It might seem like an unusual time to open a pop-up shop, with so many businesses in different stages of closure. Consumers will be hungry for real-life experiences as the planet recovers. And, though they have grown accustomed to the ease of shopping online, they miss the physical connection they have with brands. A pop up store may be the answer for you if you want to try out a retail presence for your company but are put off by the financial risk and commitment of a permanent storefront.
What is a pop-up shop?
A pop up store, also known as flash retailing, is a practice in which a brand opens a showroom at random for a limited time before closing it. It is a temporary retail space that’s usually used to launch a new product line, explore a new market, or raise awareness for a product or cause. Pop-up shops are typically set up in high-traffic areas like busy highways, malls, and city centers.
Pop-ups are an excellent way for new, digitally native brands to try out a physical location. They give you the opportunity to meet your existing customers where they live and introduce your brand to new customers. It is also a straightforward way to boost revenue without having to spend more money on online customer acquisition. While a pop-up can resemble a traditional store, many brands use them to create a special and engaging physical retail experience.
The goal of this strategy is to spark people’s interest, build a sense of urgency, and convince them to visit your business for a fun, limited-time event. The pop-ups are typically themed, have an exclusive giveaway or product, and are completely one-of-a-kind and unforgettable.
Pop-up shops are a marketing tactic that taps into something that has been lacking from the industry for a long time: interaction. You are on the front lines engaging with your target audience, which can’t be overstated in a world where our only interaction is behind a screen.
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Benefits of pop up shop
- A great chance to interact with your customers
People would crave interaction after the pandemic, and a physical store helps you to communicate with your customers on a human level. Knowing your customer is also mentioned as one of the keys to business success. Although this isn’t actually true in the literal sense, it does imply that you should have a good understanding of your customers’ personalities, which will help you target potential customers more effectively in the future.
Although market analysis and other forms of research are also beneficial, engaging and communicating with your customers in person will give you a new perspective about what they want, what sets your goods apart, and how your company can continue to fulfill their needs in the future.
- ·Increasing the brand’s visibility
It is easy to get lost in the midst of the internet’s never-ending resources if you run an online company. Although a successful marketing campaign will definitely help your brand gain traction in this region, there is something to be said about having a physical store.
Furthermore, because of the short timeframe in which the shop is open, as well as the popularity of pop-up shops, it can be relatively easy to create some buzz before opening the pop up store, potentially leading to increased sales as well as brand recognition both offline and online. This strategy is particularly effective when marketing new products or collections, launching major promotions, or simply raising overall brand awareness.
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- The opportunity to test a new market, product, or store.
Opening a pop-up shop is a simple way to concentrate on a specific area -whether it is a new city or a different audience than your company has previously targeted and it is an excellent way to get a feel for the situation. A new product is no different.
If you have been thinking of opening a store but aren’t sure how profitable it would be, pop-up shops can be a less costly way to determine if a store can benefit the business in the long run.
- Boost sales during peak seasons.
Opening a pop-up during Black Friday, Cyber Monday, or every other peak sales season is a great idea. A pop-up will keep consumers coming back long after your store has closed and the holiday season has passed, converting seasonal shoppers into loyal customers. You will create a sense of anticipation among your most loyal customers if you host seasonal pop-ups on a regular basis.
- Get rid of old stock
It is more expensive than you would think to have dead stock on hand. You are not only losing revenue, but you are also incurring carrying costs and tying up funds that could be spent elsewhere in your business. Furthermore, the inventory could gradually become outdated and no longer be sellable, resulting in a loss of revenue and capital.
By using fresh displays and appealing visual merchandising elements to attract new shoppers, pop-up shops are a great way to breathe new life into aged stock — especially seasonal merchandise with a limited shelf life. Offer exclusive offers, such as buy one, get one free, or bundle products together to encourage impulse purchases.
- Test a new stream of income
A pop-up shop is a perfect way to see if you can add another revenue source to your current eCommerce store. It is a rare opportunity to experience offline sales by hosting a pop-up. This is because pop-ups don’t cost about as much as conventional stores
Second, you will make big profits for your company by being in the right position at the right moment, without the risks that conventional retailers face.
Factors to consider while choosing a pop-up shop
To begin with, just like every other retail store, the best locations are those with high foot traffic, and it is even better if you can find a good spot in a shopping center, as you won’t have to think about driving any of the store traffic yourself. Aside from that, before you open your pop-up shop, take a look at the area you have chosen, see what other businesses are there, consider what kind of demographic you want to draw, and why people come to that area in the first place — for shopping, recreation, or work. Check the space’s history to see what it was used for previously and how popular the shop was.
Finally, once you have found a suitable venue, you will need to finalize a few details before signing a contract. Set up a meeting with the property managers to determine the rental rate and what is included. Ask if the location can be modified, who is responsible for what, and if a surety bond is needed to ensure that all parties can follow through with their commitments.
Popular Pop-Up Venues
The FOMO aspect is one of the reasons consumers are drawn to pop-ups (Fear Of Missing Out). Customers are aware that pop-ups are only temporary, so they want to take advantage of them before they disappear. Pop-up event planners must select the best location in order to make an impression and produce a pop-up event that consumers would want to attend. It is all about location in marketing, as it is in many other fields.
1.Kiosks and Booths (indoor/outdoor)
These types of pop-ups have become standard in the industry, and they often produce the best pop-up events; you will often find kiosks or booths in high-traffic areas in shopping malls or local markets. Many outdoor or “open-air” venues, typically for a seasonal gathering, can be traced back to medieval Germany’s temporary Christmas festivals.
• If your product is seasonal, you can tie it to a festival where customers will be looking for one-of-a-kind products or culinary delights.
• Shopping malls and markets have pre-existing foot traffic that can be beneficial to your company.
• Because these events draw a lot of other pop-up shops, there is a fair chance you will be next to a competitor’s product; check with the market or festival promoter to make sure you’re not next to them.
Many stores have vacant floor space, which means they are missing out on revenue. Retailers who are forward-thinking are also willing to rent space to temporary pop-ups in exchange for a small portion of the profits. Some partner with a permanent fixture (for example, Starbucks within a Target), while others tend to rotate the room to remain current.
• A retailer that leases space on a daily basis always has the space ready to go, requiring no work on your part other than decorating and stocking.
• If the retailer is well-known, you profit from their regular foot traffic.
• You will need to find a vendor that sells a product that complements yours but doesn’t clash with it.
3. Vacant Retail Space
Almost every October, pop-up activities occupy a vacant retail space for the month in order to capitalize on Halloween shoppers. Many pop-up event planners, however, will use this technique all year round. The location’s owner is sitting on vacant real estate, so this provides them with some money while still providing pop-ups with a physical location — talk about a win/win situation.
• You have your own huge retail space. If you have a lot of products to show, this is the place to be. It places you on par with industry giants.
• Being in a physical store detracts from the “cool” aspect, and some customers do not know it is a one-time pop-up experience, resulting in no FOMO.
4. Pop-up truck
Some pop-up activities run out of a motorized vehicle or trailer, following in the footsteps of food truck entrepreneurs. If a pop-up event planner plans to do several pop-up activities over the years, they can either buy a car or rent one.
• You are on wheels! Simply drive away until you have completed your sales. There will be no more set-up and take-down for multi-day activities. You are in luck if you’re reaching younger generations. Millennials are known as “the food truck generation,” and they go out of their way to find them because of their “authenticity.” According to studies, almost half of millennials have made a purchase from a vehicle.
• Permits and licenses can be required.
• Operators must know when and where they can park and sell.
5. General Pop-up Space
In well-kept street-level retail spots, there is a range of pop-up shop locations open. A landlord rents these gallery spaces for the sole purpose of holding pop-ups. Their tenants come and go on a regular basis, renting the space on a weekly or monthly basis.
• These spaces are move-in ready since they were designed for pop-ups, and the owner will be able to provide advice and suggestions based on past experiences.
• To keep the money flowing, the owners of these spaces choose to book as far in advance as possible. Many pop-ups, particularly those that are seasonal, rely on being able to secure space.
• It is a two-edged sword: because owners book too much ahead of time, space will not be available when you need it.
Pop-up events are here to stay, and the most forward-thinking companies are leading the way. Of course, making a big impression with your pop-up is vital, so having excellent audio and visuals will help your event stand out.
Strikingly is a great place to promote your pop-up shops, as well as your goods or services. Strikingly makes actual marketing simple by using unique features like pop-ups, newsletters, and banners once you have decided on the type of pop up store you want and the desired location.
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You can create marketing campaigns that work through several devices with Strikingly. Since all of the websites you create with Strikingly are automatically responsive for both mobile and desktop users, this is possible.
After you have learned everything there is to know about creating a marketing strategy, go to Strikingly, create an account, and create a website where your campaigns can be delivered effectively.
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