ROLE OF POP-UP STORES IN BEAUTY PRODUCTS IN REDUCING CUSTOMERS’ TURNAROUND TIME (TAT) AND BOOSTING BUYING CONSIDERATION

• Main Author: Evangeline Handawi, Angelica
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85815
• Institution: Institut Teknologi Bandung

Beauty brands are increasingly turning to pop-up stores as a unique way to connect with customers in a competitive landscape. These temporary retail experiences offer a platform for showcasing new products, generating excitement, and providing customers with unique, time-limited experiences. The adaptability of pop-up stores is particularly valuable in the fast-paced beauty industry, allowing brands to test new offerings and gather valuable consumer insights without the commitment of a permanent location. This research studies the role of pop-up stores in the beauty industry, specifically focusing on their impact on reducing customer turnaround time (TAT) and boosting buying consideration. The study analyzes the potential benefits and challenges associated with this innovative retail strategy using mixed and quantitative methods and a thorough review of existing literature. A key challenge faced by beauty brands in today's competitive market is reducing customer turnaround time (TAT) to improve customer satisfaction and boost purchase consideration. Pop-up stores offer a unique approach to address this challenge. This research reveals several key findings that highlight the positive impact of pop-up stores on customer experience and brand perception. Pop-up stores potentially reduce the time it takes for customers to complete a purchase, leading to higher sales conversion rates and increased brand loyalty from the satisfaction gained through the customers’ experience when visiting the pop-up stores. This is achieved by streamlining the shopping experience and enhancing operational efficiency for better crowd flow. Furthermore, pop-up stores move beyond the traditional retail model by offering immersive and interactive experiences that increase customer engagement. This can include opportunities for product testing, personalized consultations with knowledgeable staff, and fun activities that make the shopping process enjoyable. The unique and temporary nature of pop-up stores also generates excitement and a sense of urgency among consumers. This exclusivity, coupled with the experiential nature of these stores, helps to increase brand visibility and brand consideration significantly. Social media and influencer marketing play a crucial role in driving awareness and attracting foot traffic to these temporary locations. Quantitative data collected through questionnaires reinforces these findings, indicating high levels of customer satisfaction with the unique experiences offered by pop-up stores. Respondents particularly appreciated the opportunity to test products and interact with knowledgeable staff, which empowered them to make informed purchasing decisions. Qualitative data collected through content analysis sourced from Tiktok and Instagram, specifically contents from UGC (User Generated Content) Creators who reviews their visit experiences to these pop-up stores. The research concludes that the role of pop-up stores is an innovative strategy for beauty brands to enhance customer satisfaction, reduce turnaround times, and increase buying consideration. These stores provide a platform for brands to directly engage with customers, gather valuable feedback, and tailor their offerings accordingly. Pop-up stores also allow brands to create a memorable and engaging shopping experience that sets them apart from traditional retail environments. The temporary nature of pop-up stores makes them ideal for testing new products and concepts before a full-scale launch, allowing brands to gather real-time customer feedback and adjust their offerings based on market response. The study makes the following recommendations to make the most of its findings about the role of pop-up shops in the beauty industry: 1) Enhance Customer Engagement: Brands should focus on creating even more immersive and interactive elements within pop-up stores to further enhance customer engagement and satisfaction. This could include interactive product displays, workshops, or gamified experiences. 2) Leverage Social Media and Influencers: Utilize social media and influencer marketing to significantly boost the visibility and attractiveness of pop-up stores. Create engaging content that showcases the unique experience offered by the pop-up store and leverage influencers to generate buzz and excitement. 3) Optimize Store Layout and Flow: Ensure an efficient and appealing store layout to manage crowds and enhance the overall shopping experience. This can be achieved through strategic product placement, clear signage, and designated areas for product demonstrations and consultations. Ultimately, an optimized layout will help to reduce customer turnaround time. 4) Cater to a Wider Audience: Offer a wider range of products and personalized experiences to attract a broader audience and increase consumer interest and sales. This could involve catering to specific product categories or offering personalized consultations based on individual needs. 5) Embrace Technology: Consider integrating technology like Augmented Reality (AR) and Virtual Reality (VR) to further enhance the interactive experience and provide customers with a novel and engaging way to explore products. For example, AR technology could allow customers to virtually try on makeup before purchasing, while VR could transport them to a virtual spa environment. Pop-up stores can be a great way for beauty brands to meet their marketing and sales goals by focusing on providing outstanding experiences and resolving operational challenges. This study provides a comprehensive understanding of the role of pop-up stores in the beauty industry and offers practical insights for brands looking to leverage this innovative retail format to gain a strategic advantage in the dynamic beauty market.