How to understand the improvement of display sales performance
Shao Ligang, a distinguished expert invited to the China Fashion Buyers Forum, is a well-known figure in the apparel industry. As a special fellow at the Peking University Japan Research Center and a principal consultant for nine leading organizations, he has extensive experience in fashion data analysis and retail strategy. In an exclusive interview with China Fashion News (CFW), Shao shared his insights on how display design influences business performance.
CFW: How do you view the role of display in driving performance?
Shao Ligang (referred to as Shao): Display is more than just a visual tool—it's a strategic investment aimed at enhancing brand image and ultimately boosting sales. It’s a means to attract attention, create emotional connections, and guide customer behavior throughout the shopping journey.
CFW: Then, how exactly does display contribute to performance improvement?
Shao: While the direct impact of display on sales numbers might not always be obvious, breaking down performance into its core components reveals its true value. Performance can be expressed as:
**Performance = Customer Unit Price × Number of Purchases**
Where **Number of Purchases = Number of Shoppers × Purchase Rate**
The first step in improving performance is increasing foot traffic. A store’s external window display plays a critical role here. When it effectively incorporates elements like storytelling, thematic relevance, seasonality, and strong visual appeal, it becomes a powerful magnet for potential customers.
CFW: Once customers enter the store, what display strategies help increase the purchase rate?
Shao: After entry, the focus shifts to guiding the customer through the store. This involves optimizing both the **passenger flow** and the **visual path**. The passenger flow is influenced by the layout of key areas such as the golden zone and shelf placement. Meanwhile, the visual path is shaped by the strategic use of "magnet zones" and the arrangement of product displays.
If these elements are well-designed, it naturally leads to higher conversion rates. However, increasing the number of buyers alone isn't enough—customer unit price also plays a crucial role.
CFW: How can display influence the average customer spending?
Shao: Increasing the customer unit price requires thoughtful space planning and extended display strategies. For example, creating co-selling zones or using layered display techniques can encourage customers to buy more items during their visit.
CFW: Which factor—unit price or number of buyers—has a bigger impact on performance?
Shao: Both are important, but their relative impact depends on the brand. High-end brands should focus more on raising the unit price through premium positioning and curated experiences, while mass-market brands need to prioritize volume by attracting more shoppers.
In conclusion, display has a significant and measurable impact on performance. But the approach must be tailored to each brand’s identity and target audience. One-size-fits-all solutions don’t work in today’s competitive retail environment. Understanding this distinction is essential for effective display strategy.
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