The Pop-Up economy
The Digital Age has given rise to the emergence of new economies and industrial phenomena that require new business models and approaches to value creation.
Valued at $50 million, the pop-up economy has emerged as a dynamic force responsible for transformation within the retail landscape. Driven by trends associated with younger consumers craving novel experiences and the shift in traditional advertising strategies to brand activation efforts, this new economic model has stimulated the proliferation of short-term leases to support the instagrammable exhibitions and experiential retail shops we can observe undulating social media feeds. Pop-up locations represent a new dimension of the omnichannel retail strategy that has emerged as a product of e-commerce trends.
This phenomenon is strongly linked to changes in the retail landscape associated with the shift in the traditional brick-and-mortar retail model and conventional advertising strategies to the provision of experiential shopping initiatives and brand activation efforts. As social media has an increasingly pervasive presence in consumers' everyday lives, younger audiences -- especially Generation Z -- crave novel, instagrammable experiences. This increased demand for picture-perfect “experiences'' has especially taken hold in cosmopolitan cities such as New York and Los Angeles as well as destinations such as Aspen and Palm Beach. Given the steep real estate costs associated with these locations, pop-up shops serve as a powerful, risk-averse, and cost-effective marketing scheme for entrepreneurs seeking to scale their ventures.
Pop-up shops offer many advantages in comparison to standard brick-and-mortar business models, especially for entrepreneurial brands seeking to test the waters prior to putting down substantial investment. The intrinsic value of a pop-up shop is less about patrons making an in-store purchase and the relative daily or monthly turnover. Rather, these short-term storefronts seek to deliver unique experiences for customers that reflect a memorable brand image. Pop-up shops serve as an opportunity for brands to raise awareness around a new product or service during the growth stage of the business/product life-cycle; facilitate engagement with potential consumers in quasi-geographic locations as entrepreneurs test the market; and support authentic customer interaction. From a profitability standpoint, setting up a pop-up shop is far cheaper than establishing a permanent store-front making it a relatively risk-averse growth strategy.
It is clear that the pop-up shop strategy is leading a retail revolution that empowers brands to scale their businesses with strategic moves aligned with the modern digital world. Pop up exhibition successes transcend every industrial sector... For additional readings on industry-specific information and pop-up shop strategy features, see below:
How The Music Industry is Making The Most of Pop Up Stores
Why Pop-Up Shops Make a Great Business Idea for Entrepreneurs
