International Journal of Pure and Applied Management Sciences; Vol.

2016.1.2; pp. 51-56, ISSN: 2456-4516

ROLE OF VISUAL MERCHANDISING IN AN EMERGING

MARKET ECONOMY
Dr. Anoop Kumar Singh
Assistant Professor - Department of Applied Economics, University of Lucknow.

Sunita Sharma
Institute of Management Sciences, University of Lucknow.

Date of revised paper submission: 07/12/2016; Date of acceptance: 16/12/2016

Date of publication: 31/12/2016; *First Author / Corresponding Author; Paper ID: MS16209.
Reviewers: Dr. B. Jaiswal; Dr. Shabi Raza (India)

Abstract
Visual Merchandising is the presentation of store along with its merchandise in a way to
draw the attention of existing and potential customers. It is a silent selling technique that helps to reduce
the employee mix and increase per square feet returns thus generating returns and reducing the expense
of company. Now a days consumer consumption basket includes most of discretionary items so retailer
by utilizing this changing trends and with the help of attractive store designs are increasing their store
sales. Through this paper researchers have made an attempt to explore the elements of Visual
Merchandising and review the contribution of visual merchandising in building store image that
ultimately helps retail sector contribution towards growth of emerging economy especially with reference
to India.
Keywords: Visual Merchandising, Discretionary items, Emerging economy, Impulse buying Behavior.
1. INTRODUCTION
During 1884, when new technology of production was introduced, at that time, due to
over production shopkeepers main responsibility was to sell that excess production in the domestic
market. As a result of this in order to attract more &more customers, the concept of Visual Merchandising
initiated. Now shopkeepers have to store large stock of products in their store. For attracting their
potential customers, there emerged the need of decorating the store windows and store too. Mary Quant
was 1st designer in 1960, which used window for display and promote social trends. Now in 21 st century,
Visual Merchandising has become a very broader concept and many companies and retailers have been
moved to attract the customers through display of the whole retail store.
Both goods and services can be displayed to highlight their features and benefits. Main
motive in using visual merchandising is to attract, engage and motivate the customers towards making a
purchase. Visual merchandising includes window and merchandise display, store layout, mannequins
display, point of purchase display, store atmospheric elements as music, color, scent, lights and entire
ambience of retail store. So it helps to create positive image of the store that leads to successful sales
Retailers invest 1% of their sales on visual merchandising of the store, so there is accountability of per
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International Journal of Pure and Applied Management Sciences; Vol.

2016.1.2; pp. 51-56, ISSN: 2456-4516
unit area sales. Hence it is very necessary to study the role of visual merchandising on consumer buying
decision and also its impact on retail sector.
2. REVIEW OF LITERATURE
Andrew J Newman And Peter Cullen in their book Retail Environment And Operations
refer Visual Merchandising helps to divide the store into recognizably different areas as men and
womens clothing and create different moods in each section according to the target customer.
Kerfoot Shone, Davis Barry, and Ward Phillippa (2003) in the journal of Retail And
Distribution Management (Visual Merchandising and the creation of discernible retail brands) highlight
the integration between Visual Merchandising and Retail Communication.
According to Wolters and White- Visual merchandising coordinate effective
merchandising selection with effective merchandising display. It affect the consumer psychological or
behavioral positively ultimate that leads to purchase.
According to Leelavati, a researcher, Themes that linked strongly the purchase decision
are merchandise color, presentation style, awareness of fixtures path findings, sensory quality of material
and lightening.
Mauger found that lightening create an effective atmosphere that make product more
appealing attractive, that influence customer to shop more.
Chadhary a researcher in his article Trends in Visual Merchandising in India described
the different trends of visual merchandising that are present in large formats.
Gibson Vedamani in his book Retail Management Principle and Practices explain
Visual Merchandising, as the Silent Salesman. According to him it is the art and science of suggestive
selling by display and presentation of merchandise.
3. OBJECTIVE OF THE STUDY
The present study aims:

To explore the concept of visual merchandising.

To understand the significance of Visual Merchandising in the emerging market economy like
India.

To know contribution of retail in the growth of economy.

4. VISUAL MERCHANDISING ---AESTHETIC APPEAL TO CUSTOMERS

A successful retailer always wishes to make a very unique and consistent image in their
customers mind. Therefore Visual Presentation has become very critical aspect of retailing and retailers
are increasing towards creating a unique environment that is aesthetically very pleasing and attracting.

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International Journal of Pure and Applied Management Sciences; Vol.

2016.1.2; pp. 51-56, ISSN: 2456-4516

The inflatable specialist deployed balloons inside the store to celebrate Christmas season.
Here technology has very important role with its capability to enhance the role of visual elements. As
attracting designs is foundation of all retailing efforts.
Through the use of color, props, light focus retailers give the aesthetic appeal to customers.
According to studies ,retailer have seven colors to capture the attention of passing customers, so retailers
have very few seconds to apply the rule of perception.
Rule of perception says

1ST impression leads to potential purchase.

Initial contact with potential customer determine

How long customer will remain in the store.

What would be his /her inclination towards buying

Positive or negative feelings towards the store image.

5. Visual Merchandising Elements

Visual merchandising has exterior and interior elements as follows:
Exterior elements
Location of store,

Exterior signage and logo

Entrance

Marquees, Banners

Window display

Interior elements

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2016.1.2; pp. 51-56, ISSN: 2456-4516

Store design, color schemes, floor covering, and fixtures

In store merchandising of stock

Atmospheric-elements
as
lightening, color and music,

fragrance,

sound,

mood

of

staff

props,

6. VISUAL MERCHANDISING: A SALIENT FACTORE.

A Salesman knows when to help customer and when to stand by and watch, so salesman
helps the customer in finding their choices. By proper placing the signage and merchandise.
Visual Merchandising act as silent salesman. So its very essential that store presentation
should follow and reflect the store image. A prospective customer on visiting the store should feel
respected and comfortable. Although there are sales person in the store, visual merchandising with the
help of product display and designs on Mannequins act as excellent sales person, so today retailer are
emphasizing more on product display on mannequins in the window of store hence its business is
growing at very fast rate.

7. EMERGING TRENDS OF MARKET ECONOMY

An economic system where decisions regarding investment, production, and distribution
are based on the interaction of demand and supply forces in the market, which determine the price of
goods and services, is called market economy. Emerging market economy consists of economy with low
to middle per capita income; such countries constitute 90% of the world population and represent 10 % of
the worlds economy.
Growth in Indian economy is occurring at very high rate. Indian consumer sector
comprises of huge middle class, relatively large affluent class and a small economically disadvantaged
class. In the global consumer confidence index, India stood 2 nd among all nations with a score of 128
points for the quarter ending 2016. Global corporation view India as one of the key markets from where
future growth is likely to emerge. This growth in consumer market is primary driven by favorable
population composition and increasing disposable incomes. A recent study by Mckinsey Global Institute
(MGI) states that if India continues to grow at the current pace, average household income will triple over
next two decades, hence making the country worlds 5 th largest consumer economy by 2025 from current
12th position.
8. Changing dynamics of Indias consumer economy

Between financial year 2005 and 2015, Indian consumer economy has grown at an annual rate of5.7% in real terms. This annual growth of Indian consumption market is estimated to be 6.7%
during financial year 2015-2020 and 7.1% during 2021-2025.

Over the last two decades Indian consumption basket has evolved so much. Indian consumer
spending can be divided into two main categories. Necessities and Discretionary spending.
Discretionary spending includes all luxury and non essential items, while Necessities category

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International Journal of Pure and Applied Management Sciences; Vol.

2016.1.2; pp. 51-56, ISSN: 2456-4516
includes all essential items. Now discretionary spending is getting more and more share in
consumption basket.

It has been estimated that contribution of discretionary spending would be 55% and 58%
respectively in financial year 2021 to financial year 2026.
Economic status of India can be reflected by changing consumption pattern.

Emerging Market Economy and Visual Merchandising

Due to entry of new players, Indian retail sector has emerged as one of most fast and dynamic.
Retail sector accounts 10 % of the countrys Gross Domestic Product and 8% of the employment.

India has emerged as worlds 5th largest destination in retail space.

Lifestyle section of Retail has achieved huge attention from consumer .With increasing
disposable income; Indian consumer is today very sensitive in choosing the products particularly to
lifestyle products such as home decor and apparels. As data revealed today consumer is spending more
and more on its discretionary elements as lifestyle products, high brands.

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International Journal of Pure and Applied Management Sciences; Vol.

2016.1.2; pp. 51-56, ISSN: 2456-4516
Customer want very attractive, and eye catching products as their status symbol, so it be
very essential from retailers perspective to give them high quality, eye catching product, that they can
present customer by decorating and designing their store environment and its merchandise in very
attractive manner, so there comes the role of visual merchandising .To increase store sale, retailers present
their merchandise in such a manner that can leads to impulsive buying from the consumers.
10. Conclusion
Visual Merchandising is valuable for the retailers as it can leads to series of advantages,
as increase in sales, making a distinct store in the consumer mind. It teaches retailers how to display their
products. It does not just attract the customer to make impulse purchase but create a unique position about
the specific product and retailer. There are various elements and factors of Visual Merchandising which
affect the customer and helps store to create distinct image in the minds of customer. With increasing
consumer disposable income, retailers by the help of visual merchandising are attracting more and more
consumer and thus contributing towards increasing GDP of country.
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