Maturity and decline

Maturity and decline are the final two phases of the product life cycle. In maturity a product is at its most popular; in decline demand falls away and the business must decide whether to keep selling it.

Maturity

In the maturity phase sales are at their highest. Most customers who want the product already own it, so sales stop climbing and level off.

How long maturity lasts varies by product and market. A plain cotton T-shirt or a standard kettle can stay in maturity for decades, while a novelty gadget may peak within a few months. Businesses aim to stay in growth and maturity for as long as possible, often using extension strategies to hold off decline.

Maturity can bring real benefits: high sales mean high revenue, and if costs are controlled the product can be highly profitable and generate positive cash flow, with more money coming in than going out. Marketing spending to grow sales may also be lower, because customers already recognise the product.

None of this is guaranteed. Rival products, rising costs and changing customer tastes all eat into profit, so a product with record sales can still earn very little.

Decline

In the decline phase sales fall, usually because newer alternatives or shifting tastes make the product less appealing. Eventually the business may withdraw the product and use its resources on something else.

A business may keep a declining product on sale for a while if it still earns a contribution (what is left of the price after variable costs), if loyal customers keep buying, or if costs are low because development and promotion have stopped. For example, Luma sells plug-in night lights for young children. Sales peak as most families who want one buy one, then slip as phone apps replace them; Luma keeps selling to loyal parents for two more years because each light is cheap to make, before withdrawing it.