The Changing Face of Scarcity

While scarcity has always been a tool used to drive desirability and prestige, especially with luxury goods, inflation and supply chain issues have been changing consumers’ relationship to it in subtle ways. What does this mean for retailers and brands as the dynamic shifts from basic supply/demand and finite resources to one involving consumer choice around time and resource allocation? Katie Thomas, lead of the Kearney Consumer Institute, finds that while some forms of scarcity have a certain allure for consumers, retailers and brands need to adopt new models. Thomas covered this topic in a Q2 briefing from KCI. In this MCM CommerceChat podcast, Thomas explains the changing nature of scarcity, and how retailers and brands need to beware the tipping point.