Trend Breakdown: Drop Culture in the cpg industry
Problem
Consumers are curating a social image for status seeking purposes.
Solution
CPG brands fabricate rarity (and status) to drive sales.
Anecdotes
HypeBeast Oreo = Supreme
Pre-Workout of the Month = Alpha Lion
Cola-Cola Creations = The Coca-Cola Company
KitKat Creations = The Hershey Company
Seasonal & Limited Edition Flavors = Aura Bora
Crucial Takeaways
The entire distribution model is designed to get consumers excited. If you’re lucky, you might be able to get your hands on it.
It’s all about determining what customers want and tapping into the urgency of that desire.
Usage of drop culture in the CPG industry doesn’t have to only be product-centric.
Predictions
The instant gratification of everything today is driving the popularity of tomorrow’s drop culture. CPG brands will increasingly lean into limited edition products as a way to create buzz and stand out for new consumers and make loyalists fall in love all over again.
Opportunities
CPG brands understand demand planning and pricing strategies through a particular lens. LTOs usually create unmet demand and resellers with access can create margin.
To get early access to attractive drops, consumers will be more apt to provide emails, phone numbers, and/or downloads.
Humans respond to stories because they cultivate emotion and a sense of togetherness. Make sure to intertwine stories into the creation of these LTOs.