kidswear-market

1. 1. Table of Contents 1.0 Introduction 2.0 Indian Kidswear Market: 2.1 Industry Overview
2.2 Market size and Growth 2.3 Characteristics of Kidswear Markets 3.0 Growth Drivers:
3.1 Demography 3.2 Untapped market potential 3.3 Media Proliferation 4.0 Success
Factors: 4.1 Fashion Innovations 4.2 Brand Building 4.3 Visual Merchandising 4.4
Pricing 5.0 Major Players: 5.1 Gini & Jony 5.2 Lilliput 5.3 Allen Solly 5.4 ZAPP 6.0
Conclusion
2. 2. 1.0 Introduction: Scanning through the streets of any town or city, one can see a mind
boggling array of kids apparels. Spaghetti tops, Crystal studded denims, Italian cuts,
Capris, and exclusive party wears. Kids fashion is a diminutive version of adults wear.
They have all the clothing as like that of adults, and even much more. Children of today
are much more intelligent than their previous generation. They like to have their own
choice of clothing. This metamorphosis of children; becoming independent buyers is
enhancing the kidswear market. Double income, increase in the amount of disposable
income, and one or two kids are the supporting factors to the growth of the kidswear
market. Global kidswear market during 2006 was estimated to be around US$ 163.92
billion, which was a small contribution of 3.6% of the total clothing industry. Kidswear
segment of the Asia-Pacific region is 35.1% of the global market, and is considered by
industry analysts as one of the fastest growing segment, due to increase in child
population, supported by many other factors. 2.0 Indian Kidswear Market: Good times
for the Indian kids apparel market are in the offing. The evolution in the buying behavior
of children, and their influence over their parents results in a big difference in purchase
decisions. Media exposures and promotions also cause a significant influence in the
market. Evolving dynamics in this market have made it necessary for the manufacturers
and retailers to evolve their business strategies’ in order to sustain themselves in the
market. Many manufacturers come up with their own brands, while some others enter
into business through joint ventures. Today’s kids are more fashion conscious, and are
ready to experiment with clothing. Increase in the amount of disposable income, and
retail blitz has brought a sea change in the Indian kids apparel market. With kidswear
being considered as a part of the lifestyle segment and a strong emphasis is being placed
on brands, this segment proves to be a potential business. 2.1 Industry Overview: Market
for kids apparel is the fastest growing industry in India. Manufacturers are coming up
with fancy materials targeting kids who are more interested in the upcoming fashion
trends. Children’s garments are available in various forms and designs. Kids apparel
market is more unorganized than any other segment of apparels. The market is a
proposition of the good, bad and the ugly. A huge volume of kids apparel in India is
being dominated by local and unorganized players. This gives an excellent opportunity
for the organized players to lay a strong foundation in this segment. Indian market is now
moving towards an international look in terms of children’s apparel. Cotton plays a major
role in the clothing of children. Approximately, 86% of the kidswear are of cotton.
Branded kids apparel market is in its nascent stage in India with a handful of national and
international brands. Industry analyst estimate that market size of branded kidswear in
India including brands like Ruff Kids, Ruff Baby, Planet Kids, Gini & Jony, ZAPP, Li’l
Tomatoes, and Weekender Kids is estimated to be around Rs 1,000 crore. They positively
assert that branded market for kids is growing at 15% per annum. International brands
 including Barbie, Mothercare, Benetton Kids, Pepe, Lee Kids, Tommy Hilfiger, and
Adams Kids have also entered the Indian market.
3. 3. 2.2 Market size and Growth: According to the India Apparel Report, 2008 (Images
Year Book, Vol IV), the size of kidswear market is estimated to be at Rs. 30, 510 crore.
Industry experts predict that the market will further grow to reach Rs. 45, 000 crore by
2013, with braded apparels contributing to a major share. The volume of market share of
kids apparels in the total apparel market is at 24.9%, as against a 15% share in 2005.
Urban kids apparel market comprises about 60% of the total kidswear market. A research
states that more than 30% of the country’s population is below 15 years of age. The
density of population makes kidswear to be one of the fastest growing segments in the
Indian market scenario. Market share of the Major Apparel Segments (2007) Total size
Rs. 122, 400 crore Branded kidswear are well established in I tier cities, and are now
experiencing a good growth in II & III tier cities as well. Wanting the best outfit for their
children, parents are seeking a variety of garments offered by new brands, and are
shopping in exclusive outlets dedicated for children’s apparel. Industry players further
predict that the market is set to grow by 12% annually and reach its peak by 2010. 2.3
Characteristics of Kidswear Markets: The market for kidswear is classified as follows:
Infants (0 - 6 months) Toddlers (7 months - 2 years) Kids (3 - 8 Years) Pre-teens (9 - 12
Years) Children’s wear is mainly on a seasonal basis. Highest sales figures are usually
recorded during the months of August – September. The average annual expenditure on
kidswear is approximately Rs. 3, 857. Average budget for kids apparel
4. 4. For children’s wear, cotton is the most preferred material due to its non-allergic,
comfortable, and easy caring virtues. But with the advent of more and more fads
emerging in the market, this fibre faces competition with other synthetic ones, which are
preferred for its washability, and non-creasing abilities. 3.0 Growth Drivers: Children
always keep growing. So, the possibility of this market being strong even in tough times
is evident, as there is always a demand for kids apparel. 3.1 Demography: A survey states
that, the maximum sales in children’s wear market comes from smaller towns. Patiala,
Bhatinda, Coimbatore, Phagwara, and Sonepat are a few to name. Branded wears are well
established in tier I cities and are now emerging into the II tier and III tier cities as well.
In I tier cities, boutiques are emerging to be a popular trend. Consumers expect these
retailers to have a cutting-edge of garments, and exclusive collection of clothes.
Generally stores that offer a wide range of selection at discounts and low prices attract
more traffic. As kids grow quickly, and are less attentive in keeping their clothes safe,
parents consider kids apparel as functional and disposable as well. In case of infant, and
toddler wears, general merchandise, and supermarkets dominate the sales. Specialty
stores are successful in this segment as they are focused on a particular section in the
apparel segment. Few retailers dominate the kids apparel market in any one particular
area. 3.2 Untapped market potential: With a promising future for kids apparels, the
market has attracted international brands into India. Global brands like Mothercare, Mona
Lisa, Benetton, Espirit, Bossini, and Kans have entered the Indian kids apparel market.
While international brands eye Indian kidswear market, domestic brands like Lilliput,
Li’l Tomatoes, and Catmoss are gearing up to have a share in the global market.
Representing Indian brands abroad, higher profit margins, and succulent opportunities are
assumed to be the reasons behind their foreign march. India has a vast potential for export
of kids apparel to foreign markets like US and EU. Brands like Lilliput and Koutons are
 exploring opportunities for joint venture options to tap the children’s apparel market in
China. Indian players spot lucrative manufacturing capabilities in China, supported by
strong purchasing power. Hence, Indian business units are planning to acquire
manufacturing units in China to gain production scale for its operations in the ‘dragon
nation’. 3.3 Media Proliferation: A brand; positioning itself in the market, depends on the
level of differentiation it is able to establish. The manufacturer must also ascertain a
sizable amount of promotional budget to gain eyeballs. There are no boundaries for the
scope of merchandising activities for kidswear. With the effective publicity of mediums
like TV channels, video games, blockbuster of superheroes, and peer influence, children
are aware of the latest fashion in apparels, and other accessories. Generally parents like to
dress their children like themselves. They further seek to buy brands they are already
aware of, and have confidence in. Popular brands like Gap, Diesel, and many others plan
to extend into this segment. With the emergence of many TV channels, promotional
strategies of companies have become more intense. Innovative promotions which
encourage the kids involvement, finds more acceptance. 4.0 Success Factors: Craving for
a niche, new entrants as well as existing players follow distinct strategies to market their
brand. Marketing task lies in capturing the imagination of the children with fashionable
patterns, and of the parents with quality apparels supplemented by reasonable prices. All
these determine the success of the manufacturer in this segment.
5. 5. 4.1 Fashion Innovations: The practice of dressing girls with a frock and boys with
shorts are way beyond. New pattern of garments in par with the latest fad is being sought
by parents. Fashion industry is boosting up the ‘well dressed child’ trend with their new
collections on the runways frequently. Kids apparel manufacturers make optimum
utilization of latest trends in the fashion world to entice the kids and increase their sales.
With wishes and demands getting added in the list of kids, manufacturers and retailers are
making the most of it. Factions of domestic and international players are seen in the
arena, with each of them wanting a slice in the pie. Use of cartoon characters in kid’s
garments: Apparel manufacturers are cashing on the popularity of cartoon characters.
‘Character inspired merchandising’ is emerging as one of the hottest market trends.
Mickey Mouse, Powerpuff girls, Spiderman, Superman etc. have all found their way into
the kidswear market and are currently selling like hot cakes in the market. The type of
cartoon character used in the apparel depends mainly on the popularity of the toon, their
age group, and sex of the children. Coordinated Accessories: This season’s style
statement includes dressing up with accessories, where everything from dress, bag, and
hair clip is color, and design coordinated. In the current trend, leather bags, caps, key
chains, and hair bands are considered as ‘required’ with an ensemble. Especially in case
of branded apparels, garments coordinated with proper accessories sell well in the
market, than individual apparels. The price ranges for such apparels are extravagant. 4.2
Brand Building: As apparel markets are growing in size rapidly, kids of today have a vast
range of options to choose from. So, it becomes necessary for the manufacturers, and
retailers to woo the offspring’s and convince them to make the buying decision. Brands
approach kids to market their product focusing on unique colors, silhouettes and prints
just as for adults. Specialty shops are now an emerging trend for kidswear. Every brand
tries to create a discrete brand identity through its merchandise and in-store
arrangements. Raymond’s brand Zapp has an exclusive kids loyalty programme. Reebok
has a ‘Made to Play’ campaign. They have specific sports wears like Cricket, Football,
 and Basketball collections. This is done keeping in mind that kids are more attracted
towards playing. Peter England has set up a customized space for kids. 4.3 Visual
Merchandising: Trends have changed, and it is quite visible. Children, who were taken to
parks and zoos before, are now coming along with their parents for buying their own
clothes. So, the retailers who want to take a pie of the cherry should focus on attracting
the attention of children along with their parents. They can thereby ‘Capture the child’s
mind and the parent’s wallet’. Kids exhibit considerable ‘pester power’ while shopping
for their clothes. Good store presentation and product merchandising is like a good book
that has an attractive cover, and an interesting first chapter that would lure the viewer.
Big departmental stores have segregated their apparel categories like infant wear, ethnic
wear, casual wear and preteen wear etc. They store a wide assortment of apparels and
distinguish them with each other. Some retailers and department stores have taken the
lead in creating an in-store arrangement with play areas, and kids oriented promotions
within the store. Ex: ‘Back to School’ promotion by Lifestyle. 4.4 Pricing: Kids apparel
market is a price sensitive segment. Higher input costs add to the prices of the apparels.
With the increase in the purchasing power of parents, it is expected that they will sustain
the business in the long run. As kids have the tendency to grow up very quickly, new
offerings are required. This raises two concerns one of range, and second of pricing. An
effective combination of both determines the future of the brand.
6. 6. Deciding the price of the apparel mainly depends on defining the target group and
identifying buyer behavior. The price of garments in I tier cities, and exclusive outlets
will have a vast difference than that of the clothes sold in normal retail outlets and II &
III tier cities. 5.0 Major Players: Indian kids apparel brands are creating a niche by
themselves by changing the face of Indian kids wear in India. Fibre2Fashion had
exclusive one on one interview with prominent kidswear brands. These brands dominate
the kidwear market in India and have earned consumer confidence trust and loyalty
towards the brand, thus earning laurels from its consumers. 5.1 Gini & Jony: Gini & Jony
has a range of brands like GJ Jeans, Palm Tree, Levi’s Sykes Junior, Red River, UCB,
Rocky S, and GJ Knowledgewear for kids. They offer a wide range of apparels for
children including T-shirts, shirts, jackets, cargos, jeans and trousers for boys, and capris,
dungarees, skirts, Jamaicans, and co-ordinate tops for girls. In an exclusive one on one
interview with Fibre2Fashion, Mr. Anil Lakani, Executive Director, Jini & Jony, shares
his thoughts about the kidswear segment. How does the Kidswear segment differ from
Menswear and Womenswear? For a kids wear brand like ours, we clearly differentiate
our buyers into Consumers (Kids) & Customers (Parents). The styling, trend and
acceptability of the merchandise is not as Subjective in the Men’s & Womenwear as in
the Kids segment. Kids segment is highly dynamic as kids get inspired from Men`s wear
& women’s wear, celebrities, sportsmen, bollywood and others. As the buying process
involves more than one person’s decision, the variance in the purchase patterns are higher
as compared to the other two segments. How do you think has the Kids-wear market has
evolved during the past decade? Looking at the past, there were not events/ activities in a
kid`s daily schedule. But the new age kid today goes for dance class , tuition ,guitar
classes, camping’s , etc. and they like to have dressing for each event / activity , therefore
the demand in the kids segment has risen over the decade with significant change in the
lifestyle of the kids . Such an opportunity has attracted many brands and our customers
today have a range of products and brands in their offering. Where do you see the market,
 3 to 5 years from now? The Longer term horizon of the Indian market is still promising
and with increase in consumer awareness, better exposure to world fashion, need for a
better retail experience has given rise to the number of organized retailers. Also with the
change in the lifestyle and consumption pattern, the Organized kid`s wear market looks
promising. 5.2 Lilliput: When conversing about the Kidswear segment, Ms. Sapna Gupta,
Brand Promotion-Marketing, Lilliput kidswear Limited, focused on the unique
characteristics of children’s apparel, and addressed about its evolution. She also predicts
the market scenario in the years to come. What features distinguish Kids wear segment
from Menswear, and Womenswear? “Designing for kids is very different from designing
for adults. Kids are a very sensitive target audience that needs to be pampered every now
and then. For kids, brand names are not the only factor; kids talk about the style, physical
attributes of the product, colors, look etc. It is the whole package that works for the kids –
they need to be pulled at all levels to get them to try a brand and stick to it. Dungarees,
shorts and shirts are the evergreen fashions in kids' apparel. Short skirts, tops with puffed
volume, halter tops, lace trims and cropped trousers are the in things in the world of
children's apparel in today's times. Moreover, designing for kids is probably one of the
toughest jobs, as they are in this transient phase and their psyche at every age has to be
mapped and their
7. 7. wardrobe designed acco towards fashion. Designing rdingly. Boys and girls of the
same age have a very different orientation f latter being at a stage where or 7-8 year olds
is very different from designing for 11-12 year olds. The they identify themselves the
most with sportspersons, celebrities and superheroes. So attitude and individualistic style
is an essential component of the clothing. Further, one cannot compromise on the quality
of the fabric; in fact one has to be even more stringent when it comes to kids – non-
abrasive, easy iron clothing, low formaldehyde content are a few basic benchmarks one
has to adhere to.” ext, Fibre2Fashion asked about the market evolution during the past
decade and the growth drivers that manipulate the kids apparel market. le preferred
buying functional kids' apparel rather than branded ones. Children's garments ajor drivers
in the growth of the Kidswear egment, be it in India, or abroad. No wonder, so many men
/ women N “Initially, in India, the trend was that many peop were usually purchased from
small stores and from street shops, while branded garments were only bought by the elite
section of the society. This trend has been gradually changing and the market for branded
kids' clothing is growing. According to industry estimates, the Kids apparel market is
divided into organized and unorganized segment which exceeds Rs. 17,000 crores, of
which Rs.3000 - 4000 crores is constituted by branded Kidswear. It's growing @ 25%
p.a. which makes it one of the fastest growing markets. Further, both in India and abroad,
with the development in technology, the world is becoming increasingly smaller by the
day. Kids of today belong to the screenage (TV, internet, mobile etc.) and thus are more
aware of the latest trends and fashion. These factors are the m s apparel brands off late
have started seeking Kidswear as the next big thing and streaming their business in the
Kidswear as well.” m now? ge thus it provides immense usiness opportunities both for
the existing as well as new players. The industry will witness the 5.3 Alle slice in the
market share, Allen Solly has announced the launch of kidswear, a funky, cool, n and
stylish collection. While commenting about the market, Mr, R. Satyajit, COO, Allen
Solly says, “The How do you foresee the market scenario, 3 to 5 years fro “As the
branded Kidswear market in India is still in its promising sta b entry of many
 international players thus making the segment more lucrative. Moreover, seeing the huge
potential that the industry offers; many apparel brands have started diverting their
revenues to the Kidswear segment. Thus, in the coming years, the Kidswear segment will
see an upward graph of profitability, opportunities and employment.” n Solly: Wanting a
bigger fu organized kidswear market, excluding school uniforms, is estimated at around
2,000 crores, growing at 30% every year. The kidswear market is among the fastest
growing segments in the apparel industry and Allen Solly aims at playing a key role in
the branded Kidswear segment.”
8. 8. ur My World, Urban Holiday, Sports s in a child's life. While taking about s made of
100 % cotton fabric, whi wed while designing these cloth been made at making th
wstring around the neck a rket, and many others, waiting at their wing kids. Raymonds,
which offer exclus Allen Solly has launched its apparels in four collections namely:
‘Colo Academy and Enchanted’ being built around the numerous occasion the quality of
apparels, Mr Satyajit states that, “90 % of the merchandise i ch is most comfortable for
Children. Strict quality parameters have been follo es including testing for saliva and
perspiration color fastness. An attempt has e merchandise child safe for e.g. care has been
taken to not provide any dra nd wherever it is included - it confirms to specified length.”
5.4 ZAPP: While international players are entering into the Indian ma s; seeking entry,
domestic apparel brands are extending products for ive enswear, launched its kidswear
collection in the name ‘Zapp’. It is an integral section nging fashion to gment, and
heating up the market, old players are their merchandise, and providing attractive offers
and services to charm the customers. Based sis and interpretation, this report draws the
following conclusions: dustry experts positively assert that branded r kids is growing at
15% per annum. Along with domestic brands, many international so entering into the
Indian market. harm the kids as well as their parents. Much focus is placed on in-store
arrangements, keeping pace with the interest of kids. Toon inspired merchandise and
having special kids oriented promotions are a few to name. m bri kidswear. Their target
customers are kids in the age group of 4 -12 years. Zapp also has a tie up with Warner
Brothers to treat the kids with Superman apparels. 6.0 Conclusion: Clothing signifies an
individual state of mind and the wearer’s economic status. This is visible ‘crystal clear’ in
the kidswear market. Parents crave that their children should dress as well as themselves,
and even in a etter way. With new players entering the kidswear seb pepping up n the
analyo There is a high potential for children’s apparel in India both in terms of branding
and specialty retailing. However, their success depends on the extent of their product
differentiation and retailer experience. Branded apparel is in its nascent stage in India. In
market fo brands are al Marketing of kidswear brands in India is still in the budding stage
in India, as very few brands exist, and there is lack of brand orientation amongst
customers. Majority of the kids apparel advertising is being targeted mainly on women.
Manufacturers and retailers follow appealing marketing strategies to c
9. 9. or role in influencing the purchase decisions of kids. Effective publicity of mediums
like TV channels, video games, blockbuster of superheroes help to boost the kids apparel
market. Referen 1) “Pester, Power, Ahoy!”, Richa Bansal, Images Business of Fashion,
Vol IX, No X, October 2008. Media plays a maj ces: 2) http://www.drapersonline.com/
3) http://www.deccanherald.com 4) http://retailia.blogspot.com 5)
http://www.financialexpress.com 6) http://economictimes.indiatimes.com 7)
http://www.babyshopmagazine.com/
 A Study on Impact of Visual Merchandising on Consumer

N.H. Wanniachchi, W.V.L. Kumara*

Department of Textile and Apparel Technology, Faculty of Engineering Technology,

The Open University of Sri Lanka, Nawala, Nugegoda, Sri Lanka.
*Corresponding Author: email: wvkum@ou.ac.lk, Tele: +94776385130
Abstract – This paper presents a study conducted to identify the impact of visual
merchandising
elements, on consumer buying behaviour, to identify the most appealing visual
merchandising
elements. The purpose of visual merchandising is to attract, engage and motivate the
customer
towards making a purchase, where it creates an impact on the consumer buying behaviour.

In this study, visual merchandising elements are categorised into two sections, exterior and
interior
elements for analysis and conclusions. Exterior elements are exterior signs, marquees,
entrance,
window displays. Interior elements are mannequins, colours, lightings, cleanliness, music,
interior
signs, space & layouts, creative display, video display, focal points, and fragrance.

To study the impact of above-mentioned elements, four leading clothing retail shops are
identified in
the areas of Kohuwala, Piliyandala, and greater Colombo. Two from those four retail
stores are
branded stores and other two are departmental stores. This has been done to get more
realistic or
representative sample of consumers as the data source. First, available visual
merchandising
elements in each store were identified and recorded. Primary data were collected from
customers
entering the store. Fifty customers from each store were randomly picked and given the
questionnaire. The questionnaire was designed to collect general information (section 1) such as
age
group and gender. Section 2 dealt with how visual merchandising elements impact on them.
The
Likert scale is used to identify the level of impact from “strongly agree” to “strongly
disagree”.
Twelve elements, both interior and exterior, were considered for the questionnaire.
First, primary data were analysed to conclude, whether visual merchandising elements
have an
impact on the sample population. Primary data were analysed using spider web diagram. Primary
data, a total of 200 samples was analysed as one cluster first, and then clusters were
analysed
gender wise to find out how male or female customers are influenced by visual merchandising
and
finally, age group wise clusters were taken to see which age group has a greater influence
over
visual merchandising elements. To draw the spider web diagram only the strongly agree and
agree
responses were considered. Then the highly influenced elements were identified in different
clusters
as well as on a total. Then compare the strategies use by international branded stores, when
using
these identified highly influencing elements. Suggest those strategies to the selected retail
stores to
improve the impact of the visual merchandising element and draw more customers into the store.

From the collected data it was showed that there were no any disagreed and strongly
disagreed
responses from the total sample population. It clearly shows that the selected visual
merchandising
elements have a positive impact towards consumer buying behaviour. 96% of the sample
population
accepted they believe those elements had influenced them to attract, engage or motivate
them to
experience the merchandise assortments. From the study, it was found that window display
and
mannequins are the highly influencing elements and also colour combinations, lighting,
use of
music and creative display also has a great influence over consumer buying.

Keywords: Visual merchandising, Consumer buying behaviour, Visual merchandising

elements, Window display, Mannequins

N.H. Wanniachchi, W.V.L. Kumara

43

According to (Matthysz, 2003), Visual merchandising involves everything the customer

sees in approaching the store and after entering it. This includes the exterior appearance
of the store, the store sign, display windows, interiors décor, store layout, fixturing,
lighting, and they way the merchandise is presented and displayed within the store.
Visual merchandising also includes activities that appeal to the customer’s senses other
than the visual, such as music or fragrance.
Until recently, the activity was simply called display. However, visual merchandising is
much broader than display, which is the impersonal visual presentation of merchandise
and props.
Visual merchandising, or visual presentation, is used to communicate fashion, value and
quality attributes of a store to its prospective customers.

The purposes of visual merchandising are to educate the customer, to enhance the stores'
image, and to encourage multiple sales by showing apparel together with accessories.
Since the ultimate goal of visual merchandising and of retailing is to get the customer to
buy, visual merchandising must entice the consumer into the store, effectively present the
fashions the store has to offer, and show the customer how to wear and access them
within the context of fashion trends. With increased competition, stores are trying to
create more exciting, aggressive visual presentations.

According to (Khaniwale, 2015), Consumer behaviour involves the study of individuals

and the method they employ to choose, utilise, and set out products and services to fulfil
their wants and the effect that these methods have on the consumer and the society as a
whole. Consumer behaviour refers to all the thoughts, feelings and actions that an
individual has or takes before or while buying any product, service or idea. Buyer
behaviour is the concept which answers what, why, how, when, and where an individual
makes a purchase.

A few international researchers have contributed to the field by exploring the visual
merchandising techniques which cause the customers impulsive buying, but still there is
more to be determined. However, considerable research studies have not been
undertaken on the impact of visual merchandising on consumers buying behaviour in
clothing retail outlets of Sri Lanka. Hence, the purpose of this study is to identify the
influence of visual merchandising techniques on consumer buying behaviour in Clothing
Retail Stores.
1.2 Problem Identification

According to the report “The Report: Sri Lanka 2016” published by Oxford Business
Group indicates retail becomes one of the Sri Lanka’s fastest growing sectors. The retail
industry in Sri Lanka has emerged as one of the most dynamic and rapidly growing
industries today. Clothing retail industry is a very volatile one. There is a high degree of
competition among the clothing retail market and most of the clothing retailers are
fighting to attract customers as well as to stand out from the rest and to be the best
clothing retail chain in the country.

N.H. Wanniachchi, W.V.L. Kumara

44

In Sri Lanka, clothing outlets use different types of visual merchandising elements to
attract the customers, but comparatively apply less of advance elements, rapidly used in
the world. Moreover, some of the retail stores apply these elements without proper
mechanism and standards, thereby not achieving the expected results. This leads to loss
of facilities with those elements. On the other hand, customers do not perceive the effect
of the applied element, thereby level of sales expectation is not realised.

The aim of this research is to study the influence of visual merchandising

elements on consumer buying behaviour by focusing on selected clothing retail
stores in Sri Lanka, to identify the highly influential visual merchandising
elements and then comparing the results with that of international retails stores,
to decide on improvements can be made to attract more customers in Sri Lankan
context.

in international branded clothing retail stores.

stores in Sri Lanka in comparison to the elements used in international
retail stores.
behaviour.
consumer buying behaviour in Sri Lanka.

Visual merchandising techniques can be divided as follows;

Visual merchandising elements

Exterior design

Interior signs

Exterior signs
Marquee
Entrance
Window display

Mannequins, Colours, Lighting

Cleanliness, Music, Interior signs
Space & layout Creative display Video
display, Focal point & Fragrance
N.H. Wanniachchi, W.V.L. Kumara

45

Saini, C., Gupta R., Khurana I. (2015) have studied the effect of Visual Merchandising on
consumers’ impulse buying behaviour and found out the key elements of Visual
Merchandising contributing the most for impulse buying. The study found that visual
merchandising practices certainly influence customers’ buying behaviour and leads to
Impulse buying as well. The results suggest that the themes that linked most strongly to
purchase intention were: merchandise colours, presentation style, awareness of fixtures,
pathfinding, sensory qualities of materials and lighting.

Kaur, A. (2013) proved that there was a relationship between customers’ buying
behaviour and in-store form/mannequin display, promotional signage and window
display. The study also provided insights about types of visual merchandising that can
influence customers’ buying behaviours. Three most important factors of visual
merchandising namely attractiveness of window display, innovative assortments and
cleanliness and neatness of store/ store environment have been identified. The
conclusion of his research is that the visual merchandising has a direct relation with the
sales performance. Customers get attracted, hence increasing the store's footfall, which
ultimately has a positive impact on the sales figures.

Jadhav R.A., Chaudhary P.V. (2014) research study was focused on determining the
important factors of visual merchandising which influence consumers' perceptual
process, buying behaviour and in-store promotion activities. Various visual
merchandising techniques had been considered and studied their impact on the buying
behaviour of the customers and also tried to understand and explain the relationship
between impulse buying and visual merchandising. Visual merchandising served as a
significant influence on the retail experience and the shoppers’ decision-making process. It
provides a competitive advantage and helps in building the overall image of the store.

Madhavi, S., Leelavati T.S (2013) presented the results of an initial investigation on “visual
merchandising” and its effects on purchasing behaviour. The scope of the study was to study
the influence of visual merchandising, especially the one related to the shop-windows, on
consumer buying behaviour according to store attributes most valued by consumers. The
themes that linked most strongly to purchase intention were: merchandise colours,
presentation style, awareness of fixtures, pathfinding, sensory qualities of materials and
lighting. The study proved sufficient evidence that retailers can utilise visual merchandising to
increase the desirability of products and to help customers to be aware of the products as well
as to create favourable attitudes.

Makhal, A.B (2015) found that there is an interaction or relationship between the type of
shopper and the visual merchandising elements. The Estimated Marginal Means for both fixed
factors confirm the same. The Posteriori Tests reveal that in terms of scores, shoppers have
given maximum importance to Set 3 elements-music, aroma, arrangement of merchandise,
aisle space, lighting and store cleanliness; followed by Set 2 elements- flooring and in-store
signage; and lastly Set 1 elements- wall color/texture and store exterior; in respect of lifelong
customer loyalty.

N.H. Wanniachchi, W.V.L. Kumara

46

The proposed methodology is shown in Figure 2. First, a comprehensive literature survey

was carried out. Then select data sources, data collection methods and the data analysis
methods were decided.

To carry out the research, four retail stores were selected, namely Dilly & Carlo outlet in
Flower road, Embark outlet in Dickman road, ODEL outlet in Kohuwala and CIB outlet
in Piliyandala.

N.H. Wanniachchi, W.V.L. Kumara

47

As per the work plan, first visit selected outlets and record the present aspect of visual
merchandising elements, then two types of data sources were selected as primary and
secondary data. For primary data fifty walk-in customers randomly picked, and gave the
questionnaire to be filled. The purpose of the data collection and the technical terms in
the questionnaire were explained to them with suitable photographs.

N.H. Wanniachchi, W.V.L. Kumara

48

Available visual merchandising elements were identified and recorded.

The purpose of the signs is
to gain customer awareness
and announce the store
identity. There are
promotional, directional,
location and informational
signs.
A special type of signs is
used to display the name of
a store. Leather, wood,
metal or plastic material
used.
A total of two hundred
samples were collected
and the collected data
was analysed using
spider web diagram. A
spider chart is a
graphical method of
displaying multivariate
data in the form of a
two-dimensional chart
of three or more
quantitative variables
represented on axes
starting from the same
point. In a spider chart,
a point near the edge
represents high value
and a point closer to
centre on any axis
indicates a lower value.

N.H. Wanniachchi, W.V.L. Kumara

49

Important to attract
customers from visual
appeal. Straight, arcade and
angle store front designs are
different types.

Essential for enhancing the

appeal of the clothing by
showing how it looks when
put on. Realistic, semi-
realistic, abstract, semi-
abstract, headless and three-
quarter mannequins are
some types that are
frequently used.
The first element, which
consumers respond in
selecting or rejecting a
garment, is colour. Warm,
cool and neutral are the
three main colour categories.
According to the season,
colour combinations change.
Get attention, create interest
and invite people to the
store. They are regularly
updated to show the latest
products in the store.
Enclosed, open back, corner,
showcase, angled and semi-
enclosed are some of the
window display types.

N.H. Wanniachchi, W.V.L. Kumara

50
 Figure 13: Different sections in a store

Use to draw attention to a

part of the area or a
specific item in the display
or to coordinate parts of
the total area. Soft lighting
creates an intimate and
inviting space, while
bright lighting creates a
modern feel. Floodlights,
revolving, flashing, and
spotlights are commonly
used types.

Brand identification of
specific products, identity
classification of products,
offer direction to various
departments, and announce
upcoming events and
providing information
about product benefits are
some common purposes of
using interior signs.
It represents how
effectively the retailer
utilises its space. The
objectives of store design
are to guide the customer
around the store and entice
increase of purchase, to
create a balance between
sales and shopping space,
to create an effective
merchandising presentation
and use multi-level to
provide sense and variety.

N.H. Wanniachchi, W.V.L. Kumara

51

Figure 15: Different focal points

The cleanliness of the store and items is the very important. Maintain shop floor and fit
on rooms and racks and other fixtures in a cleanly manner.
Western classical slow music played except at CIB. Background music makes customers
tend to spend more time and make choices freely.
For fragrance air fresheners are used.
Total responses were analysed to see the impact of visual merchandising elements on
consumers. Below graph shows 96% of the total responses are either agree or strongly
agree that visual merchandising elements impact their buying behaviour.
According to seasonal
themes creating different
displays & arrangements
and use of different
folding and hanging
methods are categories of
the creative display.
Props and fixtures are
commonly used
A focal point is a place
that peoples’ eyes will
immediately focus on
when they first look at
the display. Creating an
attractively highlighted
area with mannequins,
accessories and attractive
designs is important.

N.H. Wanniachchi, W.V.L. Kumara

52

Gender information graph shows, that 72% of the sample responses are on female
consumers and only 28% of the male.

Age group information graph shows that 72% of the consumers’ belong to the age group
25 - 44 and majority is in the age group 25-34.
28%
72%
Gender information
Male
Female
15%
40%
32%
13%
Age group information
18-24 Age
25-34 Age
35-44 Age
Above 45
53%
43%
4%
Total responses
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
N.H. Wanniachchi, W.V.L. Kumara

53
Responses given to the questionnaire by the customers from all the four outlets is given
in the table below;

Techniques
Strongly
agree
Agree
Neutral
Disagree
Strongly
Disagree
Window display
162
38
0
0
0
Color combinations
155
45
0
0
0
Mannequins
151
49
0
0
0
Lighting
125
75
0
0
0
Cleanliness
108
92
0
0
0
Creative display
108
92
0
0
0
Exterior signs
102
98
0
0
0
Entrance
93
104
3
0
0
Interior signs
87
113
0
0
0
Use of music
66
134
0
0
0
Space & Layout
55
84
51
0
0
Video display
8
47
45
0
0
There were no any “disagree” and “strongly disagree” responses from the total of 200
customers randomly picked at each selected store. Above data were plotted in a spider
web diagram to clearly identify the highly influential elements of visual merchandising.

This graph clearly indicates window display, colour combination and mannequins have
the highest impact on consumer buying behaviour and lighting and use of music also
have a greater impact too.
0
50
100
150
200
Window display
Color combinations
Mannequins
Lighting
Cleanliness
Creative display
Exterior signs
Entrance
Interior signs
Use of music
Space & Layout
Video display
Impact of visual merchandising elements
Stongly agree
Agree
Neutral
Disagree
Strongly Disagree
N.H. Wanniachchi, W.V.L. Kumara

54

At ODEL window display, mannequins and creative display have the highest impact.
And also colour combination, lighting and use of music plays greater impact too.

At Embark window display, colour combination and use of music have the greatest
impact on consumers’. And also lighting, interior signs and entrance have a greater
impact too.
0
10
20
30
40
50
Window Display
Exterior Signs
Entrance
Mannequins
Color …
Lighting
Cleanliness
Use of Music
Interior signs
Space & Layout
Creative Display
Video Display
Imapct of visual merchandising elements at
ODEL
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
0
10
20
30
40
Window display
Exterior signs
Entrance
Mannequins
Color combinations
Lighting
Cleanliness
Use of music
Interior signs
Space & Layout
Creative display
Video display
Imapct of visual merchandising elements at
Embark
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
N.H. Wanniachchi, W.V.L. Kumara

55

At Dilly & Carlo window display, mannequins and colour combination have the highest
impact on consumers’. And also lighting, exterior signs and use of music have a greater
impact too.

At CIB window display, colour combinations and mannequins have the greatest impact
on the consumers’. And also lighting, use of music, entrance and interior signs plays a
greater impact too.
0
10
20
30
40
50
Window Display
Exterior Signs
Entrance
Mannequins
Color …
Lighting
Cleanliness
Use of Music
Interior Signs
Space & Layout
Creative Display
Video Display
Imapct of visual merchandising elements at
Dilly & Carlo
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
0
10
20
30
40
50
Window display
Exterior signs
Entrance
Mannequins
Color combinations
Lighting
Cleanliness
Use of music
Interior signs
Space & Layout
Creative display
Video display
Imapct of visual merchandising elements at
CIB
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
N.H. Wanniachchi, W.V.L. Kumara

56

The highly influential or effective visual merchandising elements are window display,
mannequins, colour combination, use of music and creative displays. Compared with
international branded stores, following recommendations can be made for Sri Lankan
retail stores.

as one of the most effective

methods used in
internationally mostly in
major cities for effective
communication with potential
customers.

customers can be inspired

with the creative lighting
arrangement. Some of the
decorative lightings used in
international stores shown in
the picture, which has
reflection property.

international standards and

concepts along with
appropriate mannequins and
creative arrangements can be
displayed in interior sites,
which enable stores to
introduce their new fashions
and key items in a more
effective way.
displays are arranged
without using dummies. It is
a quite different as customer
attention is directly taken
only to the clothing but the
dummies.

N.H. Wanniachchi, W.V.L. Kumara

57

According to the outcome of the study, it is clear that in Sri Lanka females do shopping
more than the male. 72% of the sample of 200 randomly picked customers at four stores
were female and only 28 % were male. The age group of 72% of the respondents was
between 25 – 44 years and majority was between 25-34 years of age. It is clear that young
working adults do shopping than other age groups. In Sri Lanka children clothing is
decided by the parents. For older people, mostly their children do the shopping.
According to the study, it is clear that visual merchandising elements play a vital role in
the retail business and it has a great impact on consumers’ buying behaviour. The highly
effective visual merchandising elements are window display, mannequins, colour
combination, use of music and creative displays.
Under the recommendation, visual merchandising elements, adopted by international
branded stores are indicated, hoping those elements will help the Sri Lankan retail stores
improve their business.
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