In 2023, both international luxury and light fashion brands have increasingly embraced “Fashion + Coffee” themed pop-up stores, marking a new trend in offline brand marketing in China.
This crossover between fashion and coffee has gained traction as a strategic way to attract consumers, with some analysts suggesting that pop-up stores are a response to the trend of consumer downgrading, while others view it as a reflection of changing consumer behavior.
The Popularity of Combining Fashion with Coffee has Become a Hot Topic in Recent Years
Notable examples include Li-Ning’s foray into coffee shops in 2022, and Ralph Lauren’s dedicated coffee areas in select stores. This fusion has now extended to pop-up store formats, with many brands experimenting with the concept.
The choice of coffee, as opposed to tea or milk tea, is likely due to its social nature and the perception of being more “upscale.” Coffee also offers creative potential in terms of taste, packaging, and branding, making it an effective tool for engaging consumers.
One standout example occurred in June 2023 when Louis Vuitton (LV) collaborated with Manner to create a pop-up store in Shanghai, combining books and coffee. A notable product in this collaboration was the “LV Canvas Bag for 580 Yuan,” which caused a sensation. Customers spending over 580 yuan were gifted the bag, which was later resold by scalpers for more than a thousand yuan. This exemplified how the combination of fashion and coffee in a pop-up store can generate significant social media buzz and sales conversions.
Amid Dual Market and Financial Pressures, Light Fashion Brands Shift Focus to Pop-Up Store Marketing
As the market faces financial pressures, some light fashion brands, such as Converse, HUMAN MADE, Luxemporium, and DIESEL, have joined the pop-up trend, following the lead of luxury brands. This shift is partly driven by the less-than-ideal sales performance of certain light fashion brands, such as H&M, which has been closing stores in China. H&M’s financial reports show a shrinking store count in China, from a 2% decrease in 2019 to a 12% reduction in 2021.
数据来源：H&M财报
Li-Ning, which has actively invested in coffee shops and pop-up store concepts, also faces challenges. While the brand saw a 56% growth in 2021, its growth rate slowed dramatically to 14% in 2022, marking its slowest year in nearly four years. This trend reflects the cautious approach many brands have taken toward advertising and marketing in the current market climate.
数据来源：李宁财报
With the market being more cautious about advertising and marketing spending, pop-up stores have become a favored approach due to their ability to provide quick feedback and a strong ROI. These stores offer shorter cycles and lower costs for labor and rent. With the right level of creativity, they can generate significant social media buzz and drive sales conversions, making them an effective tool for boosting sales.
While luxury brands like Bulgari, Bottega Veneta, Louis Vuitton, and Dior have traditionally focused on aesthetics in their pop-up store designs, light fashion brands face different challenges due to their more limited financial resources. For these brands, pop-up stores need to do more than just attract attention, they must also drive sales.
The key for light fashion brands is using collaborative pop-up stores to create hot-selling items that not only generate immediate interest but also help attract valuable long-term customers to the brand’s core operations.
