Drop Culture: Manufacturing Scarcity, Financial Derivatives, Blind Auctions

This is the free version of Trends PRO #0026 — Drop Culture

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🔍 Problem

We are status seeking monkeys, as Eugene Wei says.

💡 Solution

Brands manufacture scarcity (and status) to drive sales.

Constricting supply amplifies word of mouth. Everyone talks. Those who were able to get it, missed it and hate it. They spread the word.

Drop culture has moved from fashion to software and experiences.

🏁 Players




🔮 Predictions

  • Influencers will hoard items, influence culture then release them for profit. The song, RAF, made Raf Simmons’ items skyrocket in value. What if A$AP Rocky bought pieces before releasing the song?
  • ETFs and financial derivatives will form around streetwear. StockX holds IPOs (Initial Product Offerings). Some users trade items without taking possession.
  • Platforms will get unbundled. Chrono24 exists outside of watch categories on StockX and eBay.

☁️ Opportunities

  • Become a reseller. Brands must create scarcity for drops. Unmet demand is your margin. Convert access into capital.
  • Use drop notifications to get emails, phone numbers and downloads. You can text 917-540-3113 or download the MSCHF app for alerts. Cryptocurrency airdrops use a similar strategy.
  • Post items on Instagram and run blind auctions via DMs. Take the best price.
  • Drop access to your paid community. The Book of Resale randomly opens spots in the group. (From a Trends Pro, Ethan Jones)
  • Manufacture scarcity. Create an imbalance of supply and demand. Don’t have a large audience? Constrict supply even more. A stadium is scarce for Taylor Swift. Your version may be a tiny desk.
  • Weave items into stories. Michael Jordan’s “Flu Game” shoes fetched $104,000. Sell items featured in your YouTube, Instagram and TikTok (🤞) videos. Let your audience own part of the story.
  • Reverse engineer product market fit and make scarcity a side effect. Accept ideal users. Put others on a waiting list.

😠 Haters

“This is exclusionary.”
That’s the point. Drops fail without scarcity. They also subsidize art for the masses.

“It’s not all about status.”
Some of us find streetwear, art and experiences interesting without artificial scarcity. But this report is about drop culture. And those drawn to hype.

🔗 Links

  1. A Walk with Mr. MSCHF — A rare interview with Gabe Whaley, founder of MSCHF.
  2. StockX’s Josh Luber — Get the origin story and vision of StockX.
  3. 7 Marketing Lessons From Drop Culture — Find out why drops work.
  4. How Two Sneaker Moguls Are Bringing Drop Culture to the Whiskey World — A duo uses drop culture to sell whisky for $185 per bottle.
  5. Reinventing the Resell — A argumentative passionate panel represents different perspectives in drop culture. From marketplaces to manufacturing and retail.

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    What you’ll get:

    • 14 Opportunities (100% More)
    • 12 Summarized Links (140% More)
    • 25 Product Drops (150% More)
    • 7 Predictions (133% More)
    • 21 Brands (110% More)
    • 27 Platforms (170% More)

    With Trends Pro you’ll learn:

    • (📈 Pro) How to use gamification to make drops more effective?
    • (📈 Pro) How to build a paid community around drop culture? 
    • (📈 Pro) Why do brands eventually move downmarket?
    • (📈 Pro) Which traditional industries are adopting drop culture? 
    • (📈 Pro) What no-code tool is needed for drops? 
    • (📈 Pro) How to craft an offer for your Superfans
    • (📈 Pro) How to build a business by creating pop-up experiences for brands? 
    • and a lot more…