Foreign Retailers
One option for companies to market products abroad has been to create "pop-up shops" that allow them to sell their products in areas of heavy foot traffic, such as in busy streets or outside popular venues. Read this chapter to see how this setup can work from a financial standpoint.
Flexibility is an inherent characteristic of pop-up shops that has driven the increasingly wide adoption of the retail format. On the one hand, it provides up-and-coming entrepreneurs with "no frills" opportunities to access a market and test the waters for an eventual permanent venture, while on the other hand, established retail corporations flock to adopt the new retail format to achieve their own unique objectives.
Research that explores the luxury market shows that pop-up shops effectively strike a chord with the market segment eager to engage in new purchase experiences. Not only do pop-up shops complement their luxury parent houses while adding new dimensions (such as informality, friendliness and accessibility), but they also contribute to the enhanced mythical aspect of the luxury brands.
Pop-up shops have been embraced by many luxury brands as a way to renew and re-energize their customer base and provide novel brand experience to new and existing customers. The pop-up luxury stores are usually designed with big budgets and the primary focus is to promote superior brand experiences through interactive store designs, media stations and games. The metric for measuring success is usually not the traditional sales figure, but more the amount of word-of-mouth communications triggered.