Rushing to purchase newly launched Xiaomi smartphone in the flash sale? Do they really have very low units in stock, or is it another marketing strategy used in the industry? Can you guess which form of marketing is it? Let’s explore more about the strategy used by Xiaomi.
To answer the above questions, we need to understand the concept of ‘Hunger Marketing’.
Hunger Marketing is a psychological strategy that focuses on the desire of consumers, making them hungry and thus having strong desire to buy products. This strategy is usually used by setting time limits, limiting stock, temporary pricing, special discounts, limiting product access, etc.
Xiaomi uses this strategy for flash sales of small quantities of its best-selling products, and because of the same has to spend less on advertisements. This benefits the customers in the form of cost-effective products. Moreover, it also helps the company to control supply and avoid overproduction.
Driving up the scarcity of the product boosts people’s interest and through word-of-mouth helps businesses have more potential customers considered ‘premium’ and no longer ‘knockoffs’.