One of the best ways to drum up business for your online store is to temporarily open a “pop-up shop.” A pop-up shop, also known as flash retailing or a pop-up store, is a temporary retail space that a business sets up to sell a product.
They usually are around 3 to 6 months and located in high traffic areas such as malls and busy streets. The goal is to engage and connect with customers, build awareness, and help showcase your product.
Many businesses that set up pop-up shops are online businesses that are trying to expand their brand by taking advantage of the retail. With the pop-up model, you don’t lock yourself into a long-term lease, lowering your costs significantly.
Another advantage of pop-up shops is that you can test or launch a product. You can get first-hand knowledge and feedback on what customers think. If you have an online business and want to increase your sales, a pop-up shop may be a great route.
Before you do so, however, here are 7 things you may want to consider beforehand. This will help ensure it is a success and not an expensive mistake!
1. What Is Your Overall Budget?
Even though a pop-up shop is less expensive than opening up a retail store, it isn’t a cheap affair. Since the first impressions of a product or launch are important, you want to invest enough money so it is done properly.
The best thing to do is to work out what each individual aspect of the launch is going to cost. The term is usually 3 to 6 months, so it doesn’t make sense to spend a significant amount on furniture, tenant improvement work, or other hard costs.
The point here is to get enough brand awareness to recoup your costs as fast as you can. This requires creating a budget and making sure you don’t go over it. For a guide to putting together a budget for your business, you can visit this site here.
2. Who Is Your Target Audience?
The top 3 rules of retail stores are location, location, and location! Why is this so important? Based on your product, you want to appeal directly to your target audience. In addition, you need to make sure the product you are selling is what your target market needs!
Create an avatar of your ideal customer. What age? What gender? What hobbies do they have? People who are similar tend to live, work, and socialize together. By knowing who your target market and ideal customer demographic, then you can answer the next question!
3. Where Will Your Pop Up Shop Be Located?
There are many locations you can set up a pop-up shop. After you determine your target market, you want to choose a location that matches that demographic. That is why location is so important! But you can’t choose your location unless you know who your target market is.
If your product is for business people, having a store in a business district may be more ideal than in a rural area. You want your store to be where your target market lives or works! You can work with marketing companies that have the demographic of neighborhoods and areas. You can visit this site for a guide to understanding your sales analytics and demographics.
One of the benefits of a pop-up shop is that it is temporary. As long as the budget allows, if one of the pop-up shops does not do as well, you can go back to the drawing board, adjust based on feedback, and try again!
4. When Will You Launch?
Timing is important. If your product is seasonal, then opening up during the Holidays is ideal. Selling winter clothes? The best time will be when it starts to get cold. Not many people will be in the market for a winter coat during the summer!
If you live in an area where people snow-bird or migrate during the colder months to a warmer area, then you want to take into account the demographic shift. The important thing is to ensure your product launch timing is at the most advantageous time.
5. What Products Will You Be Selling?
Depending on your product range, you may only want to stock a small selection of products in your pop-up store due to space and logistics. If you’re not going to be able to stock the full range, direct them to your website.
Inventory is a big expense. You don’t want to hold on to products too long. You may want to sell your most important product or product that will lead your customers to purchase more. You want to be strategic when determining what products you want to have on hand.
6. Will You Be Doing Any Advertising?
You need to be sure that enough people know about your pop-up shop to build enough buzz. If no one knows that you’re going to be opening, chances are that people will only start to notice you when it is time to leave.
One of the best ways to build awareness about your launch is to advertise on social media. You can also send an email to existing or potential customers in your shop location. Offer them an exclusive discount if they come in, refer somebody, or have an opening day party! They will more likely to come and visit you.
7. How Will You Be Taking Payment?
Most e-commerce stores don’t take payment in person. With the pop-up shop, you will need to plan for it. You can buy or rent a mobile POS system that allows you to take card payment on the go.
This small system will be able to take chip and pin as well as contactless payments, giving your customers the best of both worlds. This gives you flexibility in taking payment by card and mobile devices and also generate a receipt for them. Many of the POS systems have built in bookkeeping integration, so it will help you track your sales.
A pop-up shop is a great way to test the retail space without having to commit long-term. The key is to plan and do it right. These 7 steps will help you on your way to success!