Starting a Pop-Up Store in India: A Practical Step-by-Step Guide

What’s the most effective way to test products, build brand awareness, connect with customers face-to-face and generate sales without the long-term commitment of a permanent retail space? According to experts, it’s launching a pop-up store. From homegrown brands and artisans to online sellers experimenting with offline retail, pop-ups offer flexibility, visibility and learning at relatively low risk.

This detailed guide explains everything you need to know; including permits, realistic costs, planning tips, must-have essentials and more.

What is a Pop-Up Store?

A pop-up store is a temporary retail space that operates for a limited period; ranging from a single day to several weeks. Businesses use pop-ups to sell products, launch new collections, run brand activations or simply create buzz in a specific location.

Unlike permanent shops, pop-ups are intentionally short-term. Their temporary nature creates urgency, attracts curiosity and allows businesses to experiment with new ideas, markets and formats without locking themselves into expensive leases.

In India, pop-up stores are commonly seen in shopping malls, flea markets, exhibitions, festivals, college campuses and high-street neighbourhoods.

Why Pop-Up Stores Work in India

Pop-up stores have gained popularity in India for several practical reasons:

• They allow direct interaction with customers, helping brands build trust and receive real-time feedback.
• Limited-time availability creates urgency and excitement, encouraging quicker purchase decisions.
• They are ideal for testing new products or cities before investing in a permanent outlet.
• Pop-ups help online brands establish a physical presence and bridge the gap between digital and offline retail.
• Setup costs are usually lower than opening a full-scale shop.

Step-by-Step: How to Start a Pop-Up Store

1. Define Your Purpose

Before booking a space or ordering stock, be clear about your objective. Ask yourself:

• Is this pop-up focused on sales, brand awareness, product testing or customer engagement?
• Who is my target audience?
• How will I measure success — revenue, footfall, sign-ups or feedback?
• Clear goals help determine the right location, duration, budget and promotional strategy.

2. Choose the Right Location

Location plays a crucial role in the success of a pop-up store.

• High footfall: Busy streets, popular markets, malls and event venues increase visibility.
• Audience fit: The location should align with your target customer’s lifestyle and spending habits.
• Accessibility: Easy access by foot, public transport and parking encourages walk-ins.
• Surroundings: Being close to cafés, cinemas or popular stores can boost incidental traffic.

For first-timers, curated markets and exhibitions can be easier than negotiating independent spaces, as logistics and permissions are often partially handled.

Permits and Legal Requirements in India

India does not have a single nationwide licence specifically for pop-up stores, so requirements vary by city and venue. However, most pop-ups will need some or all of the following:

Business or Trade Licence

Issued by the local municipal authority, this licence allows you to legally conduct business within city limits.

GST Registration

If your annual turnover exceeds the prescribed threshold (generally Rs. 20 lakh in most states), GST registration is mandatory. Even below this limit, some venues may require GST-compliant billing.

Shops and Establishment Act Registration

Certain states and cities require temporary retail businesses to register under the local Shops and Establishment Act.

Temporary Use or Event Permissions

Public spaces, exhibitions, malls and community grounds often require short-term permits or contracts approved by the venue management.

Fire and Safety Compliance

For indoor or high-footfall locations, basic fire and safety approvals may be required, especially in malls or enclosed venues.

It is advisable to confirm requirements with the local municipal office and venue management well in advance to avoid last-minute disruptions.

How Much Does a Pop-Up Store Cost in India?

Costs vary depending on the city, venue type, duration and scale of the pop-up. Below is a realistic cost overview:

Venue Rental

• Local markets and flea events: Rs. 2,000 to Rs. 15,000 per day
• Mall kiosks or premium spaces: Rs. 20,000 to Rs. 1,00,000 or more per week
• Festivals and exhibitions: Often charged per stall or per event

Setup and Display

Includes tables, shelves, racks, branding, signage and lighting. Costs can range from Rs. 5,000 to Rs. 50,000 or more, depending on design complexity.

Inventory

Stock levels should be planned carefully to avoid both overstocking and missed sales.

Staffing

Temporary sales staff or helpers may be needed, depending on operating hours and crowd size.

Marketing and Promotion

Includes social media ads, printed material, influencer collaborations and basic content creation.

Estimated total: A small weekend pop-up may cost Rs. 15,000 to Rs. 40,000, while larger or longer pop-ups in premium locations can go well beyond Rs. 1,00,000.

Must-Have Essentials for a Pop-Up Store

To run a smooth and professional pop-up, ensure you have:

• Clear signage that communicates your brand and pricing
• A reliable payment system (UPI, cards and cash)
• Adequate stock, packaging materials and price labels
• Trained staff who can confidently explain products
• A simple system to collect customer details for follow-up
• Basic security and cash-handling arrangements
• A well-organised setup improves customer experience and builds credibility.

Marketing Your Pop-Up Store

A pop-up will not succeed unless people know about it.

Before the Pop-Up

• Announce dates and location on social media
• Create local buzz using geo-targeted posts and ads
• Partner with local creators or community pages
• Share behind-the-scenes setup content

During the Pop-Up

• Encourage visitors to share photos and tag your brand
• Use simple hashtags and visible brand handles
• Offer limited-time deals or experiences exclusive to the pop-up

After the Pop-Up

• Follow up with customers who shared contact details
• Share highlights, photos and customer feedback online
• Analyse sales, footfall and engagement to plan the next step

Tips for First-Time Pop-Up Owners

• Start small and scale gradually
• Plan your layout to avoid crowding and confusion
• Keep pricing transparent and visible
• Set aside a contingency budget for unexpected expenses
• Focus on customer interaction, not just transactions

Common Mistakes to Avoid

• Ignoring local permits and compliance requirements
• Choosing a location without researching footfall
• Spending too much on décor while neglecting marketing
• Understaffing during peak hours
• Failing to collect customer data for future engagement

Starting a pop-up store in India is not just about selling products — it is about creating a temporary yet memorable retail experience. With the right planning, legal compliance, budgeting and marketing, pop-ups can help businesses test ideas, reach new audiences and grow with confidence. For entrepreneurs, artists and small brands, a well-executed pop-up can be the first step towards a strong offline presence — without the long-term risks of traditional retail.