The Role of Merchandising in Strengthening FMCG Brand Loyalty and Visibility

Table of content

The Role of Merchandising in Strengthening FMCG Brand Loyalty and Visibility

The Role of Merchandising in Strengthening FMCG Brand Loyalty and Visibility

In an industry as dynamic and competitive as Fast-Moving Consumer Goods (FMCG), building brand loyalty and sustaining visibility are critical to success. Merchandising is a powerful tool that enables FMCG brands to connect with consumers directly at the point of sale. Particularly in the GCC market, which is expected to demonstrate a 12% compound annual growth rate (CAGR) through 2025 reaching a market value of $110 billion, effective merchandising strategies can significantly influence brand performance and consumer preference.

1. Merchandising: Beyond Product Placement

Merchandising encompasses much more than arranging products on shelves; it involves strategically creating an engaging and consistent brand narrative that resonates with consumers. Approximately 68% of purchasing decisions are influenced by in-store presentation, signifying the critical impact of visual appeal and messaging on buying behavior. Through attractive displays, optimal product placement, and promotional integration, merchandising reinforces brand values and builds consumer trust.

2. Enhancing Brand Visibility in a Crowded Marketplace

With GCC supermarkets and hypermarkets offering an average of 40,000 product choices per store, visibility is key for brand recall and purchase decision. Advanced merchandising techniques, including digital signage and interactive displays, can increase product visibility by 30-50%, ensuring the brand captures consumer attention even in highly saturated aisles. Such innovations help FMCG brands stand out and communicate product benefits effectively.

3. Consistency: The Foundation of Brand Loyalty

Consistency across multiple retail outlets strengthens familiarity and trust. Studies show consistent merchandising practices can increase repeat purchase rates by around 23%. Channelplay’s team of trained merchandising experts ensures brands maintain uniformity in product presentation, promotional displays, and customer engagement across the GCC, creating a reliable shopping experience that reinforces loyalty.

4. Data-Driven Merchandising Strategies for Maximum ROI

Today’s successful FMCG merchandising is powered by data. By analyzing shopper analytics, foot traffic, and category performance, brands can tailor merchandising strategies to local GCC market trends and consumer preferences. Retailers leveraging data see improvements in sales conversion rates by 15-20%. Such insights enable precise product positioning and optimize promotional efforts at the store level.

5. Navigating GCC Market Challenges with Expert Merchandising

High store density in urban GCC areas—averaging 10-15 stores per square kilometer—alongside culturally diverse consumer bases, requires agility and local expertise. Merchandising teams must be quick to adapt to regional preferences and seasonal trends. Channelplay’s regional knowledge and operational excellence enable FMCG brands to overcome these challenges, ensuring flawless execution of merchandising plans that resonate with local shoppers.

6. Contributing to Sales Growth and Market Share

Effective merchandising can boost FMCG product sales by up to 40% compared to non-strategic displays. This uplift translates directly into significant market share gains and an enhanced return on marketing investments for brands operating in the GCC’s fast-growing FMCG sector. Moreover, with GCC FMCG e-commerce share rising to 22% in 2025 from just 10% in 2021, merchandising strategies increasingly integrate online and offline touchpoints to ensure seamless brand experiences.

7. Embracing Sustainability and Innovation

GCC consumers are increasingly favoring brands that align with health, wellness, and environmental sustainability trends. Merchandise presentation, including packaging and promotional materials, reflects this shift. More FMCG brands are adopting compostable, recyclable packaging and showcasing such attributes in-store, further strengthening consumer loyalty through values-driven choices.

Conclusion

Merchandising stands as a cornerstone of FMCG brand success in the highly competitive GCC retail sector. By delivering strategic, consistent, and data-informed merchandising, brands can increase both visibility and consumer loyalty—two factors that drive sustained growth in the $110 billion GCC FMCG market. Partnering with expert merchandising firms like Channelplay ensures brands are equipped to navigate regional complexities, capitalize on market trends, and build a lasting connection with consumers.

Start your journey toward improved retail performance and customer engagement in the GCC today
Contact us