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    Market Size

    Market size is the total number of shoppers or purchases made within a business’s given category, segment, or region.

    What Is Market Size?

    Market size is dependent on a number of factors and can be determined in various ways. A business might evaluate their overall market size, for example, to determine the number of customers or potential customers that will buy any product from the brand.

    Alternatively, the business might segment their market size assessment per product or region. A swimwear brand, for example, might have a different market size for customers in California than they do in North Dakota. Similarly, they might have different market sizes for pool products, safety gear, or clothing. Consumers engage with each of these products in different ways, so market sizes can shift dramatically based on consumer purchasing habits.

    Understanding market size is critical to a business’s success, especially in terms of launching new products, managing inventory effectively, and forecasting budgetary trends. It can also help a business identify new markets or compare market values.

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