Does Scarcity Sell? How Brands Are Manufacturing Rarity to Boost Sales

From limited edition collectables to surprise product releases, manufactured scarcity is driving major consumer excitement. 

It’s a trend we covered in our latest State of Social report and we thought we’d expand on it in a bulletin. So, let’s discover how brands can capitalize on the age-old laws of supply and demand to boost business in the age of social media. 

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A brief history of rare items that drive FOMO

Utilizing rarity as a marketing strategy isn’t anything new. While recent product frenzies – such as the hysteria around PRIME drinks or the Sonny Angels collectable craze – are proving that rarity is a hot selling point right now, rare products have been in demand for centuries. 

Before we look at some recent examples, let’s take a brief look at the history of rarity. 

Take the diamond for example. While diamonds are widely considered to be one of the rarest gemstones, they are actually more common than we're led to believe. And the reason we think they’re valuable is down to clever marketing. 

Diamond trading company De Beers, who have historically controlled over 80% of rough diamond distribution, have been known to hoard diamonds to create scarcity of the stones on the market. And it works – diamonds are generally considered rare and valuable. 

Another example is the Beanie Babies craze. While these stuffed toys aren’t as popular today, in the 90s they were perhaps one of the most in-demand products on the market. By 1998, the company that owned Beanie Babies, Ty Inc., had more than $1 billion in annual sales. The reason? Manufactured rarity.

Ty Inc. boosted their popularity by limiting the number of Beanies that each store could buy, allowing only 36 of each character per month. This meant that customers would have to wait for their new favorite toy to come in stock. And, again, it worked.

A popular magazine about Beanie Babies – named Mary Beth’s Beanie World – helped to contribute to the frenzy. The publication featured information on the latest Beanie Babies, price guides, and speculations on future resale value predictions. By suggesting these toys would appreciate over time, and with an incredible 600,000 readers at its peak, the magazine helped proliferate an engaged community of Beanie fans. 

A combination of FOMO (fear of missing out), speculation, urgency, and community are what boosted Beanie Babies’ initial success. And keeping these ideas alive is necessary for any brand looking to succeed with this marketing strategy.

The idea of manufacturing rarity has worked for as long as consumerism has existed with short supplies driving up prices. And in 2024, plenty of brands are cashing in on the practice. 

Let’s take a look at some more recent examples of how scarce stock has driven consumers wild. 

When scarcity succeeds

A brilliant example of this is with beverage company PRIME. Pioneered by influencers Logan Paul and KSI, the products skyrocketed to fame not long after being released, but customers outside of the US found it hard to find the drinks.

According the Brandwatch, there have been over 38k mentions about the scarcity of PRIME drinks since the companies’ conception.

These mentions saw a large boost when PRIME released energy drinks as part of their product catalogue and people went out to find the products in stores, sometimes struggling to find them. The added layer of scarcity for this new product boosted mentions substantially. Further limited edition product releases have also contributed to spikes in these mentions over the last few years. 

Fans have been so eager to find the latest stock that a PRIME tracker account on X gained an impressive 50k followers for sharing the latest stock updates for PRIME drinks.

While PRIME products have become easier to find in recent months, online mentions of the brand have remained high – hitting a peak in September of 138k mentions. The product’s popularity continues to thrive thanks to added community engagement and the ongoing illusion of scarcity behind these limited drinks.

Tapping into nostalgia

Something which goes hand-in-hand with rare products is the element of nostalgia – which is a growing trend according to Brandwatch data.

Mentions of nostalgia are booming – even peaking last month at over 1.3 million mentions. 

With Millennials and Gen Z getting more nostalgic thanks to the perceived comfort, security, and simplicity of previous decades, dozens of products are seeing a resurgence – especially rare ones.

Let’s take the recent surge in interest surrounding the collectable dolls Sonny Angels as an example. 

Originally created in 2005, Sonny Angels are mini, collectable, cherubic-looking dolls which come with a variety of types of headgear and clothing. Each Sonny Angel is sold in a “blind box,” meaning consumers have no idea which apparel their doll will be wearing. Pairing this with limited edition releases means that fans are eager to purchase excess boxes with the hopes of finding a rare doll.

Social media trends have helped boost the dolls’ popularity, with online mentions of Sonny Angels peaking at almost 30k mentions in July this year. Combining the social media aspect with growing nostalgia and the collectability of Sonny Angels has led to an explosion in sales.

And their popularity is causing rarity – a shortage of the products has meant they’re increasingly hard to get hold of. Plus, as they’re originally a Japanese product, sourcing the dolls in the US and UK has been notoriously difficult. 

Sonny Angels aren’t super expensive either, sitting at around $10 a doll. This affordability means that people are more likely to repeat purchase or purchase more at a time.

Marketed towards Millennials and Gen Z, the Sonny Angels trend leans into inner-child consumerism. These generations are feeling increasingly tied to the nostalgia of their childhood. And brands are benefiting from this phenomenon, as well as from seeing scarcity around their most sought-after merchandise.

How brands can use scarcity to their advantage

When it comes to leveraging scarcity, pacing is key. Brands which don’t monitor their release frequency properly can fall victim to diluting exclusivity. A good way to monitor your product’s popularity and demand is through social listening software like Brandwatch.

Brands can also focus on staying honest when it comes to rarity. Ensure products marketed as “limited edition” are genuinely limited so they can maintain their value. 

Lastly, tie scarcity with emotional attachment. Whether this is through tapping into nostalgia, community, or sentimentality, brands can turn temporary demand into long-term loyalty by balancing these elements effectively.

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