Shop in Shop: what is it and what are its advantages?
The possibility of distributing and marketing products without the high costs of setting up a complete store makes this a key concept for brands to grow in a more controlled and sustainable way.
The retail industry is constantly evolving, driven by the search for strategies that increase profits for stores. One of these is the "Shop in Shop" model. Today, we explain everything you need to know about this and tell you about some of the advantages it brings to retailers.
Shop in Shop
As its name indicates, this strategy refers to placing or establishing a store within another. It is about integrating different brands within the same space in which each one has its own and allows consumers to buy its products within a closer, personalized and friendly environment.
In this retail model, brands can introduce their products to the market in a flexible and autonomous way at strategic points of sale such as shopping malls, galleries or large multi-brand stores. It is generally a win-win type of business association, in which both parties benefit. The owner who rents his space gains market share as he introduces new products that attract his customers. And the brands that they rent because they can lower the cost of their physical establishment in the market and benefit from the mass of customers of these large premises.
In a nutshell, the Shop in Shop is simply about setting up a store within another that has a larger space.
Advantages of the Shop-in-Shop model
There are some peculiarities that make this model very advantageous for those brands that use it in their strategies.
- Costs reduction. The possibility of distributing and marketing products without the high costs of setting up a complete store makes this formula perfect for brands to grow in a more controlled and sustainable way.
- Business alliances. The association between the owner of the brand and the owner of the retail establishment means pooling resources with the same objective, attracting customers to the premises; hence the smaller store benefits from the mass audience that the larger one attracts.
- Trampoline. The Shop in Shop establishment model can be very useful if you decide to use it as a showcase to reach potential customers and increase sales from strategic points.
- Innovation. The creative possibilities offered by this type of sales space are multiple. Innovating and attracting customers to our store will be much easier if we have an attractive and differentiating retail concept.
We must consider that the Shop in Shop model, as advantageous as it may be, if it is not applied properly, it will not fulfill its function of attracting customers and could ultimately be a failure. So that this does not happen, we must take into account the following:
- Study the audience. The space chosen to rent must be very clear, since if it is not suitable for the audience we want to address, it will lead to failure. Each brand has different objectives and within their strategies they take into account many factors to analyze which one is more convenient to achieve theirs. So, analyzing the audience that usually frequents the store with the greatest physical capacity where we want to place ours is key.
- Analyze the space. The interior location of the Shop in Shop is essential to attract customers, since if the route designed for customers does not lead them through our space, we will lose many sales opportunities.
- Commercial furniture. Proper design and development of commercial furniture, together with constant manufacturing, installation and promotional updating, are responsible for creating truly personalized spaces for brands in this context.
To sum up, we can say that when using this system, brands intend to offer greater motivation to the public to visit their stores; while the large stores that offer this possibility of retail to manufacturers obtain a new model to attract more customers without having to run the greater risk of investing in opening their own. Did you know about this retail model? Have you seen or frequent stores that work in this way? Tell us, we want to know your opinion about it.