19 Oct Pop-up store: a sustainable business model in 2020?
From the United States and quickly adopted in Europe, the pop-up store successfully found a place in the brands’ retail strategy by providing a real marketing laboratory. As a result, the market already represents more than 2.3 billion pounds per year (based on the French Centre for Research in Economics and Business).
Benefits of a pop-up store in the crisis-era :
Maintain retail ephemeral initiatives at a lower cost
The pop-up store remains a way for brands to reduce booming rents (50% cheaper than a traditional lease) and the gradual recovery of in-store traffic following the new restrictions. In this way, retailers can experiment selling in a physical shop without requiring a turnover commitment or large stock. A pop-up store’s cost-benefit ratio remains attractive and targets all brands regardless of size.
Reinforce your brand DNA
“Over half of UK consumers (53%) prefer to buy goods and services from companies that stand for a shared purpose that reflects their personal values and beliefs, and are ditching those that don’t”
(Accenture, 2019)
Nowadays, retailers have to face customers’ new expectations regarding authenticity, proximity, usefulness and meaning from their brands. Pop-up stores have become a key driver in the retail strategy, empowering brands to reflect their brand’s identity, historical heritage and values, as well as offering a unique customer experience.
As a result, luxury brands, hardly affected by the crisis, multiplied pop-ups stores all over the world. For instance, fashion designer Christian Dior launched six pop-up stores in Europe and twenty in Asia during the summer season. An opportunity for the luxury brand to present its current exhibition combining couture and brand heritage while reconnecting with its European and Asian clients.
Share and promote new products
Some markets have resisted the crisis fairly well, such as the toy market. In France, the market recovered in three months 80% of its shortfall due to lockdown. Play-Doh, a well-known modelling clay (Hasbro group), is taking advantage of this trend by launching its second colourful pop-up store in the Paris Toy Club Village. With the Christmas season approaching, the brand is presenting its new products through children’s workshops with chef David Gallienne, winner of the TV game show Top Chef 2020.
Therefore, the retail strategy of the pop-up store is based on proximity by creating a direct link between the customer and the brand usually distributed by retailers. On the other hand, its strategy is also based on the ability to create experiences in high-traffic areas such as shopping centres.
A test and learn tool
The pop-up store is a genuine marketing lab for brands, allowing them to experiments a retail strategy and learn from it. Its agile, adaptable and flexible approach facilitates the concept’s duplication in various shopping centres as well as its international development.
As a result, choosing shopping centres is part of the brands’ retail strategy and provides nearly 20% annual growth.
Pop-up stores can be a profitable investment in times of crisis if you want to improve your reputation, increase your sales, experiment a new location and/or a new offer.
Our B.D.C. consultants accompany you in your retail strategy in order to ensure the success of your pop-up store!
Contact our team to discuss your project! We will be happy to exchange with you.
For more news: click here
Contact:
Elodie Garicoitz
UK Retail & Digital Consultant
elodie@bdc-retail.com