Have you heard of pop-up store? E-commerce store owners, you may need to take note of the following as this pop-up store concept might be useful in your next marketing plan to increase the brand awareness.
Q: What is a pop-up store?
A: According to Investopedia, a pop-up store is a retail store that is opened temporarily to take advantage of a trend or a seasonal product. Demand for products sold in pop-up retail is typically short-lived. Pop-up retail stores are found most often in the apparel and toy industries.
Q: What are the benefits of setting up pop-up stores?
- Test a New Revenue Stream
If you’re an e-commerce business, pop-up stores provide a relatively low-cost way to explore adding an additional revenue stream. Not only is it a fraction of what you would pay for an actual physical retail location, if the concept is executed and popularised well, you could rake in a significant profit.
- Engage Customers Offline
You’ve heard it before, but not being able to try on a product before purchasing can be a very real pain point. To be honest, there’s just something about being able to physically touch a product before you buy which makes the shopping experience very enticing for consumers. To further validate the idea, a recent study by Accenture showed that 78% of shoppers are “webrooming” (browsing online, then purchasing in a store) today.
- Create “Get It While It Lasts” Urgency
The beauty of a pop-up store is that it’s a limited window of time for consumers to engage with your brand and purchase your products. The idea that you’re not going to be around for long is a huge plus point in getting customers to buy. Scarcity drives action through customers wanting exclusive, limited edition or other products they can’t get otherwise, and a pop-up store puts you in a perfect position to take advantage.
- Market Merchandise Around a Sale, Season or Holiday
There’s nothing like jumping on the holiday bandwagon, especially when you factor in how much people spend on their loved ones. It doesn’t matter if you’re looking to sell dresses for New Years, flowers on Valentines or costumes on Halloween, tying your brand closely with a holiday and giving consumers a physical location to access you is a great way to be opportunistic and make a significant amount of cash.
- Educate New Customers
When you’re trying to sell a crazy new invention that hasn’t crossed over into the mass consumer subconscious, a pop-up store can help you understand how your existing marketing collateral performs with actual customers while getting real-time feedback on how it can be improved. You may provide your potential customers a live demo or walking them through how your product works is a great way to get new customers.
- Go to Where Your Customers Are
This is an especially strong reason to do a pop-up shop when you’ve perhaps had some experience selling online and have a good idea of your customer profile that allows you to identify the areas or locations that they are most likely to frequent. The benefit of being able to select a certain side street, kiosk or vacant gallery space is that you can match your products with the personality of a given demographic and go to where they go.
- Generate Brand Awareness
The competition to market and sell online is become just as stiff as offline retailing. This is why the entire retail industry is heading to an omni-channel presence. By engaging prospective customers offline and delighting them with an unforgettable experience and quality products, you can then point them to your online site and social accounts, where they can stay in touch and continue to buy your products. What we call this? O2O.
Q: What are your pop-up goals?
A: Different sized brands will have different goals for doing a pop-up, however, they typically tend to fall into the three big buckets of:
- Revenue Generation
- Brand Awareness
- Customer Engagement
Not to say that you couldn’t have all three goals to aspire for, however, it is important to clarify your primary goal as that will dictate how you make decisions around aspects of your retail store design and promotion strategy. Several well-known brands will do a pop-up for the sole purpose of surprising and delighting prospective customers to capture a larger share-of-mind when it comes to their brand’s positioning, whereas smaller brands want to see if they can sell their products in retail and get feedback on their brand, shopping experience and determine which products are winners and which will never sell.
So, will you consider setting up pop-up stores after reading this article?