6 % " + Edited by: Dr. Anand Thakur VISUAL MERCHANDISING Edited By Dr. Anand Thakur Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for Lovely Professional University Phagwara SYLLABUS Visual Merchandising Objectives: Students will be able to assess the marketplace in terms of the contemporary trends of visual merchandising in a typical retail store environment. Students will be able to develop a strategy for the styling and visual merchandising in a store for a wide variety of products categories like apparel, electronics, grocery, food, home care etc. Students will be able to maximize the impact of any retail display space. Sr. No. Topics 1. Retailing: Definition, Evolution and Formats, Relating Retail with Customer Profile, The Indian Retail Industry. 2. Visual Merchandising: Definition and Functions, History, Understanding Retail in India. 3. Retail Store—Site and Design, Image Mix: The Top Six Elements, Store Exteriors, Store Interiors. 4. Display Basics, Design Basics, Principles of Design, Colour Blocking—People Buy Colours, Signage, Understanding Materials. 5. The Purpose of Planning Fixtures, Types of Fixtures. 6. Circulation Plan and Types of Circulation Plans, Meaning and Purpose of a Planogram, Benefits of a Planogram, Implementation and Maintenance of a Planogram. 7. Meaning of Merchandise Presentation, Principles of Merchandise Presentation, Categories in Merchandise Presentation, Dominance Factor in Merchandise Presentation, Cross Merchandising. 8. Window Display—Meaning and Scope, Vis-à-vis Merchandise, Types of Setting, Promotional Display Vs. Institutional Display, Window Display—Construction. 9. Styling, Display Calendar, Sales Tracking, Handling the Mannequin, Props, Lighting, Organising an In -store Event, VM Tool Kit, Quality and Process in Visual Merchandising, Standard Operating Procedures (SOPs). 10. Brand Experience—Brand-centric to Customer-centric, Experience Design—Beyond Visual Merchandising, Generation C—The Changing Consumer, The Magic of Augmented and Mixed Realities, Experiential Retail— The New Retail Scenario. CONTENT Unit 1: Introduction to Retail 1 Pavitar Parkash Singh, Lovely Professional University Unit 2: World of Visual Merchandising 23 Pavitar Parkash Singh, Lovely Professional University Unit 3: Image Mix 40 Anand Thakur, Lovely Professional University Unit 4: Store Exteriors and Interiors 63 Pavitar Parkash Singh, Lovely Professional University Unit 5: The Basics of Visual Merchandising 83 Anand Thakur, Lovely Professional University Unit 6: Store Planning and Fixtures 119 Anand Thakur, Lovely Professional University Unit 7: Retail Design and Circulation Plan 138 Pavitar Parkash Singh, Lovely Professional University Unit 8: Planograms 157 Anand Thakur, Lovely Professional University Unit 9: Merchandise Presentation 172 Pavitar Parkash Singh, Lovely Professional University Unit 10: Dominance Factor in Merchandise Presentation 190 Anand Thakur, Lovely Professional University Unit 11: Window Displays 203 Pavitar Parkash Singh, Lovely Professional University Unit 12: Visual Merchandising – Hands On 224 Pavitar Parkash Singh, Lovely Professional University Unit 13: Quality and Process in Visual Merchandising 249 Anand Thakur, Lovely Professional University Unit 14: Experiential Retail 262 Pavitar Parkash Singh, Lovely Professional University Pavitar Parkash Singh, Lovely Professional University Unit 1: Introduction to Retail Unit 1: Introduction to Retail Notes CONTENTS Objectives Introduction 1.1 Retailing: Definition and Meaning 1.2 Evolution of Retailing 1.2.1 Story of Retail Revolution 1.3 Retail Formats 1.3.1 Trends in Retail Format 1.3.2 Recent Changes 1.4 Relating Retail with Customer Profile 1.5 The Indian Retail Industry 1.5.1 The Indian Retail Scene 1.5.2 Growth of Retail Sector in India 1.5.3 Industry Evolution 1.5.4 Factors behind the Change of Indian Retailing Industry 1.5.5 Key Challenges of Indian Retail Industry 1.5.6 Opportunities in Indian Retailing 1.6 Trends in Retailing 1.7 Summary 1.8 Keywords 1.9 Review Questions 1.10 Further Readings Objectives After studying this unit, you will be able to: Define the Term Retailing Discuss the Evolution of Retailing Describe the Formats of Retailing Relate the Retailing with Customer Profile Explain the Indian Retail Industry Introduction Retailing comes at the end of the marketing distributive channel. The word ‘retail’ has been derived from the French word “taillier” and means ‘to cut a piece’ or ‘to break bulk’. It covers all LOVELY PROFESSIONAL UNIVERSITY 1 Visual Merchandising Notes the activities involved in the sale of product and services. Retailing is a high-intensity competition industry and second largest globally. The reason for its popularity lies in its ability to provide easier access to a variety of products, freedom of choice, and many services to consumers. The size of an average retail store varies across countries depending largely on the level of a particular country’s economic development. The largest retail store in the world is Walmart of USA. Retailing is the world’s largest private sector contributing to 8% of the GDP and it employs one sixth of the labour force. The estimated retail trade is expected to be 7 trillion US $. Many countries have developed only due to retailing and presently we see there is a vast change in the retail industry. As far as India is concerned it contributes to 14% of our GDP and it is the second largest sector next to agriculture which provides employment to more number of persons. Now according to a survey, India is classified in to the fifth most attractive retail destination and second among the countries in Asia. Worldwide it is ranked as fifth most attractive retail destination. In this unit, we will discuss definition and meaning of retailing, retailing formats, relating retail with customer profile and also will discuss Indian retail Industry. 1.1 Retailing: Definition and Meaning Retailing is the business activity of selling goods and services to the final consumer. Retailing can be defined as the business products and services to consumers for their own use. According to Kotler, “Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use”. Retailing is the activity of selling goods and services to last level consumers for their use. It is concerned with getting goods in their finished state into the hands of customers who are prepared to pay for the pleasure of eating, wearing or experiencing particular product items. Retailing is all about the distribution of goods and services because retailers play a key role in the route that products take after originating from a manufacturer, grower or service-provider to reach the person who consumes. Retailing is also one of the key elements of a marketing strategy facilitating the targeting process, making sure that a product reaches particular groups of consumers. It is important in a marketing strategy to match the arena in which a product is purchased to the benefits and characteristics of the product itself and its price. Retailers provide a collection of service benefits to their customers such as being located in convenient places, editing product ranges according to shopping tasks, and selling goods in quantities that match personal consumption levels. Ensuring that this process runs smoothly presents a host of managerial challenges. Retailing is therefore a deceptively simple management process – yet fascinatingly complex in its detail. ! Caution The term retailing applies not only to the selling of tangible products like loaves of bread or pairs of shoes, but also to the selling of service products. Companies who provide meals, haircuts and aromatherapy sessions are all essentially retailers, as they sell to the final consumer, and yet customers do not take goods away from these retailers in a carrier bag. The consumption of the service product coincides with the retailing activity itself. From a traditional marketing viewpoint, the retailer is one of several possible organisations through which goods produced by manufacture flow on their way to their consumer destiny. These organisations perform various roles by being a member of a distribution channel. For example, chocolate producer like Cadbury’s will use a number of distribution channels for its 2 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Retail confectionery, which involve members such as agents, wholesalers, supermarkets, convenience Notes stores, petrol stations, vending machine operators and so on. Channel members, or marketing intermediaries as they are sometimes referred to, take on activities that a manufacturer does not have the resources to perform, such as displaying the product alongside related or alternative items in a location that is convenient for consumer to access for shopping. Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailing is a distribution channel function where one organisation buys products from supplying