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1 AUTHOR:
Karine Picot-Coupey
Universit de Rennes 1
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Purpose The purpose of this paper is first, to describe the characteristics of a pop-up store in an
international context, second, to investigate the motivating factors for its choice and third, to analyze
its role in the retail internationalization process.
Design/methodology/approach A multiple-case study was adopted. Research was carried
out using secondary data sources, social media observation and semi-structured interviews with
senior managers in charge of the international development and management of pop-up stores.
A conceptualizing content analysis was conducted both manually and with NVivo software.
Findings The main results cover the following aspects of an international pop-up store and
highlight the differences between this choice of FOM and other store formats: key characteristics:
location, design and atmosphere, merchandise mix, and store events are very creative in order to
attract foreign consumer attention; choice motivations: three motivations were found, which were first,
to test and adapt the concept with foreign consumers possibly unfamiliar with such a store concept,
second, to raise and sustain the international profile of a retail brand, and third, to develop relationship
networks with stakeholders in foreign markets; role in the retail internationalization process: a dynamic
approach is adopted as role varies from mode switch at the entry stage to mode combination at the
further expansion stage.
Research limitations/implications The results of this research suggest avenues for future
research, particularly in relation to how the concept of the international pop-up store will evolve
over time.
Practical implications This research provides guidelines for international retail managers
wishing to choose a pop-up store as a foreign operation mode (FOM).
Originality/value This research provides a new insight into the characteristics, choice motivations
and management of a pop-up store in an international context.
Keywords Internationalization, Retailing, Foreign operation mode, Pop-up store
Paper type Research paper
Introduction
Since 2008, there has been a growing trend for international retailers to use pop-up
stores in foreign markets, such as a Uniqlo store opened for two months in Paris in
2009, an Azzaro shop launched for ten weeks in 2010 in Riyadh, and a Louis Vuitton
store set up for only four months in fall 2008 at the Museum of Contemporary Arts in
Los Angeles.
The pop-up store, also referred to as a temporary, itinerant or guerrilla store, is a
retail space that is intentionally opened for a short period of time (Niehm et al., 2007).
The Japanese high-end fashion brand Comme Des Garcons is often presented as the
The author would like to thank the retail managers who accepted to participate to the research
project for their support.The author also wants to thank Marine LeGall-Ely and Rozenn Perrigot
for their notices and suggestions that allowed her to improve the paper.
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initiator of the international pop-up store trend, as it opened its first store of this type in
2004 in an old warehouse in former East-Berlin for a period of just one year. Since
this initiative, the phenomenon of international pop-up stores has exploded insomuch
as they are viewed as the latest expression of innovative solutions in marketing
channels (Musso, 2010, p. 37).
Even though the number of international pop-up stores continues to increase,
they have received very little coverage in the international retailing literature to date
(Picot-Coupey, 2012). However, it has been widely acknowledged in the academic
literature that selection of the most suitable foreign operation mode (FOM) is an
essential but very difficult decision (e.g. Welch et al., 2007). Managerial reports have
also stressed the key role that the FOM decision plays in retail internationalization:
Perhaps most critical is the method of entry into the chosen market (Deloitte, 2009,
p. 3). Therefore, it seems particularly worthwhile to gain a deeper understanding of
what makes a pop-up store an appropriate choice of FOM.
As such, the purpose of the present research is to investigate the choice of the
pop-up store as a FOM and its role in the retail internationalization process. If a few
research has been conducted on pop-up stores (Niehm et al., 2007; Surchi, 2011;
Russo Spena et al., 2012), none of them has focussed on their use in an international
context up to now. Thus it is interesting to explore how heads of international retail
brands assess the distinctive features of a pop-up store in a given foreign market
in order to describe the characteristics of a pop-up store as a FOM and analyze
the motives for its choice. These questions worth considering both at the entry
and expansion stage: this allows addressing FOM development over time and its
connections with the retail internationalization process which are considered key
issues (Burt et al., 2008; Welch et al., 2007; Benito et al., 2011).
This research taps into a novel and contemporary subject. Its contribution to the
international retailing literature lies in the detailed analysis of pop-up stores as an
innovative FOM and in the presentation of an enlarged typology of retail FOMs.
It offers a dynamic conceptualization of FOM choice in retailing as it depicts the
management of the international pop-up store both at the entry and expansion stage,
when used in isolation or in combination with other modes.
The first section of this study presents an overview of the literature on FOMs and
pop-up stores. The case-study methodology used in this research is then described,
followed by a presentation of the main results and an in-depth discussion thereof. Finally,
the limitations of the study will be discussed and avenues for future research suggested.
Retail FOMs and the pop-up store: a literature review
The research framework was built from the international business and retailing
literature both on FOMs and pop-up stores. Numerous retail FOMs exist and new ones,
such as pop-up stores, appear over time.
Retail FOMs
Retail FOMs refer to the means by which retailers establish an operational presence
in non-domestic markets (Alexander, 1997, p. 278). Hollander (1970) and Waldman
(1978) were the first to document how retailers moved into international markets.
Hollander (1970, p. 145) stated that the most common FOMs were the purchase
of existing stores and firms, participation in joint-ventures, establishment of foreign
subsidiaries and franchising plans, whereas management contracts and mergers were
presented as FOMs that were less frequently used. Research on this topic had been
limited until the 1990s, when studies on retail internationalization started to consider
the FOM as a key element in this process (Burt, 1993). Dawson (1994) presented five
main FOMs for international retailers: internal expansion, merger and takeover,
franchise type agreement, joint-venture and non-controlling interest. Merger, acquisition
and joint-venture were subsequently discussed to highlight their precise outcomes
(Wrigley, 2000, 2002) while wholly-owned and franchised stores received specific
attention in the context of global retailers international expansion (Moore and Fernie,
2000; Park and Sternquist, 2008). In recent years, the international retailing literature has
shown an ever growing interest in FOMs (Doherty, 2000, 2007; Burt et al., 2008), with
qualitative research shedding light on retail experiences. FOMs not mentioned in
conventional typologies were then observed: wholesaling, concession, but also storewithin-store and flagship store (Moore, 1998; Fernie et al., 1998; Hutchinson et al., 2007;
Moore et al., 2010). Initially considered as store formats, these two latter were observed
as FOMs too. Indeed these formats were intentionally used by retailers to move into
foreign markets because of the specific organizational characteristics they exhibited in
relation to their particular format features. Formats can result in innovative methods of
foreign market development. The range of FOMs presented in traditional typologies
(Dawson, 1994; Howard, 2004) appears more limited than the ones effectively used by
retailers today, which illustrates a discrepancy between theory and practice in relation
to FOM decisions (Benito et al., 2009, p. 1455). An extended typology of retail FOMs with
their different purposes is presented in Table I.
Retail FOM decisions
Retail FOM choice. When choosing a FOM, international retailers trade-off the
advantages and disadvantages of the different modes; this is a complex decision, with
numerous and conflicting determinants. A group of five factors are recognized as key
determinants (Doherty, 2000; Picot-Coupey, Hutchinson et al., 2007):
(1)
(2)
industry context;
(3)
(4)
(5)
These determinants influence the final choice of FOM through its dimensions.
Two traditional dimensions are risk and control. In this perspective, a FOM is
a means of minimizing risk through financial commitment management. Further
research suggested four dimensions: dissemination risk of specific assets, control
over strategic and operational decisions, resource commitment, and flexibility (Driscoll
and Paliwoda, 1997). This confirmed the view of Treadgold and Davies (1988) on the
importance of the desired degree of control over the operation, amount of resources
dedicated to the project, and degree of flexibility in retail FOM decisions: thus a FOM
is a means by which retailers manage the international development along a financial
risk control flexibility continuum.
Retail FOM switching and combination strategy. FOMs are still typically presented
as mutually exclusive methods to operating in a foreign market. Yet the internationalization
Table I.
Retail foreign operation
modes
Hierarchical modes
Minority stake
participation
Market observation
Management contract
Franchising
Direct franchising
Master franchising
Concession
Contractual modes
Licensing
Store-within-store
Agent
(continued)
Drawbacks
646
Export modes
Export and wholesaling
International Internet
sales
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Joint-venture
Flagship stores
Dissemination of knowledge or of
specific assets; difficulty in
communication; risk of conflicts of
interest
Difficulty in managing the operations
Drawbacks
Table I.
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process is dynamic. The mode chosen in the entry context may not be suitable for the
expansion stage as circumstances and objectives may be different (Fischer et al., 2005).
As such the generic heading entry mode, which is widely used in the academic literature
as a term covering FOM use in all circumstances (e.g. Doherty, 2000, 2007; Park and
Sternquist, 2008), is considered unfortunate (Welch et al., 2007, p. 10). The topic is better
addressed under the heading FOM to consider the dynamic context (Welch et al., 2007;
Benito et al., 2009). The current critical issue in FOM research is mode development over
time, with two strategies: mode shift and mode combination (Canabal and White, 2008;
Welch et al., 2007; Benito et al., 2011). Mode shift involves the switch from one FOM to
another, with the later mode replacing the earlier one. Motives behind the change may be
either difficulties with the present mode or the establishment of new objectives in the
targeted foreign market. Mode combination consists of the addition of one FOM to
another, in the short or long term. Combined modes may be unrelated in order to serve
different businesses in a foreign market, segmented to handle various customer targets in
different ways, complementary to manage different value chain activities or to reach
several objectives, hybrid to monitor goal congruence between the principal and the agent,
or finally, in competition with the use of multiple FOMs to benchmark local operations
(Welch et al., 2007). The degree of coordination and integration of these combined modes
may vary greatly, from complete independence to permanent benchmark operations. Such
a combined use of FOMs has been observed in retailing: the combination of concessions
and company-owned stores (Waldman, 1978), plural forms that associate company-owned
stores and franchised ones (Dant et al., 2008) and multi-modal forms that combine
wholesaling and franchising (Moore and Fernie, 2000; Petersen and Welch, 2000), or
company-owned stores, franchises and shop-in-shops (Moore, 1998; Picot-Coupey, 2006).
Retail FOM dynamics and the stages models of the internationalization process.
These issues of FOM choice and change since the initial entry are connected
to the question of FOM dynamics: in this perspective, research relating to the
internationalization process, and specifically to the stages of internationalization, is
particularly relevant. Following the Uppsala theory that is a dominating view in the
internationalization literature, a company gradually and sequentially increases its
international involvement through a series of commitment decisions based on
management perceptions and experience ( Johanson and Vahlne, 1977, 1990). In terms
of FOM, it means that it evolves over time with greater commitment: initial entry in
a foreign market is typically with a low commitment operation mode and followed by
progressively higher commitment FOMs. In the international retailing literature,
the retail internationalization process is acknowledged as being very broad, including
pre-cursor activity, supporting developments and modifications thanks to on-going
learning processes (Dawson, 1994; Jackson and Sparks, 2005; Jonsson and Foss, 2011).
The Uppsala theory has inspired models of international retail involvement
(Sternquist, 1997; Vida and Fairhurst, 1998; Vida et al., 2000) that received mixed
empirical support (e.g. Vodlan and Vida, 2008). Specific to retailing, Treadgold (1990)
produced a three-stage model of expansion over time through which retail companies
progress as the company attitude toward foreign development changed from reactive
to more pro-active. Initially reluctant (stage 1), they move to caution when engaging
in the early stages of internationalization (stage 2), and then to ambition thanks
to the accumulated experience (stage 3). This incremental perspective of firms
internationalization is challenged by the international new ventures theory (Oviatt and
McDougall, 1997): it examines firms experiencing accelerating internationalization
soon after their inception such as, in international retailing, the fashion retailer Zara
that achieved international growth in the early and development phases of its
internationalization process with high risky FOMs (Bhardwaj et al., 2011). If the
longitudinal dimension of an internationalization process has been an explicit
consideration in retailing since the 2000s (Dawson, 2001), it is still rarely taken into
account in the choice of FOM.
649
Authors (date)
Research purpose
International
perspective
Yes
No
No
No
No
No
No
Table II.
A synthesis of the
literature on pop-up stores
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Merchandise mix
650
Store location
Table III.
Pop-up store format
in a domestic context:
main characteristics
Promotion
Sources: Doyle and Moore (2004); Kim et al. (2010); Marciniak and Budnarowska (2009); Niehm et al.
(2007); Russo Spena et al. (2012); Surchi (2011)
Moore, 2004). Their promotion is essentially based on word of mouth (Ryu, 2011;
Surchi, 2011). A pop-up store requires modest investment (Surchi, 2011): cost is
controlled and limited resources are invested in the project. Such stores have
communication relevance for the development of long-term relationships beyond
the sole aim of direct profit generation (Doyle and Moore, 2004; Marciniak and
Budnarowska, 2009; Surchi, 2011). Pop-up stores aim to produce demand rather than
generate revenue (Ryu, 2011); they are a sort of synthesis between communication and
selling (Surchi, 2011, p. 260).
Choice motivations for a pop-up store. Very few analyses have been conducted on the
reasons that motivate retailers to choose the pop-up store as a FOM. Marciniak and
Budnarowska (2010) assert that it aims to raise the international profile of a brand in a
new foreign market. Surchi (2011) qualifies it as a method of brand dissemination
across international markets, observing that it is a means to test a new store concept
for retailers.
Additionally, three choice motivations for domestic pop-up stores have been
acknowledged. First, a format based on surprise and exclusivity is a well-suited
response to current consumer expectations. Pop-up stores appeal to consumers for
hedonic reasons linked to the novelty and distinctiveness of the retail concept and
the uniqueness of the experience (Kim et al., 2010). Second, in a context of limited
efficiency of traditional media communication, the store as a media form is of strategic
importance. Pop-up stores are thus a means to create awareness and buzz, with a
promotion plan based on word-of-mouth communication, guerrilla marketing and
social networking techniques (Marciniak and Budnarowska, 2010; Ryu, 2011). They
deliver a consistent and distinctive message and provide an interactive environment
for consumers and retailers alike (Kim et al., 2010). Third, pop-up stores have been
analyzed as a solution to the challenging economic climate facing both landlords
and retail managers. For the former, it is a way to fill vacant space (Mulvihill, 2010)
while the latter can sell off excess warehouse stock or maintain sales with a limited
investment (Surchi, 2011).
The role of the pop-up store in the retail internationalization strategy. The
contribution of pop-up stores to the internationalization strategy of a retailer have
not yet been investigated; the following scare points can be derived from the
research referred to in Table III. On the one hand, a pop-up store could be used as a
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[C]
[D]
[T]
[Z]
[M]
[G]
[B]
[N]
[A]
[O]
Company
name
Established
retail brand
No
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Turnover (Mh)
(% foreign
markets) (2009)
520 (18)
2,200 (80)
440 (50)
140 (60)
4 (60)
1,420 (80)
120 (22)
7 company-owned stores
22 franchised stores
10 shop-in-shops
6 company-owned stores
5 shop-in-shops
31 company owned stores
3 franchised stores
1 flagship store
14 company-owned stores
13 shop-in-shops
150 company-owned stores
56 factory outlet stores
Wholesaling
28 company-owned stores
4 franchised stores
89 shop-in-shops
1 flagship store
162 company-owned stores
31 concessions
1 flagship store
16 shop-in-shops
25 company-owned stores
51 concessions
37 shop-in-shops
2 flagship stores
38 franchised stores
Operation mode
in the domestic market
30
10
19
1980s
2000s
1990s
10
8
1981
5
1998
1990
10
50
1900s
1980s
60
39
1990s
1997
Number of
foreign markets
Start of international
expansion
(continued)
25 flagship stores
38 shop-in-shops
Wholesaling
11 company-owned stores
3 shop-in-shops
13 flagship stores
167 company-owned stores
24 franchised stores
7 flagship stores
12 shop-in-shops
75 company-owned stores
47 franchised stores
38 factory outlet stores
6 company-owned stores
160 franchised stores
30 shop-in-shops
2,700 company-owned stores
147 franchised stores
5 flagship stores
145 franchised stores
300 shop-in-shops
9 flagship stores
305 company-owned stores
40 concessions
20 shop-in-shops
Foreign operation
modesa
Table IV.
Research sample: retail
companies characteristics
[S]
[P]
No
No
Yes
Established
retail brand
3 company-owned stores
Wholesaling
60 company-owned stores
Wholesaling
Operation mode
in the domestic market
1992
1980s
1998
Start of international
expansion
Note: aForeign operation mode used in combination with international online stores except for Q
43,000 (10)
[Q]
Table IV.
Turnover (Mh)
(% foreign
markets) (2009)
70
20
10
Number of
foreign markets
6 flagship stores
112 company-owned stores
59 shop-in-shops
7 company-owned stores
Wholesaling
110 company-owned stores
50 franchised stores
Wholesaling
Foreign operation
modesa
654
Company
name
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[B]
[N]
(continued)
[O]
[A]
Representative quotes
Firm name
Table V.
The pop-up store as a
foreign operation mode:
choice motivations
and role in the
internationalization
process
[T]
[Z]
[M]
[G]
Table V.
Representative quotes
(continued)
658
Firm name
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[S]
[Q]
[C]
[D]
Firm name
FOM in combination with branded stores;
supportive role at the expansion stage
(continued)
Representative quotes
Table V.
[P]
Table V.
Representative quotes
660
Firm name
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number of customers we can get through the door. Our target is young people. If young
people rush in, we know its won (interview C); second, consumer preferences and
concept adoption: What we have is more of a laboratory situation whereby we can
interact with consumers and learn from their responses about what pleases them
and what does not (interview Z). As a FOM, pop-up stores help address the
standardization adaptation dilemma as they allow testing the essence of the
internationalized retail offer and they participate to the process of creating a distinctive
and acceptable offer. The concept can be tailored to the market, according to consumer
feedback: We had an eclectic product assortment and we noticed that our clients
would also buy bags, which is quite surprising for us (interview A). Their ability to
offer the necessary conditions for the efficient implementation of an international
marketing policy is a key choice factor, confirming results on the determinants of a
retail FOM (Doherty, 2000; Picot-Coupey, 2006):
Motivation 2. Raising and sustaining the international profile of a retail brand.
The international retailers interviewed underlined the importance of shaping
a brands international status and how international pop-up stores helped to achieve
this objective. First, the temporary nature of a pop-up store enabled retailers to access
specific or prestigious, but expensive, locations considered necessary to develop an
international image. Some specific international locations are the place to be at certain
periods of the year (interview T). Second, pop-up stores injected exclusivity and
surprise, thus offering visibility to a retail brand in a new competitive context. Their
theatrical nature generated buzz and brand awareness when expanding into new
markets: It was never meant to be a selling operation but an opportunity to generate a
buzz about our new venture in Germany (interview C). International pop-up stores
serve the purpose of the store as a form of media, with communication being more
relevant than turnover for well-established retailers (Doyle and Moore, 2004; Marciniak
and Budnarowska, 2009). It is also an effective FOM to educate foreign consumers
and potential partners about the retail concept. The misinterpretation of a concept
represents a major risk in an international context (Dupuis and Prime, 1996; Goldman,
2001); pop-up stores could help overcome this by working on various concept
dimensions (history, product assortment, storytelling). It was a valuable learning
ground though capturing their interest and interacting with them. We could deliver a
very consistent, very clear and very distinctive message to European consumers
(interview S). Finally, it is also an appropriate FOM when updating of retail brand
recognition by the target market is needed: The question was how to rejuvenate a tired
brand positioning in this market with energetic outreach? (interview M). These findings
support the view that, when expanding internationally, developing a distinctive retail
brand image is essential (Burt and Carralero-Encinas, 2000); the ability of the pop-up
store as a FOM to help shape this in the mind of the clientele is a strong determinant
in its choice:
Motivation 3. Developing relationship networks with stakeholders in foreign markets.
Choosing a pop-up store as a FOM gives the opportunity to connect with various
stakeholders to the development of the retail brand in a foreign market: consumers,
trendsetters and journalists via immersive experiences, promotion operations, social
media activity and temporary web sites, and local authorities and landlords via the
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whether the operation has a high or low success rate, it is a decision-making tool for
future development (interview Z). Thus, it is a FOM that allows learning from the
market, enabling explorative internationalization. This finding confirms the central role
of experiential knowledge and learning to drive the retail internationalization process
( Johanson and Vahlne, 2009; Jonsson and Foss, 2011). It is a means to evaluate the best
suited post-entry mode and strategy to adopt, including a possible retrenchment.
Mode switching can be planned, with no inertia in the shift process. In two cases Z and
P pop-up stores became permanent ones as they were intentionally used as a means to
showcase and speed up future store opening. In this perspective, the pop-up store
as a FOM nurtures a proactive approach to internationalization: the retail firm can
switch more rapidly than planned in the initial model from cautious to ambitious
(Treadgold, 1990).
For small retail companies, the pop-up store as a FOM plays another role at the
entry stage in addition to its explorative support. Respondents from such small
companies stated that this FOM exhibits specific qualities not only to limit resource
commitment but also to reach a rapid return. Rough and ready concepts can be
developed without shocking the consumer and immediate revenue can be generated,
thereby helping finance the future international expansion. With a limited budget,
it is immediately operational and, above all, it catches the clients eye as it stands out in
its environment (interview O). There is an objective of rapid profitability behind the
choice of the pop-up store as a FOM for these small firms, which has not been
observed as such in a domestic context (Ryu, 2011; Surchi, 2011). The pop-up store as a
FOM helps them address time-related issues which are critically important in their
internationalization process (Hutchinson et al., 2007). It only took nine weeks to open,
so we could start obtaining the benefits quickly (interview P). This FOM enhances
their capability to develop internationally: it eases their internationalization process
as retail managers feel more confident in the profitability of the foreign operation,
so switching more rapidly to branded stores: they leapfrog the reluctant stage of
internationalization (Treadgold, 1990).
A combined FOM to support further expansion stages in a foreign market.
Respondents explained that, once entered, they used pop-up stores in combination to
already existing FOMs in order to strengthen overall market expansion. Primary
mode(s) exist(s), with which pop-up store(s) is (are) associated: retail networks are then
made up of company-owned stores in the form of traditional, flagship or pop-up
stores franchised stores and/or shop-in-shops. When analyzing the nature of mode
combinations and their effect on retail companies internationalization at the expansion
stage, the pop-up stores as FOM appear to impact it in two ways: generating revenue
and complementing the marketing action of other FOMs. First, the pop-up store when
added to already existing branded stores brings agility and reactivity to a network
that is otherwise static [y] it is possible to be specifically active over a given period of
time (interview M). With seasonal pop-up stores, a retail network expands efficiently
in a given foreign market. In this perspective, the pop-up store as an additional
FOM generates extra-revenue for the foreign operation, which is a role already
observed to justify mode combination (Benito et al, 2011). Second, another key objective
of combining pop-up stores to other retail FOMs was to make them work in a cohesive
manner. They are meant to complement each other marketing action. In the FOM
package at the expansion stage, the role of the pop-up store is to develop brand
knowledge and loyalty among consumers and to create traffic on online or physical
stores: Its tiny compared to the flagship store, but its meant to whet Parisians
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appetite for the anime-inspired T-shirts which are one of our best-sellers, but less
well-known in France [y] and it should drive traffic to the other outlets (interview Q);
We organize events to strengthen the relationships with our best customers so that
they come back either on the website or to their usual outlet and already have a special
relation with us (interview N). Such a management of combined modes to support
and enhance one another corresponds to what Benito et al. (2011) have typified as
complementary modes. In this perspective, the pop-up store as an additional mode
boosts international expansion cost-effectively. Within the context of the existing
network of stores opportunities of growth can be exploited more effectively. Ambitious
objectives can be achieved in the foreign market. At the same time, pop-up stores as
FOMs help the strategic sequencing of foreign-market entries. A sprinkler approach,
rather than a waterfall one, is made possible: At the same time we had pop-up stores
in China and in London, as our internationalization objectives were high. Clearly it
would not have been possible with permanent company-owned stores (interview G).
The pop-up store as a FOM was a means of speeding up internationalization as it made
simultaneous entries possible. Overall, the mode addition alters the incremental
approach to internationalization as described by the Uppsala theory ( Johanson and
Vahlne, 1977, 1990). There is no clear movement from a lower commitment to a higher
commitment FOM but a series of adjustments, with modes packages among which
the pop-up store meant according to the specific marketing objectives that have to be
achieved in the foreign operation. Such mode packages sustain the more rapid
internationalization path as described by Oviatt and McDougall, 1997).
Discussion and implications
The originality of the study is to address an underdeveloped research area through
the analysis of the retailers assessment of pop-up stores as a FOM. It serves to
move forward knowledge of pop-up stores into an international context by providing
new results into the characteristics and choice motivations for the pop-up store
as a FOM and its role in the retail internationalization process. In doing so, it
also contributes to deepen the understanding of the internationalization path of
retail companies.
According to the research results, a pop-up store acts as a conduit into international
markets with very specific characteristics and purposes and thus differs in several
ways from other retailer FOMs. It is characterized by the merchandising innovativeness,
creativity and unrestricted locations; its success is dependent on how such marketing
innovation provides something different that attracts stakeholder attention in the foreign
market. The retailing mix of a pop-up store can be appraised for each context to make it
directly relevant to the target clientele. Hence, the pop-up store is a new FOM that has the
ability to drive the retailing mix toward flexibility, which is a key success factor for an
international retailer (Goldman, 2001). In retail firms reasoning for the choice of the
pop-up store as a FOM, the marketing factors (innovative location, creativity in store
design, branding) appear influential, confirming their role as a determinant of FOM
choice (Doherty, 2000; Picot-Coupey, 2006; Hutchinson et al., 2007).
Then, the findings indicate that there are three key motivations for the choice of
a pop-up store as a FOM:
(1)
(2)
Managing efficiently the international brand image, finding that supports the
view that, by creating brand momentum, pop-up stores are an appropriate
mode to disseminate brands internationally (Surchi, 2011).
(3)
Moreover, in terms of the role of the pop-up store as a FOM in the retail
internationalization process, this study supports previous research on the importance
of FOM dynamics in the internationalization process (Welch et al., 2007). On the one
hand, the findings highlight that it is a cost-effective FOM used in isolation to enter
a new foreign market, dimension to which smaller retail companies are particularly
sensitive. Pop-up stores as entry modes support explorative purposes that are
particularly sensitive in the retail internationalization process ( Jackson and Sparks,
2005; Jonsson and Foss, 2011). So, at the beginning stage of the internationalization
process, they fit into the stages theory ( Johanson and Vahlne, 1977, 1990) as they fuel
a process of incremental resource commitment driven by developing experiential
knowledge. On the other hand, their common use at the expansion stage deviates from
the stages theory: they support international development without any involvement
into more risky modes. At this expansion stage, the findings confirm that revenue
generation and marketing synergies are important consideration when combining
FOMs (Benito et al., 2011). It provides agility to a retail network and helps develop
local solutions in a given foreign market. It is a consistent part of a retail brands
internationalization strategy as long as its roles are clearly defined in combination with
other FOMs. According to the results of the present study, pop-up stores help address
some of the challenges involved in the retail internationalization process in terms of
market study and market selection strategy and market expansion strategy. It is
consistent with the literature on mode combination (Benito et al, 2011) that argues that
such FOM combinations offers scope for improved international market penetration
capacity and more rapid and ambitious internationalization process.
Overall, the choice of the pop-up store as a FOM reflects the relative importance
assigned to the three key dimensions of a FOM, namely resource commitment, control
and flexibility. In this perspective, this confirms the results of previous research
conducted on retail FOM choice (Treadgold and Davies, 1988). However, the research
shows that it is an atypical FOM characterized by low resource commitment high
control high flexibility. Consequently, it is a new FOM for controlled but flexible
growth into international markets that, as such, enlarges the array of FOM choice
for retailers. For these reasons, the pop-up store deserves to be considered as a
distinct FOM.
Our research provides important guidelines for retailers who consider the pop-up
store as a FOM. Above all, finding the right neighborhood or store location is critical to
ensuring the success of a pop-up operation. Once this found, by operating pop-up
stores, retail managers can take advantage of a cost-effective mode to test new foreign
markets with full information control, and to adapt the DNA of the concept in a way
that is perceived as relevant by the target clientele in the foreign market. In addition,
with such an innovative FOM, retailers have opportunities for innovative interior
and exterior store design as well as creative merchandising in order to express
distinctive brand values and offer consumers unique and memorable experiences.
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About the author
Dr Karine Picot-Coupey is an Associate Professor of Marketing at the Graduate School of
Management (IGR-IAE) of the University of Rennes 1. She is researcher at the Center for
Research in Economics and Management (CREM UMR CNRS 6211). Her work has been
published in peer-reviewed journals such as Recherche et Applications en Marketing or
International Review of Retail, Distribution and Consumer Research. Current research interests
include retail foreign operation mode strategy, fashion retailer internationalization as well as
innovation in retailing. She is Head of the MSc in International Management at the University of
Rennes 1 Graduate School of Management. Dr Karine Picot-Coupey can be contacted at:
karine.picot@univ-rennes1.fr