Nike is .
So is .
We鈥檙e talking about running pop-up shops, those tiny retail “stores” that offer a sample of your brand鈥檚 products.
Pop-up shops used to be limited to small brands in suburban malls and farmers鈥� markets. You鈥檇 see them “pop up” in a small corner of the local mall, sell you some trinkets and wrap up the operation within weeks.
This has changed radically in the last few years. Pop-up shops are now a 听in the US alone. Big brands like Nordstorm and Best Buy have jumped in, offering customers a new shopping experience outside their bigger stores.
Adidas pop-up store, pictured by
Can your e-commerce operation benefit from a pop-up shop this holiday season? If yes, what do you need to set up your own pop-up store?
Read on to find out!
The Rise of Pop-Up Shops
In the US, pop-up stores have quickly ballooned to become a . And this yearly revenue number is projected to grow to $95 billion听over the next year.
Why are entrepreneurs and retailers, big and small alike, so keen on pop-ups?
There are three reasons:
- Low cost: A pop-up shop only costs 1/5th of what it would cost to run that store at full scale. This low cost is particularly attractive to entrepreneurs who want to test out new ideas.
- Experiment easily: Pop-up shops allow retailers to experiment with new experiences. Instead of creating a store from scratch, a retailer can test out a new idea and see if it sticks without having to make a high-impact commitment.
- Business marketing: A pop-up shop puts your business right in front of your customers. This is great for increasing brand visibility.
According to Melissa Gonzalez, author of , a pop-up shop adds a “human” element to your brand marketing. Instead of a conventional store, it helps you interact directly with customers, which is of course a necessary ingredient for success in our intimate, social-first world.
Before you can start you own pop-up shop, however, it helps to first understand the key goals you should have for your pop-up store.
Related: Think Local: Corktown Soap鈥檚 Journey From the Beginning to 70+ Pop-Ups in a Year
Key Goals for a Pop-up Shop
It doesn鈥檛 matter whether you鈥檙e a new startup or an established 产谤补苍诲鈥携辞耻谤 pop-up shop must meet at least one of these goals:
Increase brand awareness
Bonobos, the popular online-only men鈥檚 clothing retailer wanted to expand its footprint in the physical world. Instead of renting out expensive retail space, Bonobos put up a pop-up shop in its office building manned by two salespeople.
Within a year, the two salespeople brought in $250,000 worth of business by themselves, mostly from customers who had never heard of Bonobos.
This is one of the core goals of any pop-up shop: to expand your brand鈥檚 reach to new customers and engage them on a personal level.
Test new markets
A street fashion and surf wear line from Southern California called “After Eleven” wanted to expand into San Francisco, except there was a problem: San Francisco is noticeably colder than LA.
Instead of spending thousands of dollars to put up a complete store, After Eleven decided to test the San Francisco market by putting up a pop-up shop at online retailer Storenvy. This helped them gauge demand and alter their retail strategy for their new market accordingly.
Engage customers
A child apparel line called “Little Vida” often sets up pop-up shops in malls with lots of kid activities like games, music, and face painting. While the shop keeps kids busy and happy, the brand wins over their parents, who are of course happy to have some free time on their hands to finish their shopping in peace.
This is another key goal of any pop-up shop: to engage customers at a personal level. By offering rewards, games, and other activities, you can often get them to be a part of your brand experience, and that鈥檚 marketing that will leave a lasting impression.
Generate revenue
Last, but not the least, running a pop-up shop is a credible way to generate revenue. This is particularly important for small startups that need constant cash flow to keep the lights on.
When done well, a pop-up shop can also drive revenue through user sign-ups. ZipCar, a car rental company, opened a pop-up shop in Harrington Galleries, San Francisco. Its only goal was to give out $30 coupons to potential customers, who could either use this $30 as a dri
