How did IKEA use pop-up stores to test new markets and boost brand awareness?

1 What are pop-up stores?

Pop-up stores are short-term retail outlets that operate for a limited period of time, usually from a few days to a few months. They can be set up in various locations, such as shopping malls, vacant storefronts, public spaces, or even mobile vehicles. Pop-up stores are often used by brands to create buzz, launch new products, test customer demand, or reach new audiences. They can also offer customers a unique and memorable shopping experience that differs from the traditional store format.

2 Why did IKEA use pop-up stores?

IKEA used pop-up stores for several reasons, depending on the market and the objective. For example, in some countries where IKEA was not well-known or had no physical presence, pop-up stores served as a way to introduce the brand and its products to potential customers and generate interest for future store openings. In other countries where IKEA already had a strong market share, pop-up stores helped to reinforce the brand image, showcase new collections, or target specific segments, such as urban dwellers or young families.

3 How did IKEA design pop-up stores?

When designing their pop-up stores, IKEA kept in mind elements such as the location, size, theme, layout, and interaction. Locations were chosen that were accessible, visible, and relevant to the target market. The size of the pop-up stores varied depending on the available space and product range. Different themes were created based on the product category, season, occasion, or customer profile. The layout was arranged to optimize space, display products effectively, and facilitate the customer journey. Customers were encouraged to interact with the products, staff, and brand through activities like workshops, games, contests, or social media.

4 What were the benefits of pop-up stores for IKEA?

IKEA's pop-up stores brought several advantages to the business, such as increasing brand awareness, testing new markets, boosting sales, and enhancing customer loyalty. These stores attracted attention and curiosity from the public, media, and influencers, which helped to spread the word about the brand and its products. Additionally, they allowed the company to gauge customer demand, preferences, and feedback in new or emerging markets. Furthermore, they generated sales both directly and indirectly. Finally, they provided customers with a fun and engaging shopping experience that matched their needs and expectations.

5 What were the challenges of pop-up stores for IKEA?

IKEA's pop-up stores posed some challenges for the company, such as managing logistics, measuring performance, and balancing innovation and consistency. Logistics included setting up, operating, and dismantling the pop-up stores, as well as ensuring product availability and quality. Performance was tracked through key performance indicators, such as footfall, sales, customer satisfaction, or brand awareness. And IKEA had to innovate and differentiate the pop-up stores from regular stores while maintaining the brand identity and values.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?