Pop-up shops provide entrepreneurs with a great trial market place for business ideas. Finding finance for a new business idea can be problematic so setting up a fixed-term business, with a robust business plan, can provide finance opportunities. Demonstrating proven sales in a retail setting provides important evidence of a business's viability.
Running a pop-up shop can allow business skills to be tested. New products or services may be difficult to 'sell' as a concept, but establishing customer demand in a retail environment is fundamental to successful business development. Getting creative ideas to the market allows evaluation of what does and doesn't work.
Term: Is typically 1 day to 3 months.
Location: In high foot traffic areas such as town centers and busy streets.
Price: Typically paid up front but much lower than a traditional store.
Use: To launch new products, increase sales, test an idea or location, generate awareness, have a presence during holidays or at events, move inventory.
Connect with customers: The pop-up arrangement allows the building of stronger business relationships and an opportunity to get to know customers.
Sell more: About 95% of all purchases are still completed offline. This is an opportunity to take advantage of the retail channel.
Build awareness: Consumers and the media love the excitement generated by pop-up shops. Build brand awareness by going offline.
It’s cheaper: Launching a pop-up shop is 80% cheaper than a traditional retail store.
Test new markets: It’s a low risk and easy way of enter a new market and launch new products.
A pop-up shop is a short term or temporary retail outlet used by companies and individuals to test a product in a high street location, build brand awareness, launch a new product, test a consumer market or targeted location.
They are utilised by many businesses as a form of non-traditional retail. Motives for pop up opportunities can be varied, and depend on the business opportunities being explored. A pop-up can be a very effective business model for: