A report published in the year 2016 by Boston Consulting Group in collaboration with the Retailers Association of India depicted a whopping fact that the contemporary Indian retail industry evaluated to $600 Billion. The same figure will be doubled to more than $1 Trillion by the end of 2020. The steady growth of the e-commerce platforms in this market will not hamper sales of the brick and mortar stores. The big retail magnates will stronghold the market with their innovations and inclusions of remarkable visual merchandising strategies.
The compound annual growth rate (CAGR) of the Indian retail industry clearly depicts an overwhelming growth of 10% every year. If every piece falls in the right place then India will surpass the capabilities of China by the end of 2025. The e-commerce market will take a huge leap to grow and touch the $70 Billion mark within 5 years. Taking this figure as a threat, the brick and mortar brands will have to change their merchandising strategies likewise to dominate the game. Here is the list of 5 best retail visual merchandising strategies adopted by the big players to keep the customers coming in the store.
The best way to make sure that a customer will visit your shop repeatedly is to involve him or her in the process as much as possible. The engagement and inspiration availed to the shoppers will surely impact the buying decisions positively.
Omar Pallante, Chief Executive Officer, Arte Vetrina Project, said, “Visual merchandising has assumed a more strategic role, not only linked to an attractive way of distributing the product but also to the selling logic. The sales monitoring in relation to the distribution of the product, let you define the consumers’ behavior, giving out important information about the product and its presentation into the store.”
This is where the experiential store comes into the picture. The ideal way to cut through a tough competition and making your own mark is via an experiential strategy engaging the customers.
Eric Feigenbaum, President, Embrace Design, depicted “When designing a store, we’re not merely designing a selling center, but rather an experience. Great visual merchandising will tell stories while transporting viewers to new places, new times, and new states of mind. Additionally, great visual merchandising will create moments, landmarks, and points of view.”
The word ‘visual merchandising’ means you will have to engage the vision of the customers. Nearly 83% of the brain thoughts are processed using visual data. Tracy Flynn Downing, Ace Designs, suggested “It’s all about creating something visually stimulating to take the consumer from standing in your store to having an emotional connection with who they are, who they want to be, how they want to feel. Something as simple as rolling the cuff of a shirt can change your perspective and really help you visualize that this isn't a shirt on a bust form, this is the shirt I am going to buy, roll up the sleeves and go for a breezy stroll on the beach."
Anything appealing in a unique way will surely intrigue the thought process of the buyer.
The customers like to take charge of the shopping experience by choosing their preferred channels and using their favorite devices. The use of technology towards informing, educating and engaging the customers can be a good step towards future.
Eric Feigenbaum said, “The store is a tool of communication, and it’s the successful retailer who will strategically curate the deployment of technology into the store to expand the dialogue with the targeted customer. It’s the visionary retailers and visual merchandisers who are nimble and forward thinking who will succeed.”
The windows for display are the key to attract the footfall towards your store. You will have a few seconds to create an impression as the majority of the population is possessed by smartphones. The shop windows are the first sales pitch for the onlookers. A proper makeover is mandatory that perfectly displays the products and messages you want to cater.
Everyone loves a surprise. In this case, a customer, especially a repeat customer always expects something new in the store. Designing and merchandising are necessary to stay ahead of the curve. Innovate your products, prepare new designs, and find the contemporary needs via analyzing the pain points of the customers to innovate your shop.
The electronics retail industry in India is a fast growing sector, and Lotus Electronics has emerged as a beacon of innovation and customer-centric excellence in Central India. The brand, with its 20 stores spread across key cities in Central India – Indore, Bhopal, Raipur, Jabalpur, Bilaspur, Ujjain and Raipur, and a robust online presence, holds the title of the largest electronics retail store chain in the region.
Gaurav Pahwa, Director, Lotus Electronics shared his insights with Indian Retailer about the brand's journey, strategies, and expansion plans.
According to him, the success was attributed to a wide range of electronics from both national and international brands, all offered at highly competitive rates. This commitment has solidified Lotus Electronics' position as the largest one-stop omnichannel store for consumer electronics, IT products, mobiles, and home appliances.
The brand prides itself on offering an extensive array of world-renowned brands, including Apple, Sony, Samsung, Haier, Bose, JBL, and many more, all under one roof. “It is a three families’ business, a partnership business to be precise, which got we began in 2000. The average showroom area spans 10,000 – 15,000 sq ft, and today we cover more than 2,50,000 sq ft of display area across Central India. This vast offline presence is complemented by strategically located warehouses in the eight cities,” elaborated Gaurav.
Consumer-Centric Philosophy: The 6Cs
It is the brand’s 6C philosophy for customers – comfort, convenience, choice, competitive rates, care and commitment – that makes it stand out from the other retailers. With a dedicated staff strength of 600+ members and over 200 company demonstrators, Lotus Electronics ensures a customer-centric approach that makes the shopping experience truly memorable. This philosophy extends seamlessly to the online portal.
Founded in 2000, Lotus Electronics has been a game-changer in the electronics and home appliances market. Pioneering the concept of offering a variety of electronic brands and products under one roof, the brand has evolved beyond being just an electronics showroom. It focuses on the entire experience of electronics shopping, embodying innovation and consumer satisfaction.
Gaurav revealed that the brand, with a turnover of Rs 650 crore, has targeted Rs 750 crore by this March. According to him, the significance of technology in retail expansion, particularly in adapting to changing consumer preferences, was what made them succeed.
Future Endeavors: Hyper-Local Expansion
Looking ahead, Gaurav envisions Lotus Electronics as a hyper-local store, focusing on both physical and online presence. The brand aims to strike a balance between the immersive experience offered in offline stores and the convenience of online shopping. While expanding into new markets, the brand remains committed to being number one in every geography that it operates in. “One of our major focus is that whenever we go to a newer market, we adapt to its flavor immediately. Starting from the communication, which happens in local language. The team that heads the store on ground and the managerial level, can all speak the language flawlessly,” he said.
To grow exponentially, Gaurav is actively exploring innovations such as using tablets for product demonstrations, ensuring that consumers can make informed decisions right at the store. The brand is gearing up to open five new stores in a new state. The details will be revealed soon. Stay tuned for more.
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