Step inside a modern retail store today and the experience is no longer limited to neatly arranged shelves or bright lights. What the shopper sees, hears and even smells is increasingly shaped by data, algorithms and real-time intelligence. The store façade, window displays, signage, product placement and even music are now touchpoints in a much larger engagement journey. In India, where retail is scaling at an unprecedented speed and consumer expectations are shifting just as fast, visual merchandising (VM) is evolving into visual experience – an amalgamation of creativity and computation.
The shift to visual experience reflects a more immersive, 360-degree approach. Brands today aim to create a seamless journey across physical and digital touchpoints, where the narrative is consistent, irrespective of whether a customer is browsing online or stepping into a store. To balance stability with innovation, many adopt a structured model – building on proven VM standards, scaling successful pilots and testing bold experiments in select markets. Crucially, global storytelling must adapt with local nuance, ensuring relevance across India’s diverse consumer base.
How is AI assisting VM Evolution as a new ‘Merchandiser’
This is where AI is quietly rewriting the rules of VM. Platforms like Reaglo, Consilio, Pazo, Form and Retail Stores Control now allow retailers to move away from fragmented execution and towards intelligent, data-driven merchandising. Instead of WhatsApp images, store managers upload compliance shots directly into apps where AI verifies everything – from whether the right poster is displayed to whether shelves match the prescribed planogram. What once took days of manual checking now happens in seconds.
Beyond compliance, AI-enabled audits can detect subtle but impactful gaps: cluttered product presentation, weak colour blocking or empty fixtures signalling poor replenishment. Retailers using these systems report campaign rollouts 70% faster, compliance errors are reduced by a third and conversion rates rise measurably.
But AI’s impact goes far deeper than the operational efficiency as it enables dynamic storytelling. Imagine a shopper entering a store and being subtly guided towards curated displays aligned with their preferences – identified through loyalty app data or past purchase behaviour. By analysing heatmaps of in-store traffic, AI tools can suggest optimal product placement – placing high-margin items or bestsellers where shoppers naturally linger. In global markets, Uniqlo already uses such analytics to position seasonal bestsellers at natural ‘pause points’ in the shopper journey.
AI is also expanding the boundaries of what VM means. Virtual try-ons, enabled by AI-driven augmented reality, allow customers to see how a jacket or accessory looks on them without entering a trial room. Global fashion leaders like Zara have integrated AR-enabled store windows where customers can point their phones and see models wearing the latest drop in real time.
Similarly, window displays and digital signage adapt to time of day, weather or local events – promoting festive collections during holidays or rainwear in a sudden downpour. Personalisation goes deeper as AI analyses loyalty app data and past purchases to guide shoppers toward curated displays, while RFID-based ‘lift-and-learn’ tools trigger product information the moment an item is picked up. Sephora, for example, tailors screen content dynamically across its global stores to highlight trending SKUs in real time.
Where are Indian Retailers positioned in their VM Journey?
The VM shift is particularly important in India where consumer behaviour is evolving rapidly. Tier-2 and Tier-3 cities are not just catching up but often leapfrogging expectations, demanding world-class experiences in smaller, more complex retail environments. At the same time, margins are tightening and physical stores must prove their value in a digital-first landscape. AI makes this possible by bringing consistency, speed and intelligence to a function that was once seen as subjective and unmeasurable.
Global benchmarks show the path forward and Indian retailers from Max Fashion to Jockey to Bata are building their own playbooks, leveraging AI to deliver experiences that are both aspirational and efficient.
Bata has been steadily digitising its retail and visual merchandising execution through multiple innovations. The brand recently introduced an AI-powered VM app that allows store managers to instantly access campaign guidelines, acknowledge promotional materials and even track execution with gamified performance tools. To enhance in-store engagement, Bata has deployed ‘Lift and Learn’ RFID technology, where interactive displays showcase product details and comparisons the moment a customer picks up an item. In premium outlets, traditional static windows have been replaced with dynamic digital store screens, creating consistency and stronger shopper engagement across locations.
Jockey India uses digital tracking to roll out new season collections seamlessly, ensuring mannequins, signage and fixtures tell a consistent story nationwide. This not only boosts impulse buying but also strengthens brand recall.
Wakefit, a D2C brand that scaled offline, integrates operational tech into its stores. For them, every display has to narrate a lifestyle story – from mattresses to furniture – and they ensure uniformity using tech dashboards.
Beyond these providers of AI, other tech firms are also pushing the envelope. Digital signage firms now enable retailers to change campaigns across geographies instantly, keeping messaging fresh and localised. Shelf analytics tools are giving visibility into what products catch shopper attention versus those that go unnoticed. Meanwhile, IoT-based smart fixtures and interactive displays are making store environments more engaging and dynamic. Together, these technologies are bridging the long-standing gap between creative VM strategy and flawless in-store execution.
