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Not only are they more effective than traditional marketing, they're more affordable

When manufacturers build their marketing plans for the year, they often build their plans around one simple concept: How can we get more eyeballs on our product through marketing so more people will buy our product?

To accomplish this, these businesses often turn toward the more traditional forms of marketing – print, radio and TV advertisements with traditional media outlets; billboards, flyers and postcards; and digital display and search engine results ads. Some more tech savvy companies are taking some of that money historically spent on purchasing advertisements and are investing it instead on people who can build brand and product awareness on social media channels.

Unfortunately, these marketing plans are misguided. Simply put, in today’s environment, manufacturers shouldn’t be focused on how they can get more eyeballs on their product through marketing. They should instead be focused primarily on one question:

 How can we get more eyeballs on our ACTUAL PRODUCT, in stores, 
so more people will buy our product?

The way to do that is through Point of Purchase (POP) displays.

Why Do POP Displays Work?

POP displays work because they are a direct appeal to how today’s shoppers purchase products. In 2014, Point-of-Purchase Advertising International (an industry association that has since merged with the Association for Retail Environments to form Shop!) released its annual Mass Merchant Study. The study included one statistic that clearly spells out the reason why POP displays work:

82 percent of mass merchant purchase decisions are made in-store.

That is truly a remarkable statistic. Here are a few others from the study:
• 47 percent of shoppers rely on a mental list when they shop, and only 34 percent use a list at all.
• Less than a quarter (21 percent) of shoppers use circulars to pre-plan their shopping trip, and only 18 percent use newspapers or mailers.
• 62 percent of shoppers made at least one impulse purchase during their trip.

To sum all this up, an overwhelming majority of shoppers make their final decisions of what products to buy once they arrive at the store, and these shoppers are impulsive. Most shoppers don’t even shop with a pre-planned list at all (either in written form or mentally). And only a minority of those who do use a pre-planned list are influenced by traditional forms of advertising.  This is why POP displays work. They tug at the heartstrings of who we are as shoppers: Compulsive, ill-prepared and easily influenced.  POP displays grab the attention of shoppers at the time when they are most likely to make a purchasing decision – when they are in the store that sells product. They allow shoppers to interact with your product, and they set your product apart from the others in the store.

POP Displays Are More Affordable and More Effective

Now that we’ve discussed why POP displays could be effective in theory, let’s dive into some more eye-opening stats that prove they actually work. According to the Shop! Association, the average Promotional Program Value (or PVV) for POP displays was 499 percent. Again, this is a truly eye-popping statistic. What this means is that:

For every $1 that a business invests in a POP display, it received 
an average return in incremental sales of $4.99!

What, you might ask, is the PVV for TV or print advertising? Well, it can’t be measured. These forms of advertising – as well as those on the radio, on billboards and online – don’t hit shoppers in the place where they become purchasers. So, while these traditional forms of marketing can still be effective, it’s more of a long-term branding pitch and not as strong of a decision driver, at least not nowadays.

The best part about POP displays are they are affordable, too. According to SHOP!, the cost of POP displays is on par with that of radio advertising and about half that of TV advertising. So, not only is POP display marketing more effective, it’s more affordable, as well.

POP Displays Should Be the Start of Your Marketing Plan

The one big question that, as of yet, remains unanswered is: “If traditional advertising doesn’t work anymore, then why can’t I turn on the TV for an hour without being bombarded by commercials from successful companies such as Coke, Pepsi, Apple, etc.?”

That’s a good question, but one that takes a slightly skewed approach to the concept of retail marketing. For companies that are similar to The Coca-Cola Company, which earned $35.41 billion in revenue in 2017, traditional advertising mediums should by all means be a part of their overall marketing plan.

However, if your company is not like Coca-Cola in that regard (and 99 percent of manufacturers aren’t), then the point that needs to be made is this:

It’s not that traditional forms of advertising are not 
beneficial to your retail business. Instead, it’s that POP displays are a 
MUCH MORE EFFECTIVE use of your marketing dollars.

As such, if you own a business that creates products that are sold in a retail environment, POP displays should be your number one focus when it comes to your marketing plan going forward. Not only are POP displays more affordable than other forms of marketing, they are also significantly more effective, giving you a much higher Return on Investment.

By 7064666794 07 Nov, 2023
Evolution of a Display - The Success of Carnivore Meat Company's Display (Part 2)
By 7064666794 11 Oct, 2023
October 11, 2023 A chance meeting between Jerry Smith of Rhino Global Solutions and executives at Carnivore Meat Company led to the company generating new sales and landing additional retailers for their Vital Essentials Raw Bar line of dog snacks. Thanks to the collaborative work put in by Rhino and Carnivore to re-imagine and completely re-design its POP displays, the Raw Bar line of products has become a dominant force for the company and set a new standard of expectation for the industry. According to Nick Ebert, Chief Commercial Offer at Carnivore Meat Company, the Vital Essentials Raw Bar line of products is a key differentiator in their overall product offering and sets Carnivore apart from the industry and what quality looks like in treats and snacks for pet. How It All Began The Rhino team stumbled upon Carnivore Meat Company at a trade show and saw the first-generation free-standing display rack it had at its booth. Taking a quick look at it, they pointed out some design improvements that could be made, which were opportunities Carnivore had internally identified as needing to be fixed. Since the Rhino team is quite "tenacious" as Nick pointed out, they kept coming back to take measurements and look at different angles of the company's current display. "They really went way over and above, in terms of trying to get a real sense of the use of the product and the function design of the POP display, understanding what type of square footage we have to work with in a retailing space," he said. That display rack at the trade show worked in terms of design, but had some stability opportunities. It also didn't rotate as well as Carnivore wanted it to, which served as a deterrent for customers in stores. Time to Get to Work Within three weeks of the trade show, Rhino came back to Carnivore with design recommendations and even had schematics drawn up. They took it to the next level, Nick said, making a prototype from the design and then getting it into final production. He was especially impressed with the team Rhino Global Solutions works with in China for its materials. "The group Rhino works with in China is just awesome," he said. "They take a look at every angle, and take every measurement so you know what you're really working with." Carnivore ultimately chose to switch their POP display to Rhino's design, and they're currently on the third iteration of the display. The Results Nick and the team at Carnivore are extremely pleased with the results of the POP display Rhino created for them. "I've been at trade shows where we have customers who have come up to us and tell us it's the most functional and profitable display they've put in their store,” he said. Stores that had Carnivore's first-generation display and saw Rhino's version were so impressed that they decided to keep both. Today, the Vital Essentials Raw Bar display is so popular that Carnivore uses it as a selling point for new retailers. Nick points out that across the company's entire database of retailers, about 50% to 60% have the in store today and most have transitioned to the design that Rhino created. Every month, the company is placing about 30% of all new net stores with Vital Essentials Raw Bar racks, which equates to about 30 to 50 new accounts per month. Beyond just the new retailers they are bringing on board, the current Vital Essentials Raw Bar racks also carry more products. The basket sizes were increased in the latest iterations of the POP display, allowing Carnivore to almost double the holding capacity of the display. Why the Rhino Raw Bar Racks Work Nick says there are many reasons why the Vital Essentials Raw Bar racks that Rhino designed for them work. One of the top factors is the space they take up. The latest version only takes up about 20 square inches. This means retailers don't have to dedicate significant linear space for the rack, which is a problem they were running into with earlier versions. In addition, the compact design also allows the Raw Bar rack to be placed anywhere in the store -- from the end of a checkout counter, to the center of an aisle, to an open space in front of the store. That's a huge advantage not only for Carnivore in terms of getting into new retailers but also in selling more products once the rack is placed. The 360 design of the Raw Bar rack wasn't unique in terms of retail POP displays, but it was for pet retail, Nick added. It also created a sensory experience for pets who came into stores with their owners. Because of the lower level of the Vital Essentials Raw Bar rack, a lot of larger dogs can sniff the products out right away. Many pet owners have told Carnivore that their dogs go right to that lower level. And once the owner sees how interested the pet is in the product, "they're more apt to pick it up, put it in the car, take it home and try it," Nick said. Why Working with Rhino Was a Great Fit for Carnivore The Rhino team certainly doesn't rest on their laurels. They constantly check in with the team at Carnivore to make sure everything's going well. They've been good advocates in making sure Carnivore understands the price side of things, helping to navigate them through some of the logistics of it. Nick adds that the Rhino team is also very transparent with them, making sure there are no hidden fees or surprises along the way. "What we haven't seen, what you see with a lot of vendors, is Rhino doesn't just come back for the PO," he said. "More than anything else, it's the follow-through that we have with our account executive that's been consistent." The Rhino team is always working to fix any problems that Carnivore might have with a specific POP display, its delivery or design, and they're always enthusiastic about generating new ideas. This speaks to the integrity of Rhino Global Solutions, Nick says, since they work hard to make things right. What the Future Holds for Carnivore The Vital Essentials Raw Bar POP displays truly helped define rapid growth for Carnivore Meat Company, Nick said. Now, the company is using the racks to get full linear placements in stores. As for future plans, the company is always looking for new and different products to put in the Raw Bar, looking at higher-end items and looking to integrate them into packaged items for sale at independent pet retail stores. It's important, Nick said, for the team to always be innovating. "The longer you stay in the slow lane or neutral, the faster people pass you," he said. "That's not really part of our corporate culture at Carnivore.” To learn more about Carnivore Meat Company, visit carnivoremeat.com.
By 7064666794 24 Aug, 2023
August 24, 2023 There is a lot of noise in the retail industry. So much attention is given to the ever-growing ecommerce sector that it would lead some to believe that physical retail stores don't serve as an important source of sales for brands. But, that couldn't be further from the truth. In 2020, when the COVID-19 pandemic began, a whopping 82% of all retail purchases were made at a physical retail store. That may seem surprising to many, as 2020 was the year when ecommerce exploded. The Annul Retail Trade Survey produced by the Census Bureau, for instance, reported that overall ecommerce sales increased 43% that year, rising from $571.2 billion in total sales in 2019 all the way to $815.4 billion the next year. Even still, purchases in physical stores dominated the overall retail landscape that year, and it's expected to remain a large part of it in the future. This emphasizes the importance of marketing and advertising strategies that are focused on driving retail sales in physical stores. And the best way to do that has consistently proven to be Point-of-Purchase (POP) displays. Why POP Displays Work There are many statistics that clearly tell the story of why POP displays work. As much as 75% of all consumer purchase decisions are made in-store, according to the Shop! Association. This means that three-fourths of all consumers don't make their final purchase decisions until they see specific products on the shelves in front of their eyes. This provides an enormous opportunity for brands to market their products to consumers who may not have made their mind up on what they want to buy before they get to the store. Sure, they might have "dog food" on their shopping list, but they could be swayed on which product to purchase based on what they see in store. To further this point, another study revealed that 69% of all consumers reported noticing product advertisements in store. If done properly, POP displays can help consumers notice specific products and sway them on their purchase decisions. The Real Impact of POP Displays Rhino Global Solutions, a leading POP display company, has worked with many clients over the years to help drive in-store sales through the use of POP displays. Many of our clients have experienced significant bumps in sales as a result of the POP displays we have designed in coordination with their leadership teams. One of our clients, for instance, experienced a 14% increase in sales as a result of new POP displays that we designed for them. Another client uses POP displays we designed for only 10% of their product line, yet that line accounts for 30% of the company's overall sales. Taken by themselves, these increases in sales are extremely impressive, but they're even more so when you consider the long-term implications for the brand. In the short-term, our POP displays helped these clients boost their immediate sales. They attracted customers to their product and convinced them to try them out. The POP displays also help brands increase their long-term sales. Successful displays serve not just as one-time advertisements for specific products, but as long-term branding opportunities for companies. As consumers purchase new products and like them, they're more likely to return to that company for other, complementary product lines, while suggesting the company to other people as well. Put the Attention on You There is obviously a real cost of creating and using POP displays to market your products, but there is also a huge opportunity cost of not using POP displays. No matter what retail store you enter, you're likely to encounter a POP display of some kind. Some stores may have more than others, but all stores will at least have a few dotted around the floorplan. When your brand decides not to use a POP display to market your products, you are essentially allowing one of your competitors to step in and take attention away from you. That's because in most cases, consumers aren't going to purchase two products from competing brands in the same product category. Put another way, a consumer who is looking for dog food isn't likely to purchase two bags of dog food from two different companies. Instead, they most likely will buy all the dog food they need from one company. If your competitor has a POP display for dog food that attracts a consumer, then not only is that competitor converting a sale for themselves, they're also removing a potential sale from you. Over time, this can have a significant trickle-down effect on your bottom line. One of the keys to success in a retail environment is capturing market share. If you're unable to increase your market share -- or maintain your market share if it's already high -- then you're unlikely to be able to build a growing and sustainable business. So, instead of thinking about POP displays as a direct business expense, you should think of them as one of the most effective ways to drive immediate sales, separate you from the competition and fend off threats to your business all at the same time. Work with a POP Display Company You Can Trust Deciding to move forward with a POP display plan for your retail products is a great first step, but you need to ensure that you're working with a company you can trust. While retail stores tend to give preferential treatment to products that have great POP displays that not only drive sales but don't take up a lot of floor space, they get annoyed and angered when things aren't done properly. Contracts between retail stores and product manufacturers are modeled around specific POP display designs, delivery and set-up dates, and product quantity. If any of these things is off, you could lose a lucrative contract. That's why it pays to work with a company such as Rhino Global Solutions. With more than 10 years in the POP display market, we have helped product manufacturers of all kinds increase their sales through in-store marketing campaigns. Not only do we help our customers design top-notch displays, we also work in coordination with them to help handle the logistics of getting them created, delivered and set up on time -- the right time, every time. Contact us today to find out more about how we can help you avoid the opportunity cost pitfalls of not using POP displays.
By 7064666794 27 Jun, 2023
June 27, 2023 For more than 10 years, Rhino Global Solutions has been providing brands with outstanding POP displays to help them stand out from their competition and increase sales. As a leading broker, we handle the design, creation and delivery of your POP display. This ensures that your POP display is created the way you want it, with the utmost care and quality, and delivered on time so you can increase sales immediately. So much of marketing today revolves around digital channels. Whether it's display advertising, content and video, social media or general SEO practices, many companies spend a majority of their time, effort and money on creating effective digital marketing strategies. While digital marketing is certainly good at establishing brand awareness or even driving online sales, it does next to nothing to help products stand out in retail environments. In retail settings, shoppers are bombarded with options, many of which attempt to solve the same problem for consumers. If digital marketing doesn't help in this regard, then, what does? The simple answer is Point-of-Purchase marketing. POP displays help companies gain an edge over the competitors by drawing attention to their products and meeting consumers where they are. Below are some ways in which POP displays help you increase sales, and why choosing the right supplier is key. Benefits of POP Displays Before diving head-first into how POP displays help you increase sales, let's first take a look at some eye-popping statistics. A report by POP Trends found that brands see, on average, a sales increase of 19% when they integrate a well-designed POP display into their product marketing strategy. Point of Purchase Advertising International also reports that companies that have POP displays realize an increase in sales of 140% compared to competitors that don't use POP displays. Not only are POP displays effective at driving sales, they are affordable, too. A study conducted by Harvard Business Review found that POP displays cost companies anywhere from 3 cents to 37 cents annually for every 1,000 customers that they attract. There is no other marketing or advertising outlet that is even in that ballpark. All of these stats speak to why Vantage Market Research predicts that the global POP display market will reach a total value of $15.3 billion by 2028, growing at a CAGR, or Compound Annual Growth Rate, of 4.8% from now until then.
By 7064666794 01 Jun, 2023
June 1, 2023 From the time we're young, we're told not to judge a book by its cover. We're told to dig deeper into the pages to find the true value of the people, places and things we encounter. The fact is, though, that how things look matter. We all judge in some way the outward appearance of things. When it comes to the products we see displayed in retail stores, this means that if something isn't visually appealing to us, we're much less likely to interact with it -- let alone purchase it -- than we are if it looks good. Here's a personal example that illustrates this perfectly. My wife and I are renovating our bathroom. Recently, we were out looking for vanities. During our search, we stopped by a local big box hardware store. While the store had a huge selection of vanities, they were displayed haphazardly on the shelves. In addition, the drawers didn’t close right and hardware was missing. Accordingly, they weren't attractive to us, and actually turned us off to the store as a whole. So, even though we likely could have found a perfectly good vanity at this store --potentially for a cheaper price than at a specialty bathroom showroom -- we walked out. We judged this book by its cover, and the big box hardware store -- as well as the manufacturers of all of the vanities displayed there -- didn't get a sale as a result. This is a story that probably resonates with a lot of people. It goes to show that what products look like, and how they’re displayed, matters, because first impressions matter. For product manufacturers and re-sellers, then, the lesson is that the more you take care of the visual aspect of a product through effective Point-of-Purchase(POP) displays, the more likely people are to be attracted to it. Let's dive deeper into why this is, and what you can do to benefit from it. Why Outward Visuals Matter Real estate professionals will tell you that one of the most affordable and effective ways at increasing the value of your home is to improve its curb appeal. This can include things as simple as keeping a well-manicured lawn and landscape, to as complex as adding a covered front patio or porch, walkway and adding attractive lighting. Curb appeal is a marketing tool for those who are selling their home. It's the pretty wrapping that draws people inside the home to see what it's really all about. If a home doesn't look good from the outside, people won't care much what it looks like on the inside, or what its "bones" are. A recent joint study conducted by the University of Alabama and the University of Texas found that homes with high curb appeal sell for an average of 7% more than similar homes that lack good curb appeal. In slower real estate markets -- where housing inventory is higher -- curb appeal can actually increase the premium on homes by as much as 14%. There's no denying that exterior visuals and first impressions matter immensely for home sales, especially in this age when most people conduct their preliminary searches online. This same concept applies to products sold in retail environments. People are drawn to products that look good. This includes packaging and messaging, as well as every aspect of the POP display. The Shop! Association reports that the average Promotional Program Value (PPV) of POP displays is 499%. This means that for every $1 invested in POP displays, the average return in incremental sales is $4.99. Product manufacturers can only realize this PPV, though, if the POP display itself is effective. If it's not, then your potential customers are more likely to walk away from your product or out of the store altogether -- just like my wife and I did when we saw the unattractive vanity displays.
Bamboo or Metal? There’s a Clear Sustainable Choice for POP Displays
By Jerry Smith 12 May, 2023
Bamboo or Metal? There’s a Clear Sustainable Choice for POP Displays
By Jerry Smith 19 Apr, 2023
April 18, 2023 You’ve spent time and resources developing a great product. The challenge is attracting attention to it so consumers will purchase it and then spread the word to others. Strategies such as Point-of-Purchase (POP) displays are commonly acknowledged to be the best use of your marketing dollars. In days gone by, deploying these strategies was simple. You’d work with a local company to create a display, launch it and start seeing increased sales. Things are quite a bit different today. Now, companies have nearly limitless options for deploying new marketing solutions, both from direct manufacturers and from brokers that offer a more hands-off, end-to-end production experience. But, which method offers the best path to product delivery? Both options have their advantages, though for the purposes of today’s assessment, we’ll be focusing on two product delivery aspects in particular -- quality control and production efficiency. Can You Establish and Maintain Quality Control? Quality counts! One of the best parts about working with brokers is they are ultra-focused on delivering quality. This is especially true of brokers that both design and produce solutions. These businesses maintain trusted networks of supply chain partners across original equipment manufacturers (OEMs), distributors and other vendors who have been tested and vetted by the broker company. For the broker, this means full oversight over the final product while being able to benefit from each partner’s uniquely-optimized workflows. From production to transportation to quality control, everyone has a job to do, and they do it well. Manufacturers offer a comparable service for product delivery but with several key drawbacks. Although manufacturers retain control of processes by keeping things in-house, their lack of diversity in processes can actually limit the quality of the final product. For example, the type of materials they offer might be limited, forcing buyers to adhere to different standards than they anticipated. Or their shipping and distribution processes may be unoptimized and at a higher cost than they would be through a dedicated transportation provider. From one perspective, their services make them jacks of all trades -- and masters of none. From another perspective, they're simply a jack of one trade -- the one they specialize in. But, does this approach really give buyers the best possible outcome? Consider the alternative of working with a broker. Brokers select the ideal partner for every stage of product delivery. In essence, they're able to help their clients become masters of all stages, as they're able to leverage their network of specialists to connect clients with the vendor best suited to help, guaranteeing a higher level of quality across all processes. This includes: Analyzing the results of quality tests Identifying areas for improvement Making changes to the production process or product design as necessary The COVID-19 pandemic forced companies to redefine core business processes that support new methods of service delivery. According to research from the Institute of Supply Management, demand for brokered materials will continue to increase. As companies become leaner, the services of a broker become even more valuable. Buyers should always strive to make and maintain connections with trusted brokers to ensure that their processes are in good hands.
By Jerry Smith 02 Sep, 2020
Businesses play a big role in global warming. It's why many have initiated carbon reduction programs in recent years. Companies can reduce their carbon footprint through the materials they use, how they manufacture materials, by choosing office space in energy-efficient buildings and a number of different ways. Unfortunately, there are some parts of business that can't achieve zero emissions. For example, there are no electric options for airplanes or cargo ships -- two of the main modes by which goods are shipped internationally. International logistics -- which includes transporting goods across borders -- can account for up to 50% of a company's total carbo footprint. What's more, international freight transport is expected to quadruple by 2050, which could result in a 290% increase in carbon dioxide emissions. This does not mean that all hope is lost, though. Through innovative partnerships called carbon offset programs, businesses can do their part and be a good corporate citizen. At Rhino Global Solutions, we want to do our part to reduce our carbon footprint and help reduce global greenhouse gases. That's why we have joined a new carbon offset program that's provided by our shipping company, Flexport. What are Carbon Offsets? In simple terms, a carbon offset program takes money from one source and uses it to fund projects that are proven to reduce carbon dioxide emissions. In the case of international shipping, this means taking money from people and companies who rely on international shipping and funneling it to programs to help offset the carbon footprint created by that shipping. In physical terms, a carbon offset is a certificate that represents the reduction of one metric ton of carbon dioxide emissions, or 2,205 pounds. Developers then sell these carbon offsets they create to fund projects so they can reduce emissions even further. There are literally hundreds of examples of different carbon offset programs. The reason the programs were created is many of the emission reduction projects can be quite expensive and difficult for smaller business owners to do on their own. Let's take a look at an example: Animals at dairy farms release methane gases, which are damaging to the atmosphere. There are machines, though, that can capture and destroy that gas before it can do damage to the Earth. While these are outstanding projects that can have a great positive effect on the environment, they are very expensive to install and maintain. One way the dairy farmer can fund the project is by selling carbon offsets. He can present his proposed project to a non-profit or environmental group and show the amount of methane gas he would reduce. Those groups would then help him sell the offsets, and use the money he receives in return to purchase and install the machine into his operations. In this way, other people can help the dairy farmer eliminate the methane gas by purchasing his carbon offsets. How are Carbon Offsets Generated? Terrapass does a great job of explaining the ways in which carbon offsets are generated. The organization launched in 2004 to help everyday people reduce the climate impact of their driving. As the organization progressed over the years, it expanded and has helped more than 1,000 businesses and institutions take responsibility for their impact on the climate. The three ways carbon offsets can be generated, according to Terrapass, are: By capturing and destroying a greenhouse gas that would otherwise be emitted into the atmosphere. The dairy farmer above is an example, as are similar programs to capture methane gas at landfills. By producing energy using a clean, renewable resource that eliminates the need to produce that same energy from fossil fuels. Wind, solar and hydro power are all examples of this. By capturing and storing greenhouse gases to prevent their release into the atmosphere. Projects that promote the growth and maintenance of forests are examples of this. How We are Working with Flexport on Carbon Offsets Rhino Global Solutions is always looking for ways to be a better corporate citizen. We are very cognizant of climate change and the alarming effects of global warming. Like many other companies, though, because we rely on shipping to deliver materials to our customers, we contribute indirectly to increased carbon production. That's why we are very excited to partner with our shipping company Flexport to participate in their carbon offset program. Members in Flexport's program can offset up to 100% of their carbon emissions. This is done through a partnership with Flexport.org, the company's social impact organization. Flexport also partners with Carbonfund.org, which directs donations to certified carbon offset projects. All of Flexport's LCL shipping services have been 100% carbon neutral since June 2018, and we are excited to now be a part of this.
By Jerry Smith 24 Jul, 2020
The COVID-19 pandemic will change retail forever as the result of changing habits, desires and worries among shoppers. When states imposed lockdown orders to slow the spread of the virus, there was a significant uptick in e-commerce spending. Consumers were forced to shop online for more products than they did in the past, but they will return to retail stores eventually, once they're allowed to. This is especially true among millennials who "demand the in-store experience," according to Daniel Binder, one of the partners at Columbus Consulting. Binder, who helped manage supply chains in Asia during other pandemics such as SARS and H1N1, recently spoke to Retail Dive about millennials, saying: “They want the experience to be embracing, and the brand's responsibility is to build a level of trust, and the store experience helps anchor that." While retailers will have to make major changes to survive in the post-pandemic world, so, too, will manufacturers and brands that sell products in brick-and-mortar stores. Here are some ways brands will have to adapt their in-store merchandise displays. Hands Off! As Binder told Retail Dive: "Right now, there's fear as customers move through a store. What retailers will have to figure out is how to bring a sense of structure and calm." This fear is already driving consumer decisions when it comes to paying for goods. According to recent studies , consumers will likely prioritize touch-free technology over factors such as rewards from their credit cards in the future. What's more, 55% of U.S. consumers worry about paying with cash. These trends are forcing retailers everywhere to adopt more contactless payment options for people when they check out. This fear of touching something someone else did could have a dramatic effect on how consumers interact with product displays in other retail sectors. The problem for manufacturers, of course, is that the more customers interact with your display , the more likely they are to purchase your product. Manufacturers can adjust by quelling consumers' fear. But how? One way is to integrate motion activated monitors into your retail display. These devices sense when a customer has approached your display, and start playing a video that tells the story or your product, brand or company. You can also use motion sensors in conjunction with lighting to illuminate aspects of your product and/or display that you want consumers to focus on. Motion-sensing technology enables you to create an interactive display without requiring people to touch anything. In addition, a well done video provides the company the ability to disseminate the sales message to customers in the manner they choose. This consistency enables the display to be your best sales person. If the product you sell requires physical interaction -- such as sheets or pillows -- you need to create an environment that is safe and clean, and engenders confi-dence in the consumer. The coronavirus has been proven to live up to 72 hours on materials and surfaces if not treated properly. And while disinfecting is essen-tial, it also takes a lot of time and manpower. That's why it'll be important to integrate some form of automatic disinfectant to your retail display. UV light can be used to blast bacteria and viruses off clothes, bags and other products that shoppers like to touch before they buy. Make it Great! Merchandising has always been vital, but it's going to take on an entirely new level of importance in the future. The coronavirus pandemic hasn't only influenced more people to shop online. It's also affecting how people are shopping in stores when they venture out. There are likely to be fewer overall customers in a store at one time -- either because of a lack of demand or because of a state-imposed limit on capacity. In addition, when customers do shop in store, they're likely to spend less time browsing, focusing instead on getting what they need and getting out. This makes merchandising even more important today. Put plainly, if you're going to take the time to create a merchandise display, you better MAKE IT GREAT! You have a very limited amount of time to tell your story as customers walk about a store. Your retail display, then, needs to capture their attention quickly, draw them in and make them want to interact with that. How do you do that? By following the basic principles of merchandising. Your retail display needs a great header to draw people in. What is your product and what does it do? Are you taking advantage of brand recognition? Etc. You also need to pay attention to the shape of your display, opting for rounded edges that are much more welcoming than rigid shapes such as squares. Usually, shapes will grab a consumer’s attention. Choose colors that match your brand but that are pleasing and soothing to the eye. And don't forget to integrate subtle lighting that highlights your product and doesn't distract from it. You've got to tell your story effectively nowadays. And with retail displays, that means being even more aware of the elements of visual marketing than in the past. Get Smaller Retailers have always aimed to maximize every square inch of their floorspace. They devised the perfect travel patterns for shoppers to navigate their stores, integrating merchandise displays and end caps that caught their attention but didn't stand in the way of the free flow of shoppers. But COVID-19 has dramatically altered the in-store shopping experience. From spit guards set up at registers to separate customers from workers, to clearly marked social distancing boxes on floors, to one-way directional travel in aisles, the name of the game today is "space." The concept of social distancing is built around that word. People are suggested to stay at least six feet away from people who don't live in their households. When indoors at retail stores, agencies such as the CDC have consistently urged people to keep their distance and wear masks. People want to protect their personal space, and there are two ways retailers can help them do that -- by limiting the number of customers in the store at one time, and by opening up floor space so it's easier to create separation. This is forcing manufacturers to be even more cognizant of the size of their retail displays. While the size of retail displays has always mattered, it'll be even more important in the coronavirus world. The less floor space your retail display takes up, the more stores it can fit in -- and the more spots in the store it can be placed. Retailers are going to be very sensi-tive to size as they look to appease their shoppers. The more you can do to help them in that cause, the more likely your display is to get accepted. Manufacturers will soon be faced with a new world when marketing their products on retail displays, if they haven't already. Understanding that change is here, and effectively responding quickly to that change, will be the key to survival.
By Jerry Smith 23 Jun, 2020
4 Ways COVID-19 Will Change Retail Forever The coronavirus pandemic has changed life substantially across the globe. It has led people to focus more on health and hygiene. Shelter-in-place orders changed the way people work, shop and interact with friends and family. The shuttering of businesses forced layoffs and furloughs on a massive scale. Even as states across America begin to re-open, things will never quite be the same. Businesses once deemed "non-essential" will be allowed to re-open their doors, with restrictions in most places, but "business as usual" is unlikely to be "usual." Some businesses may never re-open. Others will struggle to get by. All will have to deal with a changed world that includes altered habits, interests and spending ability among consumers. While the medical community works to eradicate COVID-19 as quickly and effectively as possible, the retail industry will be forced to make adjustments that may be here to stay forever. Here are four ways in which COVID-19 will change retail, based on how it's changed consumers. 1. More Selective Consumers Will Mean Greater Competition To say the job market is in disarray would be an understatement of massive proportions. America got some good news in late May when the Department of Labor released statistics that showed only 2.44 million people filed for first-time unemployment benefits for the week that ended May 19. That's right -- "only" 2.44 million new people out of work. If you're just comparing that to the 6.8 million people who filed first-time unemployment claims for the week ending March 28, then it seems like huge progress. But that tally, as comparatively low as it is, means almost 40 million Americans have filed for unemployment since the coronavirus pandemic began in mid-March. April's jobs report showed 20 million jobs lost -- more than all the jobs gained since the Great Recession. April's 14.7% unemployment rate was already the worst since the Great Depression, when the rate reached as high as 24.9%. What this has meant for consumers is there isn't a lot of excess money to go around. Even with federally-backed boosts to unemployment benefits and economic stimulus checks, disposable income is expected to drop by 3.7% in real terms this year over 2019, according to a Euromonitor International report. Overall consumer spending is also expected to fall 4.3% in real terms year-over-year, compared to 2.4% in real growth experienced in 2019. Consumers, therefore, are likely to change the way they spend. In many ways, it's similar to what's seen in other tough economic times: People still spend, but they do so more selectively. For retailers and brands, this means businesses in each industry will be fighting for fewer spending dollars, which in turn will ratchet up the competition to attract consumers to their store and/or product. 2. Online Familiarity Will Breed Delivery Necessity The trend over the last few years was a move by consumers to more online shopping. In 2019, the average American household spent more than $5,800 shopping online, which represented an 11% increase year-over-year. Online shopping in certain sectors such as home furnishings, electronics and clothing was already high, accounting for 15% of total sales. Other sectors such as grocery stores had a relatively low percentage of sales coming online. But that all changed when the coronavirus pandemic hit, and quarantine forced people to shop online. Between panic buying and the fear of going to crowded places, consumers young and old learned how to order grocery delivery or at least do curbside pickup. According to a study conducted by Gordon Haskett Research Advisors, one-third of consumers bought groceries online over the last seven days in April, and 41% of those shoppers said they were doing so for the first time. During the pandemic, Amazon alone has increased its grocery order capacity by more than 60%. The crisis has trained people in the art of shopping online for everything, and they may not rush back in droves once stores re-open. Before the pandemic, in-store shopping accounted for 80% of all retail sales. But an April research note from Wall Street firm UBS said that number could drop substantially, with many retail stores closing for good. This will force retailers from all walks of life to quickly embrace and figure out delivery of in-store goods and e-commerce/shipping solutions -- things that may not have been a large part of the business plan before. If they can't do it in-house, they may have to outsource it to a company such as Instacart, which announced in an April LinkedIn post that it plans to hire 300,000 workers by the end of June. 3. A Focus on Health Will Force Retailers to Clean Up In that UBS research note, analysts Jay Sole and Michael Lasser wrote to their clients: "Even when stores do open, it may take a while before people will regain their confidence about being safe in crowded places." While some of this fear will subside naturally over time, it'll be up to retailers to put consumers' minds at ease from a health and safety perspective. Consumers will soon expect, if not demand, some quarantine-era changes to remain at stores, including: Painted or taped lines marking six feet of social distance as people shop or wait in a check-out line Requirements that workers and even shoppers wear masks while inside Installation of hand-washing stations or hand sanitizer dispensers Spit guards to separate customers from workers at registers Enhanced cleaning and disinfecting of stores and surfaces Another trend may be a shift to contactless payments. A recent study found almost one-third of U.S. consumers used a contactless payment such as a virtual wallet during the coronavirus pandemic. The report, "North America Online Payment Methods 2020 & COVID-19's Impact," also found a majority of those people planned to continue contactless payments in the future. In total, the number of contactless payments conducted in the U.S. is expected to increase eight-fold over the next four years. This means more retailers will rush to upgrade technology at check-out lines to accommodate consumers' desire for this type of payment. 4. Consumer Shopping Habits Will Scare Retailers from Malls When consumers do return to stores -- and they will in some form eventually -- where they shop may change. Some of this will be by their choice, while some will not. Economic crises always favor larger companies over medium-sized, independent ones. Larger stores have cash reserves, access to future capital and possibly even federal bailout money. This helps them weather the storm during a crisis and then bounce back to succeed afterward. Some large retailers actually thrived during the pandemic. Walmart, Target, Home Depot and Lowe's all saw upticks in sales and stock value as a result. The smaller mom-and-pop shops and medium-sized retailers are the ones that are likely to face the biggest challenges. Some will never re-open, and those that do may not be able to handle the extra costs necessary to run a retail business post-pandemic. As people are fleeing dense urban areas for more space in the suburbs, the traditional suburban strip mall or indoor mall may not be as prominent as before. The United States already had built an over-abundance of physical retail space in recent years, and the pandemic is forcing many of the long-time mainstays of malls to close for good. Macy's has closed many stores in recent years, and while they plan to re-open all their remaining stores when they're allowed to, the company is clearly shifting its focus online. J.Crew filed for bankruptcy protection during the pandemic, but intends to emerge as a profitable company. J.C. Penny did the same, as did Neiman Marcus. Lord & Taylor plans to liquidate its inventory when it can re-open -- and then close for good. According to a Business Insider report, retailers have reported at least 3,600 store closings this year. I n the end, the New York Times may be right: The pandemic could be final cause of the death of the department store.
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