pop up retail phenomenon e book

Table of Contents

Introduction ............................................................... 2

The ‘Pop Up’ Phenomenon ......................................... 6

Why Pop-‐up Works? ................................................... 8

Importance of Maintaining a Strong Brand

in the Pop-‐up Space ................................................... 12

Steps in Creating a Successful Pop-‐up Retail Presence14

Looking to the Future ................................................ 21

References ................................................................ 23

The Pop Up Retail Phenomenon :

1


2

Introduction

In these trying times, everyone needs cost-effective measures to get by—more so in the business end of things. Gone are the days when business owners spend endless amounts of money to promote their products. This is the age of social networking; where people are always on the go and their attention spans are fleeting. The new rage today is Pop-up Retail. It’s the great equalizer. It’s where a small business owner can compete with a more established brand at a given time and at a given set of circumstances

So what is it exactly? Well, in lay man’s term, it’s a temporary retail store that is opened up at a certain strategically-targeted location for a specific occasion, intended for niche customers. Ever since its inception, it has taken many names including ‘Pop-up Shops’ and ‘Flash Retail’ among others.

But for whatever they’re worth, the strategy seems to be similar. All of them have employed the guerilla-type approach in marketing because one, it’s cost-effective since many of the equipment utilized in advertising including props, posters etc. can be re used in other events. And two, it’s


3

effective as it targets specific consumers who are after one thing: seasonal high-quality products not usually found in conventional retail stores.

In the forefront of this phenomenon is our company. For over a decade, we’ve helped business owners with a range of services including Brand Strategy, Retail Design and Shop Fit Outs. We’ve also organized Special Themed Events and Exhibition over the years, building each brand from the ground up and creating the necessary buzz for our clients as we grew.

It’s important to note that such events and activities are directly related to Pop-up as they serve as elaborate platforms where which products and merchandise can be promoted effectively. With our extensive experience in mind, we are launching a new service which is targeted on the Pop-up Shop/Retail Environment—a service that is in tuned with the sensibilities of modern day consumers.

What sets our company apart from others is that we collaborate with our clients and consider their inputs before we employ our strategy. We’ve been in the marketing business long enough to know that connecting emotively with a client is vital to forming long term relationships and that customer


4

experience is the key to a sustainable retail success.

Getting ahead of the competition in a cutthroat industry and in this unfavorable economic climate requires unconventional approach and cost-effective strategies. Pop-up Retail is the future of marketing and we, at ARC4D yearns to help stagnated businesses get a great head start in the transitory yet lucrative world of Pop-up Retail marketing.


5


6

The ‘Pop Up’ Phenomenon

The phenomenon is not actually new. It started more than 10 years ago in 1999. It was spearheaded by Vacant (a company in Los Angeles California), after its organizers were fascinated with how customers would line up in droves over limited edition merchandise at a chance encounter in Tokyo, during their business trip. They noticed that as soon as the merchandise was sold out, the shop would close indefinitely and will only reopen once the owner received more merchandise. The practice created a lot of buzz among niche customers because it often left them wanting more.

Vacant soon employed the strategy with some modifications to fit into the American market and just like what they say, the rest is history. The strategy worked so well that in February of 2003; Vacant opened another shop (sponsored by Dr. Martens) in New York City.


7

Many companies followed suit with Song Airlines opening a Pop-up shop by the end of that year and Comme des Garcons presenting its own take of Pop-up Retail the following year using the ‘Guerilla Shop’ tagline. It become popular in the US and Europe in its infancy and has soon garnered world attention when networking sites became prevalent and when the economy suffered its worst blow since the great depression.

Fast forward to 2012, the phenomenon has reached fever pitch and companies big and small—even in real estate, car industry, films, music, fashion etc. -- have applied the concept of Pop-up Retail to their marketing campaign. Some of the huge companies that have used guerilla-type strategy are Louis Vuitton, Gucci, Target, Macys and Beats among others.


8

Why Pop-‐up Works?

In marketing, customer experience is the name of the game. The company that forms a lasting impression among its core demographic usually wins. As the world becomes more and more wired by the day; and as social networking has integrated itself firmly in our society, snatching consumers’ undivided attention has become that much of a challenge.

What sets Pop-up Retail apart from conventional marketing schemes is that it’s more intimate and interactive. Every temporary retail outlet is custom made specifically for its target customers--creating a stimulating environment among like-minded individuals.

Not only that, Pop-up Retail shops generate a sense of urgency and immediacy that conventional marketing campaigns often fail to do as they are spontaneous and just seemingly appear out of nowhere. One day they’re there and the next day they’re not. This guerilla-type strategy often leaves the consumers craving for more.


9


10

And since everything is wired now, would-be buyers would often check online for upcoming events or appearances; generating a buzz before business owners even begin to choose the location and theme for their next Pop-up Retail shop.

The transitory aspect of Pop-up Retail has also made it a cost-effective marketing campaign. Since its venue is temporary, owners need not pay expensive long-term rents and the equipment they utilized in one location can be reused over to the next one. This strategy is especially effective among business owners who are specializing in seasonal products such as fireworks, Halloween costumes, Christmas decorations, Valentine gifts etc.

Marketing is the bloodline of business and when it becomes too costly, the odds of getting the return of investment (ROI) to sway in your favor becomes harder to achieve. What the Pop-up Retail strategy does is minimize the cost of marketing while maximizing its impact among key consumers. In this day and age, this method is the most practical as information travels as fast as the touch of a button and modern-day consumers are preoccupied with a lot of things—not to mention everyone is strapped for cash including business owners themselves.


11


12

Importance of Maintaining a Strong Brand in the Pop-‐up Space

A brand is an invaluable asset that cannot be taken or stolen away from you. It is after all your reputation. A name attached to your product or services that are imprinted in the consumers’ minds whenever it pops up. When you’ve established a strong and reputable brand, you set yourself apart from the competition. In this fast-paced digital world, anybody can steal an idea, a concept or a strategy. But your brand remains intact regardless of the countless knock-offs that emerge in the market every now and then.

Maintaining a strong brand in the Pop-up space is just as important today as it was a few years ago. Just because consumers are more preoccupied with a lot of things now, doesn’t mean that they don’t remember a crappy brand when they see one. Believe me; everybody remembers a lousy brand or service. It’s just human nature. And just because


13

Pop-up Retail is temporary, doesn’t mean that once you screwed up in one location, you can always make up for it in the next one. It doesn’t work that way. Remember that information now travels as fast as a flick of the finger. One slip up and you’re doomed.

A good brand begins with a good product or service. Once you’ve gained customers’ attention and their trust through your product, they’re hooked for life. Loyalty is very important in any business because it breeds referrals. Therefore, every Pop-up Retail shop should be designed in a way that accentuates your product’s value instead of drowning its potential with meaningless gimmickry.

We, at ARC4D ensure that every Pop-up Retail shop contrived highlights the product’s efficacy—of what makes it stand out from the crowd. With over ten years of successfully helping companies custom fit their brand strategies, we’re taking our talents to the South Beach of advertising—the guerilla inspired Pop-up Retail marketing strategy. It’s the best of both worlds. You have the product; we have the expertise and resources to build your brand from the ground up.


14

Steps in Creating a Successful Pop-‐up Retail Presence

It’s no secret that the retail sector and the industry as a whole is saturated so establishing your presence in the market these days can be a very taxing endeavor. Add the stagnant economy in the mix and your chances are even bleaker. The only consolation is that there are still pockets of opportunity somewhere; most of which materialize in the Pop-up Retail industry. The key to success these days seems to be creating a successful Pop-up Retail presence.

There are a myriad of ways of arranging/conceptualizing a Pop-up Retail strategy but not all generate desirable results. A failed approach wouldn’t be much of a problem if you have plenty of cash to your disposal. But you wouldn’t be looking for unconventional and cost-effective means of marketing if that were the case, right? This isn’t the time for trial and error. The situation is dire and until you come up with a workable strategy, you’ll end up just like the rest of those hapless business owners who failed to adapt


15

to the rapid changes in the industry in recent years: In stagnation or worse, bankruptcy.

Below are proven and tested steps in creating a successful Pop-up Retail presence:

• Choose a reputable Event Planner.

Creating a buzz around a Pop-up Retail space needs some sort of advertising. This often means holding themed events to attract customers’ attention from the get go. It’s the most effective way to launch your Pop-up Retail shop. Doing so would require careful planning around your brand and recognizing your unique needs and aligning them to a marketing event. It’s not as easy as it sounds and unless you’ve been doing it for years, you’ll find out that the learning curve of organizing such a spontaneous event can be steep. Failure isn’t an option in the fleeting world of Pop-up Retail marketing. What you need is an Event Company that has a great track record. We, at ARC4D have been in the business for over a decade and we’ve built our reputation one satisfied client at a time. We always make sure that we collaborate with our clients before we organize an event and take care of all their advertising needs including A/V system, posters,


16

entertainment, food and beverage etc. Because a successful Pop-up Retail marketing launch depends upon a well-organized themed event, you would want an expert eye to oversee the whole process.

• Select a location with high traffic.

Just like any other money making endeavor, location is very important. You wouldn’t want to set up your Pop-up Shop in a deserted area, would you? All of the time and money invested in your strategy will be for naught if no one around would check it out. Choose the location carefully as it’s one of the factors that determines the success or failure of a business venture. A good location would be an empty space in a popular mall or outside of it. Since the economy is still in limbo, a lot of landlords are left with empty store spaces. They compensate for it by allowing short-term leases at lower rents. This predicament works in your favor because one, malls are frequented by a lot of shoppers and two, getting a shorter lease at a favorable price of rent means extra savings for you. So, choose the location carefully. A little research goes a long way. Before you set your Pop-up strategy in motion, do the necessary scouting first.


17

• Establish an online presence.

Everything is wired now. People are relying heavily on the internet for information, recreation and shopping among others. You wanna be heard or create a successful Pop-up Retail presence? Go online! Put up a website or create a social networking account such as Facebook, twitter, Flickr etc. The internet is fast becoming the most effective and low cost publicity tool so it’s just practical to use it in your marketing strategy. Anyone can check real-time updates from you via social networking-- creating a sense of belongingness where consumers can connect with you on a personal level. This kind of interaction creates an experience and a bond that conventional marketing strategies cannot replicate. Customer loyalty is an integral aspect of business sustainability and with the help of the internet; you’ll be able to attain that with a touch of a button. So yeah, click away!

• Always choose high-quality merchandise.

As what I’ve said earlier, your brand is highly dependent on the quality of your products. You can spend ridiculous amounts of money in marketing but at the end of the day, you’re being judged by the condition of your merchandise or


18

service. Always ensure that your store doesn’t keep substandard products. You might impress some customers with your presentation but once they found out that you’re selling knock-offs, you’ll lose them. And that slipup can cost you dearly as negative word of mouth spreads like wildfire especially this day and age. Pick your merchandise carefully and it will take care of your business in the long run.

• Be unique.

Set yourself apart from the competition. Be imaginative. Make the consumers feel that you’re different from the rest. It’s only then that you’ll snare their attention because everyone wants fresh ideas. Think outside of the box. Always try to come up with exciting and innovative ways of presenting your Pop-up Shop to the public. While you’re at it, make it interactive as well because most customers want to be as actively involved in the shopping experience as possible. Now, if you ever find a great idea that would be useful for your shop, tweak it a little bit and modify it to your liking. It’s not a crime to personalize a good concept; so long as you don’t copy it through and through. If it’s not broken, why fix it, right? Instead, make


19

some modifications to make it better and a little bit different from the original.

• Know your key customers.

The Pop-up Retail strategy relies on niche customers to flourish therefore, it’s highly important that you know what makes your key demographic tick. What their expectations are, their preferences as far as product quality and shopping experience are concerned, their socioeconomic status and the season/occasion when they would likely spend their hard-earned money. Once you’ve determined these factors, build your strategy around them. Just keep an open mind and make sure you incorporate your core customers’ general sensibilities in your approach. Creating a Pop-up retail presence is a two way street—a collaboration between business owners and their niche consumers. Once they meet halfway, success is almost guaranteed. Almost, because you still have to set your strategy in motion.

• Be consistent.

You’re only as good as your last product or service. Once you screw up, it’s almost


20

irreversible. That’s why, it’s highly important to keep your operation as flawless as possible. Of course, there would be unforeseeable glitches along the way. Make the necessary adjustments right away before they begin to cause noticeable problems. Listen to your consumers and their feedbacks because it’s the only way that you’ll know whether you did a great job or not. Creating a successful Pop-up presence is a learning process; you get better with time. So long as you get involved in the operation every step of the way and you pay attention to details, you’d always find the right answers eventually.


21

Looking to the Future

The Pop-up Retail phenomenon is here to stay. It is, in no way, a flash in the pan. It’s a low-cost high-reward marketing strategy—a formula that’s viable in any business regardless of size. Small retailers use it to drive traffic to their shops without having to worry about long-term leases and longstanding monetary loss. On the other hand, big-name brands use it to test the market on upcoming products or bolster demands for their permanent locations.

Landlords love the concept too. As the economy continues to stumble, the vacancy rate for malls and similar establishments also continues to plummet. Mall owners would rather allow retailers to avail of short-term leases because an empty establishment is always uninviting to customers. Having several Pop-up Retail shops in malls not only creates additional cash flow for landlords, it also generates activity in their own shopping centers. It’s a win-win situation for all parties involved.

The Pop-up Retail strategy relies in the element of surprise to attract would-be buyers. This seems to work perfectly within the psyche of modern-day


22

shoppers. Several spontaneous bursts of exposition for the senses and you got them, hook, line and sinker. Well, provided that your product is excellent too.

The best indication that Pop-up Retail has arrived in the industry is that more and more established brands are employing the strategy too. The future for Pop-up is very promising. So long as there are empty spaces in shopping centers, so long as the economy is stagnated and so long as social media becomes more and more prevalent among contemporary consumers; the Pop-up Retail marketing strategy will always be here to stay.


23

References

http://www.commercialintegrator.com/article/pop_up_retails_redefines_shopping

http://trendwatching.com/trends/POPUP_RETAIL.htm

http://www.cnbc.com/id/39058593/Toys_R_Us_Placing_Bigger_Bet_on_Pop_Up_Stores

http://www.retailingtoday.com/article/future-pop-stores

http://blog.wearepopup.com/thefutureofpopups-part1/

http://blog.wearepopup.com/thefutureofpopups-part1/

http://en.wikipedia.org/wiki/Flash_retailing

http://artsandcrafts.about.com/od/openingastorefront/a/Pop-Up-Retail-Store-Layout-And-Design.htm

http://artsandcrafts.about.com/od/openingastorefront/a/Pop-Up-Retail-Store-Management.htm

pop up retail phenomenon e book

Documents

popup retail

retail phenomenon

retail design

flash retail

retail presence14

sustainable retail success

conventional retail

temporary retail store