Visual Merchandising: Creating Impactful Retail Displays

Visual merchandising (VM) is a key part of retail that affects how customers shop, from when they enter the store to when they buy something. It involves using display techniques, styling, and lighting to grab customers’ attention.

The concept began with Le Bon Marché in 1852, the world’s first department store, which used large windows and various displays. Harry Gordon Selfridge advanced VM in 1883 by improving store displays to make products more accessible and adding window decorations to attract customers.

Today, VM helps create a brand’s image and boost sales by ensuring a consistent look and feel in stores through clever use of lighting, displays, and layout. It’s not just for decoration but a powerful way to increase sales.

What Is Visual Merchandising?

Visual merchandising is an essential retail marketing tool. It uses display strategies like window displays to entice consumers to enter the store. 

Retail accounts for 10% of India’s GDP. The country’s growing middle class is one of the main drivers of retail growth. And each brand has exactly seven seconds to grab the attention of this rapidly growing market. Visual merchandising is important to encourage consumer interaction with the brand.

Understanding primary goals of Visual merchandising can help you figure out how to catch your audience’s attention.

Aspect	Focus	Purpose	Example
Store Layout	Efficient space use and accessibility.	Increase sales and attract walk-ins.	Place impulse-buy items near checkout counters.
Highlighting Features	Tools to illustrate product benefits.	Help customers find and understand products.	Use signage to direct customers to their favorite brand.
Revenue Growth	Visual merchandising as a silent salesperson.	Boost sales through effective displays.	Strategic product placement and strong visual appeal.

Visual Merchandising – Eligibility Criteria

Here’s a matrix table detailing the eligibility criteria for a career in visual merchandising:

Eligibility Criteria	Details
Education	– Basic: High school diploma or equivalent. – Advanced: Degrees or certificates in fashion management, retail marketing, or visual marketing may be preferred or required.
Experience	– Entry-Level: May not require prior experience. – Advanced Roles: Relevant work experience in retail or visual merchandising is often needed.
Skills	– Understanding the brand – Analytical skills – Commercial awareness – Computer literacy – Communication skills – Creative flair
Technical Skills	– Proficiency in design software (e.g., Adobe Creative Suite) – Knowledge of visual merchandising techniques
Personal Attributes	– Strong attention to detail – Ability to work under pressure – Teamwork and leadership skills (for advanced roles)

This table summarizes the key eligibility criteria for starting and advancing in a visual merchandising career.

Visual Merchandising – Key Components

Aspects	Effect	Example
Color	Affects mood and emotions.	Using bright colors to energize or calm colors for relaxation.
Lighting	Highlights products and attracts customers.	Spotlights on featured items or soft lighting for ambiance.
Messaging	Influences purchasing decisions with words and phrases.	Catchy slogans or informative labels on packaging.
Sounds	Adds store personality and attracts attention.	Background music or promotional messages.
Scents	Evokes positive feelings and memories, linking them to the brand.	Scented candles or fragrance in the store.
Technology	Enhances display with interactive or digital elements.	Touch screens for product info or promotional videos.

Types of Visual Merchandising

A visual merchandiser is skilled at capturing attention and enticing the customer to enter the store.  You can look into implementing numerous strategies to make your space interactive and user-friendly. There are various types of visual merchandising in retail.

Element	Description
Interior Displays	Displays arranged inside the store, including products and decor.
Store Layout	How the store is organized, including product placement, store flow, points of sale, and dressing rooms.
Mannequins	The type, styling, and positioning of mannequins to communicate messages to customers.
Point of Purchase Display	Signage, decor, and physical structures at the checkout area.
Bundling	Displaying related products together to show how they can be used together.
Store Environment	The overall atmosphere of the store or digital space, setting a tone for the brand (e.g., loud and fun or calm and serene).
Window Displays	Displays in store windows that attract the attention of passersby and potentially bring in more customers.
Outdoor Signage	Signs outside the store that communicate what the business is and set the tone for the space.
Exterior Fixtures	Items like marquees, banners, and awnings that create the first impression of the store.
Seasonal Displays	Displays that highlight new products, encourage additional purchases, and create seasonal interest.
Product Information	How product details are communicated, including labels, signs, typeface, and content tone, reflecting the brand.
Design Decisions	Choices like flooring and materials that create a physical representation of the brand’s style.

Also Read: 30 Profitable Side Business Ideas to Start in 2023

10 Steps to Create an Unforgettable Visual Merchandising Display

The primary goal of VM is to engage and encourage potential customers to visit the store. Follow these 10 simple steps to design an unrivaled display.

1. Research

Gathering insights into your target audience’s interests and pain points is essential as a retailer. Understand what your competitors are offering to the consumers and their marketing tactics as well. Use their marketing “negative space” to your advantage to connect with your target demographic.

Incorporate these insights into elements of your visual merchandising plan.

2. Ensure Safety

Visual merchandising in retail involves the use of various heavy fixtures. It’s important to ensure the security of these fixtures. If installed incorrectly, it might seriously injure customers and retail employees.

3. Interactive Elements

Encouraging customer interaction and sparking their curiosity can help boost brand engagement. Let your customers actively engage with your brand. It’s important to appeal to their sense of curiosity and wonder when planning your display visuals. For example, augmented reality allows your customers to interact with your brand.

4. Track New Trends 

Fashion merchandising trends are continuously updating. You must stay on top of these trends to remain relevant in the market. Everyone is fighting for the same seven seconds of attention from consumers. Utilizing current trends will keep your brand at the forefront of customers’ minds.

5. Examine your Space

Before you finalize a VM plan, first analyze your space. Improved space understanding will enable better customer experiences. A well-designed space will help set a positive brand image in the mind of your consumer. 

6. Invest in Merchandising 

Efficient visual merchandising has the power of enhancing brand recognition and recall. Your goal is to improve the buying experience of your customer by understanding their requirements.

7. Adapt your strategy

The success of each campaign depends on how you optimize it. Once a campaign is live, track its performance by measuring your product sales against footfalls. You can boost your sales by making changes when required. You can choose to change either the layout or the product colors in the display to better the consumer experience.

8. Keep your Visual Elements Balanced 

It’s important to understand how much of your display visuals are needed. While the visual elements need to draw attention they must be balanced. After all, the purpose of visual merchandise is to improve the purchaser’s experience. Be selective when choosing the colors and themes for your display.

9. Focus on a Theme

A thematic display will help differentiate new season products, sales, and other promotions for the consumer. Furthermore, It gives each launch a personality that sticks with the consumer. Analyze the emerging trends and finally combine them with the idea of the product to finalize a theme.

10. Consistency is Key

Themes may change with trends and each new product. But the brand voice and image must remain consistent. Once your brand image is cemented in the consumer’s minds you can build on it with consistency. It’ll help establish trust in your consumer base.

Also Read: What is Business to Consumer? Types of B2C Business Models, Pros, & Cons

The Role of Technology in Visual Merchandising

The landscape of visual merchandising is transforming with new and emerging technologies. Fashion merchandising, for example, uses AR Tech to demonstrate the product without a trial. Some of the technological advancements helping enhance customer engagement and repaving the landscape of VM are –

Augmented Reality

More businesses are using augmented reality to draw in customers. The AR display at Tilly’s in California is among the best instances of how to draw attention and get people to stop. Finally, The store’s augmented reality display showcased products floating mid-air alongside other animated characters. 

Virtual Trials

Thanks to virtual try-on, customers can now experience merchandise without trying it on. Saks Fifth Ave partnered with Rock Paper Reality to create a virtual reality experience. Customers could check out the Saks clothes rack through their phones or smart glasses. Additionally, the experience included recommendations for related clothing and accessories.

QR Code Integration

The Starbucks Reserve store in Mumbai is one of the finest examples of QR integration. All you need to do is to scan the QR code at the entrance. Further, The store’s surreal painting comes to life on the phone screen as you move your camera over it.

Interactive Display

Visual merchandisers are coming up with innovative ways to interact with customers. In 2013, the team at Nike installed interactive displays in various stores around London to promote their new products. Besides, The displays were powered kinetically and some encouraged passersby to jump high to emulate a basketball dunk. 

Visual merchandisers’ biggest challenge today is to generate interest from prospective audiences. Integrating technology into the store experience can enhance the customer experience. But there are a few benefits and drawbacks of utilizing such technologies in VM as well.

You can increase your reach by implementing new innovative technologies. In addition, The 3D try-on technology from Lenskart is one illustration of this. Their 3D try-on tech enables customers to test out their many offerings from their homes.

But integrating these technologies might be very costly. These are still emerging technologies and maintaining and updating them may be expensive.

Visual Merchandising – Strategy

To define the shop’s image, you’ll need a solid visual merchandising strategy that addresses every aspect from the outside in. This means focusing on the design of the shop’s façade, windows, interior layout, furniture, lighting, and product placement to create a strong and cohesive look.

Measuring the Success of Visual Merchandising

Maintaining a retail space is expensive, so retailers closely monitor store performance. Measuring the impact of visual merchandising (VM) on sales can be challenging, but it’s crucial.

Key Performance Indicators (KPIs) for Sales Tracking:

• Walk-ins
• Units Sold
• Transaction Values
• Product Sales
• Returning Customers

Example:

• Weekly Metrics:
  • Average units sold per transaction: 2.23
  • Average transaction value: 4176 INR
  • Total invoices: 131
• Current Display:
  • Running shoes (3000 INR) featured at the storefront.
  • Accessories like socks, mobile armbands, and running gear displayed at the point of sale (POS).
  • Matching t-shirts and shorts featured in-store.

Measuring VM Impact:

1. Check Sales: Track the number of bills including the running shoes.
2. Analyze Add-Ons: Review which accessories were purchased with the shoes.
3. Sort Invoices: Use price filters to analyze the data.

Success Criteria:

• High purchase rates of shoes along with the displayed apparel and accessories.
• POS merchandise should also show high sales rates.

Your VM strategy is successful if it drives significant sales of both the featured products and add-on items.

Visual Merchandising – Great Examples

Store	Technique	Description	Impact
Apple Store	Product Demonstration and Clean Layout	Sleek, minimalist design with products arranged on tables for hands-on engagement.	Highlights product features and encourages interaction.
IKEA	Room Settings	Fully furnished room setups to demonstrate how products can be used in a real home.	Helps customers visualize products in their own space.
Sephora	Interactive Displays and Tester Stations	Interactive displays and clear signage to guide customers through different product categories.	Enhances customer experience by allowing product testing.
Nike	Dynamic Window Displays	Eye-catching displays featuring athletes and latest products in action.	Grabs attention and communicates brand identity.

This table focuses on four prominent examples of visual merchandising and their impacts.

Visual merchandising is an Important Element of Marketing

Visual merchandising in retail is essential to establishing a brand image. Initially, visual design was used to enhance the customer’s experience. It has since developed into a way to increase sales through the use of visuals. As a result of this, visual merchandising is a highly effective marketing technique. 

With emerging technologies, visual merchandising is taking on a new life. Visual merchandisers are actively integrating augmented reality elements, and mobile and QR activations in their designs. These new emerging trends can help you encourage customers to engage with your brand in real-time. 

An efficient VM strategy will help you establish and maintain your brand image in the market. While planning your store layout consider window displays, color schemes, themes, fixtures, and lighting. An efficient VM strategy will boost your brand’s visibility and improve sales.

Frequently Asked Questions (FAQs)

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