Visual merchandising is the physical presentation of merchandise and the design of a place of business for the purpose of increasing sales. It's not a important factor to invest in visual merchandising software to make your shop layout looks good every week. There are many software programs which small retailers could use to design the look and layout of the store. One of them is mock shop.
Mock shop is a virtual 3D shop tool designed for the fashion industry. Retailers can build stores just like their own and produces floor and layout planograms by simply dragging & dropping fixtures, garments and graphics, which are easy to read and execute.
The quality and clarity of the planograms is so easy that your shop floor staff can easily read and execute. This helps reduce the time one would take to physically merchandise a store by 50% and the shop floor execution is much more precise.
Mockshop gives retailers complete creative freedom to create and develop the look of their store.Its a bit expensive but the results are wonderful.retailers can actually see how a certain in-store promo would look in real life.
And the final result would be like this:
The other one is Planogram builder which could be used by food retailers.
Planogram Builder also provides an online 3D view where one can design, and communicate your ideal space planning with all the product details being up-to-date. It provides actual visualization of the products and facings. Reports, schematic views and high resolution images can be published for your sales team for store implementation.
All information can be stored in a common online database and classified to match a business practice. It is also helpful for retailers to perform shelving layouts in relation to space mangement.
Beyond generating shelving instructions, Planogram Builder also lets you produce high-resolution images can be printed and posted on real-size walls for the actual look and feel.
The Planogram Builder database could be re-used for product catalogues or customer service product reference. Information like front images, 3D models, EAN codes or dimensions can also be added in the database.
This also helps in proper management and optimum utilization of space to promote your business.This is quite ideal for small retailers as it would be less expensive and easy to implement.This would be beneficial to small retailers to improve their sales and benefits in the bargain.
More Gadgets For Security!!!
The latest system being used in the retail sector is the RFID system.
Radio frequency identification (RFID) is used to describe a system that transmits a unique serial number of an object through wireless, using radio waves. It's grouped under the broad category of automatic identification technologies.
RFID is in use all around us. Its increasingly used with biometric technologies for security.
It does not require contact or line of sight for communication. RFID data can be read through the human body, clothing and non-metallic materials.
A basic RFID system consists of three components:
An antenna ( reader)
A transceiver with decoder
A transponder (RF tag) electronically programmed with unique information
The antenna emits radio signals to activate the tag and to read and write data to it.
The reader emits radio waves in ranges of anywhere from one inch to 100 feet or more, depending upon the power output and the radio frequency used. When an RFID tag passes through the electromagnetic zone, it detects the reader's activation signal.
The reader decodes the data encoded in the tag's integrated circuit (silicon chip) and the data is passed to the host computer for processing.
The purpose of an RFID system is to enable data to be transmitted by a portable device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product such as price, color, date of purchase, etc.
RFID gained attention because of its ability to track moving objects.
A typical RFID tag consists of a microchip attached to a radio antenna. The chip can store as much as 2 kilobytes of data.
To retrieve the data stored on an RFID tag, you need a reader. A typical reader is a device that has one or more antennas that emit radio waves and receive signals back from the tag. The reader then passes the information in digital form to a computer system.
RFID System helps in:
Asset Tracking
Asset tracking is one of the most common uses of RFID. Retailers can put RFID tags on assets that are lost or stolen or that are just hard to locate at the time they are needed. Just about every type of RFID system is used for asset management.
Manufacturing
It's used to track parts and work in process and to reduce defects, increase output and manage the production of different versions of the same product.
Supply Chain Management
RFID technology has been used in closed loop supply chains or to automate parts of the supply chain within a retailer's control.
As standards increase, retailers are increasingly turning to RFID to track shipments among supply chain partners. These retailers are currently focused on improving supply chain efficiency and making sure product is on the shelf when customers want to buy it.
Payment Systems
RFID is all the rage in the supply chain world, but the technology is also catching on as a convenient payment mechanism. One of the most popular uses of RFID today is to pay for road tolls without stopping.
Security and Access Control
The advantage of RFID is it is convenient for e.g.an employee can hold up a badge to unlock a door, than looking for a key or swiping a magnetic stripe card) and because there is no contact between the card and reader, there is less wear and tear, and therefore less maintenance.
Self Scanning System- The In-Thing!!
The Self-scanning System consists of a pool of portable mobile devices used by the customers to self-scan barcodes of the items while shopping.
The customer identifies with the loyalty card to release the scanner or some retailers chose to let their customers pick up the scanner anonymously. A mobile scanner used for scanning products by Motorola is MC17, is the most popular choice because of the of its design and functionality. The hand scanner should be placed in the holder of the shopping trolley for customers' convenience.
A Shopping trip with self scanners continues as normal, just that the customer now self-scans the barcode of each item before placing it in the trolley. To add more than one item of the same product, the + button can be used. To cancel an item is easy the customer needs to use the - key. The total amount and the list of goods in the basket are visible on the screen all the time. In this way self-scanners help the customer to control their budget . Self scanning can also be used to advertise and highlight promotions and special offers which are available in store to the customers.
Once the customer has finished shopping, they head to the checkout . Staff can perform partial of full re-scan. If a re-scan is to be performed, the self-scanner will inform the user and the customer assistant, otherwise the bill is sent to the POS systems for payment.
Payments can be made at the check-out . At the check-out, the customer hands the scanner over to the cashier the cashier does not need to scan the goods anymore and the customer does not need to re-pack them. With self-scanning, payment is faster.
Once the customer has completed payment procedure, the self-scanning system will release the exit bar open to allow them to leave the shop. The customer needs to scan the barcode on their bill as the payment confirmation. After that the gate will be released automatically.
Self-scanning is a shopping method which enhances the customers shopping experience.
It is time saving in handling the products because they can pack them in a desired way directly from the shelf after scanning. it also offers a relaxed atmosphere at the check-out. The customers do not need to place the groceries on the conveyor belt again and later re-pack them hastily.
Another important benefit of self-scanning is that there is no need to wait in line anymore. Customers can proceed directly to the self-payment kiosk. The hand scanner also helps customers to manage their budget .The list of all the goods in the basket and the total amount of purchase is always visible on the screen .
Hence self-scanning would be very popular with the shoppers, and the retailers would profit from increased customer satisfaction and loyalty, proper customer flow, and gain better control over their costs, while their customers benefit from fast service and good shopping experience.
Gadgets For Security!!!
Theft costs retailers billions about 2 percent of their total annual sales every year.Retailers are not the only ones who pay the price. The financial burden inventory shrinkage is placed on retailers and consumers.This is causing the retailers to focus on how to decrease the problem.
Stores that utilize security technology generally benefit from reduced losses due to theft, and they can pass these savings along to consumers in the form of lower prices.Security technology is now melding with information technology and crating new uses that not only prevent losses, but also earn revenue for retailers.
There are new ways to use technology to create effective security solutions for retailers.
Closed circuit television (CCTV) over Internet protocol (IP):
This new type of surveillance camera network is the new rising star of retail security. They help retailers save hundreds of millions, if not billions, in lost or stolen inventory.
Because CCTV over IP is networked just like local area network (LAN), cameras from all of a given retail chain's stores send images to a single, offsite, central monitoring station. There we can monitor the images and backup footage can be stored on hard drives.
The software watches for suspicious events, such as movement in a store even after closing hours. It is so flexible that it can be programmed to recognize any number of scenarios, including someone slipping on a wet floor, shoplifting, a robbery, and long lines at the cash registers.
Facial recognition
Facial recognition systems mounted at the point of entry to a store are capable of capturing the faces of people entering the store against a blacklist of known shoplifters. This allows a suitable system to notify store security when a person of interest enters the store, hence allowing the person to either be stopped from entering the store so as to remove the opportunity for the loss to occur or alternatively allow more detailed surveillance in order to detect a theft occurrence. This results in the head-on capture of footage that renders great detail of all who enter and leave the store.
Smart wipe USB Gadget:
USB gadget that swipes credit cards and transmits the data with encryption.It has aimed to make online shopping not only easier, but safer too.
The SmartSwipe plugs via a USB. When a credit or debit card is swiped it reads, encrypts and transmits the data stored on the card and fills in the payment section on most online retail sites. All one has to do is enter the three digit security code from the back of the card.And because the data is encrypted you are safe from the internet.
Supply Chain Management Programs
Supply chain management (SCM) involves supervising the transfer of products and goods, such as from a supplier, then to a manufacturer, a wholesaler, a retailer and finally to the consumer. Technology in SCM refers to the use of computer-based programs to store and manipulate information. Technology can connect to supply chain management improvements, such as through the rise of effective virtual supply chains. This helps in making right goods available to the right people at the right time and right place.
Development in technology helps the organization to extract information easily in their premises. These technologies are helpful to coordinate the activities to manage the supply chain. We need to understand that information technology is more than just computers. Data recognition equipment, communication technologies, factory automation and other hardware and services are included. IT helps to restructure the entire distribution set up to achieve higher service levels and lower inventory and lower supply chain costs.
Supply chain Management Tools:
SAP's Supply Chain Management
SAP Supply Chain Management (SAP SCM) helps in collaboration, planning, execution, and coordination of the entire supply chain network, enabling you to adapt your supply chain processes to competitive environment.
SAP SCM is part of the SAP Business Suite, which helps organizations to carry out their essential business processes with this software that is designed to work with other SAP and non-SAP software. Organizations and departments in all sectors can set up SAP Business Suite software to address particular business challenges on their own timelines and without expensive upgrades.
SAP SCM can help transform a supply chain into a responsive supply network, customer-centric, demand-driven companies share knowledge and adapt to changing market conditions.
The application delivers planning and execution functions that are integrated in the software or database. It supports best practices and provides preconfigured software to help businesses, implementation, and reducing costs .The software is recognized by key industry analysts as the market-leading SCM application.
Retailers benefit and progress because of faster response to changes in supply and demand, Increased customer satisfaction ,Compliance with regulatory requirements, Improved cash flow, Higher margins, and Greater synchronization with business priorities
Microsoft Dynamics AX for supply chain management
Microsoft Dynamics AX 2009 connects sales and purchasing processes with logistics, production, and warehouse management to provide real-time visibility. With the facility to integrate external business processes and support application-to-application connectivity, one can improve supply and demand planning to optimize inventory levels and increase reliability rates for execution and delivery
Microsoft Dynamics AX for supply chain management can help you to improve customer service, reduce costs by optimizing supply chain management processes, Control and restructure inventory Increase visibility throughout the supply chain, lower the costs of supply chain integration Increase cooperation, automate sales and purchasing and helps update intercompany operations.
JDA's Supply Chain Now:
JDA's Supply Chain Now software is a fully maintained solution offering delivered via JDA. Supply Chain Now delivers a return on investment with reduced risk in as fast as four months.
JDA's solution combines supreme speed of operation with the advanced capabilities that have made JDA a leading provider of supply chain management technology. Midsized companies using Supply Chain Now will be able to increase profits and achieve business objectives without burdening an already-taxed IT department.
Infotech's Supply Chain Engineering:
They design, transform & manage High Performance Supply Chain that creates Competitive Advantage and generates Business Value for the firm. They design high performance and sustainable supply chain having lower business risks with- higher service levels, lower supply chain cost, best possible working capital, and high asset productivity.
Retailers can attract Customers with lil' help from Technology!!
Customers have to be kept happy and satisfied at all times. This involves a lot of planning and care as well. Technology influences customers when used appropriately. These days technology can be used in-store and as well as through world wide web.
Today's retail store is undergoing a dramatic transformation. A sharpened focus on customers and their shopping is converting traditional store sites into leaders of technological innovation. In-store rich-media systems such as plasma video displays, kiosks, digital signage, and personal PDAs and other devices play an increasingly important role in providing customers and stores personnel with advertising, brand reinforcement, pricing, training opportunities and corporate communications
In store technology can influence customers into buying products if the rightly used technological gadgets influence them. There are many gadgets which are used to provide a better shopping experience for customers. e.g. the Tweet mirrors, in-store media advertising and digital signage.
The tweet mirror brings customers fun, interaction, and extra service, even outside the store! Customers can take pictures in their new clothes and compare them on the mirror. It is useful, but more than that, it is fun. It takes shopping to another level. Customers can take their own pictures in different poses, using a large touch screen and send them to friends and family.
Social media are becoming more important in people's daily life. The tweet mirror enables retailers to connect your company with these social networks. Customers can send photos by e-mail, MMS or to community sites like Twitter and Face book.
The tweet mirror is more than a fun tool. It gives retailers the possibility to reach the customers outside your store. Each photo sent out has the company logo and collection on it, generating brand awareness .Retailers can communicate a personal message, inform about the latest online promotions and new products.
In-store video advertising offers new opportunities for retailers to promote products and generate new revenue streams from consumer-goods supplier partners. Independent studies by Cisco show that 75 percent of all brand decisions are made at the point of purchase, and 49 percent of advertising at the point of purchase has a direct impact on sales. Technology delivers multichannel broadcasts to strategic locations throughout each store on plasma screens or any type of fixed or mobile device. As a result, promotions, sales, offers lead customers to higher-margin products. Retailers are also able to achieve significant new revenue streams by running manufacturers' product ads at the point of purchase.
Media solutions allow retailers to reach out to customers and build awareness by providing more personalized, media-rich information throughout the buying process. Today's stores are showing broadcasts that help consumers learn about how a product is made, or how to install a stereo system, operate a digital camera, or build a deck. This also increases conversion rates on cross- and up-sell opportunities. Broadcasts can be centrally changed according to the time of day, the season, sales periods, and other factors. Drawn into these dynamic displays, customers learn more about products quickly, allowing stores to increase sales and support brand messaging.
Retailers spend millions of dollars annually on designing, printing, distributing, and monitoring in-store signage. Unfortunately, this major expenditure does not guarantee that signage will be consistent, up-to date and properly displayed across all store sites. With digital signage solutions the expense of sign production, store audits, maintenance, and lost sales revenues is eliminated. This digital signage can be centrally managed with sign texts sent directly from the main database to a variety of electronic devices at each site. Controlled signage provides customers with completely consistent product data, pricing, discounts, and other promotions in real time to maximize sales at a lower cost across the enterprise.
How Technology Influences Retailers!!!
Retail is one of the most successful sectors of the business. The retail industry is booming on a large scale all over the world as we can see malls and supermarkets coming up. And a major role is played by technology to add to this boom. Technological advancements have affected things at the present and we have to expect significant larger changes as we move into the future. It has also changed the way we shop and purchase items.
When we want to shop and buy clothes, we purchase them online. We can even listen to music before downloading or purchasing it. The same is the case for books. We have eBook readers; hence with one click we can purchase a whole library of them. All of this is only possible because of magic of technology.
Retailers have to meet the demands of the customer so that they keep coming back for more. This can be done if technology is used in such a way to achieve efficient retail operations as it improves customer satisfaction. The customers have to be lured into the store by using the right means. This may be a little expensive but they make store operations simple. It will provide cost and service advantages.
Retailers can build a concept of distribution and information system. Like an online system which links point of sale terminal to a point where sales analysis can be carried out in terms of item, sub category, category, store etc. Customer buying behaviour can be understood by establishing a concept or a database so that not only potential customers but also what they purchased, in what quantities and by whom. This can help in capturing demographics. With the help of technological programs retailers can provide customers with a good shopping experience, variety, quality goods, discounts and value for money.
Areas where technology is used by retailers:
They could install high and fast performing point of sale terminals and accessories such as sensitive barcode scanners and self scanning devices. For carrying out sale transactions the same could be used for payment processes like latest card machines. They could also set up fast performing self check out kiosks which are simple to handle but quick in processing.
Products could have QR codes which when scanned provide product information to the customer and sales person.
In terms of security CCTV camera's, monitors, security tags and alarms could be used.
Timekeeping clock in-clock out machines is also used for staff entry and exits. And also use of a rota or staff duty planner program.
Use of latest all in one printer-photocopy-fax-scanner machines, PDA's for store operations.
They use latest software for space management, visual merchandising and window displays for the store like JDA and Mock shop or use of software's like illustrator or Corel Draw. Also use of digital displays and signage's.
They market themselves through the WEB, mobile phone apps and social media forums.
Solutions for inventory management, orders and replenishment are also adopted by retailers.
There are also programs for warehousing and storage facilities.
CRM (customer relationship management),ERP(Enterprise resource planning) ,MAP (merchandise assortment planning) ,PLM(Product life cycle management) ,SCM(supply chain management) or SAP (system analysis and program development) that helps retailers and suppliers to carry out replenishment and other business transactions.
They have started schemes like loyalty cards, rewards cards, touch screen scanners for in store use and online shopping,
So the above was just the first step to my future blog uploads. I would be uploading further insights and will elaborate the topics in the near future so please keep coming back!!!
