We have to say, online selling has reached its peak due to the pandemic. However, as the world recovers, people are interested in involving a physical presence in their business since the pandemic brings a surplus of retail space and widespread commercial rent decreases. Thus, they start operating a pop-up store. But what is a pop-up store? How to set it? Let’s see together:
While people are used to shopping online, the truth is that low-budget, short-term, quick-install pop-up shops are set to surge in the coming years. The online store brings much convenience to store owners, however, they may also miss feeling connected to build brand awareness in a physical environment. This post illustrates everything you need to know about pop-up stores.
Now, let’s start the pop-up journey with what it is. A pop-up shop is a great option for you if you are looking for a low-cost and low-commitment way to establish a retail presence for your online store.
A pop-up store, also recognized as a flash retail shop, allows emerging online brands to sell in a physical shop. The best thing about it is to let customers see, touch, and experience your products, which will reduce some returns and refunds for your online store. Moreover, Pop-up stores can look like ordinary stores, but many brands use them to create a unique, immersive physical shopping environment to boost sales.
I have to say a pop-up store is a perfect idea to do dropshipping. Why? Dropshipping allows you to sell others’ products. It indeed reduces a lot of workloads for you. However, you will not be able to avoid returns and refunds. Actually, there is a higher opportunity to receive complaints from customers. With a pop-up store, your customers can experience your products upfront, the risks of returning will be lower.
Cost is a key factor for people planning to open a store. Thus, you may wonder how much a pop-up will cost. The cost might be a little lower compared to starting a regular retail store. Moreover, the cost of opening a pop-up store depends on the size, duration, and location of your storefront. Although there is no upper limit on the amount of money you can spend, you can set up a short-term pop-up window for $2,000.
It is worth noting that if you set up a pop-up shopping center like Boxpark Shoreditch, the startup cost of your pop-up shopping center will be greatly low. In other places, commercial rents would push up costs. For example, tattoo shop Inkbox had to pay $8,000 in rent to ensure a pop-up space in downtown Toronto. Plus, commercial spaces are likely to cost more to rent in the future as the world recovers from the pandemic.
The benefits of a pop-up retail shop involve three parties, the customers, retailers, and landlords. Pop-up stores are usually located in places with high passenger flow. Thus, it is an effective way to increase sales. Now, let’s see how it benefits customers, retailers, and landlords.
- A pop-up shop is a more diverse and fluctuating retail store or shopping mall. It provides customers wider variety and more excitement.
- It gives customers more opportunities to explore new brands and products
- Pop-up stores may offer more discounts, giveaways, and event-specific concessions compared to traditional retail establishments
2. Brands or Retailers
- A pop-up store helps you to reach potential customers easily. A new location with high original traffic enables a brand to get in front of a new audience.
- "Pop-up retail" can be used to deliver a pleasant short-term experience or to strengthen the brands through active customer engagement. Brands can position themselves as cultural influencers, expand their influence and build brand loyalty. Although e-commerce is very powerful, nothing can compare to face-to-face physical interaction.
- A pop-up store event offers the perfect way to help you gather insight to better understand your target customers by using promotions, events, or competitions. The information can be crucial for guiding future activities right across a business.
- There are still a huge number of transactions happening in physical stores. Opening a two-week temporary store in a high-traffic area can provide a sense of urgency, drive sales, or help fashion brands move inventory before their shelf life ends.
- A pop-up event is a great option to launch a new product and also easy for potential customers to reach your new products
- Test physical retail – an online DNBV store looking to take the next step can test whether it works with pop-up retail.
- Brands that want to expand their footprint can test new communities or countries before making greater financial commitments. Thus, a pop-up shop can reduce the losses of money for you.
- A temporary pop-up shop can fill vacant stores, otherwise, these stores will be vacant waiting for long-term tenants.
- It also can bring an exciting and innovative attraction to the street and neighborhood.
- The temporary storefront creates popularity for the property and will help attract more new tenants
- It helps to test out a brand that is looking for a longer-term lease in the future or more pop-ups.
It’s vital to find the right space for your pop-up store. Thus, after we have known what a pop-up store is and its cost and benefits, let’s cover how to find a perfect location for your pop-up shop.
However, before starting searching, think about what type of space aligns with your brand’s personality and will position you perfectly in front of your target audience first. There are some common options you can consider:
- Vacant storefront: The vacant storefront is a convenient retail space, and you can customize it to suit your brand. If you are not sure where to find available space, try contacting a local real estate agent.
- Shopping centers/malls: Most shopping malls have stalls, kiosks, and even small shops that you can rent temporarily. Although this space may be expensive, it allows you to reach an existing group of ordinary shoppers and original traffic.
- Gallery/event space. Event and gallery spaces can easily showcase your brand in a creative and eye-catching form. If you plan to turn the pop-up store into an unforgettable occasion, these venues are ideal places for events.
If you don't want to be restricted to a single location, it’s brilliant to rent a trailer or bus for a mobile pop-up store. You can create a sales environment in any location you visit and maximize your customer base with the mobile stores. For the location, you can set up your shop at a public park, or any place you think people would be visiting.
The next thing you need to know is to find venues for your pop-up shop. It might be much easier when you have the pertinent details of your ideal space in mind. However, you may confront some problems to find a space that's both suitable and affordable. Thus, you can write down a list of your must-haves and nice-to-haves. With the list, you can accurately consider each location’s potential.
When you don’t have specific point, you can visit websites like Pop Up Shops and Storefront to find local listings for potential event space. Many databases enable you to filter your searches by store size and other factors, then it helps you quickly refine your options.
Alternatively, you can contact location owners. It’s not bad to reach out to the owner directly if you're searching for space inside an existing store or establishment. You need to negotiate with the space owner on things including the size of your shop and operating hours you’ll spend on the shop floor.
Lastly, you can speak to landlords directly. If you notice the listing of any retail space in your area or see the sign on the shop window, you can directly contact the real estate agent or landlord for prices and other information.
Pop-up stores would bring amazing results for businesses that are looking to create ways to reconnect with their customers in 2021 and the future. These stores give you the opportunity to have an engaging physical presence. With a pop-up store, you can save a lot of money since it allows you to start without investing thousands of dollars to rent and design a retail space.
Plus, by adding mobile elements, you will be able to introduce your brand to different events and audiences. Thus, pop-up shops create a unique and powerful way for you to explore your options and find the perfect selling environment for your business. While doing drosphipping, except for exploring powerful dropshipping tools, such as DSers, you can also start a pop-up store to grow your business.