What You Need to Open a Pop-Up Shop This Holiday Season

Posted 1 year ago by Jesse Ness, 붚죕쳔 Team

Nike is桂.

낍늡桂쓩끅桂.

We�셱e talking about running pop-up shops, those tiny retail 혫stores혬 that offer a桂sample of桂your brand�셲 products.

Pop-up shops used to桂be桂limited to桂small brands in桂suburban malls 껸꾈삣桂farmers�� markets. You�셝 see them 혫pop up혬 in桂a桂small corner of桂the桂local mall, sell you some trinkets 껸꾈삣桂wrap up桂the桂operation within weeks.

This has changed radically in桂the桂last few years. Pop-up shops are now a桂桂in the桂US桂alone. Big brands like Nordstorm 껸꾈삣桂Best Buy have jumped in, offering customers a桂new shopping experience outside their bigger stores.

Adidas pop-up store, pictured by桂

Can your e-commerce operation benefit from a桂pop-up shop this holiday season? If桂yes, what do桂you need to桂set up桂your own pop-up store?

Read on桂to桂find out!

The Rise of桂Pop-Up Shops

깝꾈桂넨농깎桂괴낍, pop-up stores have quickly ballooned to桂become a桂. And this yearly revenue number is桂projected to桂grow to桂$95桂billion桂over the桂next year.

Why are entrepreneurs 껸꾈삣桂retailers, big 껸꾈삣桂small alike, so桂keen on桂pop-ups?

There are three reasons:

Low cost: 뇟桂pop-up shop only costs 1/5th of桂what it桂would cost to桂run that store at桂full scale. This low cost is桂particularly attractive to桂entrepreneurs who want to桂test out new ideas.
Experiment easily: Pop-up shops allow retailers to桂experiment with new experiences. Instead of桂creating a桂store from scratch, a桂retailer can test out a桂new idea 껸꾈삣桂see if桂it桂sticks without having to桂make a桂high-impact commitment.
Business marketing: 뇟桂pop-up shop puts your business right in桂front of桂your customers. This is桂great for桂increasing brand visibility.

According to桂Melissa Gonzalez, author of桂, a桂pop-up shop adds a桂혫human혬 element to桂your brand marketing. Instead of桂a桂conventional store, it桂helps you interact directly with customers, which is桂of桂course a桂necessary ingredient for桂success in桂our intimate, social-first world.

Before you can start you own pop-up shop, however, it桂helps to桂first understand the桂key goals you should have for桂your pop-up store.

Key Goals for桂a桂Pop-up Shop

It桂doesn�셳 matter whether you�셱e a桂new startup or桂an桂established 끓곶껸꾈삣�赳늡넵곶 pop-up shop must meet at桂least one of桂these goals:

Increase brand awareness

Bonobos, the桂popular online-only men�셲 clothing retailer wanted to桂expand its footprint in桂the桂physical world. Instead of桂renting out expensive retail space, Bonobos put up桂a桂pop-up shop in桂its office building manned by桂two salespeople.

Within a桂year, the桂two salespeople brought in桂$250,000桂worth of桂business by桂themselves, mostly from customers who had never heard of桂Bonobos.

This is桂one of桂the桂core goals of桂any桂pop-up shop: to桂expand your brand�셲 reach to桂new customers 껸꾈삣桂engage them on桂a桂personal level.

Test new markets

뇟桂street fashion 껸꾈삣桂surf wear line from Southern California called 혫After Eleven혬 wanted to桂expand into San Francisco, except there was a桂problem: San Francisco is桂noticeably colder than LA.

Instead of桂spending thousands of桂dollars to桂put up桂a桂complete store, After Eleven decided to桂test the桂San Francisco market by桂putting up桂a桂pop-up shop at桂online retailer Storenvy. This helped them gauge demand 껸꾈삣桂alter their retail strategy for桂their new market accordingly.

Engage customers

뇟桂child apparel line called 혫Little Vida혬 often sets up桂pop-up shops in桂malls with lots of桂kid activities like games, music, 껸꾈삣桂face painting. While the桂shop keeps kids busy 껸꾈삣桂happy, the桂brand wins over their parents, who are of桂course happy to桂have some free time on桂their hands to桂finish their shopping in桂peace.

This is桂another key goal of桂any桂pop-up shop: to桂engage customers at桂a桂personal level. By桂offering rewards, games, 껸꾈삣桂other activities, you can often get them to桂be桂a桂part of桂your brand experience, 껸꾈삣桂that�셲 marketing that will leave a桂lasting impression.

Generate revenue

Last, but not the桂least, running a桂pop-up shop is桂a桂credible way to桂generate revenue. This is桂particularly important for桂small startups that need constant cash flow to桂keep the桂lights on.

When done well, a桂pop-up shop can also drive revenue through user sign-ups. ZipCar, a桂car rental company, opened a桂pop-up shop in桂Harrington Galleries, San Francisco. Its only goal was to桂give out $30桂coupons to桂potential customers, who could either use this $30桂as桂a桂driving credit or桂join its membership program, both of桂which directly drove revenue for桂the桂company.

Now that we�셶e got these essential metrics out of桂the桂way, let�셲 take a桂look at桂everything you need to桂start a桂pop-up shop this holiday season.

Things You Need to桂Create a桂Pop-up Shop for桂the桂Holidays

Opening a桂pop-up shop is桂decidedly less work than starting a桂standalone retail store (another major advantage to桂this type of桂lower-impact storefront). That said, there are still a桂number of桂things you need to桂take care of桂before you start a桂store for桂the桂holidays.

뇟桂budget

Pop-up shops are designed to桂be桂cost-effective. Creating 껸꾈삣桂sticking to桂a桂budget will go桂a桂long way in桂ensuring that you don�셳 spend more than you can afford.

Some of桂the桂things you should account for桂in桂your budget are:

Furniture
Merchandising fixtures
Lighting
Inventory
Marketing 껸꾈삣桂promotion
Rent
Utilities

Depending on桂the桂size 껸꾈삣桂features of桂your shop, 껸꾈삣桂the桂duration you set it桂up桂for, you might also have to桂arrange for:

Checkout counter
Window display props
Internet
Insurance
Paint
POS
Credit card fees

Besides this, you�셪l also need to桂budget for桂food 껸꾈삣桂drinks for桂both salespeople 껸꾈삣桂guests.

뇟桂shop location

If桂you are just starting out, a桂store or桂a桂booth within a桂larger shopping center or桂mall that complements your brand is桂the桂best way to桂reach out to桂your target demographics. The foot traffic 껸꾈삣桂credibility of桂such spaces can bring the桂right kind of桂exposure to桂your brand.

뇟桂viable alternative is桂to桂keep an桂eye out for桂vacant commercial property in桂street-level retail markets, then set up桂your shop there.

You can also check out upcoming events in桂your area 껸꾈삣桂choose to桂be桂part of桂galleries 껸꾈삣桂events that match your business area. Minimalistic set-ups 껸꾈삣桂open-concept floors are great for桂high-end fashion lines 껸꾈삣桂jewellery brands to桂show off their elegance.

There are a桂couple of桂online services that help you find pop-up shop space. Some of桂these are:

Republic Spaces

While there are a桂number of桂things you�셪l need to桂factor in桂when deciding on桂a桂location, existing foot traffic 껸꾈삣桂presence of桂other prominent brands are most important.

It�셲 also a桂good idea to桂figure out your target customers�� demographics. At桂the桂very least, you should know their:

You also need to桂target your customers well. It�셲 a桂good idea to桂know their exact demographics, including their:

Age group
Gender
Income level
Education level
Areas where they might be桂living
Type of桂occupation
Relationship status
Ethnicity
Interests &桂hobbies.

This will help you find a桂shop location that matches your target demographics. For example, if桂you�셱e targeting baby boomers, a桂space at桂the桂local mall between Abercrombie &桂Fitch 껸꾈삣桂Forever21桂won�셳 really help you get the桂foot traffic you need.

Interior design 껸꾈삣桂visual merchandising

Remember that your pop-up shop is桂essentially an桂exercise in桂experience marketing.

This is桂why a桂large part of桂your budget should go桂towards your interior design 껸꾈삣桂visual merchandising.

When you are positioning your pop-up shop, you need to桂answer these questions:

What is桂your store? What brand message do桂you want your customers to桂know?
How you are different from your competitors?
Why are you in桂this business 껸꾈삣桂how can you make a桂difference to桂your customer?
Which colors, words, values, 껸꾈삣桂logo you want to桂be桂associated with your company?
What values do桂you want to桂convey to桂the桂customer? Are you fun 껸꾈삣桂youthful? Graceful 껸꾈삣桂mature?

Once you know these two things, you will have better insights into how you want your pop-up shop to桂look; what kind of桂wall, floor, 껸꾈삣桂ceiling treatments you�셪l need to桂implement, the桂lighting 껸꾈삣桂fixtures to桂install, the桂shelves 껸꾈삣桂display props to桂use to桂make the桂customer�셲 experience a桂fulfilling one.

When you�셶e decided these elements, it�셲 time to桂design the桂actual shop. Typically, a桂pop-up shop has a:

Decompressing zone: The first 5-15桂feet of桂space in桂your store. This is桂the桂first impression of桂your shop on桂the桂visitors where they decide whether you are cheap or桂expensive, organized or桂shabby, 껸꾈삣桂so桂on.
The power wall:桂The wall to桂the桂right of桂your store. This is桂the桂wall where you position your best products or桂arrange things that you want to桂highlight.
The pathway:桂Most visitors turn right when they enter a桂store. Hence, this is桂where the桂pathway to桂your entire store should have its entry point. You can employ a桂circular path to桂take your visitors to桂the桂back of桂your aisle 껸꾈삣桂direct them back to桂the桂front door. You can put bright, attention-grabbing displays here 껸꾈삣桂there to桂catch the桂visitors�� eyes 껸꾈삣桂create 혫speed bumps혬桂in areas where you want them to桂spend more time.
Cash wrap zone: It桂is桂usually placed at桂the桂end of桂the桂pathway or桂to桂the left side of桂the桂store. This is桂where customers pay for桂purchases.
Customer�셲 comfort zone:桂To make your visitors linger longer, make sure they are comfortable in桂your store. You may place comfy seats 껸꾈삣桂chairs or桂allow them adequate space to桂stand. Looks can attract, but it桂is桂the桂actual experience of桂your store that will cinch deals for桂you.

뇟桂way to桂collect payments (and bring your online store offline)

The final step in桂the桂pop-up shop experience is桂to桂give customers a桂way to桂buy merchandise. Lugging an桂expensive, cumbersome POS system isn�셳 exactly the桂best idea.

Not only is桂it桂difficult to桂set up桂in桂a桂small, mobile space, but it桂also doesn�셳 tie your pop-up shop to桂your online store. For an桂e-commerce store, it桂is桂crucial that your offline store merge with your online presence. You ideally want customers to桂get a桂preview of桂your offerings in桂person, then head to桂your site to桂buy more. 뇟桂smart way to桂do桂this is桂to桂use 붚죕쳔 POS integrations:

In桂the桂end, remember that while a桂pop-up shop can go桂a桂long way towards building a桂brand, you also need a桂strong push from your marketing. Reach out to桂the桂influencers in桂your niche, brainstorm on桂event programming, chalk out an桂effective media strategy, 껸꾈삣桂use social media to桂make your efforts viral. If桂you execute the桂four steps above 껸꾈삣桂complement them with a桂strong marketing strategy, you�셪l have little trouble finding success.

桂

About The Author

Jesse is the Marketing Manager at 붚죕쳔 and has been in e-commerce and internet marketing since 2006. He has experience with PPC, SEO, conversion optimization and loves to work with entrepreneurs to make their dreams a reality.

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