VirtueMart supports categories for your products for better products categorization. You can create a product category via your Joomla administrative panel -> Components -> VirtueMart tab. From your store Control Panel, please scroll down to the products menu on the left and click on the Add Category link.
On the next page you are provided with text editor where you can input your category name and description as well as set your category as published. You can click on the save button on the top right corner when you have all the information applied for your new category.