The Rise of Pop-Up Shops
The rise of Pop-Up retail spaces has been an emerging trend in brick and mortar marketing techniques. In the wake of the retail apocalypse that many brands have faced as a result of COVID-19, Pop-Up shops come into play as an exciting alternative. The fashion industry is constantly looking for ways to become innovative, and luxury houses are taking note of the impact millennials have on their brands in terms of buzz and even spending power.
One might question why luxury stores need Pop-Up shops, as they have amazing flagship locations in popular cities such as New York, Milian. and Paris that naturally draw the tourist shopper. However, as they constantly create new ways to bring us through the door, be it restaurants, events, or creating new divisions within their brand, Pop-Up shops have been an increasingly important attraction. These events give luxury houses the opportunity to connect with millennial shoppers who seek new and fun retail experiences.
As members of the millennial shopping group ourselves, we love the concept of Pop-Up stores. It creates an exclusive vibe that not everyone can experience and brings a new level of attention to the brand. Online-based fashion companies can also use the Pop-Up model to generate excitement and engagement, giving consumers more confidence when shopping online in terms of sizing and quality.
“Direct To Consumer” and “Omnichannel” have been buzzwords thrown around for a few seasons now. Both of these concepts have one key element in common - meeting the consumer directly where they are, with ease. Many brands have adopted this through cutting out the retail escapade and higher wholesale margins, selling directly through eCommerce. The problem with this is that strictly eCommerce brands miss out on the opportunity for consumers to physically interact with both the garments they purchase and the brand itself. Ecommerce has an average return rate of over 20% as a result of this, double that of in-store purchases.
The most popular location for Pop-Up shops has been New York City. We’ve seen people lined up on the streets of Soho for blocks on end, camping on extremely hot summer days, and waiting long hours without being certain they will have the chance to enter. Recently, the brands Hermès and Louis Vuitton have successfully created fashion Pop-Up shops. Both brands have executed this concept successfully more than once. Louis Vuitton Creative Director of Menswear Virgil Abloh created a neon green Pop-Up shop to showcase his 2019 men's fall collection.
In 2017 Hermès created a laundromat-inspired Pop-Up shop called Hermèsmatic located in New York City. The concept of this shop was to cater to their infamous scarves. Shoppers had the chance to customize their scarves by dip-dyeing them. Hermès struck again by holding a sample sale Pop-Up shop in Short Hills, New Jersey at Short Hills Mall last summer, lasting only five days. This Pop-Up shop was “top secret” and meant only for clients that spent a high amount yearly before it opened for the general public. It featured past seasons of Hermès items, and everything was 50% off! Ranging from home, jewelry, clothes, and their famous Oran sandals, and scarves. The only thing missing was their Birkins.
In New York City, a Pop-Up art district called On Canal has recently bordered Soho on Canal St. 20 previously vacant storefronts are now occupied with changing artists, designers, and businesses, giving them exposure to a new market. Imagine if these kinds of projects were applied to even more emerging designers? Retail developers could purchase spaces to lease out for months or so at a time, giving new talent a platform for events and the overall creativity of four walls.
By: Sarah Fontanges @_Sarahfontanges
and Adi Shoham @adiblossom