Although the retail sector in Hong Kong has been devastated by the effect of last year’s anti-government protest movement and the Covid-19 pandemic that has resulted in many businesses closing, all is not lost. Businesses and brands are turning to pop up stores to fight back and bump up sales in a city where online sales are not as popular as physical high street locations. These themed or branded temporary retail stores are gaining popularity in popular shopping districts especially during this holiday season.
Commercial space in Hong Kong, China is affordable yet effective as you only get to pay a fraction of the amount you’d usually pay as standard rent for the area. This business model allows vendors to cash in during special celebrations or events like Christmas. Pop up stores also provide a rare opportunity to test a new market without bearing the cost of opening a permanent store.
Why is Retail Space Gaining Popularity?
Consumers are attracted to pop up stores because they offer something unique, are creative in their presentation and are only available for a limited period. This is partly driven by the fear of missing seasonal offers, products and the rare chance to interact with the product team.
Pop up stores provide an opportunity to create unique experiences that you’d not usually offer in a traditional retail store, grow your customer base and ramp up sales. Combining traditional, online and the pop up experience helps to build more intimate relationships and amplify brand values.
Benefits of Pop Up Stores
Investing in a pop up shop comes with several advantages that include the following:
- Short-term commitment. The pop up model of doing business allows businesses to take a selective approach to marketing that takes advantage of prevailing circumstances and seasons. Businesses don’t have to sign up for long term rental arrangement when they only need to tap into a specified market within a defined period. This arrangement makes it possible for businesses to adapt to changes so that they open when the traffic is high and close during the period when the market is slow.
- Affordability. The temporary nature of pop up stores in malls, hotels and train stations coupled with their smaller size means that the cost of renting and running them out is lower compared to a conventional store. This is a huge advantage for new businesses that cannot set up a traditional retail space. Moreover, the short term nature of these stores means you can easily close down whenever necessary thus avoiding costs arising from low sales.
- Ideal for experimentation and testing. There’s no better way for brands to test and market new products than setting up temporary stores in retail space for rent Hong Kong. These stores present a perfect opportunity to test the appeal of new products and gauge future demand. You can also use a pop up store to try out a new business idea.
- Brand extension. Businesses can use pop ups to extend a brand by building awareness. This is especially true for online businesses as they get a chance to interact with customers on a one-on-one basis while educating them about new products, features and services. This is especially beneficial if your business what to capture a market segment that seldom visits your site to make purchases.
- Boost sales. The temporary nature of retail space for rent often creates some sense of urgency among consumers. Unlike traditional retails stores, pop ups come across as offering products or services for a limited time or limited edition only. This means that people must take advantage of the offering within a specified period. As a result, businesses record a surge in sales that they would ordinarily not make with the traditional store.
- Popularize a brand. One of the leading reasons why businesses opt to set up their businesses in retail space for rent is because they help in generating a buzz around the product. Pop up retail stores are an excellent marketing platform as they draw the attention of masses. People tend to be attracted to a new store especially it looks unique.
The race for retail space for rent Hong Kong is on as brands and businesses are eager to tap into this strategy to not only draw eyeballs but also drive sales. Temporary retail establishments continue to pop up on the streets, at airports or events to rise above the competition, test new markets and develop deeper relationships with customers. It’s only after brands have studied their market potential that they can consider committing to a full storefront.
