Many emerging brands start out selling online and then decide that the next logical step to accelerate growth and take their brand to the next level is to sell their products in brick-and-mortar stores. Many of these companies have achieved success in the eCommerce world by mastering Amazon selling, running successful Facebook and Instagram campaigns, and executing effective SEO strategies designed to drive organic traffic to their websites. However, these companies often find themselves in unfamiliar territory when it comes to physical retail and the world of instore merchandising. One of the most important decisions these brands will need to make as they transition to physical retailing is the type of POP display they need.
When it comes to POP display types, what are the choices? At a high level, we can categorize POP displays into 3 types: temporary, semi-permanent, and permanent.
Temporary Displays– Temporary displays are usually designed to last for a few weeks or maybe a couple of months at most. They are typically made out of corrugated. They are the ones you often find sitting in the aisles at your grocery store, the ones you almost always accidentally clip with your grocery cart.
Corrugated displays are often a good choice for in-an-out programs, seasonal items such as Halloween candy, promotional programs, and new product introductions. They often make sense if a brand or retailer wants to test sales of a product before committing to space within a store’s planogram. They often arrive at stores filled with products, making set up for the retailer easy.
Corrugated displays play a meaningful role in retail merchandising if used properly. A lot of companies gravitate toward corrugated displays because they think they are cheap and will fit their budget. While they are generally less expensive than permanent displays, they tend to be relatively expensive at lower quantities (i.e., less than 100). In addition, retailers almost always toss the displays after the product sells through. They are rarely refilled which means that as a brand you risk losing your real estate in the store, and to keep it, you will likely have to invest in sending a new display each time your product sells out. Replacing a corrugated display multiple times can be more expensive than a 1-time investment in a permanent display. Corrugated displays can also “cheapen” your product since they tend to communicate lower perceived value.
Semi-Permanent Displays– Semi-permanent displays are designed to last more than a couple of weeks but less than the multiple years that you would expect a permanent display to last. In comparison to a corrugated Halloween candy display, you might imagine a sunscreen display made out of PVC that might be instore from May to September. Semi-permanent displays typically use materials that are more durable than corrugated, but because these displays are generally in stores for less than a year, the materials used can’t be too expensive since there are fewer sales during the lifespan of the display over which you can amortize the cost of the display.
Permanent Displays– Permanent POP displays are typically designed to last more than a year. Some permanent displays can last in stores for 5-10 years with just a modest refresh. Permanent displays often enable brands to lock in space with a retailer which provides a significant advantage when it comes to maintaining instore brand presence. Permanent displays are typically refilled rather than tossed like corrugated displays. Therefore, the initial display investment can be amortized over a longer period of time during which the display is generating revenue. Although the initial investment can be greater, permanent displays typically generate the highest return on investment than any type of POP display.
Permanent displays are usually made out of more durable materials such as metal, wood, acrylic, injection molded plastic, and similar materials.
While some permanent displays are placed inline and incorporated into a store’s planogram, the majority of permanent displays are freestanding. This is particularly common when a retailer is introducing a new brand and is unwilling to commit to inline space until there is a proven track record of generating instore sales.
Permanent displays can reside on the floor or the countertop although countertop space is in shorter supply, particularly by the register. In addition, they can be designed as a glorifier or as a stocking display. The purpose of a glorifier is to draw attention to a product, create brand awareness, educate the shopper, and communicate key messaging points. Alternatively, a stocking display has some of the same objectives, but it actually holds product inventory and is restocked on an ongoing basis.
There are many other decisions that go into creating a successful merchandising program, but selecting the right type of POP display is an important first step.
Jim Hollen is the owner and President of RICH LTD. (www.richltd.com), a 35+ year-old California-based point-of-purchase display, retail store fixture, and merchandising solutions firm which has been named among the Top 50 U.S. POP display companies for 9 consecutive years. A former management consultant with McKinsey & Co. and graduate of Stanford Business School, Jim Hollen has served more than 3000 brands and retailers over more than 20 years and has authored nearly 500 blogs and e-Books on a wide range of topics related to POP displays, store fixtures, and retail merchandising.
Jim has been to China more than 50 times and has worked directly with more than 30 factories in Asia across a broad range of material categories, including metal, wood, acrylic, injection molded and vacuum formed plastic, corrugated, glass, LED lighting, digital media player, and more. Jim Hollen also oversees RICH LTD.’s domestic manufacturing operation and has experience manufacturing, sourcing, and importing from numerous Asian countries as well as Vietnam and Mexico.
His experience working with brands and retailers spans more than 25 industries such as food and beverage, apparel, consumer electronics, cosmetics/beauty, sporting goods, automotive, pet, gifts and souvenirs, toys, wine and spirits, home improvement, jewelry, eyewear, footwear, consumer products, mass market retail, specialty retail, convenience stores, and numerous other product/retailer categories.