Why run a Short Term Retail or Popup shop?
Starting and running your own retail store is a big step for any business, big or small. It involves figuring out a location, signing up a lease, setting up interiors and so much more… it’s a big commitment. And with the rent prices rising manifold int he country, it’s a costly commitment, too.
Short term rentals allow you to test the waters and be flexible about your approach. It’s very similar to an e-commerce in a way that it allows you to keep tweaking till you hit it right. Be it location or the decor or the target audience…these could be adjusted with short term rentals or popups and at very reasonable prices. That’s part of the reason so many small businesses are turning to other options like food trucks and temporary pop-up shops. Short Term Rentals have grown in popularity in the last several years, and they’re particularly popular with e-commerce brands looking to dip their toes into physical retail.
Apart from being test waters for a permanent location, short term rentals also serve other purposes like increase in sales, opening to the new audience etc. Here are few of the benefits/reasons for a short term rental:
Reach a new audience
The majority of consumers want to see and touch a product before they buy it, even if they’re purchasing online. Technology is changing the way we shop but face-to-face service and immersive in-shop personal experiences can create that brand loyalty which an online-only business might struggle at. Short term retail space plays an important role in creating an omnichannel experience around one’s brand. So, an offline experience coupled with the established online brand is a great way to build a loyal and engaged following.
Build buzz and awareness
FOMO or Fear os missing out is a proven sales tactic which drives action for a customer to act on their desire to purchase special or limited products. A Short Term Rental with a definite end date encourages shoppers to visit before missing out.
This approach works especially well when promoting new products or collections, kicking off major campaigns, or simply looking to increase overall brand awareness.
Test offline selling as a sales channel
Short term rentals, as stated above, requires little upfront investment, that makes them a great candidate for testing. A successful short term shop can act as an example that your business is ready for expansion into physical retail. On other hand, if it doesn’t end up as successful as you had hoped, it provides you with data points on what needs to be worked upon.
Drive more sales during busy seasons
Diwali and other similar holiday seasons are excellent times to augment your sales with a short term rental. Introducing your brand into holiday action and excitement is a smart move and the options are plenty with multiple fairs being available for you to set up your store.
Test new markets and gain traction in existing ones
One of the most important things for a new business to do is validate demand for its products and the real test of product acceptance by customers is are you able to sell your products for money.
To begin with, new businesses can get a small number of products up and ready and test its sale at a short term retail shop or a popup to validate customer demand before investing in a larger number of units. If you have an idea for a new collection or product line, for example, start with just one or two items to see if they have traction.
This strategy also allows one to test for different pricing, product designs and other variables
Selling in person gives you the added benefit of receiving direct, unfiltered feedback from customers by seeing their initial reactions and finding out if they’re willing to spend money on what you’re selling (and how much).
Get rid of dead stock
Holding on to dead stock is more expensive than a business realizes. You’re not only missing out on sales, but you’re also paying for carrying costs and tying up money that could be invested elsewhere in your business. Plus, that inventory could eventually age out and no longer be sellable, which means lost revenue and capital.
Popup shops are a great way to breathe new life into ageing stock—especially seasonal merchandise with a short shelf life—by using fresh displays and enticing visual merchandising elements to attract new shoppers. Encourage impulse purchases by offering special deals, such as buy-one-get-one-free, or bundling items together.
As it says, it does not harm to try and costs are also relatively low when it comes to a short term retail shop. And with InstaSpace, we take all your hassles to find a space and get started and focus on your business.
