no. 6: are you waking up at 3 am for their popup?
this week - on rhode and the rise of the popup economy
rhode - we all know the brand founded by hailey bieber.
their latest popup, which launched yesterday in soho, is the quintessential example of insanity driven by branding and marketing. on tiktok, there are videos of people leaving their houses at 3 am to get in line by 5 am. in case you were wondering, the popup doesn’t open until 11 am.
what we are not talking about enough is this massive shift in consumer behavior with ephemeral shopping experiences. specifically, what i like to call the “popup economy”. when i set out to write about this, i was shocked to see the lack of news coverage or articles around the rise of the retail popup.
what is the history behind the modern pop-up store?
the modern pop-up retail trend began in Los Angeles in the late 1990s with events like The Ritual Expo in 1997, which combined music, food, and fashion in a single shopping experience. The term "pop-up retail" can be traced back to this event, which was later called the "Ultimate Hipster Mall".
one of the earliest brands to do this before the pandemic, was actually glossier: “one pre-pandemic example of a successful retail pop-up is Glossier which opened in Covent Garden in November 2019 and extended its run after achieving record breaking footfall in the brand's history.”
while the popup existed before the pandemic, we have seen an astronomical increase in the amount of them across all industries - not just beauty.
what do brands gain out of a popup event?
brands gain, quite literally, nothing to lose:
save up to 80% compared to opening a traditional brick-and-mortar storefront
an opportunity to build hype around their brand
completely free press through social media (tiktok especially)
access to previously inaccessible customers meaning, people who don’t know about their brand probably will by seeing a big line and wanting in on it
an opportunity to partner with other brands that resonate with their customers (i.e. coffee brands, the kinds of snacks to be served in line for popup goers, etc.)
strengthen brand recognition and brand loyalty amongst ICP (ideal customer profiles)
test out a new market, without having to pay for a permanent storefront
create a sense of urgency around going, thus creating demand
“pop-up events in nyc during the summer are becoming increasingly popular as they offer a unique and exciting way to experience the city. With their temporary, often unexpected nature, they can create an air of anticipation and surprise that is hard to match.”
most importantly, why now?
i believe this is attributable to the rise of tiktok, and made possible by a post-pandemic world. during covid, brands had to get creative fast, with retailers forced to close. in 2020-2022, we watched brands take their marketing completely digital, forcing them to create unique content and build a personalized shopping experience. the reason popups are ubiqitous these days, is that there has been a massive shift: the consumer now has the power in marketing experiences.
companies are finding more and more creative ways to get customers excited about their brands. they are thinking outside of the box, and figuring out what truly excites their customers: i.e. rhode is offering a popup exclusive blush shade, sprinkle for loyal customers who have the wear with all to stand in line for 6 hours for them.
this begs my concluding question: are popups are a phase or are they here to stick around?
my verdict is they are here for at least, the next few years, while we live in the tiktok era: the hype-generated cultural phenomena we are witnessing. until then… cheers to the brands, like rhode, who are able to capitalize on this massive opportunity and understand their customer’s wants and needs.
📚 what i have been reading lately, linked here for you:
https://www.forbes.com/sites/jennawang/2018/09/29/the-rise-of-the-pop-up-economy/
https://retailforthepeople.com/blogs/news/storytelling-in-style-how-fashion-pop-ups-thrive-in-new-york
https://www.thestorefront.com/mag/why-pop-up-in-nyc-during-summer/#:~:text=Pop%2Dup%20stores%20can%20provide,a%20wide%20variety%20of%20customers
https://www.trowers.com/insights/2021/april/the-rise-of-pop-ups-in-a-post-lockdown-world