2. 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.
3. Retail In India
The Business Monitor International (BMI) India
Retail Report for the fourth-quarter of 2011 forecasts
that the total retail sales will grow from US$ 411.28
billion in 2011 to US$ 804.06 billion by 2015. The
report has underlined factors like economic growth,
population expansion, increasing wealth of
individuals and rapid construction of organised
retail infrastructure as major drivers for the
optimistic forecast figures
4. 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
country's 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
5. Retail Sector poised for phenomenal growth
The Indian
Retail Sector,
currently the
Fifth largest
in the world,
is poised for
phenomenal
growth in the
coming years
ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR
6. 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
11. 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;
13. Visual merchandising and communication
Visual Merchandising Communication (VMC) is
one of the quickest and most cost effective ways to
improve retail profits. Every store space has a cost;
misuse of that space eats into profit. , Visual
Merchandising & Communication helps improving
the conversion of visitors to purchasers and
increasing transaction values by encouraging multiple
sales.
14. Purpose of Visual merchandising & Comm.
The purpose of visual merchandising is to attract customers to the merchandise
for 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
15. The principles of design
The principles of design are:
1. Emphasis
2. Movement
3. Balance
4. Proportion
Emphasis is drawing the attention of the viewer to the most important part of a
display.
Movement refers to the way the design guides the viewers’ eyes over an item or
display.
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.
16. 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’s
purchase decision.
17. 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)
18. Objectives of Designing Store Environment
• To provide a pleasant shopping environment
• To provide a conducive environment for making shopping decisions and
choice
• To create an attractive atmosphere for shoppers
• To create alternative choice dimensions for consumers with shopping
experience
• To provide consumers with varied judgement of value.
19. 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.
20. 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)
21. 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
22. Factors supporting to an effective VMC
• Materials: VMC is used to target groups of consumers. The messages sent out
by different materials can help in this process.
• Atmosphere: Formation of a subliminal message by the creation of an aura or
atmosphere, which is interpreted favourably by the customer and results in higher
sales.
• Lightening: Contributes to atmosphere, and overall design
23. Factors supporting to an effective VMC
• Signage: When visual cues are not sufficient, then other type of messages can
be used for location and guidance purposes, to communicate corporate policy
related to merchandise (brands, prices, sizes) & related to promotional activity
• The Corporate Image: The outlet and its environment play a large part in the
formation and maintenance of a corporate image. A favourable corporate image is
vital to retain loyal customers. Updating and refurbishing stores tells the customer
the retailer is in touch with their needs
• The Exterior Design: Communicates to customer who retailer is and what they
stand for (Fascianame, logo, corporate graphics and colours) Store entrance open
semi-open funnel / recessed / lobby standard door Window Location
24. 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
25. Visual Merchandising
Visual Merchandising is the art of
displaying merchandise in a manner
that is appealing to the eyes of the
customer. It sets the context of the
merchandise in an aesthetically
pleasing fashion, presenting them in a
way that would convert the window
shoppers into prospects and ultimately
buyers of the product. A creative and
talented retailer can use this upcoming
art to breathe in new life into his store
products.
26. 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
27. 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
28. Promotion and the Promotion Mix of VMC
Sales Public
Promotion Relations and
Publicity
Promotional
Mix
Personal Advertising
Selling
29. 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 image
public relations: A promotional technique that uses any form of communication
to create a positive image for a business and non-paid message that
communicates information about a company’s merchandise, services, and
activities to the customers.
Advertising: The purpose of advertising is to inform, remind, and persuade. An
advertisement is designed to attract attention, develop interest, create desire, and
produce action.