Pop-up shops are a big deal these days. You’ve been seeing them everywhere, right?
I’m Syama Meagher, CEO of Scaling Retail, and today, I’m going to chat with you about why pop-up shops are all the craze, and three reasons why you need to get on the bandwagon.
Now, I believe I first really experienced pop-up shops back in the early 2000s. After the dot-com bust in San Francisco, there were a ton of empty storefronts and spaces, and they needed something to do with those empty spaces. So, I started to see a lot of little shops and little types of short-term events start popping up all over the city. So, I believe this craze has started a long time ago, but it is finally, now catching up.
These days, you’re seeing e-commerce stores launch pop-up shops, as well as brick-and-mortar. And you’re starting to see other retailers start to use pop-up shops to get themselves into other markets, do marketing activations, and really, start to do one big thing, which is get in front of their customers where their customers are.
These days, guys, the customers are not just looking to be sold to and marketed to just online. In fact, you can get digital marketing fatigue, especially if you see all these targeted ads running around everywhere. But, pop-up shops give you, the brand owner, an amazing opportunity to tap into their customer base, and also to be able to test a variety of different factors to help enrich and improve your brand.
The first factor that you get to test is really pricing and merchandising. Now, this is critical and essential to the longevity of your business. You want to understand how people are responding to price points, how they feel and understand the collection, what your merchandising strategy is, and if that’s really getting across. There is no better way to get that information than to actually hear it from your customers. Now, I don’t want you to be following your customers around the store. In fact, it’s best that you have some sales associates there, but it is great and amazing feedback to be able to get that information.
Now, the second reason why I think you need to be doing these pop-up shops is really, because it gives you an access point to create the world of your brand for influencers, editors, stylists, potential consumers, anyone who’s going to be consuming your content. So, in essence, the pop-up shop becomes another media touchpoint for your business. Very, very, very important. You know, it does take, on average, about six different touchpoints to get a customer to buy. How amazing if you can create those touchpoints digitally, drive them to a pop-up shop, and close the sale at the store.
And that brings me to my final point as to why you really need to consider this, guys, because there is an opportunity to make a huge amount of revenue at a successfully planned pop-up shop. Now, the key operative word here is “successfully planned” pop-up shop. You certainly need to spend some time developing your sales strategy, meaning, how much of inventory you’re going to have in there, the price points, if the goal of the event is to do something, that is, it’s on sale or it’s a holiday pop-up shop or it’s a new collection-based pop-up shop. You’ve got to align your vision and your strategy to make sure that it is successfully planned.
Now, without going through the planning phase, finding the right location, understanding your sales-per-square-foot, which really means, how much money you need to be bringing in for every square foot of the space in order for it to be profitable. And lastly, having a good understanding of what marketing drivers you’re going to be using to get people into the store.
So to successfully plan a pop-up shop, it takes a little bit of time, thought, and planning. It also takes some resources, depending if you’re launching for one evening, over the weekend, or if you’re going to do a three-month-long event. All of these things are going to take the right amount of resource partners to be able to successfully get this off the ground.
However, guys, I am going to tell you, pop-up shops are not going away. This is not some kind of fad marketing. In fact, as we start to see brick and mortar evolve and take on a new shape and form, you’re even going to be seeing pop-up shops within other shops, right? Other kinds of branded pop-ups, so guys, get familiar. Pop-up shops is where it’s going. It’s not a fad. It’s not just for the novelty. Your customers want to engage with you, engage with your product, and they want to be able to experience what it is that you want to show them and take them into that world.
All right, guys. Hope you enjoyed this. Hope I inspired you to take action to think about including pop-up shops as part of your marketing strategy this year. Head on over to scalingretail.com. Got lots of great blog information, topics on pop-up shops and way more resources for you. Have a fantastic day. Bye.