VISUAL

MERCHAN
DISING

IN

RETAIL
INDUSTRY

[PROJECT
AND

REPORT]

SMALL
Submitted By: Maitry Patel Vidhi Patel Nidhi
SHOPS
Shah Rohan Pandya Kashyap Solanki Gaurav
Moorjani

Need and importance of visual merchandising

Visual merchandising today forms a critical element of retailing. Besides the facade and
windows, which are clearly done up with an objective to attract passer-bys and induce walkins, there is also in-store decor that is designed to enhance the customers comfort and
convenience while shopping and overall, offer a superior shopping experience.
Consumer behavior studies have confirmed that the lure of a beautifully done up show
window and a tastefully decorated facade, more often than not, prove irresistible as they walk
in to check out what is on offer. It also ensures exclusivity since no two stores should look
alike. Besides, when the mood and theme of such displays change at regular intervals, it
makes certain that the store remains top of mind. Loyal customers have often been known to
anxiously wait for the next display. Stickiness in retail formats is also ensured by the
imaginative use of colors, lighting, space, furniture and visual elements with regard to instore displays.
Once customers walk in, it is but imperative to ensure that they enjoy their first encounter
with the store. After all, repeat visits will only happen if a customers first visit is a
memorable one. The logical arrangement of counters, with clear passageways allows for easy
access to merchandise.
Rather than getting lost in the big space that most large stores are, the customer feels more in
control.
Clear passages are provided for products, which require touch and feel. All impulse purchase
driven products are also clearly displayed so that the customers can reach them without any
hindrance. Also, it has been observed that when a person enters a room, the human eye moves
in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to
front right. Care should be taken to do up the rear left end of the room in an appealing manner
so as to guide the direction of vision and keep a shopper visually interested.
A great deal of research has been undertaken on the impact of lighting on a customers
purchase behavior. Results clearly indicate that in general, stores that are brightly lit, with the
lights cleverly blending with the interiors lead to higher customer comfort, and as such, more
sales.
Indian Retail Industry An Overview
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India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing lifestyles, and favorable
demographic patterns.
The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales
will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding
middle and upper class consumer base, there will also be opportunities in India's tier II and III
cities. The greater availability of personal credit and a growing vehicle population to improve
mobility also contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass
grocery retail (MGR) sales in India are forecast to undergo enormous growth over the
forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per
cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic, rapid shift
from small independent retailers to large, modern outlets.
BMI forecasts consumer electronic sales at US$ 29.86 billion in 2010, with over the counter
(OTC) pharmaceutical sales at US$ 3.28 billion. The latter is predicted to be the fastest
growing retail sub-sector and BMI forecasts that sales will reach US$ 6.18 billion by 2014,
an increase of 88.5 per cent.
Moreover, for the 4th time in five years, India has been ranked as the most attractive nation
for retail investment among 30 emerging markets by the US-based global management
consulting firm, A T Kearney in its 8th annual Global Retail Development Index (GRDI)
2009. India remains among the leaders in the 2010 GRDI and presents major retail
opportunities. India's retail market is expected to be worth about US$ 410 billion, with 5 per
cent of sales through organized retail, meaning that the opportunity in India remains
immense. Retail should continue to grow rapidlyup to US$ 535 billion in 2013, with 10 per
cent coming from organized retail, reflecting a fast-growing middle class, demanding higher
quality shopping environments and stronger brands, the report added. Bharti Retail
strengthened its position in northern India by opening 59 stores, Bharti Wal-Mart is expected
to open 10 to 15 wholesale locations in the next three years, and Marks & Spencer is
considering plans to open additional outlets in the next few years.
Established retailer s are tapping into the growing retail market by introducing innovative
store formats. Spencer's Retail, More (owned by Aditya Birla Group) and Shoppers Stop
(owned by K Raheja Group) already plan to expand.
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According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organized
Retail Comes of Age in India', organized retail in India is expected to increase from 5 per cent
of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450
billion by 2015.
Furthermore, according to a report titled 'India Organized Retail Market 2010', published by
Knight Frank India in May 2010 during 2010-12, around 55 million square feet (sq. ft.) of
retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata,
Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organized retail real
estate stock will grow from the existing 41 million sq. ft. to 95 million sq. ft.
India continues to be among the most attractive countries for global retailers. Foreign direct
investment (FDI) inflows between April 2000 and April 2010, in single-brand retail trading,
stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion
(DIPP).
Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for
opening 50 premiums watch outlets Helios in next five years to attain a sales target of US$
87.31 million. "We are looking to open Helios outlets in Mumbai, Delhi, Hyderabad, Kolkata,
Chennai, Pune, Ahmedabad etc. in next 12 months," said Ajoy Chawla, Vice President
(Retail), Titan.
British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail
presence in India, targeting 50 stores in the next three years. M&S currently operates 17
stores in India through a joint venture (JV) with Reliance Retail.
Bharti Retail, owner of Easy Day storesupermarkets and hyper martsplans to invest
about US$ 2.5 billion over the next five years to add about 10 million sq. ft. of retail space in
the country by then, according to a company spokesperson

Company Profile

K. Raheja Corp. is a success story spanned across decades and continues to achieve higher
targets relentlessly for quality performance and service in diverse fields of real realty
business, hospitality sector and retailing outfits.
The group has made an impact on the supply side of the modern day living. A style that has
been the dream of new class of consumers, a style encompassing the whole range of
consumption pattern of the young and the upcoming consumers that has become synonym
with the brand K. Raheja Corp.
The higher standards set by the group in its pursuit to position India on par with the
developed economies of the world and with a vision to be and remain at the commanding
height of Real Estate Business.
K Raheja Corp pioneered organized retail with their first retail venture in 1991 with Shoppers
Stop. Today, they have a number of successful brands across the spectrum of retail formats in
India.
Ventures like Crossword & Hyper City have set new bench marks on the basis of information
and adaptation of worldwide changes, innovations and new techniques in retailing practices.
Inorbit Malls
About Inorbit Malls India Pvt. Ltd Inorbit Malls pioneered mall culture in India, when they
opened its first mall to the public in early 2004 in Malad, Mumbai. Since then, Inorbit has
repeated its success with world class malls in Vashi, Hyberabad, Pune , Whitefield in
Bengaluru and Vadodra. Inorbit malls have universal class and appeal, and they seek to
provide a one-stop destination for fashion, lifestyle, food and entertainment leading to an
international experience for families. Inorbit Malls is a subsidiary of the K. Raheja
Corporation with an objective to not just create physical structures but also to influence
lifestyles. Committed to setting benchmarks in retailing in India, Inorbit Malls provide an
excellent walk through experience for customers. Inorbit Malls combine the knowledge of an
Indian Consumer and a changing Indian market scenario in locating, designing, planning and
managing retail environments. Inorbits professional expertise helps ensure that the
consumers and retailers Live a Million Experiences.

Shops Visited in Inorbit Mall

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Add on (Accessories)

Neckpiece Small to big

Two Racks
Cash Counter Display
Handbags
Footwear
442 sq. feet

AND: Clothes (Women)

There is a colour wise display wise of clothes
There are 2 changing rooms
588 sq. feet
Mannequins are used to attract the customers
Woodland: Clothes (Men)

All clothes are arranged according to colour contrast.

Jackets are also arranged according to colour contrast
All the products which are being sold are displayed at the window
The shoes are kept according to the theme (wall)
1280 sq. feet

Hypercity
15000 sq. feet
The items are kept according to their aisle and there is a zigzag path to buy the
products
The vegetables are kept in crates which are in a slant shape so that customers are
easily attracted
To attract customers to buy travelling bags various attractions were done so that they
can be induced to buy it.
Small Shops
Colours: Clothes (Men)

980 sq.feet
U Shaped layout
Murals drawn on walls
Only Floral shirts representing summer collection
5

Strips And T-shirts hung together with different colour combinations

She: Clothes (Women)

230 sq. feet
Dress materials combination together(black and white combination)
mannequins kept very close to thee footpath so that customers attracted towards the
shop

Comparative Analysis