China turns "slow pop-ups" into new retail laboratories

Articles & Reports
 |  
Jan 2025
 |  
LUXUS PLUS
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What: Slow pop-ups are replacing traditional stores in China as retailers shift towards longer-term experiential spaces that prioritise customer engagement over immediate sales.


Why it is important: This evolution signals a fundamental shift in retail strategy, where successful brands must balance operational costs with the growing demand for immersive experiences, reflecting broader changes in Chinese consumer behavior.


China's retail landscape is undergoing a significant transformation with the rise of "slow pop-ups," a concept that has surpassed traditional pop-up stores in strategic importance. While pop-up stores were initially complementary to physical retail, these new formats are now becoming primary retail channels. This shift is driven by economic rationalisation, with brands like FREY TAILORED demonstrating how location flexibility can optimise costs and traffic. The trend is particularly evident in luxury retail, where brands such as Schiaparelli and Burberry are using these spaces as laboratories for testing and refining their market approaches.


These slow pop-ups, lasting from two months to a year, offer brands access to prestigious locations while allowing them to develop local communities and refine their merchandising strategies. The movement aligns perfectly with Gen Z's evolving values, as evidenced by the 180% growth in "slow life" related content on Little Red Book between 2023 and 2024. This transformation represents a strategic response to changing consumer preferences, where emotional connection and deep interaction take precedence over immediate sales conversion.


IADS Notes: Pop-up retail evolution in China reflects wider market changes seen in 2024. In January, Coresight Research identified pop-ups as a key trend, followed by DFS and Douyin's "phygital" model launch in March. By April, Savills reported major Chinese cities allocating 16% of retail space to entertainment, while department stores transformed into lifestyle centres. August saw SKP implementing new engagement strategies, as Gen Z's USD 360 billion spending power shaped retail development . The year ended with 'chaotic customisation' becoming prominent and 95% of Chinese travellers integrating shopping into their journeys. The trend has evolved into "third spaces" in early 2025, validating Chinese luxury spending projections of USD 88 billion by 2028.


China turns "slow pop-ups" into new retail laboratories