Visual Merchandising in India

Powerful Essays
Agricultural Economics Research Review
Vol. 20 (Conference Issue) 2007 pp 441-456

Nature and Functioning of Visual Merchandising in Organized Food Retailing
V.P.S. Arora, Shivani Sharma and Nirdesh K. Singh
Abstract
The Indian food retail sector is one of the biggest industries in the country with an annual turnover of around US $18 billion. It has been estimated that organized food retailing in India which is worth US $ 666 million today will increase to US $ 33,333 million by 2015. The inherent attractiveness of the segment is luring more and more investors from both India and abroad, as is clearly indicated by the opening of a number of retail stores by major corporate houses like those of Bharti, Reliance, Pantaloons (Food Bazaar),
Subhiksha, ITC (Choupal fresh), etc. However, to build long-term customer loyalty, price, quality, variety, and right image are very much needed. To attain this, the aesthetic appeal of the store and the way the products are displayed at the store are very important. Thus, the visual merchandising
(VM) is the need of the hour at the food retail stores. This paper has studied various components of VM at retail stores and has analyzed the impact of indoor signages on customer’s buying behaviour. A comparative analysis of VM has been done at Food Bazaar (Ambala), Subhiksha
(Chandigarh) and ITC Choupal Fresh (Chandigarh). Problems faced in implementation of VM at retail stores have been highlighted and some implications have been mentioned.

Introduction
The food retailing sector, an important agribusiness option, is witnessing a paradigm shift having long-term implications on the way food retailing will evolve in the emerging economies like India. The organized food retail industry in India is still at the infancy stage with a share of less than one per cent in the total food retail market, in spite of the fact that food is the largest component in the consumer’s spending basket.
Indian consumers are



References: Arora, S. (2006) Visual Merchandizing Effectiveness for World of Titan, Bangalore, Internship Report, Mudra Institute of Communications, Ahemedabad. Gandhi, M.K. (2006) Store Image and Positioning, Retail Biz, November. Joshi, S. (2004) The Recipe for Retail Success, The Hindu Business Line, Hindu Publications, November Kannan, R. (2004) Displaying delicacies, Times Food Processing Journal, Aug-Sep issue. Kearney, A.T. (2006) Retail in India Getting Organized to Drive Growth, Report, Confederation of Indian Industry, New Delhi. Marya, G. (2005) Business Drivers, Retail Biz, November. Nath, A. (2001) How Consumer Preferences Are Influenced by Consumer Shop Design, Dissertation, Mudra Institute of Communications, Ahemedabad. Tucker, J. (2003) Retail Desire: Design, Display and Visual Merchandising, Rotovision Publishers, New York, p Uniyal, D.S. (2004) Attitude and Perception towards Mall, Mudra Institute of Communications, Ahemedabad.

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