Korean retailers host virtual pop-up stores to attract young consumers

Lotte Chilsung has opened a ‘Pepsi Digital Pop-up Store’ in collaboration with immersive XR solution provider Elypecs. (XROMETA website)

South Korean retailers are launching online pop-up stores using virtual showrooms and metaverse platforms to capture the attention of young consumers.

CJ OnStyle announced on Wednesday that it will unveil a pop-up store in October in collaboration with comedy label Meta Comedy Inc.

Popular among those in their 20s and 30s, Meta Comedy is a multi-channel network featuring creators like Jangbbijju, Pisik University, and Gwana.

The virtual store will allow visitors to explore curated products in a 360-degree view and enjoy YouTube video content and photo galleries.

Since August, CJ OnStyle has been experimenting with online pop-up stores. Last month, it featured a Parisian-themed curation, and this month, it collaborated with CelebShop Edition and artist Heo Myung-wook.

Users can access these stores via a shortcut on the company’s mobile app or website, entering a pop-up zone designed to simulate the experience of walking into a physical store.

Other retailers are also embracing digital pop-up stores.

Online shopping mall ABLY is showcasing dessert hotspots and character merchandise through its pop-up initiatives.

Currently, ABLY is featuring a collaboration with popular illustrator Nunu, who boasts 260,000 social media followers.

Previously, the platform hosted a series of dessert hotspot relay pop-up stores, which contributed to a 160 percent year-over-year growth in its food sector transaction volume during the first half of this year.

Metaverse-based pop-up stores are gaining traction as well.

This month, LF’s clothing brand Hazzys opened a pre-fall collection English Garden pop-up store on the metaverse platform ZEP.

Consumers can create avatars, explore virtual gardens, and browse Hazzys’ latest items. They can also interact freely with other users. Mileage points and discount coupons earned within the virtual space can be used like cash on Hazzys.com.

Lotte Chilsung is also leveraging the metaverse platform with its Pepsi Digital Pop-up Store.

Celebrating Pepsi’s 125th anniversary, the store introduces the brand’s new logo and showcases three new products through 3D content.

Visitors can view items like the newly launched Pepsi Zero Sugar Pineapple flavor in a 3D virtual environment.

Last month, E-Land World’s parenting platform KidiKidi opened an online pop-up store to unveil new fall and winter products from popular brands. Earlier this year, Pokémon Korea launched an online pop-up store to present the renewed version of its Hanbok Pikachu plush toy.

Experts cite two main factors driving the popularity of online pop-up stores. First, the limited-time availability creates a sense of scarcity.

“The younger generation values unique experiences, which initially drew them to offline pop-up stores,” said a retail industry analyst. “Now, this trend is expanding into the digital space.”

Second, online pop-up stores are more cost-effective compared to their offline counterparts. “Opening a physical store involves significant expenses like space rental and labor costs, but digital pop-up stores can substantially reduce these costs depending on how companies design them,” the analyst said.