Posts Tagged ‘pop up retail’

Going out of business in just a few days; sounds like every entrepreneur’s horror story, right?  Not really, a few days in the market serve just as well some business owners would say.  Pop-up establishments are a great way of making inroads in to an already crowded retail space.  Especially for businesses that deal in customized products and services. 

The Pop-up model is finding favor with entrepreneurs for a plethora of reasons.  If you are starting out on your entrepreneurial journey then pop-up retail, an initiative which involves setting up short-term sales spaces is a great way to grab your slice of the retail pie.  Here’s how….

Testing the Waters

The test marketing stage is a crucial one for all new ventures or businesses that are launching a new product/service.  Testing the waters with pop-up retail gives business owners the flexibility of working by simply hiring space for a few hours/days.  This means you cut down on the cost of real estate, rent, fixed and working capital expenditure.

Here are some ways in which people have tested waters with pop-up establishments:

• Hiring table space at exhibitions and even flea markets (these are gaining popularity even in urban areas with malls trying to give local businesses a platform to display their wares)
• Setting up a table at a public gathering/event
• Exhibiting at fairs or village markets
• Using your own premises or a friend’s home/lawn/terrace space. 

The idea is to showcase your products in a bid to gauge customer response just like the Bandit Queen, an uber-luxe home décor store created a pop-up during Diwali last year to highlight their unique “glow –in- the -dark” bed linen collection.  Their pop-up even had an interesting name “Verandah in the City”. 

Innovation

Man was, is and always will be fascinated by novelty.  People look forward to something new and better still it offers business owners with the opportunity to do things in their own way.  A pop-up is clever, not boring, run of the mill and in that lies the allure.

The Umami Supper Club, possibly Mumbai’s first pop-up vegetarian supper club is a place where strangers drop in like guests on Friday evenings.  Operating out of a friend’s terrace residence, Rishaal Lodhia and Tatania Joignant, founders of Umami have no plans to make this a full-fledged commercial venture.  Since inception they’ve branched out in to in-house catering and will even cook a meal in your kitchen.

Pop-ups in the consumer’s home are an extension of brands with wheels and have all the advantages that a mobile brand offers…convenience, comfort and above everything else the ability to make people sit up and take notice. 

Grabbing Attention

The interesting aspect of pop-ups is something that lies in psychology, human appreciation increases for an experience that’s not everlasting and that is the USP (Unique Selling Proposition) of a temporary retail space.  It’s a great way to pique consumer curiosity and there are establishments that keep the offering a surprise even till the last minute.

The London based Savoy Truffle Supper Club is a by-invite-only soiree for friends where hosts Alison and Guv Tyler play on the “impromptu” element.  Each night is unique, the menu and even the venue can change at the last minute but what doesn’t change is the stylish setting and the seasonal food. 

The pop-up format means business owners can alter what they want, when they want and the way they want.  Using this element of pop-up retail itself is an attention grabbing tactic.  Customers know a pop-up won’t be around forever and that is precisely why they will want to get their hands on stuff while it lasts. 

Plain Economics

Using pop-up retail is all about the economics of running an establishment. A pop-up that lasts a few hours/days/months saves time, money, resources like physical office space, furniture, fixtures, equipment and salary.  Opposed to a full-fledged office/store that requires considerable investment in fixed assets and attracts an amount of maintenance and working capital requirements, pop-ups are an economical way to set up shop.

A pop-up also makes complete economic sense when you want to engage customer interest, arouse curiosity and egg people on to experiment with your product until you set up a full-fledged store.  The cash counters are ringing, people are interested and you have your finger on the pulse of the market while all this happens.

Coming back to the instance of the Bandit Queen using the pop-up format called the Verandah in the City; the pop-up space served two purposes: showcasing wares and as an arrangement for tiding over customers till their new store opened in Lalbaug, Mumbai.

Creating Exclusivity

Pop-up retail is an endeavor that can be used by entrepreneurs who want to add an element of exclusivity and intrigue to their offerings.  In doing so they work towards carving a niche for themselves, create an impression that their offerings are not for all and sundry but also add mystique to the entire experience.

The Umami Supper Club is working on exactly these lines which have been successfully used by the Ghetto Gourmet and Red Box Bistro for a long time now.  Their “by invitation only” approach helps them to restrict entry to food connoisseurs who identify with their philosophy.  Food takes centre stage and the experience of sampling it at one table with a bunch of strangers is altogether something else…that is the USP.

Sneak Previews

Pop-ups are an excellent way of giving customers a sneak preview of things to come.  A teaser campaign that lets you “touch and feel” the products even before they hit the market.  Singapore airlines created a virtual in-flight experience for shoppers in Kolkata, Chennai and Bangalore in September 2010 when four hundred square feet of space held mock seats, in-flight amenities and cutlery to launch its enhanced economy and business class seats.

Ditto with the Bangalore Metro Rail Corporation which set up a real metro coach and engine at a busy junction to introduce commuters to its metro rail project and in the process tried to fend off negative publicity about possible delays in the project.

From piquing curiosity to saving valuable resources and giving owners oodles of flexibility, the Pop-up model is a great way to start off your venture or breathe new life in to a stagnant business venture.  What are you waiting for?  Pop-up and grab your slice of the retail pie!

Image courtesy: http://www.freedigitalphotos.net/images/view_photog.php?photogid=809