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Planned scarcity to drive retail sales

IMG_9311 (1)This sign at the Lady M cake shop in Hong Kong somehow made the cakes even more appealing. This is a bakery where they control the volume of product they have available yet here they are, long after establishing the business, restricting what customers can purchase. This is similar to the Lego model where they supply to Australia at a volume that always leavers retailers wanting more than is shipped. This constant desire by retailers and their customers drives more interest, or so business strategists think. There must be something in the model of planned scarcity as I am seeing more global brands use this approach. I know of several suppliers to newsagencies and similar businesses engaged in planned scarcity. Most get it right while a couple don’t Those that don’;t turn people off their brand, including the shoppers they want to attract with the model.

At Lady M, the model seems to work – it should as their cakes are delicious.

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