Pop-up shops are a great way to test a new business idea, explore expanding to a new location, or introduce your product to new customers. While it takes significantly less effort to launch a pop-up than it does to open a brick-and-mortar location, pop-ups still take a fair amount of planning. This quick guide can help you lay the groundwork for your next pop-up event and ensure it's a success.
What is a pop-up shop?
If you aren't familiar with the concept, pop-up shops are temporary retail spaces that appear for a limited time. Pop-up shops offer unique, often exclusive, customer experiences.
"By occupying spaces for a short duration, businesses can generate excitement and buzz, tapping into the psychology of scarcity to drive consumer interest," reported Mailchimp.
Merchants who have created pop-up experiences largely consider them beneficial. Data from CapitalOne Research shows that 80% of retailers who opened a pop-up shop considered it a success; moreover, nearly 60% plan to open another pop-up.
Types of pop-up shops
Pop-ups can serve a variety of purposes, and there are different types depending on your business goals. Some merchants organize their pop-ups thematically, creating a holiday pop-up, a seasonal experience, or one tied to a promotional campaign. Others use location-based formats, hosting a pop-up in an event space, a kiosk within a store, or even on social media.
[Read more: Pop-Up Store Experiences That Blend Physical, Digital Worlds Woo Pandemic-Changed Shoppers]
What do you need for a successful pop-up shop?
Use this high-level pop-up checklist to ensure you have the basic ingredients needed to open a pop-up location.
Business goals
The first step in opening a pop-up is to define what exactly you hope to achieve with one.
"Clearly defined objectives, whether focused on sales targets, brand awareness, or customer engagement, guide every aspect of the pop-up store, from location selection to marketing strategies," wrote Mailchimp.
Pop-up shops can meet a number of different needs, such as:
- Testing a new product or a product update.
- Meeting customers in person and collecting feedback.
- Testing marketing and branding tactics.
- Nurturing relationships with sales leads.
- Conducting product demos and education
"Without the hassle that comes with a traditional store, you can showcase your product, build brand awareness, and extend a human connection to your consumers with your physical presence," Ray Ko, the Senior eCommerce Manager of ShopPopDisplays, told Lightspeed.
Location
First and foremost, you need a location where you can host your pop-up. Your location could be physical or digital; physical pop-ups can be hosted in event spaces, festivals, farmers markets, mall kiosks, or even in a trailer or renovated shipping container. You could also partner with another business and host an event in their retail space.
Digital, or virtual, pop-ups work too. These experiences offer interactive shopping, usually with augmented reality or virtual reality, where customers can browse products in a digital storefront. This option takes a little more technical work to set up, but e-commerce platforms like Shopify make it possible.
Consider the foot traffic, rental costs, and proximity to your target customer as you vet different locations or formats for your pop-up.
Without the hassle that comes with a traditional store, you can showcase your product, build brand awareness, and extend a human connection to your consumers with your physical presence.Ray Ko, Senior eCommerce Manager of ShopPopDisplay
Permits
Physical pop-up shops might need a temporary business license, a vendor permit, a zoning permit, and/or other licenses in order to operate. Budget for these fees, as well as any insurance you may want to protect your temporary location.
Marketing
Marketing plays an outsized role in the success of a pop-up shop. Because your space is temporary, it's crucial to bring people in as early as possible to build buzz and boost sales.
"There's no such thing as too much marketing for a pop-up shop," wrote Square. "Since you'll only be there for a short period of time, you want as many customers to know about it as possible. And if your pop-up shop has a theme or is timely or seasonal, you can use that to your advantage in your marketing efforts."
Equipment
There usually isn’t as much equipment to get as if you were opening a brick-and-mortar location, but you still need a few basics. Shelving or racks, dressing room curtains, tables and chairs, and a mobile point of sale might be on your procurement checklist. See if there are display components you can rent or borrow from a partner or existing location to keep costs down.
[Read more: Nothing Temporary Here: Pop-up Retail Is a Marketing Mainstay]
How to find and rent a short-term retail space
Finding the right retail space for your pop-up depends largely on the type of space you need: for instance, a kiosk within a store is a different search than finding a dedicated event space. Networking with other business owners in your area is a great starting point. You may be able to sublease from an existing retailer, put up a display in their shop, or partner together to share a lease. Community boards, business improvement districts, and other local groups can also help.
Otherwise, you can find short-term retail spaces for pop-up shops through specialized marketplaces like Storefront, Appear Here, and Popupshops. These sites help you find shorter-term leases and smaller spaces.
It’s also worth talking to local commercial real estate agents. They often know about vacant storefronts that offer flexible or short-term leases. Explore social media groups, retailer message boards, or sites like Craigslist to locate unlisted opportunities.
Marketing strategies to promote your pop-up event
When it comes to short-term events like pop-ups, all marketing is good marketing. Create a marketing plan that follows three stages: pre-event, during, and post-event.
Building buzz is critical to a successful pop-up. Your pre-event marketing strategy should focus on building excitement and generating momentum before the space opens.
“Before your pop-up, raise awareness through your social media, email list, website, and other customer touch points,” wrote the Tory Burch Foundation. “Also, don’t forget the power of local advertising, something we tend to forget in our digital world. Think of directories, magazines, and flyers.”
During the event, make sure you have plenty of signage as well as printed marketing materials that customers can take with them. “Business cards, QR codes that direct to your website, or other promotional materials that you hand out to customers can help ensure they know how to find you again,” wrote Square.
The event is also a good opportunity to build your email list. Encourage visitors to give you their email addresses in exchange for exclusive discounts. Offers, free samples, and other incentives can help build your social media following, launch a loyalty program, or bring in referrals.
Finally, revisit your business goals after the pop-up event to determine your next marketing move. If your goal was to test a new product, reengage prospects from the event with a feedback survey or exclusive focus group. Share footage from the pop-up and tag (with permission) customers who visited. Repurpose content from a product demo into social media content to reach a wider audience.
Pop-up shop budget: What to expect
The budget for a pop-up shop can range widely. Several factors impact how much you’ll spend: location, size of the space, duration of the event, inventory, etc. Data from Storefront estimates that high-end, luxury brands budget between $10,000 and $50,000 per month for their activations. These budgets include premium interior design fixtures, high-profile marketing campaigns, and exclusive product launches.
Small businesses, though, can expect to pay closer to $5,000 to $20,000 per month, which covers a short-term lease, staff wages, decor, and a modest marketing budget.
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