A New Wave of Merchandising -
India Retail

chillibreeze writer — Shalini Bahadur

Since the introduction of the retail store format, merchants have always placed like items together for quick and efficient service. In both full-service and self-service stores, customers have liked to see the entire range of a product before deciding on a purchase. The customer felt they were making sure they got the best deal and the full value of a product when they shopped this way. This method of merchandising or organizing a store is called Category Merchandising. All items are placed together on one aisle or in one section of the store to get maximum exposure.

Changes in the demographic profile and the majority of women entering the workforce have altered much more than just the obvious. Consumers have drastically less time to shop than before and shopping is seen less as a pleasure and more as work, thus shopping habits have changed too. Stores that are attuned to their customers’ needs are able to select a limited range of products and focus only on these, as they are confident about their customer’s choices. For example, Wal-Mart might stock an aisle full of lamps but Pottery Barn in the US or Kian in India will probably offer only 3-4 styles, which they are sure their customers will love, and incorporate them in their displays throughout the store. All the merchandise is displayed in a lifestyle setting so customers can imagine how it would look in their homes. Most of these stores have no separate sections for different items. Instead, the entire store is organized and displayed like a home, with living room furniture displayed with accessories, bedrooms with the beds made in assorted linens complete with the nightstands and sleeping attire. This method is called Lifestyle or Solutions Merchandising as it provides solutions to consumers. Consumers are not always looking for products; instead they are often looking for solutions and might not have identified what exactly they want to buy.

Retailers who can provide consumers with products that simplify their lives will be winners. Today’s consumers don’t have time to decipher or even absorb all the marketing and advertising information they are bombarded with. In these circumstances, retailers must do the job for them and provide them with solutions rather than too many options. A customer who has to decide between 10 types of floor lamps might just walk out of the store empty handed after being confused by too much information.

Customers are able to spend only a limited time on shopping, mostly on purchase of basic necessities. Shopping is no longer seen as a pleasurable activity; most see it as a task that needs to be completed quickly to get back to more important things. Unless retailers are able to understand this distinction, they will lose out on an entire generation of consumers, especially women, who have learned to shop differently. In this scenario, these customers will be visiting stores that are able to provide them with services and options that better fit their lifestyle.

With consumers lifestyles changing, shopping patterns have also changed. A smart retailer must keep up with these changes and maybe even forecast what their customers will ask for next. Customers are quite willing to try new ways of buying products. The success of home delivery service for DVD’s is an example of how one retailer created a service that simplified customer’s lives. On forecasting trends and moving with them, a retailer must not forget the target audience or they might move ahead of what their customers are ready for.

Lifestyle Merchandising besides being visually more appealing to customers, is a more practical and modern approach. Consumers are shown how products are best utilized and often solutions are found for problems that a customer wasn’t sure how to fix. They come to the store with a problem and they would like a retailer to find some solution for them. Retailers must be cautious on one front: they can practice this type of store organization only once they know their customers and their choices very well. If a retailer is not able to gauge the customer’s choice or they select the wrong items then they will end up not selling anything at all. These choices should be made carefully and cautiously.

These ways of organizing a retail store are not options any more. They are now the ground realities of running a successful business. Customers come to stores already quite knowledgeable on a number of products whether they are interesting in purchasing or not. They do not require instructive sales help like earlier days but instead some friendlier and hassle-free interactions. A retailer must adapt to this new wave of merchandising or be left in the silence of empty cash registers.

Chillibreeze's disclaimer: The views and opinions expressed in this article are those of the author(s) and do not reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to report any copyright issues related to this article.

Out of 5 “chilies”, our editorial team gave this article...

---

—About our writer: Shalini says, "An eternal student, I love learning anything new. I'm addicted to reading, word games, puzzles, traveling and researching trends. Bliss to me is to curl up on the couch with a good book/good site and a cup of cocoa. Currently working as an assistant manager in Retail Operations with a Children's wear retail chain called Gini and Jony. She is an NRI with a BSc degree in Clothing and Textiles from Kansas State University and worked with JCPenney and K-Mart before deciding to return to India."

 

 

 

>> Read more articles written by Chillibreeze writers:

1. Articles related to Content and Outsourcing
2. NRI and Expat Articles
3. Potpourri
4. Travel Writing
5. Book Reviews and Interviews

More resources for Writers on Chillibreeze.com Chillibreeze offers Indian writers the opportunity to work on customer projects. We are also India’s biggest writer network and a one-stop shop for Indian writers and editors. The writers’ section on Chillibreeze offers freelance writers and editors a variety of tools to advance their careers. Resources for writers include: Assessment of your writing, editing and proofreading skills Writing courses Expert Feedback on your article An opportunity to promote yourself on our website Top websites for Indian writers Tips and resources for Indian freelancers Book Publishing services And more……………….. Explore our writers’ section using the links on our left-hand side menu.