"My Favorite Also Meets Here"... The Era of Pop-up Shops

Beyond Fashion to Characters and Idols... Meet Them Through Pop-Ups
Shinsegae Gangnam 'The Stage' Fully Booked Until Year-End
Featuring Various Categories and Limited Edition Products
Lotte Jamsil 'Tennis Pop-Up' Attracts 200,000 Visitors, Open-Run from Day One
Trendy Dessert Spots Introduced One After Another... A Must-Visit 'Bread Pilgrimage' Destination
The Hyundai Seoul, Leading the 'Pop-Up Craze' That Breaks Stereotypes
Idol and Character Pop-Ups... Over Half of Sales from 2030 Generation

Last August, a 'Lachun Dance Season 2' popup was held on the 5th floor of Sounds Forest at The Hyundai Seoul in Yeouido, Yeongdeungpo-gu, Seoul, to celebrate the comeback of Kakao Friends characters Ryan and Chunsik (hereafter referred to as the Lachun Duo). The character popup, which introduced the concept of the Lachun Duo and showcased related merchandise, attracted many customers, mainly from the 2030 generation.

[Asia Economy Reporter Yuri Kim] It is the "golden age of popup stores." Beyond the original meaning of a popup as a temporary store operating for a short period, it has evolved into a channel that offers unique content in a limited time to MZ generation (Millennials + Generation Z) customers who enjoy new experiences and showcasing them on social media (SNS). The range of content introduced at popups has also expanded from fashion and food & beverage (F&B) to characters and idols.

Limited Time + Unique Stores... 'MZ-holics' Enjoy New Experiences

According to the distribution industry on the 15th, Shinsaegae Department Store Gangnam Branch's popup space "The Stage" has recently introduced a variety of product categories beyond global luxury brands, including cosmetics, golf clubs, and sneakers. The number of popups has also noticeably increased. According to Shinsaegae Department Store, the number of popups at The Stage in Gangnam increased from 8 in 2018 to 17 this year (January to September), more than doubling in four years. Considering that reservations are fully booked until the end of this year, the gap is expected to widen further.

The Stage is located in the center of the first floor of Shinsaegae Department Store Gangnam Branch. The fact that a store in such a symbolic location, often called the "face" of the top-grossing department store in Korea, is a popup is significant. While popup stores have mainly featured global luxury brands such as Louis Vuitton, Chanel, Goyard, Gucci, and Bottega Veneta, the range of brands has recently expanded to include beauty and sports, diversifying the customer base.

In the first half of this year, a popup for the global beauty brand Est?e Lauder was held, offering special experiences such as engraving services by artist Jang Young-ho, allowing customers to enjoy a unique experience while purchasing cosmetics. In July, the premium golf brand XXIO's "White Edition" was unveiled worldwide for the first time. Last month, a limited edition product commemorating the 40th anniversary of New Balance's popular 990 sneakers was introduced for the first time in Korea, featuring a vintage design reminiscent of a 1990s New York mansion, encouraging many visitors to take commemorative photos. A department store official said, "The Stage focuses not just on sales but on allowing customers to experience products in a unique store atmosphere. Being located in the center of the first floor attracts the attention of department store visitors, and the bold product lineup and interior design have attracted inquiries from various brands."

Lotte Department Store has boosted sales by promoting its Jamsil branch as a "holy ground for popups." The tennis popup "The Court," held at Jamsil World Mall in June, was decorated like a giant court and attracted about 200,000 visitors over 10 days, gaining huge popularity. Customers lined up from the first day to purchase limited edition rackets such as "Roland Garros." Thanks to its popularity, sports sales at Lotte Department Store increased by 25% year-on-year during the popup period. Earlier in May, Valentino Beauty held Korea's first beauty popup at a department store, successfully attracting customers returning to color cosmetics after the reopening of events. Riding the wave of popup popularity, the first official store in a Korean department store was opened at Jamsil on May 25.

Efforts are also being made to attract "trendy unique dessert spots." Popular eateries on SNS such as Deokdeokdeok Bakery, Doho Project, and Orla Bakery have been introduced one after another, continuously providing reasons for the MZ generation and others to visit the Jamsil branch. Recently, a large popup held with the donut brand Knotted also saw long waiting lines.

The driving force behind the "popup craze" is The Hyundai Seoul. The Hyundai Seoul has been recognized as a complex cultural space beyond the fixed notion of a department store, largely due to its handling of various fields through popups, from idols to characters and automobiles. Popup events such as JYP Entertainment's Stray Kids in June, ADORE's rookie girl group NewJeans in August, and YG Entertainment's BLACKPINK attracted not only fans seeking their "choea" (favorite group or member) but also general shoppers, creating huge crowds. The NewJeans popup was so popular that waiting numbers exceeded 1,000 early on, and visitors had to wait 4 to 5 hours even if they arrived in the morning.

The Hyundai Seoul also saw effects in diversifying its customer base and increasing sales. Targeting the MZ generation, three popup-exclusive spaces were created on the basement level 2 "Creative Ground," and over 1.4 million customers in their 20s and 30s purchased products at The Hyundai popups over the past year. The Hyundai Seoul held about 150 popups from January to July this year alone. Thanks to the rise of popups, sales on basement level 2 exceeded 20% of total sales. The share of customers in their 20s and 30s in The Hyundai Seoul's sales also accounted for 54.2%, more than half. The department store said, "The Hyundai Seoul popup has established itself as a representative channel for the MZ generation, and various companies seeking contact with them are continuously sending love calls."

In June, Lotte Department Store hosted a tennis pop-up called "The Court" at Jamsil World Mall in Songpa-gu, Seoul, attracting approximately 200,000 visitors over 10 days. The pop-up space was designed like a giant court, allowing visitors to explore tennis-related products such as tennis rackets, fashion apparel, and accessories all in one place, while various experiential events drew in everyone from tennis beginners (terini) to enthusiasts.

Department Stores, Brands, and Customers All 'Win-Win'

Popup stores are becoming more active as all three main parties?channels (department stores), brands, and customers?gain positive effects. Department stores are focusing on attracting customers amid the recent blurring of boundaries between online and offline. To this end, they decorate the interior like parks and create exhibition halls, encouraging visits even without shopping purposes. They also use strategies such as attracting famous restaurants nationwide so that customers who come for delicious meals end up shopping as well.

One solution to strengthen department stores' "experience content" is popup stores. Popups break the monotony of stores with the same setup on every visit and add experiential content for brand promotion, making visits enjoyable. The recent trend of popups expanding beyond traditional fashion and F&B genres to characters, idols, and lifestyle is welcomed by department stores. The richer the temporary content, the more diverse customer interests can be captured. This is why department stores have diversified the product categories handled by popup-exclusive stores and increased the number of popup stores.

From the brand perspective, popups offer an advantage by creating customer touchpoints. If the channel is a department store, it can attract not only brand enthusiasts but also general shoppers, making it more attractive. Brands can test operations for a short period and decide on official entry. Especially for emerging brands based online, opportunities to meet customers face-to-face and hear their reactions are rare, and recently, department stores have placed popup stores in key customer flow areas, effectively promoting to passing shoppers.

Established brands also create spaces where customers can experience new products targeted at the MZ generation, with store layouts that clearly convey product concepts. Cultural content has also joined the popup trend. Spaces that naturally follow the concepts and meanings of debuting idol groups' songs stimulate visitors' "fan hearts," and popups featuring popular characters, already famous among diary decorators ("dakku-jok"), are thriving to introduce these characters to a wider audience.

Customers also welcome department store popups. Located in easily accessible urban areas by any transportation means, customers can visit the "hot popup of OO brand" and then enjoy restaurants and cafes all in one place, rather than moving around.

A distribution industry official said, "In the past, popups had a nuance of being temporary stores due to lack of space, but recently, it feels like bringing in brands that are 'just becoming popular' or 'trending quickly among the MZ generation.' In an era where anything can be bought online, the atmosphere of actively using popups to effectively deliver multisensory experiences that can only be had offline to a large audience in a short time will continue."