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We once conducted a sample survey and found that most supermarket purchases are impulsive. Most consumers do not have a clear brand purchase target or a shopping plan; they often decide what to buy on the spot based on what looks good.
Product competition is reflected in the battle at the point of sale, which requires capturing not only consumers' eyes but also their hearts.
According to our statistics, a person spends an average of 15 minutes in a supermarket (excluding hypermarkets), stops in front of a product area for 15 seconds, and 75% of people make a purchase decision within 5 seconds. 40% of people will switch to another product if they cannot see the product they want on the shelf. Lost sales opportunities never come back, because once this purchase opportunity is missed, that sales volume is permanently lost (consumers are unlikely to buy double next time to make up for the loss).
In such a scenario, the size of the shelf space, the quality of the position, and the duration of the display directly affect product sales. For this reason, almost all companies recognize the importance of "terminal merchandising." "Terminal merchandising" means making the product shine, displaying it more vividly in front of consumers, attracting their attention at first sight, and stimulating their purchase desire.
However, the problem is that many companies are willing but unable to execute terminal merchandising effectively, often encountering various obstacles.
- Can't get in, no space.
- The marketing team's professionalism and execution are not high.
- Got the pass but don't know how to display.
- Have space but no shelf presence.
Terminal merchandising, in simple terms, is achieved through product display. The effectiveness of the display is largely related to the position, quantity, and arrangement of the products.
If you don't push competitors off the shelf, they will push you off. Therefore, there are four important elements of product display that you need to master!
1. Seize the golden height of display
Where is the most suitable position for product shelf display? Based on the average height of Chinese people (170 cm), the optimal display height is 60 cm to 160 cm, which is at eye level.
The display position should be at a height that is "easy to see" for consumers and also convenient for them to pick up.
◇ Golden position: 60 cm to 160 cm, visible at eye level, easy to reach, accounts for 50% of sales. ◇ Secondary position: 160 cm to 180 cm and 30 cm to 60 cm, accounts for 30% of sales. ◇ Top and bottom: above 180 cm and below 30 cm, accounts for 15% of sales. ◇ For children's products, the best position is below 100 cm.
The impact of different shelf heights on sales is approximately:
— Moving from an easy-to-reach height to knee height reduces sales by 15%. — Moving from knee height to easy-to-reach height increases sales by 20%. — Moving from easy-to-reach height to eye-level height increases sales by 30% to 50%. — Moving from eye-level height to knee height reduces sales by 30% to 60%. — Moving from eye-level height to easy-to-reach height reduces sales by 15%.
2. Product display should be focused and voluminous
As the saying goes, "goods sell like a mountain." Product display needs to have a sense of volume to attract consumer interest. Increasing the number of display faces will strengthen the visual impact, create a sense of abundance, and increase sales.
Even the best position without a certain quantity will not achieve the desired display effect. Small brands especially need to do this: without brand awareness, use volume to pile up, and consumers will involuntarily think the company is strong.
Of course, the quantity here does not mean piling all products together, but focusing on a single SKU and making it a key display. This creates more impact; the more units of a single product, the better the display effect.
3. Beyond the shelf face, provide display cues
When every company is working on the display face, the role of display cues becomes particularly important. Display cues typically include labels, explosion stickers, wobblers, floor stickers, bundled gifts, etc. Clear and eye-catching display cues are one of the driving forces for increased purchases, as they enhance the promotional effect of the product display and make it easier for consumers to understand what they are buying.
For example, it is best to have labels uniformly with the Chinese trademark facing the consumer, achieving a neat, beautiful, and eye-catching display. You can also compare prices of similar products and write out special offer and discount numbers to attract consumers.
4. Strive for creative placement at shelf ends and floor stacks
In addition to shelf display, placing single products at shelf ends and floor stacks in supermarkets and conventional channel stores is most effective for showcasing products more centrally and prominently.
Whether it's a stack or a floor display, it's best to have a shape, not just pile them up. Be creative; the more aesthetically pleasing, the better. Creative shaped floor displays often have greater selling power than regular ones, achieving twice the result with half the effort. For example, in bookstores, it's common to see books stacked in a centralized manner. Bookstore enthusiasts will notice that when a book is displayed in an eye-catching shape, it not only makes full use of space and beautifies the store, but also increases your interest in browsing the book, serving as an effective guide.
No matter how good the product is, if it loses the opportunity to meet consumers, the sales opportunity is zero. The purpose of terminal merchandising is to increase product visibility, frequently appear in front of consumers, thereby entering their minds and becoming the preferred brand when they purchase that category.
Therefore, when displaying products, use product display techniques to ensure consumers can notice the product at a glance, which is the key to determining whether they will buy. The display should adhere to the basic principles of "easy to see, maximize space, vertical concentration, highlight key points, easy to reach, neat and unified, and clear signage."
This article has been authorized and excerpted from Wang Guanqun's new book: "Focus: The New Engine for Growth in the Next 10 Years," to be released in November. Stay tuned!
Wang Guanqun has served as a director at Master Kong and P&G, and as general manager of Smart. He is currently the president of Beijing Yingxiaoli Consulting and Training Institution. He is a top operator in China's FMCG industry and the first person in practical FMCG training.