tasks, from adjusting the product assortment and pricing to evaluating promotions, collaborating with brands, and identifying risks early on. Below are five scenarios where market data can provide critical perspectives for the decision-making process.
1. Retain, Cut, or Add Products to the Assortment
A slow-moving SKU doesn’t necessarily need to be discontinued. The product may serve a niche customer segment, generate good profit margins, or help drive sales of other SKUs. Therefore, it’s important to consider both business performance and the product’s role within the assortment before making a decision.
| Product Group | Internal Data | Market Insights and Action Plan |
|---|---|---|
| Revenue Pillars | Strong sales velocity, high GMROI | If competitive position remains stable, maintain inventory and prioritize sales resources. |
| Bumper Products | Sell quickly, low profit margin, often purchased alongside other SKUs | If pricing remains competitive, consider retaining the product and bundling it with higher-margin items. |
| High-Margin Niche Products | Sell slowly but have good profit margins | If there are few comparable alternatives, maintain inventory levels appropriate for demand. |
| Candidates for Discontinuation | Slow-moving, low inventory efficiency, high return rates, or numerous negative reviews | Check whether the product is losing its competitive edge or if demand across the entire segment is declining before deciding to discontinue sales. |
For SKUs not yet in the catalog, a rising search trend for a specific feature (such as non-greasy gel sunscreen) combined with a limited number of products meeting that demand may present an opportunity worth considering. However, before placing an order, the Category Manager must still assess the actual demand, supply capacity, and financial viability of the new SKU.
2. Deciding Whether to Lower Prices in Response to Competitors
When a competitor lowers prices, the first thing to determine is whether that price cut actually puts pressure on the SKU you’re responsible for. The decision on how to respond should be based on the product’s market position and the profit margin the company can accept.
There are three factors to consider:
- Actual selling price: Compare prices after applying vouchers and current promotions, rather than just looking at the list price. Ensure you’re comparing the exact product, size, and variant.
- Extent and duration of the price reduction: A short-term promotion does not necessarily require an immediate response. If multiple sellers maintain low prices over an extended period, the Category Manager should reassess the SKU’s competitive position.
- Ability to maintain profitability: Determine the lowest price the company can accept. If matching a competitor’s price causes profit margins to fall below target, consider other advantages such as store reputation, service, or alternative product options.
Competitors’ out-of-stock situations are also worth monitoring. If a competing product is out of stock for a sufficiently long period and the company still has a stable supply, its SKU may have an opportunity to attract additional orders without needing to lower prices.
A good price must be both competitive and aligned with the product’s profit targets. Therefore, Category Managers should tailor their response to the specific context of each SKU rather than automatically assuming they must sell at a lower price than competitors.
3. Evaluating Promotion Effectiveness
Increased sales during mega-sale campaigns are not sufficient proof that a promotion is effective. Some orders may simply shift from one SKU to another (cannibalization), or customers may purchase earlier rather than in subsequent weeks (demand pull-forward).
To assess the actual impact, Category Managers should compare sales during the sale period with typical sales levels, while also tracking related SKUs and results in the post-promotion period. They should then compare the sales increase with discount costs, promotional expenses, and profit margins to determine whether the program added value.
Competitors’ promotional data helps contextualize the results within the broader industry. For example, if an SKU’s sales surge but still lag behind the segment’s growth rate, this may indicate that the product has not improved its competitive position. In such cases, it is necessary to reassess the discount levels, implementation strategy, and product selection for the campaign, rather than relying solely on revenue generated during the sale period.
4. Negotiating with Suppliers and Brands
Internal data reveals the store’s business performance but does not fully reflect how a brand is competing in the broader market. Market insights can provide additional evidence to help Category Managers engage in more specific discussions regarding pricing, support budgets, and category plans.
Public data on e-commerce platforms cannot replace wholesale figures, contracts, or supplier cost information. Low retail prices alone are not sufficient to conclude whether a brand has high or low profit margins. When preparing for a meeting with a partner, the Category Manager can use market insights to ask more specific questions about pricing, coverage, and support levels, and then compare these with the actual terms of the partnership.
5. Early Detection of Operational Risks and Market Fluctuations
Certain changes on the marketplace may serve as warning signs before their impact becomes evident in sales reports.
Notable signals include:
- Multiple sellers running out of stock: This may indicate increased demand or a supply disruption. Compare this with historical inventory data, restocking times, and information from suppliers before increasing purchase volumes.
- Simultaneous price drops for a specific brand: Check whether this is due to a promotion, clearance of excess inventory, or changes in the distribution system before adjusting your own prices.
- Repeated negative reviews across multiple storefronts: Similar feedback regarding quality or packaging may warrant a product review. However, verify the consistency and source of the feedback before drawing conclusions.
- New regulations in the target market: Monitor announcements from regulatory agencies and verify the requirements applicable to each SKU with the supplier. In Indonesia, for example, businesses need to check official Halal regulations related to their products before adjusting their business plans.
These signals help identify issues that require investigation, but they are not sufficient on their own to determine the cause. Before changing prices, order quantities, or the product catalog, Category Managers should verify the information with appropriate sources.
How to Automate Market Monitoring for Category Management
When a product portfolio includes hundreds of SKUs on Shopee, Lazada, and TikTok Shop, manually checking every price and promotional program daily is resource-intensive. The frequency of monitoring should be based on the rate of data fluctuation and the extent to which that metric impacts business decisions.
A sample monitoring schedule might be organized as follows:
| Frequency | Monitoring Content | Purpose |
|---|---|---|
| Weekly | Post-coupon prices and display positions of key SKUs | Early detection of changes that may affect competitiveness. |
| Monthly | Fluctuations within segments, SKUs with persistently low sales, and gaps in the product catalog | Review the product portfolio and identify items requiring reassessment. |
| Before and after a sale | Baseline sales, growth during the promotion, and sales fluctuations of related SKUs | Evaluate promotion results and determine whether sales growth in one SKU stems from reduced orders for another SKU. |
| Before the meeting with the brand | Price positioning, distribution coverage, and reliance on promotions | Prepare data for discussions on pricing, support budgets, and portfolio plans. |
In addition to regular monitoring schedules, businesses can set alert thresholds for fluctuations that require early attention, such as when a competitor’s price drops below a set level or a key SKU loses a critical display position. These thresholds should be defined based on each SKU’s specific objectives; if set too broadly, the team may receive numerous alerts but little useful information.
Easy Data automates the collection and organization of e-commerce data into visual reports, making it easier for teams to monitor the market across multiple platforms. Depending on the configuration and update frequency, this automation can reduce the workload of manual data collection, allowing Category Managers to spend more time analyzing market fluctuations and evaluating business strategies.
Conclusion
Category management requires balancing revenue, profit, inventory, and competitiveness goals. Market insights help Category Managers identify changes outside their storefront before deciding whether to retain an SKU, adjust prices, or propose a budget to the brand.
The greatest value of market data lies in the questions it helps the team ask at the right time: Is a product losing its competitive edge, or is demand actually declining? Does a promotional program generate additional sales, or does it merely shift orders? And does a new opportunity have a solid enough foundation to be added to the portfolio? Answering these questions will help ensure that category management decisions are more closely aligned with the actual business situation.
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