Hunger Marketing and China’s Xiaomi

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July 30, 2014 by ...

Hunger marketing is a term which means customer demand is spurred on by an intense desire for a product- one which is usually in short demand. Iphone roll outs are a great example. How many products command such a following that people camp out just for the honor of purchasing?

What Apple has done, China’s Xiaomi would like to replicate. The problem is that Apple combines stellar design, great technology and a wide albeit restrictive eco-system. The ‘hunger’ for Apple is created by the product itself, which is not the same with Xiaomi.  

Xiaomi’s strategy is to create a hunger by limiting the amount of phones they release. They mimic an Apple like release of a phone and then essentially lottery away the rights to those phones. In China this has found traction. 

China has so many people with relatively restricted product choices due to market controls and income level, that having a premium or hard to come by product is not something all can achieve. Through its business strategy, Xiaomi creates this exclusivity. Thus its business model, ‘Make a commodity exclusive’. 

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