LIGHTS. DESIGN. ACTION.
Every inch counts. At least that›s how designers, visual merchandisers and owners curate a store as every space and area in a shop can both cost as well as bring you money. The time-tested concept of visual merchandising that enhances the aesthetic appeal of a product or store to attract customers and increase sales is a crucial element of retail that is becoming more prominent now that 'experience' is the name of the game retailers.
Understanding the evolution of store design, significance of retail merchandising, and the untapped potential of the different physical elements of a store is an art, which is scientific enough that the results can be quantified... in dollars.
So what is visual merchandising?
Quite simply put, it is a retail strategy that maximises the aesthetics of a product with the intent to increase sales. When done well, it can increase brand awareness, contribute to customer acquisition and help the physical store be a retailer's marketing campaign.
In order for this to be successful, there are a number of key components that retailers need to keep in mind. These may range from signage, lighting, point of sale material, textures, package and even staff uniforms, the physical pathway, and a loud and clear theme that stands out. While the “wow-factor” adds to the appeal, it is also important for anyone walking into a legacy store to be able to recognise which store they have walked into without having to read the signboard outside. Yes – consistency and familiarity is equally important and that is what helps customers resonate and relate with a brand.
Research from the pre-pandemic era suggests that 50% of the purchases are an impulse buy. Well, that might have changed now as people are still quite uncomfortable spending long hours in a shop or to be window shopping around malls, but impulse buyers are still around. Another research suggests that 60% of a customer’s purchasing decision is based on colour. A 21-week research project in The Netherlands noted that LED lighting scenarios did affect buying behaviour. It reported that an almost 2% increase in sales could be attributed to dynamic lighting installation.
So now you know why visual merchandising can be important. But how to get it right? There are some traditional principles such as grouping different products on display, displaying new products at the entrance, and showcasing the more exclusive and expensive products that the customers desire on the window. However, in today’s age of “new retail” and stores becoming a stage or media or an experiential venue, there is no strict formula a retailer can follow to get visual merchandising right.
Retailers need to start thinking out of the box, to get their message and story across in the loudest, most dynamic and enticing way with the ultimate goal being to ensure customer satisfaction and a seamless journey that leaves them beaming without overwhelming them.
Make it lit
Of all senses, lighting has a direct influence on moods, with 80% of sensory information coming from the eyes. From a retail perspective, lighting highlights architectural elements, product qualities and creates virtual spaces. This affects how a customer feels in a space, their opinion of a product, and ultimately, their decision to purchase or not.
CION Lighting recently unveiled its new factory with the aim to revolutionise retail lighting with its range of innovative products.
“We are very excited about this project and hope to revolutionise and be the catalyst for change in the region. Our aim is to innovate in every step of the game, provide the quality we promise, and be an active part of what is perhaps the most important sector for the UAE’s non-oil economy – retail,” Andrea Girardello, Business Director, CION Lighting.
According to Paul Imbusch, Creative Visual Merchandising Manager, lighting and merchandising goes hand-in-hand. “If the merchandise is good and lighting is not taken care of, then my entire work will go to waste. Simply put, without good lighting I just can’t make my product as attractive as I’d intend it to be,” he said.
However, good lighting doesn’t necessarily mean more lights. More isn’t quite the merrier in this case. “I have seen many shops that are either over-lit or are very dark - there are shops where we see lots of lights on the ceiling but no lights on the work plane or the merchandise and products. And that is a problem,” he said.
A shop is a place where customers must have a good experience and be in a good mood so they decide to spend more time and eventually shop there. If the ambiance is bad due to bad merchandise and lighting, it could drastically affect sales.
“Based on the type of shop and the materials, there are many things to be taken care of - like wattage, kelvin, angle beam, light layout along with merchandise. So retailers need to start investing in good lighting. Because if they don’t, they’ll lose on providing a good customer experience, they will have to increase the number of units, which will ultimately add to the costs, and a lot of energy will be wasted in the process, and everyone is trying to be more sustainable and environmentally conscious today,” he added.
Michael Ripfl, General Manager, Global Brand & Travel Retail, Umdasch feels extremely strongly about the importance of lighting and goes to the extent of saying that good lighting can actually fix imperfect paint, furniture or floor.
“There is a direct impact on sales as well. Research has shown that well thought out lighting can affect cognitive purchase behaviour. As such, it makes sense for retailers to understand the kind of lighting best suited to showcase their product lines. Technologies like LEDs, now allow lighting to be fully incorporated into any architectural elements thereby opening up lighting opportunities exponentially,” he said.
“One would think to light up a store as intensely as possible to emphasize the merchandise. Interestingly, brighter lights affect the buying decision of the consumers in specific contexts. The key is to have a customized lighting solution that matches the brand aesthetic through contrasting light systems. Contrasting light not only highlights certain dimensions of a product but also helps move customers along the buyer journey,” he concluded.
Lay it out right
The art of visual merchandising is more than just about making a store look pretty. When done right with the right kind of architects, investments, and a strategic plan towards achieving a specific objective, visual merchandising can play a vital role in generating money for a store. Clear pricing, well-stocked shelves, simple displays and prominent signs can help drive profits while improving the shopping experience for customers.
Interstore | Schweitzer, a renowned design & shopfitting company with offices around the world, is specialized in developing and implementing concepts for the food and non-food sectors, putting emphasis on product presentation, clear communications and close collaborations with the global leaders of retail.
“In most of our projects worldwide, we bring the stores to a point where they make more money and more margins. Doing a nice store is not complicated but doing a successful store that makes money that the shareholders are happy with, is what we are known for,” said Bernhard Heiden, CSO and Creative Director at Interstore | Schweitzer.
Considering majority of the company’s clients currently are food retailers, for whom 2020 wasn’t a dull or slow year and instead was one of the most active and challenging years, it has been quite busy for Interstore | Schweitzer too.
According to Heiden, it is important to identify what a client has to offer that is different from their competitor and then work towards making them a specialist in their own niche category.
“Migros for instance is the biggest food retailer in Switzerland. A few years ago, all we did was separate the fresh produce from the pre-packed industry produce. Everything that was homemade was arranged in the fresh area and everything that came from industries all over the world was put in another area,” he said.
“Just by dividing these categories, we increased the turnover in the homemade section really dramatically,” he explained.
Case in point: Central Food Hall Ladprao, Bangkok
More recently, Interstore | Schweitzer was involved with the total revamp of Central Food Hall Ladprao in Bangkok, who approached them with the brief of delivering a high-quality fusion between an inspiring food hall and a world-class international supermarket. How was this achieved?
“We changed the way Central Food was operating in the fresh areas. One big part was the layout. We changed the flow and the way they operate in terms of the customer,” he said. The most significant and innovative feature is that in most departments the specialists are available to assist customers next to or in front of the counters, avoiding any physical barriers between customers and the product ambassadors.
The scope of the new concept also included architecture, design and in-store communication. They developed individual brand identities for each of its unique departments, which fit seamlessly together in the overall concept and allowed harmonious connection between the differing fresh departments.
These individual departments range from an Austrian baker, the German butcher and the French cheese and wine experts and are all characterized by delivering a superior service.
“It takes a true expert to turn a vision into reality, a dream into a success story. We feel fortunate to have worked with Interstore | Schweitzer in our Central Food Hall, Ladprao project, which has been an astounding success as it has become the new destination for connoisseurs of extraordinary food and exceptional service,” said Stephane Coum, CEO of Central Food Retail Company Limited. ■