If you're involved in store management, you've probably heard the word "VMD." This is a word which is often heard especially in the fashion and apparel industries, but many people may not understand what it means.
In this blog, we explain an overview of VMD and an effective VND method.
Table of contents
1. What is VMD?
2. Three important elements in VMD:
3. How to do effective VMD
3.1. Think about the basic structure of the display
3.2. Create a layout from the consumer's perspective
3.3. Consider the customers flow in order to avoid the three ‘C’s (W.H.O)
4. Using VMD to increase sales at the sales floor
1. What is VMD?
VMD stands for "Visual Merchandising". Merchandising (MD) refers to activities that strategically set sales methods or the price for your product.
In other words, VMD means "visual sales strategy". To put it more simply, it can be described as a marketing method that "creates a sales floor where customers can easily find and purchase products."
In the fashion and apparel industry, the following is one of examples of VMD.
-dressing a mannequin for display
-placing popular items in a show window to attract the attention of passers-by
In addition, VMD also includes thinking about the interior of the store, preparing fixtures that matches the store image, and training sales staff.
2. Three important elements in VMD
VMD is composed of three elements: VP, PP, IP. By focusing on these 3 elements, we can create a space where customers can easily see and buy product. Let's check the outline of each elements.
VP is a short of "visual presentation" and it is to express the concept and image of the brand. The purpose of VP is to get customers interested and to create an opportunity to have them visit your store.
You shall work on it in places that are visually noticeable, such as show windows, around the entrance of the store, and the place facing the aisle of the store.
VP determines the first impression of the store and influences the customer visit rate so you need to be careful not to destroy the image of the store or brand.
It is also part of VP to reflect seasonal recommended products and themes for each event on the display.
PP is a short of "point presentation". It is creating customer’s flow to have customer can easily look around the products and have them spend more time in the store.
An example of PP is to use mannequins or large fixtures to promote recommended and popular products.
It is best to carry out in a place which customers see often, such as near the entrance, around the cash register, in the center of the store, on the wall, or on the shelves at eye level. It is important to think about the layout so that customers naturally want to move around the store.
IP is a short of "Item Presentation". It is a method that makes it easier for customers to find products intuitively by displaying products by item, design, size, etc. In addition to displaying products by type, there are various ways to classify them, such as by season, by color, and by price.
It's also important to display similar products nearby to help customers compare them.
It will be easy to understand the importance of the three factors if you think of it as the following.
VP will increase customer visit rate, PP will extend their time to stay, and IP will lead to purchasing behavior.
4. How to do effective VMD
What should be done specifically in order to carry out effective VMD at the sales floor based on the three factors?
Here are some tips to carry out VMD.
4.1. Think about the basic structure of the display
VMD has a basic display structure that makes the product look beautiful to the customer. It is better to consider the basic configuration first and then decide on the sales floor. The basic structure of the display is the following.
・ When arranging products with different heights, arrange them to be a form of triangle when viewed from the front.
・ Arrange products symmetrically
・ Arrange products asymmetrically
・ Arrange products with regularity
When using mannequins in apparel stores, it is necessary to consider the face direction so that you can have the customer look at the same direction as mannequins. On the other hand, by arranging the mannequins look at the left or right, you can have the customer’s eye meet with mannequins regardless of the direction in which the customer comes.
Let's think about what kind of impression you want to give using the mannequin.
4.2. Create a layout from the consumer's perspective
In general, customers often walk around the store and pick up various products to find what they are looking for.
It is important to plan the store layout considering whether the customer can easily walk around, or the products are arranged to catch their eye etc.
4.3. Consider the customers flow in order to avoid the three ‘C’s (W.H.O)
From the pandemic of the new covid-19 infection in early 2020, our lifestyle has changed significantly. In order to avoid contact with others and reduce the risk of infection, there is an increasing tendency to purchase things on the internet.
However, physical store still has the advantage which the customer can touch, see and feel the products before buying it.
In the current situation, it is important to carefully think about the arrangement of mannequins, display shelves, and various fixtures when creating store layout.
Here’s some examples of layout plan.
-widening aisle to make it easier to keep a distance from other customers
-putting a sticker in front of the check to indicate the waiting place
Let’s carry out these actions to make your customers feel safe to visit the store.
5. Let's use VMD to increase sales of physical store
VMD has a big factor that influences the customer's interest in the store and the actual purchase of the product. If customers try to create a sales floor that makes it easy for them to check and pick up products, the customer's purchase rate will change.
On the other hand, if you plan the layout of the store without thinking about anything, it will be difficult to find the product, or move in the store.
Let’s try to plan the best layout for the customer by using VMD and increase sales of your physical store.