Many of us love to shop. We don't always end up buying something, but we often do. Have you thought about what makes you actually buy something, what made you go into that particular store? In this blog, we look at the importance of visual merchandising for products and brands, and we look in particular at what makes some brands often perceived as luxury brands. Is it about a special quality, or is it the packaging that makes people willing to pay so much for a product?

What does "merchandising" mean?

According to the Oxford Dictionary, "merchandising" means: The activity of promoting the sale of goods, especially by their presentation in retail outlets. It is about how goods are displayed in a retail space using furnishings, lighting and other tools. In other words, it is about the visual expression of the store and the goods, hence also often called visual merchandising.

You've probably noticed that store employees arrange merchandise to make it look its best. This is most easily seen in stores that sell clothing or home furnishings. But merchandising is an essential part of any professional retail business. And for luxury goods sellers, merchandising is big business.

See how brick-and-mortar stores are harnessing the power of design to win the battle against online shopping.

What makes a brand luxury?

Brands like Ralph Lauren, Gucci, Prada, Hermès and Louis Vuitton are often considered the crème de la crème of luxury brands. But why are they? Is it because of a very special quality of raw materials, production and craftsmanship? Yes, some would argue. Historically, there is also a kernel of truth here, at least for some of these brands. Both Gucci and Hermès have a long history as manufacturers of high-quality leather products, including saddles and other leather equipment for equestrian sports. But the journey from there to the catwalks of Milan, Paris and New York is about much more than quality. It is about positioning, attracting the right brand ambassadors - and it is about merchandising.

If you visit a Louis Vuitton store - or showroom - as it is often called in the luxury segment of the retail industry, you will immediately notice that it is something completely different from stopping by any other store. When it comes to stores within the luxury segment, you can expect:

You will find the store in a shopping street or in a shopping center along with other luxury brands. In Oslo, the area around Akersgata is considered the new trend area for luxury, with Louis Vuitton, Bottega Veneta, Mulberry, Hugo Boss and more.
1. The store has particularly elaborate window displays where carefully selected products are placed in a context that highlights the products.

Some stores style their windows better than others. Many are tempted.

The store has uniformed guards who politely open the door for you.
The store premises are furnished with exclusive materials, the lighting is optimal to highlight the products, which are often displayed on shelves that go from floor to ceiling.
Store employees are often dressed in black and act exemplary in terms of customer service, discretion and make you feel like someone who actually intends to spend 80,000 kroner on a handbag. It's all about packaging

"They make you feel like a million dollars."

It's about packaging

There is a difference between selling Tesla and Skoda. There is a difference between selling Friele coffee and Nespresso. And let's stop for a moment at Nespresso. Norway is a coffee-drinking nation , and Oslo has gained international recognition because of coffee shops like Java, Tim Wendelboe and Fuglen. What is it about Nespresso that makes coffee drinkers around the world invest in expensive coffee machines that can only be used with Nespresso coffee pods? Well, it's all about the accessories.

Nespresso stores are reminiscent of a cross between a clinical laboratory and an elegant lobby at a business hotel. Here too, the staff are stylishly dressed, and the level of service and expertise is at the highest level. If you are in doubt about which type of coffee you want, you can try different flavors in their coffee bar. By being a member of your own Nespresso club, you feel extra well looked after. And it doesn't hurt that the packaging on everything from the coffee pods to the coffee machines and shopping bags gives the impression of luxury. But you have really just bought coffee. And paid more than for the coffee you find on the shelf at REMA.

Brand ambassadors as magnets

There is a luxury segment for all types of goods today. Traditionally, we may think that luxury has been reserved for the car and fashion industries, and most of us have only been able to admire the show from a good distance. Today, we find industry drift across different customer and product segments. For example, we see that H&M is good at involving celebrities and designers to design unique collections. These are often "limited editions", which gives them extra value. Due to its connection to celebrities such as David Beckham and Madonna and designers such as Karl Lagerfeld or Stella McCartney, H&M can charge a higher price for the goods than otherwise, and as a brand, associations are aroused with a life with a high celebrity factor. We can say, among others, that Stella lends some of the charm to H&M.

The power of attraction lies in the illusion

So why do we choose to go into a store? Why do we choose to buy that particular item? I argue that it is about us being excited by the feelings the items arouse in us. When we buy an item in the luxury segment, it is not just the item we want, but the feeling of belonging to an elite, a “tribe” or a club. This is not necessarily a conscious action or thought. Many will probably simply deny that they shop because of such dreams of greatness. But it is a fact that you see far more people on the streets of Oslo with brands like GANT, Ralph Lauren and Tommy Hilfiger than you do on the Harvard University campus. This is despite the fact that these brands play on associations with the prestigious university environment in Massachusetts, USA - and on the privileges many have as a result of having gone to school there.

This illusion is incredibly important for brands to maintain. That's why there's so much attention to detail in how the brand is presented, and that's why shopping should feel expensive. It should feel like an investment in yourself, in your own future, in your destiny. You're buying yourself a place in good company. And by shopping, you're not just becoming part of an elite for a short while, you're also putting yourself at a distinct distance from the rest, from the others.