VISUAL MERCHANDISING

Visual Merchandising in E-Commerce.

Merchandising can come in many different forms, from inventory to pricing, and
beyond—but the end goal is always the same: to drive conversions. It can be tricky to
keep up with all the different ways online retailers can optimize their stores through the
magic of merchandising, so here is a list of the top five tips to help retailers of all sizes.

1. Get mobile optimized…yesterday

Almost half (40%) of consumers don’t feel comfortable shopping online and it doubles to
80% when we’re talking about shopping on mobile. This may look dismal, but it means
that your web store not only needs to be mobile friendly, but also wow shoppers on
whichever screen they prefer.

2. The clearer, the better

Shoppers don’t want to be confused. Do you know what happens when they’re
confused? Yep, you guessed it, they vanish. Luckily, there are many things you can do
to cut down on those pesky abandoned carts. Here are a few:

 Add interactive tools that aid customer purchase decisions. This can help
retailers see up to a 40% boost in conversions. This is especially important for
ecommerce because you can’t be there like a salesperson can in a brick and
mortar store. Add a live chat feature to support shoppers and get them closer to
checkout.
 Improve your search function. Did you know that 11%-15% of consumers start
shopping by searching for a specific product in search bars? This number is on
the rise, so it’s prime time to take advantage of this. Shoe retailer, FootSmart,
made a small change by adjusting search results to include top items sold and
saw an impressive 82% increase in conversions.
 Provide shipping policies and estimations as early as possible in the checkout
process. Offering free shipping is a great way to increase average order value
because 93% of shoppers take actions to qualify for free shipping.

3. Keep it short and sweet

The fewer steps to purchase, the better. When retailers ask for too much information or
otherwise complicate the process, shoppers drop out of the sales funnel. To help this,
you should decrease the number of steps it takes to complete a purchase and provide a
status bar up top to show that it won’t take them long to checkout. You also want to
provide clear, descriptive, and to-the-point product descriptions to resolve any
confusion.

4. Be data driven
Analytics can help retailers make better merchandising decisions. More than half of
retail leaders (63%) already do it—so if you want to keep up and get ahead, you should,
too. Data is your friend because it can teach you what works and what doesn’t. Walmart
is a great example of a retailer that used data to its advantage. After crunching the
numbers, Walmart learned that diapers and beer sales were highly correlated. So you
know what stores did? They put these two aisles side by side and saw a sales increase
for beer. Cheers to that!

5. Keep your enemies closer

You already know that competition is fierce in online retail, but what can you do about
it? The first step is to know exactly what’s going on in your competitive landscape at all
times. How are your competitors pricing? What do they have in stock? When do they
run out of products that you carry? Tracking competitors and their inventories can clear
this up once and for all. Then retailers can fill in the gaps in their inventory and
effectively become a more successful competitor. The more you know, the better your
sales can be.

Module-II: Layout and Store Display

WHAT IS A RETAIL STORE LAYOUT?

A retail store layout (whether physical or digital) is the strategic use of space to influence the
customer experience. How customers interact with your merchandise affects their purchase
behavior. This retail principle is one of the many from Paco Underhill, author of Why We Buy:
The Science of Shopping, keynote speaker, and founder of Envirosell.
The interior retail store layout has two important components:

 Store Design: The use of strategic floor plans and space management, including
furniture, displays, fixtures, lighting, and signage. Website designers and user
experience (UX) researchers use space management techniques and web design
principles to optimize e-commerce websites. We’ll further discuss a variety of popular
retail floor plans later in this article.
 Customer Flow: This is the pattern of behavior and way that a customer navigates
through a store. Understanding customer flow and the common patterns that emerge
when customers interact with merchandise based on the store layout is critical to retail
management strategy. Physical retailers are able to track this using analytics software
and data from in-store video and the wifi signal from smartphones. For example,
 solution providers like Retail Next provide shopper analytics software for retailers to
understand flow and optimize the customer experience based on in-store video
recordings. The technology also exists to track the digital customer flow and online
shopping behavior. Using “cookies” and other software, online retailers can track
customer behavior, including how customers interact with their website.
While the exterior retail store layout includes exterior store design and customer flow, it also
includes the following factors:

 Geographic location of the retail store (real estate)

 Size of the building and length of the walkways accessible from the entrance and exit

 Use of furniture and exterior space for people to gather and interact

 Style of architecture of the retail building

 Color of paint and choice of exterior building materials

 Design of the physical entrance and exterior window displays

The objective of retail store design is to positively impact customer experience and create
value, which is the primary goal of retailers in the supply chain. For more information on retail
strategy and management read the article “How to Survive and Thrive in Retail
Management.”
A STEP-BY-STEP GUIDE TO PLANNING STORE LAYOUTS THAT MAXIMIZE YOUR
SPACE

It is essential to understand your customer flow and the general patterns of navigation in your
specific retail environment before you can optimize customer experience and plan a strategic
store layout. Retailers, consultants, store planners, interior designers, and architects all use a
variety of retail floor plans and concepts to influence customer flow and behavior. Retail
giants along with small, independent retailers can improve customer experience, and in
return, long-term profitability with efficient store layouts. In Store Design and Visual
Merchandising: Creating Store Space That Encourages Buying, author Claus Ebster offers
valuable insight into maximizing your retail space.
Step One: Target The First Floor

The first step to maximize your profitable retail space might be the most unavoidable,
however the principle and knowledge behind the customer behavior is crucial for
understanding your overall design strategy. Ebster’s research indicates that customers prefer
to navigate the floor of a retail store they initially entered. Walking up and down stairs or using
elevators and escalators to navigate a store hurts customer flow. When possible, planning for
a single floor store design will optimize the customer experience. Exceptions exist, such as
downtown locations where real estate is at a premium or large department stores with
multiple categories of merchandise. Further, Ebster points out that retailers should consider
customer perception if they are a luxury retailer, as shoppers often associate multi-level
stores as “elite.” Conversely, if a discount retailer is planning store layouts, as customers
associate single floor layouts with “less high-end” merchandise. Consider your overall retail
strategy and store layout design prior to selecting your store location. If you have multiple
floors, account for the preferences of first floor shoppers by using this space for the feature or
high-margin merchandise in your retail mix.

Step Two: Identify Customer Flow

Ebster presents some general rules for customer traffic. Customer flow patterns vary
depending on the type of retailer, the size of the store, and the target customer. Ebster
encourages retailers to use their observations to discover the problems and opportunities
unique to their environment. The next step in maximizing your space for profitability is
identifying your customer flow. The most effective method for understanding your existing
customer flow and identifying areas of opportunity is video recording and heat mapping
analysis. This service is available via solution providers such as Prism (you can also do a
quick online search for heat mapping consultant services in your area). However, setting
aside different times of the day to make in-store observations in person and recording your
notes is a step in the right direction for identifying customer flow patterns.
Step Three: Avoid The Transition Zone

After you identify how your customers navigate your entire retail space, turn your attention
back to the entrance. The transition zone area, coined the “decompression zone” by
Underhill, refers to the space just beyond the entrance to a retail store. The average
customer needs this space to transition so they can familiarize with the new environment.
Underhill is adamant that nothing of value to the retailer, not high-margin merchandise,
prominent signage, or brand information goes inside this zone. Customers need time,
however brief, to adjust to new lighting, smells, the music, and the visual stimulation in the
store.

Step Four: Design for Clockwork Navigation

The next step moves beyond the transition zone and shifts the focus on how to leverage a
customer’s tendency to navigate the retail environment. The area just outside of the transition
zone is where most retailers make a first impression. Customers consistently turn right after
entering the store and continue to navigate the store in a counterclockwise direction. Ebster
points out that this customer behavior repeats itself time and again in consumer research.
Although researchers and design professionals have different explanations for the reaction,
in general, many recommend displaying high-margin merchandise and valuable information
just to the right of the entrance (outside of the transition zone). Underhill popularized the
“invariant right” and proved the effectiveness of the technique with thousands of hours of
video.

Step Five: Remove Narrow Aisles

Finally, follow your customer flow through the transition zone and around the retail space in a
counterclockwise pattern. Search for tight spaces or bottlenecks along aisles or around
fixtures and displays. Repeated analysis of Underhill’s video research demonstrates that
customers in the US — women in particular — value their personal space when shopping. If
a customer is touched, bumped, or otherwise interrupted when interacting with merchandise,
they are likely to move on from the items or exit the store altogether. Ebster uses customer
behavior research from one study of a supermarket to further advocate for broader aisle
design. Video analysis showed fewer customers entering narrow aisles in the store
compared to the more expansive, accessible walkways. These aisles send positive signals to
shoppers and positively impact customer flow and merchandise interaction. Avoid narrow
aisles and corridors when planning your store layout and strive to protect customers from
what Underhill coined as the “butt-brush effect.”

Lighting- Types of lights

1. Ambient Lighting (General Lighting)

This is one of the most common types of lighting. Ambient light is a soft glow that
blankets your space just enough for you to function without causing a harsh glare. In
photography and cinematography, ambient light is considered the “natural light” within a
room. In décor, ambient light is very similar, except you create the ambient light by
making the room’s lighting as natural and flat as possible. While ambient light is meant
to get you safely from point A-to-B, it is not ideal for working closely with things or to
highlight things around your space.

Atmosphere: When used correctly, ambient light creates a fantastic environment to

relax from an overly stressful day or to have a warm conversation with an old friend.
Ambient lighting is often referred to as mood lighting, because this light captures the
soft curves of your face and allows your pupils to dilate slightly (a physical sign of
affection). Some yoga studios have even begun using the softer ambient lighting in their
classes to help draw stress from the body.
How to Get This Look: We recommend using the following lights to create ambient light.
Recessed or Track Lights. Try using a series of these throughout your space. These
work well with all types of ceilings, but if your ceiling is lower make sure the light isn’t
too harsh for the room. Be careful not to over light the space. See the example with
the track light system below. Try these in your bedroom, den, kitchen or living room.

Chandeliers and Pendants. These light fixtures work fantastic with taller ceilings. You
can choose which height is best for your lighting needs. Notice how the chandeliers
below are placed lower in areas people will not be walking near. They are also very
classic pieces that work well in foyers, over the tub in the bathroom.

Wall Sconces and Wall Lights. These are so versatile they work almost anywhere.
Use these carefully. If you use too many in one location it may cause a harsher light, but
when placed sparingly these work great in hallways, patios and porches. Try to
incorporate the wall sconces into your homes architecture.

2. Task Lighting
This is a smaller more concentrated light. You want task lighting around when you’re
working. In fact, some people call it office lighting. Task lighting is meant to help you see
when you’re doing projects in which you need a finer light, such as, reading, cooking,
writing, sewing and many other things. Task lighting only works well when it is used as a
contrasting light. For example, if you have a low lit room with a table lampturned on, the
light in that area will be more effective with less glare than if the entire room was lit with
a brighter light.

Atmosphere. Task lighting helps naturally stimulate your brain. The contrasting light
allows you to be more alert and concentrated. This will help you see more details as you
work, creating higher quality results. This is why many businesses choose to use task
lighting in their offices.
How to Get This Look: We recommend using the following fixtures to create task light.
Desk, Swing Arm and Floor Lamps. Use lamps on your desks, bedside tables, coffee
tables or anywhere you need a little extra light for working. Swing arm lamps allow you
to adjust the light anyway you’d like. Since these floor lamps are lightweight and
adjustable these are the ideal task lights.

Under Cabinet and Vanity Lights. These are the ultimate task lights. Under cabinet
lights work great in your kitchen, like below. They add a flare to your kitchen and give
the extra light you need for chopping and cleaning. Vanity lighting works well in the
bathroom and on dressing mirrors. These lights also work in garages or workstations.

Pendant and Track Lights. Pendants are great because they can be placed in a lot of
areas and can hang directly about work spaces. Track lights are great for the same
reason, except they can typically cover a little more space. These lights are great for
offices with rows of desks, above kitchen islands and in children’s play/homework
areas.

3. Accent Lighting
This is a very concentrated light with the intention of drawing the eye to its focal point.
Accent lighting is a way of adding style and drama to your home. This will help you
illuminate the pieces you want on display, while shadowing dull areas. People use
accenting for wall washing, artwork, bookcase displays, pieces of furniture, collections
and the general architecture of their homes. Outdoor accent lighting is when you
highlight parts of the architecture of your home or yard. This is very popular duri ng the
holidays, especially Halloween and Christmas.

Atmosphere. Accent lighting is one of the types of lighting that creates a very
sophisticated atmosphere. It evokes feelings of meaning and importance to the images
it displays. This lighting type is used a lot for museums, historical buildings and art
shows.

How to Get This Look: We recommend using the following lights to create accent light.
Wall Lights. Wall lights are fantastic for designing accent lighting. They come in a
range of sizes that allow you the highlight big or small pieces of art. These work great
on art walls and for showcasing the architecture of your space.

Recessed Lighting and Spot Lighting. These lights are often used for wall washing
(when you illuminate an entire wall with light). Recessed can lights are great for
accenting. Place them at the base of your wall to illuminate a beautiful brick texture, a
colorful paint design or display a huge bay window.

Landscape Lighting. These lights are the best for showing off the outside of your
home. Use landscape lighting to light up a pathway, prized garden or statue.