Cross Merchandising – Meaning and Concept

Retailing refers to the concept of selling merchandise in small quantities to the consumers for their end use. According to retailing, the individual can walk up to any nearby retail store and purchase products as per his need and pocket in small units for his own consumption.

The display of merchandise at the store plays an important role in attracting the customers into the store. The display of the products at the retail store goes a long way in influencing the buying behaviour of the consumers. The presentation of the products is essential to create that first impression in the minds of the consumers.

Cross Merchandising

Cross merchandising refers to the display of opposite and unrelated products together to earn additional revenues for the store. Products from different categories are kept together at one place for the customers to find a relation among them and pick up all.

According to cross merchandising:

• Unrelated products are displayed together.
• The retailer makes profits by linking products which are not related in any sense and belong to different categories.
• Cross Merchandising helps the customers to know about the various options which would complement their product.
• Cross Merchandising makes shopping a pleasurable experience as it saves customer’s precious time.

Examples of Cross Merchandising

• Mobile covers displayed next to mobile phones.
• Recharge coupons with new sim cards
• Batteries with electronic appliances
• Neck ties or cuff links displayed with men’ shirt
• Fashion jewellery, rings, anklets, hand bags with female dresses
• Shoe laces, shoe shiners, shoe racks with shoes
• Audio CDs with CD Players

Jenny went to a nearby retail store to purchase a shirt for herself. She picked up a nice blue formal shirt displayed on the mannequin. The retailer was smart enough to add matching trouser, scarf and a handbag to the mannequin (Cross Merchandising). Not only did Jenny purchase the shirt but also the trouser as well as the office bag as she felt the products would complement her shirt.

The customer at the first instance can’t really decide what all he needs apart from the products he has already purchased. Through cross merchandising, the retailer smartly tries his level best to convince the customers to buy additional products apart from his existing list.

Mike went to a nearby departmental store to purchase cigarettes. He spotted chewing gums displayed along with the cigarettes. He immediately decided to purchase the chewing gums along with his cigarettes which he might need after smoking. Thus cross merchandising (display of cigarettes along with chewing gum) made Mike realize the connection between the products and eventually pick both of them.

Important tips for Cross Merchandising

• The opposite products should be sensibly displayed for the customers to be able to relate them.
• The merchandise should be neatly arranged without giving a cluttered look to the store.
• The merchandise must complement each other to create the desired impact.
• The retailer must make sure the products have some logical connection with each other.

  Displaying neck ties with Laptops would make no sense and fail to excite the customers. The customer would purchase either of the two (Either the Laptop or the neck tie) depending on his need but would never purchase both. However if laptop bags are kept with laptops, there are chances that the customer might pick up both the products.

• Use hangers, pegs, mannequins or suitable fixtures to intelligently display the unrelated goods and prompt the customer to pick all of them.