Innovative Visual Merchandising Strategies in the Digital Era:Enhancing Retail Consumer Engagement

Abstract

The review study analyses the impact of innovative visual merchandising tactics, facilitated by evolving technology, on customer engagement at the point of sale, specifically within the fashion sector. As the retail landscape changes toward a digital era, emerging technologies such as augmented reality (AR), interactive displays, and digital signage are transforming the way customers engage with items and the shopping environment. We performed a comprehensive analysis of the current literature, utilizing
ideas related to consumer behaviour, purchasing experience, visual communication, and the integration of technology in visual merchandising. Although much contemporary study focuses on Generation Y (Gen Y), the results are relevant to a wider array of cohorts, including Generation Z and older generations, who are increasingly interacting with digital technology in retail environments. The study asserts that visual merchandising, in conjunction with digital technology, may profoundly affect customer
behaviour by improving the buying experience across cognitive, emotional, sensory, and behavioural dimensions. The technologies used in visual merchandising are not just utilitarian instruments; they act as influencers, crafting immersive, personalized experiences that cultivate profound emotional ties with the brand. These technologies help merchants to attract new consumers, retain existing ones, and drive purchase choices through a more engaging and memorable shopping trip. The article ultimately finds that the use of digital technology in visual merchandising tactics is revolutionizing traditional retail experiences into dynamic, interactive environments that are crucial for influencing contemporary customer behaviour.