Temporary worlds of experience: The marketing potential of pop-up stores vs. showroom concept
While the e-commerce sector has been booming for years, traditional retail has been pushed further and further out of the limelight. However, many sectors are now taking advantage of the lucrative symbiosis of online and offline retail, with pop-up stores playing a key role. But what is behind the concept and what advantages does it offer?
Contents:
- What is a pop-up store?
- Where does the concept of pop-up sales come from?
- What are the aims of a pop-up store?
- What are the advantages of renting a pop-up store?
- Win-win situation for online and offline retail
- For which sectors is a pop-up store particularly suitable?
- The showroom as an alternative to the pop-up store
- Advantages and disadvantages of a showroom compared to a pop-up store
- The concept of Showme Stores
- Showme stores vs. pop-up stores
What is a pop-up store?
Pop-up stores were named after the English phrase “to pop up”. Translated, this means “to appear suddenly”.
This phenomenon involves temporary retail spaces that are open for a limited period of time. Temporarily vacant sales and storage spaces are often used for this purpose. They are rented for a manageable and comparatively short period of time.
The purpose of these temporary spaces is to present and market brands and products in a multi-sensory way in a temporary presentation area.
Pop-up stores expand a company’s existing sales channels for a limited period of time, thereby creating additional customer contact points. This is particularly interesting for online-only retailers. Otherwise, ROPO (Research Online Purchase Offline) often results in a loss of sales. Around 64% of Germans research online but buy from their local retailer.
While pop-up stores were originally only used to sell products, there are now also pop-up nightclubs, bars, cafés and restaurants.
Where does the concept of pop-up sales come from?
The concept of pop-up stores emerged in the 1990s in major cities such as Los Angeles, London and Tokyo. One of the first well-known phenomena was the “Comme des Garçons Guerilla Store” campaign in Berlin in 2004, which involved opening temporary stores in various cities that would only exist for one year.
Originally, these temporary stores were used to sell surplus or special collections, but the concept has evolved and is now used by a variety of businesses for different purposes.
The idea behind the pop-up stores is to create surprise and exclusivity. This is because the stores are only available for a limited time at a specific location. This aspect of transience and uniqueness can make consumers more willing to visit the store and make a purchase.
What are the aims of a pop-up store?
The individual goals of each pop-up store vary. However, there are various motives that can form the basis of the concept. These include
- Increase brand awareness
- Introducing new products
- Receive direct customer feedback
- Create exclusivity
- Testing locations
- Sale of surplus goods
- Direct sales to customers
- Creating a unique customer experience
- Marketing and PR
Whether these goals can actually be realized with a pop-up store depends on the actual implementation.
What are the advantages of renting a pop-up store?
Companies considering opening a pop-up store can expect numerous benefits:
- New and innovative product presentation
- Stronger customer loyalty through personal contact
- Acquiring new customers through an on-site appearance
- Flexibility of the design and location of the pop-up stores
- Comparatively low rental costs
- Additional insights into the market
Positive effects can be generated for the operator with comparatively few resources. This is why more and more companies are considering opening a pop-up store.
Win-win situation for online and offline retail
While bricks-and-mortar and online-only retailers were seen as competitors in recent years, they now often work together as partners. This is where the term Retail as a Service (RaaS) comes into play. This refers to a business model in which retail services are provided as ready-made solutions. Pop-up stores and showrooms play a role in this context. Local retailers offer the flexible and temporary use of certain premises. At the same time, access to technology and infrastructure is often provided. This serves to create a unique customer experience, which in turn is a central aspect of the pop-up store concept. On the other hand, long-term rental contracts are not used. This is why no large capital investments are necessary.
Thanks to the additional income, bricks-and-mortar retailers can somewhat flatten their losses due to internet competition. Online retailers, on the other hand, can present their products in real life and thus generate more sales.
For which sectors is a pop-up store particularly suitable?
Pop-up stores are suitable for a variety of business areas, such as:
- Fashion: Many fashion labels and designers use pop-up stores to present new collections, increase brand awareness or draw attention to special events or collaborations.
- Art: Pop-up galleries or exhibitions are a great way for artists to showcase their work and create a direct sales channel at the same time.
- Food and drink: From temporary restaurants and specialty cafés to tasting stands for new products, pop-up stores are very popular in this sector.
- Technology and electronics: Tech companies can use pop-up stores to introduce new products, offer customers the opportunity to try out goods and gain customer experience in a controlled environment.
- Beauty: Brands in this sector often use pop-up stores to launch new items, give out free samples and give customers the chance to try products before they buy.
- Book trade: Publishers and bookshops appreciate pop-up concepts to present books, organize author readings or book signing sessions.
The showroom as an alternative to the pop-up store
In addition to the pop-up store, the showroom concept also offers an alternative for companies that want to present their products in a unique way. Showrooms are permanent exhibition spaces in which companies present their products. Customers can try out the goods and services before buying them. This model is particularly suitable for high-quality products that require a detailed presentation.
Advantages and disadvantages of a showroom compared to a pop-up store
When comparing pop-up stores and showrooms, a number of advantages for the second option stand out:
- Showrooms or exhibition space in showrooms can also be rented for longer periods, depending on the concept and conditions of the provider, and can also offer a continuous presence.
- If other exhibitors are also represented in the showroom, customers who want to see a particular exhibitor will also come into contact with other exhibitors. This increases awareness of the individual brands.
- Customers receive an in-depth experience of the brand.
However, a showroom also entails higher costs, particularly for rent and maintenance. It also lacks the element of urgency that characterizes pop-up stores and often leads to spontaneous purchases.
The concept of Showme Stores
Showme stores offer companies an effective alternative to pop-up stores by providing high-quality locations in regions with high purchasing power and good transport links. They improve offline and online visibility and ensure an attractive customer experience through expert advice and an inviting interior.
The staggered presentation areas start from 20 m² and can be used flexibly. The integration of online retail is unique: customers are directed to the company’s online store on site, which simplifies the purchasing process and increases efficiency.
The contract term is 12 months with a subsequent notice period of one month. The costs are calculated on the basis of floor space. In this way, Showme Stores offers a long-term presence and retention option compared to short-term pop-up stores.
Showme stores vs. pop-up stores
Compared to pop-up stores, which are often opened at short notice and with a specific marketing objective, Showme stores offer a more stable and longer-term presence. While pop-up stores provide a high degree of flexibility and experimentation, the showme store concept enables a continuous and professional presence.
Another difference lies in customer loyalty. Pop-up stores are often designed for spontaneous and short customer interactions. In comparison, show-me stores also offer the opportunity to build a deeper relationship with the customer by providing a pleasant place to stay and personal advice.
Both concepts have their strengths and can be used appropriately depending on the business objective and industry. Pop-up stores may be ideal for start-ups, small businesses or seasonal offers, while showme stores offer an excellent solution for established companies looking for a long-term physical presence but also give start-ups the opportunity to draw attention to themselves.
