Shop-in-shop explained simply: meaning, concepts, and advantages

Shop-in-shop - more than just a trend: the model is no longer only found in department stores or shopping centres. The shop-in-shop concept has also long since arrived online and is shaping the way brands present themselves and retailers expand their product ranges.

In eCommerce in particular, the concept offers exciting opportunities to combine brand staging, customer loyalty and flexibility. But what exactly is it about? And why is the shop-in-shop concept becoming increasingly important?

What is a shop-in-shop?

The term shop-in-shop describes a sales model in which you as a customer find a separate area in a shop that is designed and operated by a specific brand.

You can often recognise this immediately by one of the following criteria:

• Here, the presentation is independent,
• The design is individual,
• The product range is clearly tailored to the brand.

In short: it is a small shop of its own - in the middle of a larger one.

The shop-in-shop concept has found its place above all in department stores and hypermarkets. Instead of a huge, confusing area, visually demarcated brand worlds create structure and orientation. Exclusive brands particularly often rely on shop-in-shops: Clothing, leather goods, cosmetics - but suppliers such as bakeries, florists or small delicatessen manufacturers also use such areas to present their products in the right light.

What the shop-in-shop concept means in eCommerce

In the digital space, shop-in-shop works according to the same principle - only without the shop counter. Platforms such as Zalando or About You offer brands their own digital "shops": Here, they can not only list their products, but also design how they are presented - with their own images, storytelling and a customised brand experience.

This concept has also long since arrived in online pharmacies: Major brands such as Ratiopharm or Vichy often have their own areas within a pharmacy where their products are presented. For you as a customer, this looks like a small brand shelf - embedded in the platform's wide range of products.

It is important to note that these brands utilise the infrastructure of the main shop. Ordering, payment and customer service are handled entirely by the platform operator. For the brand partner, this means: no need for their own technical platform - but full visibility in an established environment.

Shop-in-shop vs. multishop vs. marketplace

You may be asking yourself at this point: How is this different from a multishop or marketplace?

1. A multishop does not refer to a retail space or a concept for space marketing, but rather a special shop software. This enables retailers to operate several of their own online shops in parallel - for different target groups or product ranges, for example. In this case, the operator is responsible for all shops.
2. A marketplace, on the other hand - think Amazon or eBay - offers a platform on which different retailers can offer their products side by side. Each retailer operates independently, processes orders themselves and acts independently towards customers.

The decisive difference: with a shop-in-shop, the presentation is deliberately integrated into a superordinate brand world - whether in the department stores' or online. The platform operator provides the technical infrastructure or shop space, the shop-in-shop partner only organises its area and benefits from the reach.

Why shop-in-shop concept? The advantages at a glance

Shop-in-shop models have long been more than just a clever shopfitting idea. They offer advantages for everyone involved - whether in traditional bricks-and-mortar retail or digitally in eCommerce. Let's take a look at why this concept is so attractive for operators, brand partners and customers.

Advantages for the operator of the main shop (stationary and online)

As the operator of a department store or online platform, you can bring strong brands into your own shop with shop-in-shop - without having to invest in additional stock yourself. Your range grows and becomes more diverse, which attracts customers and ensures longer stays - both in-store and online.

The brand worlds in the shop-in-shop bring professionalism to the overall picture: they create small islands of experience, enhance the overall presentation and help to appeal to different target groups. Keyword: one-stop shopping - everything under one roof, for all needs.

Advantages for the shop-in-shop partner

For you as a brand partner, the concept offers an efficient opportunity to show your presence. In bricks-and-mortar retail, you benefit from the customer frequency of the main shop, but do not have to rent your own space at great expense.

It works in a similar way online - only digitally: instead of setting up their own web shop, brands can become directly visible on established eCommerce platforms. This allows them to reach new customer groups with little effort, save on technical set-up and reduce risks.

Advantages for customers

Shop-in-shop is almost always a benefit for your customers. Regardless of whether you are strolling through a department store or shopping on a platform - the large selection of different brands under one roof saves time, offers comparison options and makes shopping more convenient.

Online in particular, you benefit from the fact that everything is processed via a single infrastructure: Orders, payments and returns are centralised - convenient, secure and simple.

Shop-in-Shop in eCommerce: All the advantages at a glance

Shop-in-shop really comes into its own in digital commerce. Here is a clear summary of the most important advantages:

What shop-in-shop concepts are there?

In addition to these advantages, the question arises: In what forms can shop-in-shops be realised? Let's take a look at the most common concepts - both offline and online.

The following variants can be distinguished:

1. Leasing to brand manufacturers: The operator - such as a department store or supermarket - leases a space to a brand. The brand operates its shop there independently, including its own staff and responsibility.
2. Own operation by the retailer: Here, the retailer operates the shop-in-shop itself in order to emphasise certain brands. Objective: to strengthen brand impact, increase sales and emphasise unique selling points.
3. Franchise models: Some brands offer franchise partners the opportunity to run their shop-in-shop within an existing shop. Typically, for example, in catering or fashion: the franchisee rents a space and benefits from the brand strength.

In online retail, the variants look slightly different - but the principle is comparable:

1. Digital brand worlds: Brands present themselves with their own area on large platforms such as Zalando or About You. These shops-in-shops are usually designed with their own layout and customised storytelling.
2. Platform-based partner shops: Pharmacy shops or other platforms also allow brands to have their own presences - including product presentation, their own category pages and often customised promotions. Nevertheless, technology, checkout and support are provided by the platform operator.

Why do you need a shop-in-shop?

The various concepts show how flexibly shop-in-shops can be implemented - both stationary and digital. But regardless of the form, this model always pursues strategic goals.

The next step is therefore to ask the question: What exactly is shop-in-shop used for?

• Increasing brand awareness: Shop-in-shop is perfect for manufacturers who want to expand their presence. They can present themselves in an established environment and address new customer groups - both stationary and digital.
• Access to new markets: Brands without their own locations or without their own online shop that want to enter new markets quickly can save time and money with this concept.
• Increase product range diversity: Operators of large platforms or shops use shop-in-shops specifically to expand their product range - without any risk to themselves and without additional warehousing.
• Experience-orientated staging: Especially online, shop-in-shop is also a way of staging products creatively and emotionally: Own brand worlds, campaigns or storytelling integrated directly into the platform.
• Temporary placement: Pop-up shop-in-shops are ideal for special promotions, new products or seasonal highlights - quickly, flexibly and without long-term commitment.

Risks and challenges of shop-in-shop

As attractive as the shop-in-shop principle is, it not only offers advantages, but also harbours challenges and potential disadvantages - both in-store and online. If you want to use this model, you should take a close look: What pitfalls can arise? What do you need to watch out for?

Successful shop-in-shop concepts: Examples from practice

Shop-in-shop does present certain challenges, but numerous successful shop-in-shop concepts show how versatile and effective this model can be - both online and offline. The following shop-in-shop concept examples illustrate how brands and retailers successfully implement this principle.

Conclusion: shop-in-shop remains relevant - offline and online

Shop-in-shop is much more than a classic concept for department stores. It is a versatile model that offers exciting opportunities for retailers, brands and platform operators in both brick-and-mortar and eCommerce.

Online retail in particular shows how flexible and effective the concept can be - from individual brand worlds to pop-up solutions for seasonal promotions. If you want to be visible as a brand or cleverly expand your product range as a platform, shop-in-shop is a must.