[tweetmeme] Free is such a tempting word that nearly all human beings go crazy and stop reasoning whenever we hear it (even those from wealthy families), unluckily for us “free” is a misunderstood promise in which companies try to incite everyone with hidden contracts and incomprehensible clauses.
Even the shop we’re going to talk about today is not 100% free (but the closest idea we’ve heard lately) you still have to pay 5 euros each semester in order to have access to all those “free” shiny products from their shelves.
“Esloultimo” (it’sthelatest) opened 11 days ago in Barcelona as the first “free” shop in Europe. The initial idea was simple: pay 5€/semester and you can visit the shop twice per month for grabbing any 5 products you like from a growing list of 50 references & a single limitation: you can’t repeat the products you buy.
The logic behind this “free” shop is to test new products that are about to be introduced into the market without the price obstacle (this kind of test has been done for ages in fictitious supermarkets…). This way brands obtain precious consumer data in the selling point (plus personal profiling, behavior…..) which many times is hard for them to get (due to evil distributors).
And don’t think Trend Guide (company specialized in market research behind this “free” idea) is going to lose a cent. All products are kindly and freely provided by these leading brands (Pepsi, Sara Lee, Ausonia, HP…).. with products that go from simple chips or cosmetics to LED TVs & Mobile Phones (these are for a few day test-only).
After 11 days of unimaginable success (mainly due to TV national & international coverage) with 6h queues for entering the shop! the company has decided to limit the number of visits to 1 per semester (maybe more if you’re invited… bohooo) and to start using their on-line portal for registrations, invitations and shop-to-home shipping.
The business plan estimates that the company will achieve a turnover of EUR 3.5 million in 2010. Later this year, another shop will be opened in Madrid and from June 2010, other main European capitals are also expected! Paris, London, Berlin, Rome and Amsterdam.
And this is only the first step, in a second phase, it’s expected to open in New York, Los Angeles, Monterey, Ottawa and Rio de Janeiro, with a budget of between 2 and 2.5 million.
The idea is good, the planning could have been better …. because “free” is one of the most powerful and convincing words in this expensive world.
See you @ Madrid
Pingback: Time to join the “free love” revival? « Infectious