Merchandising of cosmetics

Properly applied merchandising of cosmetics is becoming a powerful tool of increasing sales volume and attracting customers. With the help of some techniques, goals of any outlet are certainly achievable:

• expansion of customer base and increasing customer loyalty;
• increase in sales volume and profit growth;
• active promotion of certain product groups.

Modern merchandising of cosmetics is based on knowledge of psychology of customers from different social and age groups, and it also takes into account the existence of objective laws of perception. However, application of its rules requires a creative approach, only in that case it can exert maximum impact.

Managing customer flow in beauty store

Merchandising of cosmetics accentuates rules of sales area layout among the key points. The area should be utilized as effective as possible, with customers feeling comfortable while moving around the trading floor.

While planning trading space it would be appropriate to keep in mind that there are 3 typical sales areas, and each has to be arranged with due account for its peculiarities:

• “cold” zone is an area with minimal sales. Cosmetics merchandising defines it as an area farthest away from the entrance, it also includes space in dead ends, corners and between rows of trading equipment; lower shelves, the beginning and the sidewall of a shelving unit are referred to as the “cold” zones within a single rack;
• “hot” zone includes places with the best marketability. This is an area on the right side of the entrance and shelves fixed at customer’s eye level and little below.
• checkout area is a place with the highest probability of impulse purchases.

Cosmetics merchandising defines boundaries of the zones mentioned above and singles out the best options for filling them with goods. It is obvious that goods promoted the most are placed in a “hot” zone, while cosmetic products of sustainably high demand can be found in a “cold” zone.

At the beginning of customer’s way through a store it will be appropriate to lay out popular products with the keenest price at the moment. Thus, you win buyer’s trust and encourage him to spend more.

Another aspect, which contributes to higher comfortability of a visit to a store, is splitting customer inflows and outflows by means of a partition.

Methods of promoting goods in a beauty store

Cosmetics merchandising highlights practically effective techniques of promoting goods. It is possible to draw customer’s attention to products, that have to be primarily sold, by carrying out its creative display in the form of a tower or a pyramid, placing it on a special trading equipment and laying it out in greater quantities compared to other products.

Cosmetic products being promoted should be placed at eye level, in the middle of a stand, i.e. in so-called “golden” zone. Shelves fixed below and above all others are filled with a stock of items. In a “silver” zone, i.e. at arm’s length products of the second sale priority are laid out.

Use of promotional and POS-materials in a beauty store is a must, and cosmetics merchandising is unthinkable without them. Wobblers, stickers and posters do provide a buyer with visual information and help to put a strong emphasis where needed. Vivid and vibrant promotional materials help a hesitant buyer to make a decision on a purchase in the end.

Principles of laying out cosmetic products

Cosmetics merchandising is in the framework of common principles of goods layout. A simple and logical way to lay out cosmetic products, so as to be always clear to a buyer, is arranging them by brand and manufacturer. Grouping by brand implies placing all products offered by the same manufacturer within a single section, in one or a number of blocks. Vertical showcases usually utilized in cosmetics and perfume stores are best suited for grouping items by brand.

Horizontal layout implies arranging similar items along the shelf, however, in this case, products less popular with customers are placed in a rather unfavourable areas (than in case of vertical layout) straight away.

Display layout according to practical experience of cosmetics merchandising is especially good for expensive products of specified purpose (anti-aging products, cosmeceuticals, etc.)