Online Retailers Set Up Shop in Newfangled Manhattan Mall Show fields is an interactive market where consumers can shop for brands that previously only and sold products online Customers tried out a bed at Show field, a new pop-up mall in the Norto con of Mshaman. PHOTO: JOHN TAGGART FOR THE WALL STREET JOURNAL Bume Rider Feb 5.2014 10:30 am ET The first thing I did when visiting Showfields, the new, four-story, self-proclaimed "Most Interesting Store in the World," in Manhattan was try a new toothbrush. A sales rep selling electric toothbrush kits for dental care startup Quip donned plastic gloves, squirted paste onto a new brush head and waited patiently as I buzzed the device around in my mouth until its two-minute timer went off. "How does it feel?" she asked. "It feels like I brushed my teeth," I said. Cruising Showfields' zigzag corridor, I also tried a rowing machine, sampled a face cream, voted on scents for a coffee-based body scrub and dozed under a 25-pound compression blanket meant to soothe anxiety. Showfiel ds founders, who say their interactiv e market Nur is the store of the future. Csers recently browse vendas Showted P TO OUN TACKART FOR THE WALL STREET JOURNAL refer to the venue as a "retail gallery." It feels like a cross between an art space and that weird pavilion at the county fair where sales reps demonstrate new floor cleaners. But it's perhaps best described as a newfangled mall. Instead of Banana Republic and Cinnabon, however, Showfields mainly hosts startup brands that have only sold products online. Co-founder and chief executive officer Tal Nathanel said he launched Showfields after realizing that the products he and his friends prefer were often only available online because most digital brands don't have the resources to open a pop-up. "If we can make the process of opening a physical store as casy as opening a website, boom! Problem solved!" Mr. Nathanel said, At Showfields, brands rent small, enclosed spaces--typically 100 to 200 square feet--for a four- month period with an option to extend. Some sell products directly from their booths, others have customers place orders and ship products from a warehouse. Showfields rents range from $6,000 to $20,000 a month, and include design and construction services, along with shared amenities such as a vegan cafe and events intended to draw visitors Showfields also trains and provides sales reps, which it refers to as brand hosts. Companies can have their booth tended by a floating host wandering the corridor in a black suit or by a dedicated host wearing their brand uniform. A well-trained staff is key to the experience. Mr. Nathanel said. "In the age of digital, we are more thirsty than ever for humans," he said. Co-founder and CEO Tal Nathanel said he launched Sheilds a realizine whenudusishe and Iris friends preferohen were only available online because my digital brands don't have the us to na po PHOTO: JOHN TAGIGART FOR THE WALL STREET JOURNAL On my second Showfields visit, host Bryce Collins introduced me to Function of Beauty, a line of customizable hair care products. Facing a large screen, he walked me through a digital quiz about my "hair goals." had me choose a shampoo color and scent and asked me to type in the name I wanted printed on the bottle. I tried to enter "ANNE!!!!" and was disappointed when the system limited me to lowercase letters and one exclamation point. That's something I can give them feedback on." Mr. Collins said. "We give qualitative feedback to the brand itself, and it's directed to their marketing team." Visitor movements are recorded by dozens of cameras so Showfields can show partners how much time customers spend in the booths. Partners say Showfields offers an easy alternative to opening their own storefront pop-up. Mike Grillo, co-founder and president of Gravity Blanket, said his company sold 170,000 weighted covers and surpassed $27 million in sales since launching in 2017, but had yet to open a store. "It was cost prohibitive, with New York real estate," he said. Mr. Grillo said his Showfields booth costs roughly a third what he would pay to open and staff a pop- up, and he's pleased with the attention it is getting on social media. "If you're a brand focused solely on driving units off the shelf, it's not the destination for you." Mr. Grillo said. "But if it's something the customer needs to experience to understand, it's perfect." Visitors, meanwhile, said they had fun. ke a museum, but you can be intentive with the displays," said Laura Acosta, coordinator who spent half an hour at Showfields last week sampling products and taking photos to post on Instagram. Showfields, which is open daily, launched this past December with nine partners on the first floor. By March, the entire 14,700-square foot former women's shelter on Bond Street in NoHo will open for business, hosting up to 40 brands, Mr. Nathanel said. UNT Show field is located on the comer of Lafayette and Hand struts in the Noble action of Manhattan. PHOTO: JOHN TAGIART FOR THE WALL STREET JOURNAL While Showfields will be the largest store of its kind in the city, it is not the first to try this strategy, said Melissa Gonzalez, founder of the Lion'esque Group, an agency of retail strategists and pop-up architects based in Manhattan. The model, known in the industry as a "retail as a service platform," is offered by an increasing number of mall operators looking to fill vacant space, for example, Ms. Gonzalez said. Showfields shouldn't have difficulty attracting tenants or foot traffic, she said. The challenge will be proving that visits translate to increased online sales. So is it really the most interesting store in the world? "I don't know about the world," said Sora Golob, a Manhattan resident visiting last week. "But we will come back." 1. What do you think of Showfields? Would you visit? 2. Why would a company like Quip pay $6,000 to $20.000 a month to demo and sem at Showfields? 3. Would you consider Showfields a new entry see slide 3 from lecture)? Explain 4. Would you consider Showfields a first mover? Why or why not? 5. What first mover advantages/disadvantages would be most relevant in this case Online Retailers Set Up Shop in Newfangled Manhattan Mall Showlields is an interactive market where consumers can shop for brands that previously only had sold products online Customers tried out a bed at Show field, a new pop-up mall in the NoHo action of Manhattan. PHOTO: JOHN TAGGART FOR THE WALL STREET JOURNAL Feb 5.3019 10:30L T The first thing I did when visiting Showfields, the new, four-story, self-proclaimed "Most Interesting Store in the World," in Manhattan was try a new toothbrush. A sales rep selling electric toothbrush kits for dental care startup Quip donned plastic gloves, squirted paste onto a new brush head and waited patiently as I buzzed the device around in my mouth until its two-minute timer went off. "How does it feel?" she asked. "It feels like I brushed my teeth," I said. face cream, voted on Cruising Showfields' zigzag corridor, I also tried a rowing machine, sampled a face cream scents for a coffee-based body scrub and dozed under a 25-pound compression blanket soothe anxiety. Showfiel founders, who say their interactiv e market is the store of the future. Customers recently besed vendors Shuwelds. PLOTO JOIN TACKLART FOR THE WALL STREET JOURNAL refer to the venue as a "retail gallery." It feels like a cross between an art space and that weird pavilion at the county fair where sales reps demonstrate new floor cleaners. But it's perhaps best described as a newfangled mall. Instead of Banana Republic and Cinnabon, however, Showfields mainly hosts startup brands that have only sold products online. Co-founder and chief executive officer Tal Nathanel said he launched Showfields after realizing that the products he and his friends prefer were often only available online because most digital brands don't have the resources to open a pop-up "If we can make the process of opening a physical store as casy as opening a website, boom! Problem solved!" Mr. Nathanel said. At Showfields, brands rent small, enclosed spaces typically 100 to 200 square feet--for a four- month period with an option to extend. Some sell products directly from their booths, others have customers place orders and ship products from a warehouse. Showfields rents range from $6,000 to $20,000 a month, and include design and construction services, along with shared amenities such as a vegan cafe and events intended to draw visitors Showfields also trains and provides sales reps, which it refers to as brand hosts. Companies can their booth tended by a floating host wandering the corridor in a black suit or by a dedicated host wearing their brand uniform. A well-trained staff is key to the experience, Mr. Nathanel said. "In the age of digital, we are more thirsty than ever for humans," he said. Co-founder and CEO Nathane dhe lunched Showfields after realizing that the products he and his friends preferofen were only available online because most digital brands don't have the resources to open a pon MIOTO: JOHN TACIGART FOR THE WALL STREET JOURNAL On my second Showfields visit, host Bryce Collins introduced me to Function of Beauty, a line of customizable hair care products. Facing a large screen, he walked me through a digital quiz about my "hair goals." had me choose a shampoo color and scent and asked me to type in the name I wanted printed on the bottle. I tried to enter "ANNE!!!!" and was disappointed when the system limited me to lowercase letters and one exclamation point. "That's something I can give them feedback on," Mr. Collins said. "We give qualitative feedback to the brand itself, and it's directed to their marketing team." Visitor movements are recorded by dozens of cameras so Showfields can show partners how much time customers spend in the booths. Partners say Showfields offers an easy alternative to opening their own storefront pop-up. Mike Grillo, co-founder and president of Gravity Blanket, said his company sold 170,000 weighted covers and surpassed $27 million in sales since launching in 2017, but had yet to open a store. "It was cost prohibitive, with New York real estate," he said. Mr. Grillo said his Showfields booth costs roughly a third what he would pay to open and statt a pop up, and he's pleased with the attention it is getting on social media. "If you're a brand focused solely on driving units off the shelf, it's not the destination for you," Mr. Grillo said. "But if it's something the customer needs to experience to understand, it's perfect." Visitors, meanwhile, said they had fun. almost like a museum, but you can be interactive with the displays," said Laura Ace keting coordinator who spent hulf an hour at Showfields last week sampling products and long photos to post on Instagram. Showfields, which is open daily, launched this past December with nine partners on the first floor. By March, the entire 14.700-square foot former women's shelter on Bond Street in Noro w for business, hosting up to 40 brands, Mr. Nathanel said. Showfields is located on the comer of Lalette and and structs in the Noto suction of Manhattan PHOTO: JOHN TAGGART FOR THE WALL STREET JOURNAL While Showfields will be the largest store of its kind in the city, it is not the first to try this strategy, said Melissa Gonzalez, founder of the Lion'esque Group, an agency of retail strategists and pop-up architects based in Manhattan. The model, known in the industry as a "retail as a service platform," is offered by an increasing number of mall operators looking to fill vacant space, for example, Ms. Gonzalez said snowneds shouldn't have difficulty attracting tenants or foot traffic, she said. The challenge w proving that visits translate to increased online sales. So is it really the most interesting store in the world? 1 dont know about the world," said Son Golob will come back." Manhattan resident visiting last week. "But we 1. What do you think of Showfields? Would you visit? 2. Why would a company like Quip pay $6,000 to $20,000 a month to demo and sell their product at Showfields? 3. Would you consider Showfields a new entry (see slide 3 from lecture)? Explain. 4. Would you consider Showfields a first mover? Why or why not? 5. What first mover advantages/disadvantages would be most relevant in this case