Visual Merchandising A Passion for design and cr
Retail In India India’s annual retail market, estimated to hover between $450 billion and $500 billion. AT Kearney has also conducted a different study which says that organised retailers should follow hypermarket concept to penetrate through India’s US$ 435 billion industry The Rs 18,673 billion (US$ 401 billion) Indian retail market entails only 6 per cent of itself as organised retail segment as of 2010, according to Booz and Co (India) Pvt Ltd. Hence, there is a great potential to be explored by domestic and international players.
Retail In IndiaThe Business Monitor International (BMI) IndiaRetail Report for the fourth-quarter of 2011 forecaststhat the total retail sales will grow from US$ 411.28billion in 2011 to US$ 804.06 billion by 2015. Thereport has underlined factors like economic growth,population expansion, increasing wealth ofindividuals and rapid construction of organisedretail infrastructure as major drivers for theoptimistic forecast figures
Retail In India According to a research report named ‘Retail Sector in India’ by Research and Markets, Indian retail sector accounts for 22 per cent of the countrys gross domestic product (GDP) and contributes to 8 per cent of the total employment. The report further highlighted that hypermarkets (currently accounting for 14 per cent of mall space) will witness immense progress in the Indian landscape. Source Indian Brand Equity We need greater competition and therefore, need to take a firm view on opening up of the retail trade. – Manmohan Singh, Prime Minister of India
Retail Sector poised for phenomenal growth The IndianRetail Sector,currently theFifth largestin the world, is poised for phenomenalgrowth in thecoming years ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR
Looking back FDI Policy in Retail Sector • Globalisation and liberalisation have immensely influenced the Indian economy and have gone a long way in making it a lucrative consumer market. • The total retail spend is estimated to double in the next five years, of which organised retail growing at a CAGR of 22 percent is estimated to be c. 21 percent
Global Retail Scenario In developed markets, retailing is one of the most prominent industries. In 2008, the US retail sector contributed 31% to the GDP at current market prices. In developed economies, organized retail has a 75-80% share in total retail as compared with developing economies, where unorganized retail has a dominant share. Global retail sales was estimated to be around US$ 12 trillion in 20072;
Visual merchandising and communicationVisual Merchandising Communication (VMC) isone of the quickest and most cost effective ways toimprove retail profits. Every store space has a cost;misuse of that space eats into profit. , VisualMerchandising & Communication helps improvingthe conversion of visitors to purchasers andincreasing transaction values by encouraging multiplesales.
Purpose of Visual merchandising & Comm.The purpose of visual merchandising is to attract customers to the merchandisefor closer examination. Success in VMC involves the use of design.The elements of design include: 1. Color 4. Texture 2. Line 5. Light 3. Shape 6. Motion
The principles of designThe principles of design are: 1. Emphasis 2. Movement 3. Balance 4. ProportionEmphasis is drawing the attention of the viewer to the most important part of adisplay.Movement refers to the way the design guides the viewers’ eyes over an item ordisplay.Balance refers to the way items are placed around an imaginary centerline.Proportion refers to the size and space relationship of all items in a display.
Role of Store Design in Retail Environment• Store design is an extension of integrated retail communications• It is a powerful communication weapon• It communicates store image (store image versus customer self-concept)• Provides dual role of attracting customers, and inducing customer’spurchase decision.
Nature of store Design• Design for visual appearance (see it)• Design for a feel of environment (smell it)• Design for self-concept, store perception and reputation (status, and esteem)• Design for merchandise touch (physical appearance)• Design for image and reputation of a store.• Design for controversy (making people talk about it)
Objectives of Designing Store Environment• To provide a pleasant shopping environment• To provide a conducive environment for making shopping decisions andchoice• To create an attractive atmosphere for shoppers• To create alternative choice dimensions for consumers with shoppingexperience• To provide consumers with varied judgement of value.
Store Design Motives • To keep up with market competition • To introduce store concept to consumers • To upgrade the store relative to competitors • To improve customer satisfaction rate • To comply with environmental regulations.
Total visual merchandising process Store environment Merchandise In-store customer Consumer senses design presentation communications appeal Store facade Major trends Signs Sight Decor Store layout Tickets Walls Presentation methods Product information Hearing Floors Assortment Graphics Ceilings organsiation Sound Smell Lighting Category co- Atmosphere ordination Textures Taste Design Integrity Sample displays Entertainment Fixtures Education Touch Communications Heating & ventilation Featuring Active promotions Concept Services Lighting Personal services -ideas Interior partitioning Colours Cash points -images Modular systems Window displays Interactive kiosks Source: Management Horizons (UK) Ltd (McGoldrick, p456)
Display Techniques Open displays create involvement opportunity to touch/feel Theme displays local/national festivals (Cricket or Wimbledon) Life-style displays includes pictures & other ‘display props’ Names or concessions Collections of products linked to a brand. Window displays major attraction announce sales announce prices Category dominance displays display range & width using every size, colour etc. Power aisles Large quantity of a few items displayed
Factors supporting to an effective VMC• Materials: VMC is used to target groups of consumers. The messages sent outby different materials can help in this process.• Atmosphere: Formation of a subliminal message by the creation of an aura oratmosphere, which is interpreted favourably by the customer and results in highersales.• Lightening: Contributes to atmosphere, and overall design
Factors supporting to an effective VMC• Signage: When visual cues are not sufficient, then other type of messages canbe used for location and guidance purposes, to communicate corporate policyrelated to merchandise (brands, prices, sizes) & related to promotional activity• The Corporate Image: The outlet and its environment play a large part in theformation and maintenance of a corporate image. A favourable corporate image isvital to retain loyal customers. Updating and refurbishing stores tells the customerthe retailer is in touch with their needs• The Exterior Design: Communicates to customer who retailer is and what theystand for (Fascianame, logo, corporate graphics and colours) Store entrance opensemi-open funnel / recessed / lobby standard door Window Location
Factors supporting to an effective VMC Color: Color is often the most dramatic and noticeable design element. Colors grab attention, create a mood, or affect how someone feels. Warm colors increase blood pressure, respiratory rate and other physiological responses – attract customers and gain attention but can also be distracting Cool colors are relaxing, peaceful, calm and pleasant – effective for retailers selling anxiety-causing products
Visual MerchandisingVisual Merchandising is the art ofdisplaying merchandise in a mannerthat is appealing to the eyes of thecustomer. It sets the context of themerchandise in an aestheticallypleasing fashion, presenting them in away that would convert the windowshoppers into prospects and ultimatelybuyers of the product. A creative andtalented retailer can use this upcomingart to breathe in new life into his storeproducts.
Visual merchandising Requirement & info.. Visual merchandising and display basics •Why display •Colour and texture •Line and compensation •Light and lighting •Types of display and display settings Where to display Exterior of the store Display window construction Store interior
Visual merchandising Requirement & info.. Successful display Mannequins Alternatives to the Mannequin Dressing the three dimensional form Fixture Visual merchandising dressing fixtures Modular fixtures Modular fixtures and systems on store planning Furniture as prop Visual merchandising and display techniques Attention-getting devices Colour plates Familiar symbols Making and proscenia Sale ideas Fashion accessories Graphics and signage
Promotion and the Promotion Mix of VMC Sales Public Promotion Relations and Publicity Promotional Mix Personal Advertising Selling
Promotional Mix of VMC•sales promotion: In any form of communication a business uses to inform,persuade, or remind people about its products or to enhance its imagepublic relations: A promotional technique that uses any form of communicationto create a positive image for a business and non-paid message thatcommunicates information about a company’s merchandise, services, andactivities to the customers.Advertising: The purpose of advertising is to inform, remind, and persuade. Anadvertisement is designed to attract attention, develop interest, create desire, andproduce action.