Visual merchandising is the activity of promoting the sale of goods,  especially by their presentation in retail outlets.(New Oxford  Dictionary of English, 1999, Oxford University Press). This includes  combining products, environments, and spaces into a stimulating and  engaging display to encourage the sale of a product or service. It has  become such an important element in retailing that a team effort  involving the senior management, architects, merchandising managers,  buyers, the visual merchandising director, designers, and staff is  needed.
Visual merchandising starts with the store building itself. The  management then decides on the store design to reflect the products the  store is going to sell and how to create a warm, friendly, and  approachable atmosphere for its potential customers.
Many elements can be used by visual merchandisers in creating  displays, including colour, lighting, space, product information,  sensory inputs such as smell, touch, and sound as well as technologies  such as digital displays and interactive installations.
Visual merchandising is not a science; there are no absolute rules.  It is more like an art in the sense that there are implicit rules but  that these also exist to be broken for striking effects. The main  principle of visual merchandising is that it is intended to increase  sales, which is not the case with a "real" art.
Visual merchandising is one of the final stages in trying to set out a  store in a way that customers will find attractive and appealing and it  should follow and reflect the principles that underpin the store’s  image. Visual merchandising is the way one displays 'goods for sale' in  the most attractive manner with the end purpose of making a sale. "If it  does not sell, it is not visual merchandising."
Especially in today’s challenging economy, people may avoid  designers/ visual merchandisers because they fear unmanageable costs.  But in reality, visual merchandisers can help economise by avoiding  costly mistakes. With guidance of a professional, retailer can eliminate  errors, saving time and money. It is important to understand that the  visual merchandiser is there, not to impose ideas, but to help clients  articulate their own personal style.
Visual merchandising is the art of implementing effective design  ideas to increase store traffic and sales volume. VM is an art and  science of displaying merchandise to enable maximum sale. VM is a tool  to achieve sales and targets, a tool to enhance merchandise on the  floor, and a mechanism to communicate to a customer and influence his  decision to buy. VM uses season based displays to introduce new arrivals  to customers, and thus increase conversions through a planned and  systematic approach by displaying stocks available.
Recently visual merchandising has gained in importance as a quick and  cost effective way to revamp retail stores.
To know more about kindly visit http://en.wikipedia.org/wiki/Visual_merchandising 
 
 
 
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