What is Cross Merchandising?
Cross Merchandising is a marketing strategy that allows you to generate products that fall into different categories by connecting them in consumers' minds. In a retail environment, this can mean setting up displays that contain two or more products that differ, but can logically be used together. The aim is to lure customers who have come to buy a specific item to buy other items that are exposed in the same area and can be used in tandem with the first item.
One of the best examples of cross merchandising is in the electronic part of the retail store. In the part where stereo systems are exposed, the store management may decide to display items such as batteries, universal remote controls, speaker wire or even a small selection of popular music CDs. A customer who comes to buying a new compact stereo system electronic devices that already own. At the same time the customer canthat also pick up the battery for the remote control and buy one or two new CDs to play on the stereo system.
employment of the concept of cross merchandising has advantages for consumers and retailers. For consumers, the ability to pick up everything that is needed to go with the product without descending more aisles, saving time. At the same time, the retailer has the opportunity to sell other items at the same time and at the same time to build loyalty to customers with those who appreciate the fact that they could get what they wanted in one aisle rather than traveling on a few streets. The final result is that retailers increase sales and consumers are generally satisfied with shopping.
In order for cross merchandising to work, it is important that the products displayed together make a have some logical connection. For example, clothing would not show men's ties next to women's underwear and eyecoffee to increase sales. However, if these ties are displayed with the selection of male suits and accompanied by objects such as shirts, buttons and sharp handkerchiefs for lapel pockets, the possibility of cross sale increases significantly.
Cross merchandising strategy can be used in almost any retail environment. Film rental can create a display with a specific group of movies and include candies, soft drinks and popcorn on the same display. Perfume counters in department stores can also display fragrant waters and soaps along with bottles of perfume. Sport goods shops can display helmets, tire repairs and cycling gloves near the bike stand. As long as they have items that are exposed together, a logical relationship, strategies are very likely to work.