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area Area Visual Merchandising By Preksha Sharma Have you ever visited a mall with no plans to shop but returned with an armload of shopping bags? Have you ever felt compelled to buy something? Do you make impulsive purchases, and feel guilty about them? Here is a fact to ease the guilt: it may not entirely be on you. Stores can appear tempting to us because products are displayed so attractively that they influence our buying decision. There is an entire discipline of retail and design dedicated to the study of this influence, called Visual Merchandising (VM). Simply put, VM is the effective presentation of products that impact purchase. The environment in which these products are kept also plays an instrumental role in creating the impact; and so everything that a customer sees at a store becomes a part of the store’s VM. These include the store exteriors (window display, façade, retail premises) which attract a customer and influence store selection, and interiors (merchandising, point-of-sales, and architectural display) which can help in lowering a customer's psychological defence against making a purchase. 7 7 8 AREA Surender Gnanaolivu, consultant in retail experience strategy and development 1 Anuraag Singhal, head VM at Allen Solly VM in India In India, VM has come a long way since the advent of organised retail. Anuraag Singhal, visual merchandising head at Allen Solly, tells us about the changes he has witnessed in the industry since he became a part of it in the mid 90s, “Initially VM was all about direction signage, arranging merchandise size-wise, and colour blocking. Then the past decade saw strong emphasis on window displays, propping, visuals, etc. Today I see that the windows are more styled and concept-based; they have a story.” Singhal has co-authored a book, Visual Merchandising, published by Tata McGraw Hill (2007), which is a part of the curriculum in leading institutes across the country. Steady growth of organised retail led to evolution in the roles of visual merchandisers in the industry. Singhal credits the departmental store concept, and pioneers such as Shopper’s Stop for bringing this discipline to India in an organised manner. “The shop-in-shop concept gave each brand an exclusive space within a store. And with the success of this concept, brands started having standalone stores. Organised retail entered the industry through the departmental stores. Earlier, even brands were operating in an unorganised manner,” he says. Changes in government policies around the same time (early 90s) opened the gates for foreign brands to open stores in Indian markets, catalysing the evolution of VM in the country. Surender Gnanaolivu, a consultant in retail experience strategy and development, and one of the pioneers of the industry, notes that the arrival of international brands into Indian markets pushed homegrown brands to raise their VM standards. This is true even today as VM concepts for most international luxury brands are planned at their head offices offshore. 2 3 area Area Functioning in India The country is witnessing a whopping growth rate in the retail sector, but organised retail trade accounts for less than 15 percent of the total retail trade. (In developed countries, this figure is nearly 80 percent.) Visual merchandising as a discipline lies within the scope of organised retail. Today, VM is an important aspect of retail in all homegrown brands, and is formally taught at various institutes in the country. As a discipline, VM demands a mix of creativity and business understanding. Dr Tarun Panwar, who is the vice-president (International Relations and Special Projects) at Pearl Academy, New Delhi, explained in a career talk show, aired on DD Loksabha, “If you have an adequate amount of aesthetic appreciation and you can blend it with business acumen, you could be a great visual merchandiser.” Elaborating further, Dr Panwar said that VM is an interdisciplinary program where basic knowledge of design, business, consumer behaviour and psychology are important. “You have to understand creative aspects like colour, texture and space management. On the other hand, you need to understand the commercial aspects of space productivity: whether I am getting enough returns for the space for which I am paying the rent,” he says. A visual merchandiser has to develop a retail space strategically, aligning it with the retail agenda, marketing communication, and brand goals. Based on these, the VM stories and concepts are designed, and executed at the store level. The ultimate goal is to convince the customer to make a purchase. As an essential function of retail, most brands with an offline presence have an in-house VM team. Yet, VM projects are often outsourced to independent firms and freelancers. Krati Sharma, a freelance visual merchandiser, gives us an insight into the nature of the projects that are outsourced, “It may at times be the repetitive work or the creative conceptualisation part that the brands may outsource, depending on the capabilities of their own teams. There are a lot of clients looking for end-to-end, concept-to-execution services as well, but these are mostly smaller startup brands that do not have their own in-house team.” Sharma has worked with leading apparel brands such as Levi Strauss and Van Heusen for over seven years and has recently ventured into freelance. 4 1,2,3 & 4: Visual merchandising work by Liganova India for various brands Liganova India is the local arm of the German company with the same name, which provides retail solution. Siddhant Sahu, visual marketing, explains that one of the main reasons for a brand to outsource their VM work is shortage of manpower. Unlike Western countries, the ratio of VM team members to the stores they handle is quite skewed in India. “Let’s take a brand X that has 200 stores. To handle the concept and execution of these 200 stores, the brand will have, say, three people in the head office and they might have one or two people in the field.This is the scenario today. There are a few companies which have 700 stores with only seven or eight people in the VM team,” says Sahu. Multi Brand Outlets (MBOs) such as Shopper’s Stop put special emphasis on their VM, as it is one of the most important tools for attracting customers. Arden J. D’souza, who is customer care associate and head of visual merchandising at Shopper’s Stop, says that since the brand has stores across the country, a local dependency is necessary for execution of concepts, but the conceptualisation is always done by the in-house VM teams. In proportion to an MBO, a brand spends considerably larger amounts on marketing activities such as print ads, television commercials, etc. These are to build a brand; most of the merchandise sales of a brand are actually made through MBOs. 9 9 10 AREA Exclusive Brand Outlets (EBOs) focus on the experience of the customer inside the store. The VM at an EBO must be in sync with brand promises on other media platforms. In the autumn-winter season of 2013, Allen Solly launched the third part of its Colour Lab theme, in which a customer could pick any colour from a display wall of swatches, sleeve mocks, or even an iPad. A selected garment would be dyed in the exact same colour. This campaign was heavily marketed by the brand, and simultaneously the season’s VM was designed around the same concept. “If a consumer reads about Colour Lab in a newspaper, he should get the same idea and feeling in the store as well,” says Richa Shrivastava, visual merchandiser (creative) at Allen Solly. Yet, there are only a few brands which lay such emphasis on synchronising the personality of their VM with other communications. VM is often perceived to be only about window displays, without much thought to the store environment, the brand, or the product, which can make a customer feel disconnected. Gnanaolivu, who has decades of experience in the industry says, “In the local brands today, we see better reference points, visually; the quality of VM is better. But if you actually look at the ability of visual merchandisers to understand business and interpret VM into the business objectives, I still feel that there is a long way to go. Nowadays with graphics, media, lighting, etc. it is easier to create an impact, but whether it will help in achieving sales, we can’t say. Some of the larger brands do have a strategic approach to VM, but many others are just tactical.” area There is no standard formula for visual merchandising; it depends on factors such as product, scale, brand goals, etc. To gain a more nuanced understanding, we delved a little deeper into the functioning of the VM department of apparel brand Allen Solly from Madura Fashion and Lifestyle, a division of Aditya Birla Nuvo. Allen Solly was launched in India in 1993. (CRISIL Research estimates that in 2012, branded apparels – defined as brands having a strong national or regional presence – constituted about 40 percent of the domestic apparel market. It is also one of the most dynamic spaces for visual merchandising.) Allen Solly has two seasons: Spring – Summer and Autumn–Winter, in addition to which there are End of Season Sale intervals. Each season has three displays which are changed at an interval of 40–45 days. The VM team at Allen Solly is headed by Anuraag Singhal; the creative aspects of the VM are taken care of by Richa Shrivastava. Along with them, there are four regional visual merchandisers and experts on Multi Brand Outlet VM. 11 Process: A brand is created with a clear image of the target customer in mind. At Allen Solly, this ideal customer has been visualised as a persona – a manifestation of an ideal Allen Solly customer. This persona is given a name and personality like a real person. Understanding the persona becomes pivotal in making all customer-related decisions, ranging from designing to operations. The persona becomes our reference point for studying the customer’s personality, since [at the] end of the day we all focus on the same direction. That’s how you start reading into consumer psychology and understand who visits your store. – Richa Shrivastava, VM (creative), Allen solly First, the range for a season is designed by fashion designers and presented at an internal trade show, where the buying team (from the brand, the franchises, and Multi Brand Outlets) books orders for the coming season. This is where VM first comes into the picture, says Shrivastava. “We bring in the essence of how Allen Solly stores would look in the near future with the respective merchandise story,” she adds. After the trade show bookings, a calendar for the season is prepared, focusing on marketing campaigns and window displays. The VM team receives a brief about the merchandise stories that need to be highlighted. The time frame is usually seven to eight weeks to launch the window displays of the season, and the team works on their design, prototype and implementation in all stores. 12 AREA 5 5 & 6: Monkey Business: Window display created by Mumbai-based street artist Tyler for luxury home decor store, Splendour. This is the fourth chapter of Splendour’s series of artistic interventions 6 Challenges that VM faces in India Like any emerging space, VM has expanding opportunities but also testing challenges. One of the major challenges that most industry professionals face is the availability and quality of vendors. Working with the vendor base, Sahu says, is the biggest nightmare. In Germany, Liganova has its own production unit. The quality of work and level of professionalism are far superior when compared to the Indian market, he says. Interestingly, Sahu dismisses the common perception that the cost of production in European countries is unaffordable for Indian markets. “If I compare my data of the international with the Indian market, we are charging clients close to 70–80 percent of what European markets are charging,” he says. The major reasons that industry seniors cite for the incompetency of the vendors are: lack of technology, limited innovation, uneducated and unskilled labour, and limited material exploration. “The vendors are not organised, they have communication problems and quality issues. There are a few good vendors, but none who provide a one-stop-solution to all VM problems. And that is where India is lacking. There are no vocational courses, no support to vendors and their systems in the country,” says Singhal. Another area that needs immediate attention is the shortage of reliable organisations that provide intellectual and analytical services such as trend analysis, brand audits, benchmarking and competitor analysis. Furniture designer Thierry Betancourt has designed the retail windows at the luxury home décor store Splendour in Mumbai. Though the luxury segment does not work with the same constraints as mass retail segments, Betancourt’s experience with the vendor base in the country gives us a different perspective. “For one of the first window displays that we made, we went with expert set designers who make sets for Bollywood movies, events, etc. They were extremely professional and highly skilled. It really took them only two days, which is record timing,” he says. Save that one ideal scenario, he says that getting work done is more about communicating with the labour in a way they understand. “Some vendors are good, for them it is new and they are excited to do something out of their routine normal work. Usually they work with a lot of flexibility, which is quite nice. I think in India people are quite flexible in the way they work. Especially in this city where there are no professional window display teams, you have to build everything from scratch and you have to spend a lot of time and effort on it.” 7 area 9 Education and future 8 7: Tema e Variazioni: Window display at Splendour to pay tribute to Italian artist Piero Fornasetti. This is the third chapter of Splendour’s series of artistic interventions, and was created in collaboration with Thierry Betancourt and Suhani Parekh 8, 9 & 10: Visual merchandising work by Liganova India for various brands The exposure to VM, in the industry and in education, has increased tremendously. Today VM is taught at various institutes as a core subject in design, retail and fashion communication courses. But delve a little deeper and the concerns of industry professionals begin to surface. Singhal feels that the education system in the country is not upgrading itself with the pace of the industry. “Even today, students study the basics that I studied in ‘94. Consequently, I keep seeing that they are doing the same stuff that I was doing 20 years back,” he says. Because of this, he feels, the growth of VM has decelerated. A dynamic discipline like VM can be understood only through constant exposure to the industry. It is therefore essential for educational institutes to involve senior professionals and vice versa. Divya Krishna, an assistant professor at the National Institute of Fashion Technology, Bangalore says, “What we majorly miss is the practical application that covers budgeting, working on the costing and material. It is the biggest challenge in VM today.” Krishna has recently ventured into academics; she has worked as a visual merchandiser at Louis Philippe, another brand from Madura Fashion and Lifestyle. In premium colleges such as National Institute of Fashion Technology and Pearl Academy, there are courses in fashion communication or luxury brand management, wherein VM forms an integral part and is one of the popular career choices for a student; and with the increasing number of courses and institutes, the number of young graduates with VM as their choice of career is going to increase exponentially in future. On the other hand, looking at small VM teams even at leading brands compels us to ponder whether the market is ready to absorb the rising number of graduates with every passing year. Krishna tries to explain, “I feel there are enough vacancies, but also there is no course with a clear focus on VM or retail. The freshers are at an amateur stage, because of which even the industry is not able to justify them wholeheartedly. Because of this we feel that either there is a scarcity of opportunities or somewhere possibly the new talent is not fitting in.” 13 Richa Shrivastava of Allen Solly, points out that only a handful of visual merchandisers have elevated to decision-making roles in the industry. From an ambitious young graduate’s perspective, this scenario does not make VM the most attractive career choice. It becomes a chicken-and-egg situation, where not many talented youngsters take up the field willingly as they see only a few seniors in leading roles, and seniors are not able to outgrow their roles and rise higher. It is important to note that a visual merchandiser’s responsibilities demand a deeper understanding of business in addition to being creative. Visual merchandisers often find themselves as subordinates to the retail department in the organisational hierarchy. “I feel that in India, VM has stalled. I am enjoying my job, but what is the future? You have to ask yourself, ‘if you do not hold an MBA degree, what is the possibility of growing in the industry especially if you are in a creative role?’,” says Shrivastava. Industry veteran Gnanaolivu agrees with Shrivastava’s observation that in India, visual merchandisers who have risen to strategic roles in their organisations are in minority. Visual merchandisers have to wait for a brief from their seniors in Buying and Merchandising, and are not involved in the initial discussions. “That is how the system works today,” says Gnanaolivu. To rise within the company, it is necessary to take on responsibilities, he says and further adds that, visual merchandisers have to understand margins, store development, selling techniques, and the pain of having adequate stock. Foreign markets with considerable experience in the organised retail sector have empowered this discipline as integral to business strategy and are reaping the benefits. “In India, VM is seen as one of the ways to communicate certain campaigns. The whole approach towards VM is that it is a support function rather than a leading business function,” says Gnanaolivu. 10 14 AREA While a lot of home-grown brands lay emphasis on visual merchandising, it is not common to see brands consciously integrating VM from the inception stage. From this point of view, the country’s popular chain of cafés, Cafe Coffee Day (CCD), has taken a different route. For its recently launched coffee chain The Square, CCD collaborated with Bangalore-based Studio.J to develop its VM identity. In the past, Studio.J has worked with leading brands on projects related to visual merchandising, but developing the VM identity of a premium coffee chain format from scratch was a new experience for the studio as well. Director and Principal Design at Studio.J, Jenny Andrews tells us, that the VM identity of The Square has been created to represent the serene landscape of the coffee plantation. To bring out the feel of a coffee house, local materials like naturally cut oak pieces from the plantation have been used; a picture of the plantation has been hand-painted on the wall using acrylic paints. Other elements are also well-thought and emphasised, for example, the social initiatives of the organisation at their plantation have been highlighted. Studio.J has an in-house production unit where it produces most of the props, etc. that have been used in their VM projects. Studio.J was founded in 2011, and along with VM, it also specialises in retail design and interior design services. Top: Interiors of The Square, a premium coffee chain format by Cafe Coffee Day Bottom: Coffe cup mural at The Square created by using coffee beans roasted at different levels