merchandising strategy for multi brand environments

There are many different ways and strategic rules about store merchandising.

The food industry has probably best mastered product placement to maximize productivity through consideration in ergonometrics, easy of product access, visibilities, category management, adjacencies and shelf life as can be found in every better food market around the world. We can learn a lot from these strategies.

the leading example
food merchandising

The human factor plays the most important role. In the end the products are to be sold to us humans and we have certain constraints in where we can reach, what we can see. We usually shop with an underlying need. Most consumers in a store are either looking for a specific type item or they browse to find a solution to a need (like a gift for someone or a dress for a night out or a hunt for a suitable accessory). In the professional world we call these “consumer need states” and I think that these serve really well as merchandising strategies.

Specifically in a multi-brand environment. A classic way of merchandising such a floor would be to give each brand its own space. Think of a department store and you can visualize how each brand has a dedicated area within its department. The problem with that is that it does not respond to the consumer need.

the traditional department store setup

For example: A customer enters a department store’s men section with the need for a tuxedo. Every brand lives in its own silo, hence he is forced to look for the same item over and over again to compare as he moves from brand to brand. It is also difficult to compare choices as the various models he finds are not next to each other. Instead why not merchandise the floor according his need state? In this example it would be better to have all tuxedos together with all the accessories needed for a black tie event one area. Brands can still be sub-distinguished within that area to keep their identities. So the ties & bows, cuff links, shoes, belts all live adjacent to the tuxedos as it is done in supermarkets with pasta and pasta sauce.  It will not only make the consumer’s life easier, but he will also be more engaged to buy more because the whole “look” is laid out in front of him.

Or why is a customer, who comes for a blowout and style to the hair salon in the department store, not offered a makeup consultation or shown make up products at the same time to achieve a complete look? Or why can’t a business man, who looks to outfit his next business trip, find everything he would need to pack for in one place?

Shopping is partially entertainment today. To entertain we need to tell stories to people. Theme worlds are just that.  Customers will do much easier in a preset themed area than having to piece it together by themselves. So, while some stores have adapted such concepts, we wonder why such a setup cannot be found more often? Wouldn’t it make shopping in department stores so much more convenient and enjoyable?

merchandising themes (need states)

regis pean + omni//form is a strategic design firm

with specialization in global retail concepts and roll-outs

http://www.omniform.us