Why Luxury Retail Pop-Ups are the Future
Just as the future for retail looked uncertain, the concept of temporary, ephemeral stores have resurrected the industry from a potential collateral drop. The luxury pop-up shop has boomed and disrupted the way retailers are marketing, profiting and interacting with their customers.
Luxury pop-up stores were originally a welcome solution to expensive long-term leaseholds. Now, the retail pop-up industry is worth an estimated £2.3 billion.
Pop-ups Prove a Staple for Luxury Brands
luxury retail pop-ups are a fantastic opportunity for brands of all sizes to experiment with new campaigns, customers, geographic locations and activations. With a short-term lease and minimal maintenance, companies have the chance to delve into a new market without the commitment of a brick-and-mortar location.
The success rate of luxury pop-ups has been ground-breaking for luxury retail, with 80% of global companies who have launched a pop-up claiming it to be extremely successful with 85% of consumers likely to make a purchase after participating in events and experiences.
The Life of Pablo: Pop-up Store & Roll-out
Pop-ups are multi-functional for brands, with many using scarcity and exclusivity in their favour to create hype. Kanye West tweeted the locations of his 21 pop-up stores the night before each launched and as a result, social media was flooded with loyal fans sharing their enthusiasm to have the chance to purchase the limited-edition streetwear. It was estimated that each of The Life of Pablo pop-up stores profited half a million dollars in sales.
Creating Flexibility: Store Locations and Demographics
Brands often pick locations based on their competitors but as retail behaviour is shifting and millennials disposable income is increasing, luxury brands are now using short-term retail spaces to stand out and appeal to a new market. Chanel opened a pop-up store in London’s Covert Garden, harbouring a nail bar, make-up tutorials and events. The pop-up gave Chanel the opportunity to interact with a new demographic who wouldn’t usually venture to the location of their flagship store.
The pop-up space generated a mass of attention and engagement, alongside the opportunity to evaluate how successful the type of store would be before investing long-term. The store is now a permanent fixture in Covent Garden.
Luxury Pop-Ups for Collaborations
From Alexander Wang x Adidas Originals and Louis Vuitton x Supreme, luxury brands are capitalising on fashion collaborations. Exploring new boundaries, Alexander Wang x Adidas Originals took to a more innovative pop-up concept: a pop-up truck. Fans followed the mobile store via social accounts where they could find the exclusive capsule collection.
Converse X JW Anderson: Exclusive Pop-Up
We collaborated on a brand-new and exciting joint retail experience from iconic footwear brand Converse and Luxury British fashion designer JW Anderson.
FormRoom were invited to produce a 4-day pop-up in celebration of the Converse x JW Anderson collection titled ‘Toy’. We created a retail space that replicated a traditional art gallery and incorporated elements that invite child-like interaction, including building shapes with colourful foam blocks. Materials, colours and textures represented each of the trainer’s colourways while a bespoke gradient wall created a photo opportunity to generate engagement online.
The pop-up gallery was also host to events, talks and workshops, keeping the space unique, engaging and driving interest to the product release.
As consumer shopping habits and expectations shift, pop-ups allow brands to stay current with the movement of retail experiences.
If you’re a brand that’s looking to expand your business, showcase a new product or experiment with a new space, we’d love to hear from you.