Canadian Retail Thread

[SpongeG]

Pop-up retail a new marketing ploy to combat consumer fatigue

TORONTO (CP) - Everyone knows there is no free lunch, but what about a free spa treatment or hugely discounted designer shoes?

The trend of businesses popping up unannounced in unexpected places, drawing in consumers by offering them an exclusive experience, is starting to make inroads in Canada.

"It's still relatively new ... I'm expecting to see a lot more," said Stan Sutter, editorial director for Marketing magazine.

"If the consumer won't come to the mountain, take the mountain to the consumer," he said adding that it is the best way to get one-on-one contact with consumers.

Making the most of a city at its busiest, the folks at Evian set up a pop-up spa in the heart of downtown Toronto, at Bay and Bloor Streets, during the Toronto International Film Festival.

Patrons could either book an appointment or walk in for a bottle of water, a hand massage, a hot stone treatment, a facial or reflexology. The minimalist white spa had a fountain of Evian water and televisions that showed features about the history of the French water company. With no crowds and lilies everywhere, the place reeked of exclusivity.

On the first day, the lineup for the spa was almost a city block long even before the doors opened.

While the Evian brand is popular, it was the price that really got consumers excited: The spa is free - until October, anyway.

After that Evian will pack up shop, and the only place to get an Evian spa treatment will be in Paris, Buenos Aires or Shanghai.

Evian isn't the only retailer to harness public buzz.

A few years back, U.S. fashion discounter Target, with no retail space in Manhattan, set up a temporary store near New York's Hudson River to make the most of the Christmas season.

Some designers rent downtown spaces for a weekend and send e-mails out to the city's fashion industry, telling of the improptu location and the unbelievable prices.

Other brands have stuffed vans, truck and Hummers full of their products and trekked across Asia and Europe hawking everything from shoes and clothes to designer toys.

Rumour has it the Joe Fresh brand will be taking the discount clothing line across Canada to cities and towns that don't have a Loblaws Super centre.

"It's definitely an attention-getting buzz ... word-of-mouth ... all of those things are where marketers are investing these days. They are not stopping doing the other stuff, but they just find they've got to find something else that builds a little interest," said Sutter.

"The old newspaper ad, magazine ad and television spot don't quite have that engagement."

The purpose of setting up a spa in Canada's most populous city was to create brand awareness, said Michael Thouin, brand manager for Evian in Canada.

"We are taking the money we usually spend on a regular campaign and putting it to something that's a little more non-traditional," he said. "Yes, it is expensive to put together a spa but what we're getting back makes it an effective spend."

Are these pop-up retailers responding to consumer fatigue, or is it simply an age-old marketing ploy all tarted up and strutting her stuff?

"There's always been pedlars and travelling little wagons going around ... tinkers selling pots and pans, travelling bazaars, farmers and flea markets," said Len Kubas, a Toronto-based retail consultant.

"That's probably more of the retail tradition ... as opposed to firm buildings and stalls locked in place forever. Having stores and firm places of business is more recent than the history of retail would have you believe."

http://www.cbc.ca/cp/business/060916/b091608.html