Industry Spotlight Signage
The Indian organised retail Industry is growing at 21% and VM&RD estimates the top 25 retailers to be occupying about 75 Million sft of retail space. This space uses about 15 million sft of signage fundamentally as Exterior Signage, Interior Signage, Way Finding Signage, Merchandising Signage and information signage. Some are permanent signage, some temporary and some are dynamic signage used to create interest, inspire, inform and entertain shoppers in retail environments. Some interesting information from surveys done by various retailers on the impact of signage on businesses indicate
About 70% of consumers (8 in 10) entered a store for the first time based on the signage
About 75% notice a store primarily because of the store front signage
About 55% are deterred from entering a store with a poor quality of a store signage
About 65% of shoppers believe that a signage reflects the quality and seriousness of a retailer
About 65% of the browsers are believed to have converted to shoppers because a sign caught their eye
About 60% of stores have reported an increase of about 10% of sales simply by enhancing the visibility of their signage
VM&RD’s survey of the top 18 retail signage specialist in India gives an interesting overview of the services and expertise available in India for the massive expansion and operations of brand and retailers. Top global brands entering India have ratified the quality of signage vendors in India by procuring all their signage requirements from the Indian Signage Industry.
Muti-dimensional offerings: Most of the signage specialists offer multiple products and services for clients across industries making good quality a democratized availability in the Indian market. The three key factors that retailers and brands in India demand are attractiveness/quality, cost effective and rapid deployment/execution. A lot of the conventional technology and media is being replaced by newer ones that have been a result of extensive R&D and investments in new media machines. Challenge in attaining global benchmarks: Though the industry is growing steadily at a CAGR of 21% the challenges have been the availability of the global best in class, the consistency of quality and the high dependence on the skill of the production staff. The other side of the coin reveals that the high pressure on low cost expectations from clients make the delivery of global benchmarks quite unviable for most of the players.
New Trends: Corporate Retailers and Brands in India are moving towards ridged & dimensional letters for signage in line with global trends. In India, 50% of the demand is still predominantly flex signage.
Internationally, the mature retail global markets have increased the use of dynamic digital media and content with video walls and LED graphic signs which India is catching on to. One good trend is that brands owners are willing to be educated about the synergies between architecture, brand and the signage helps increasing the appreciation and discernment in good quality. The growth engine: The Indian Retail Signage Industry has been growing at about 21% (incidentally the same CAGR as that of the retail industry) with an average age of the Indian Signage Industry being about 15 years and reducing steadily with more new players entering the Industry. On an average, they focus about 40% of their productions for the Retail Industry. The production facility space of these players is about 300,000 sft with an average of 20,000 sft for each with an average of about 65 staff manning each facility. Surender Gnanaolivu