Thursday, April 05, 2007

Retailing limited number of items

Do you often buy a product because just because it is the past piece and you might not get it later? Springwise reports a growing trend of retailing limited items. Marketers have caught on to the fact that consumers like to have products that not very many other people have. The exclusivity factor is extremely high up on most people's decision making process. When consumers decide they like a product enough, but are thinking of putting off the decision for a later time, the most important factor that pushes them into making a decision to purchase is the perceived non-availability of the product.

20ltd is a new retailer in the UK, has just been launched and will sell only 20 items at a time. Products are priced from GBP 2,900 to 9,000 and are only sold at their own stores. Once all the products are sold of one type, they are replaced with a completely new item, which will again be of a limited quantity. The retailer is targeting luxury markets of Russia, China and the Middle East in particular and only operates online, having no brick and mortar retail stores.
20ltd combines planned scarcity with niche curation: the polar opposite of Amazon.com, which offers everything for everybody, 20ltd narrows it down to a limited selection of limited edition goods for a limited group of very affluent consumers.

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