MTV News’ Andrew Crum reports that the word “selling out” may not be the most flattering term for the industry to describe the way the industry is changing.
Crum writes, “In reality, it’s more of a marketing term that implies the audience is willing to buy into a certain brand and have their money spent on it.
For instance, if you were to take a product, and say, ‘This product sells out,’ the audience would know exactly how to buy it and they’re buying it because they know it’s going to be a good purchase.”
He goes on to explain how this kind of “selling-out” can happen because of the lack of a compelling brand or a strong brand identity.
“This is a phenomenon that we’re seeing as we’re looking at the last quarter of 2017,” he writes.
“It’s kind of a thing where people are buying a product and it’s really selling out, and then when you say, Oh my God, we sold this out, that doesn’t necessarily mean they’re not buying it.
It may mean that they are buying it in a smaller number of stores.”
Crum says the phenomenon is not limited to just one or two brands but also a broad category of retailers, online retailers, and even some media outlets.
He writes, The reality is, that you can get a lot of brands out there and get them out into the marketplace and people are just looking for a certain type of product.
“They’re buying products that are less expensive and more appealing, and so the idea of the ‘sellout’ is kind of an extension of this, because they’re looking for that more appealing product.”
Cramp adds that brands will also be buying a lot less merchandise if there are fewer options available.
“You can see this phenomenon play out where retailers will be less likely to sell out, because if there’s only one brand that’s doing it, there’s not going to necessarily be that much variety,” he says.
“If there’s a lot more choices, the likelihood of them selling out is going to decrease.
And then they’re going to sell fewer of their products.”
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