A beach bar in St. Tropez? A kiosk in Berlin-Mitte? Or would you prefer an installation in Seoul? Pop-up stores for luxury labels are extremely popular. The temporary brand stores are a meeting place for a first-class customer experience, a magnet for the community – and a revenue generator.

The success story of pop-up stores really took off in 1997: Back then, the “Ritual Expo” store opened in Los Angeles and presented a previously unknown concept: a shopping event for streetwear, limited to one day. In the meantime, short-term stores have become an integral part of the marketing mix of innovative retailers. They pop up, generate a lot of attention for a short time and then close again. It doesn’t necessarily have to be about offering products. Gucci, for example, placed an eye-catching Gucci Ancora pop-up truck on Broadway in New York in February to celebrate the new Ancora color and gave away coffee specialties and flowers. Zara offered handmade vanilla ice cream for a day in its pop-up gelateria in Milan and adidas, together with Solebox, took over the Café Fringe in Le Marais during Paris Fashion Week, where Solebox x adidas products were on sale alongside coffee and croissants.
The ephemeral nature of the offer makes it attractive to the target group, while limited editions further strengthen the pull effect. The trend towards pop-up stores has steadily increased over the past two years. There are good reasons for this.

The advantages of temporary stores are obvious: they make it possible to test new markets, new products and a new target group approach, they require a manageable financial outlay, they are a creative playground and therefore a development platform for the brand and customer experience in one. Instead of having to completely renew the branding of an international brand, launch a new campaign or redesign all stores, a pop-up store allows creative concepts to be put to the test for a limited period of time.
In addition, brands do not have to rent expensive space for years, but can determine in a very short time which locations prove to be successful for them. Pop-ups are also a huge opportunity for online retailers to show their “face” and present themselves physically – and therefore tangibly, emotionally and personally – to their target group.

Pop-up stores generate valuable insights into markets and consumers and: they also ensure a high level of attention. And not only in your own brand community, but also in traditional media and on social media. An eye-catching store design, limited editions and exciting events ensure coverage. A good example of this is AT&T’s 5G initiative: in 2019, the company used the 25th anniversary of the cult series “Friends” as an opportunity to promote its range with pop-up stores in several US cities. Fans of the series traveled to the stores to experience the events and also bought the products. Artist Kanye West used pop-up stores to promote his albums and fashion collections. He announced the locations the night before they opened, generating a lot of communication among his fans. The lifestyle media reported on and fueled discussions about possible locations and the associated hype.

In pop-up stores, brands can inspire their consumers with completely new forms of experience, for example with immersive content. This can take customer loyalty and the communication of brand vision and brand values to a new level.
The numerous vacant retail spaces in city centers are ideal for pop-ups. At the same time, they revitalize city centers and offer people an incentive to go for a stroll in the city. However, the space used does not necessarily have to be a classic retail space, on the contrary, there are actually no limits to the ideas for pop-up spaces: whether caravan or kiosk, factory hall or discarded container, all possible locations are conceivable. The luxury brand Diptyque, for example, staged a Mediterranean summer party in front of the Taikoo Li Qiantan shopping mall in Shanghai. Surprises and creativity fill a brand with life and not only inspire fans and journalists, but with luck also new target groups.
Pop-up stores also show, as if through a magnifying glass, that sales and brand marketing are not separate disciplines but are closely interlinked. Customers are more interested than ever in experiencing brands – unmistakably, with a profile and clear positioning. The emotionality and creativity of pop-up stores meet these expectations in terms of marketing. At the same time, the stores also make a positive contribution from an economic perspective: the often limited offers in pop-up stores generally attract higher prices and generate steady sales.

For the brand community, pop-up stores are a meeting point, dialog platform, experience center and shopping inspiration all in one. Who meets where? Who knows where a location will be opening soon? Who sees the post with the coordinates first? Who will manage to get hold of a limited edition it-piece? As with the increasingly popular ‘whisper groups’, i.e. member-based communication groups, it is also popular for pop-up stores to selectively distribute information.
The relatively new strategy of luxury brands to take over exclusive beach clubs during the summer months is interesting. Whether on Mykonos or in Marbella, in Saint-Tropez or on the Amalfi Coast: this year, spectacular pop-ups will once again be guests on numerous beaches. Some brands do not offer any on-site shopping in their pop-up stores, but focus purely on the customer experience. Bottega Veneta, for example, installed a grass-green labyrinth installation in Seoul.

The use of materials for pop-up stores is straightforward. They are often only placed in a few cities and materials and buildings can be used multiple times. Pop-up concepts therefore fulfill numerous relevant KPIs: reputation gain, cost-effectiveness, above-average attention, resource conservation and sustainability. So it’s no wonder that many innovative retailers rely on temporary sales areas.