How Online Brands Can Use Pop-up Stores to Drive Growth

woman shopping online with credit card

Pop-up stores are fast becoming a staple of every company’s marketing strategy. Small and large brands alike such as Amazon and Groupon are utilizing pop-up stores to great effect. Previously online only brands are now also reaping the benefits of having a physical presence. 

Driving Growth and Brand Awareness

E-commerce brands can use pop-up stores to drive sales, such as around the holiday shopping season. They can also use pop-up stores to drive traffic to websites or social media pages. E-bay opened pop-up stores during the holiday season in major cities such as New York, San Francisco, and London. The London store alone, which was open for just 5 days, saw 2,500 walk-in customers. Facebook fans also increased by 25,000 fans after the 5 days.

In addition to driving sales and brand awareness, pop-up stores can also provide brands with valuable feedback and insights from customers. Through interactions with customers and observations of in-store customer behaviours, E-commerce businesses can often learn valuable insights which would be difficult to obtain from purely online channels.  

Reaching New Customer Segments

Pop-up stores can provide online brands with a good avenue to reach certain segments of customers which they couldn’t previously. According to a report from Cayan, a payment technology and services company, 46% of customers still like to go to a store to touch and feel a product before buying.

After a successful trial in Singapore, online fashion store Zalora also set up a pop-up store in Hong Kong in Windsor House Shopping Centre. There, customers had to scan a QR code to download the Zalora app. Online orders could then be placed by using the QR codes on the clothing labels. According to Zalora, 80% of the pop-up stores customers had never shopped with Zalora before.

Affordability of Pop-Up Stores

One of the main advantages of setting up a pop-up store is its affordability when compared to permanent locations which are often capital intensive. This is especially so if you are setting up in multiple locations.

Luxury online retailer Net-A-Porter has even set up “Window Shops”. These are essentially augmented reality shopping windows. By pointing their phone cameras at the showcased items, they can access various features such as product information, video showcases, 360 degree product models, as well as make online purchases immediately.  

Flexibility

Another advantage of a pop-up store is its flexibility. As a store stays in an area, the percentage of people passing by who have never seen the shop before drops. Pop-up stores can easily move their store to various locations to reach out to new customers.  

Ready to pop up? Head over to PopUp Angels to find your ideal pop-up space.