Insight by Leah

In an interesting development, a number of luxury brands (including Chanel, Hermes and Louis Vuitton) are opening pop-up stores across the U.S. and Europe. Hermes plans to open it’s first pop-up location this summer in East Hampton for four months. This new strategy, following the lead of mass retailer Target and it’s phenomenal success with pop-up stores, represents an attempt by these luxury brands to reach a new audience, create additional press opportunities and capture additional sales in a tough economy. Nathalie Franson, ceo at Azzaro, which operated a pop-up store on London’s Mount Street for four weeks last February and March, stated that pop-up stores are “a way of attaining new customers as well as reinforcing relationships with our current customers. It creates a direct link between the brand and its clientele.”  As luxury brands struggle to retain customers and even stabilize sales, pop-up stores represent a viable and cost-effective option.  Will we soon see this trend for beauty product lines as well?