Hype (marketing)

Hype is defined as "extravagant or intensive publicity or promotion". Marketing strategies in the modern era of the information age increasingly revolve around hype. Hype has emerged as a marketing strategy due to the proliferation of social media.

Research has shown for some products, consumers have an overwhelming preference for products with limited supply. Moreover, the motivation for these products is conspicuous consumption to signify characteristics about the consumer.^[1]

Context

The luxury market is estimated to be €1.2 trillion globally, with personal luxury goods having a value of €260 billion. Online sales grew by 22% during 2018 representing transactions worth €27 billion. While only 47% of luxury consumers are from generations Y and Z, they represent all of the growth in the luxury market.^[2] Hype as a marketing strategy has become popular as millennials are the largest cohort of consumers.^[3] Research has indicated that the luxury goods market is dominated by LVMH, Estée Lauder, Richemont, and Kering who have generated annual revenues in excess of $USD90 billion.^[4]

Hype marketing has also been successful as consumers able to secure limited-edition goods are often been able to profitably resell them; the resale market is a $USD24 billion industry.^[5]

Fashion label Vetements used social media channels to promote a limited-edition hoodie that resulted in 500 units being sold in hours recording sales of €445,000.^[6]

Hype allows brands to promote their image above the actual quality of the product. Streetwear brands such as Supreme have collaborated with luxury fashion to command premium prices for their goods.^[7]

Method

Luxury brands typically build hype around a product that has been designed in collaboration, often between high and low fashion brands.^[8] Collaborations have been used by some luxury brands to circumvent fast fashion brands copying their designs.^[9]

Adam Alter an NYU Professor observes that for a strong brand to create a scarcity frenzy, all they need to do is release a limited number of different products, frequently.^[10]

Hype is often built around the creation of a Pop-up retail. Comme des Garçons is understood to one of the first to use this strategy, leasing a short-term vacant shop solved the storage problems of releasing product for quick sale.^[11]

The use of celebrities is also popular in creating Hype. The 2017 Fyre Festival is understood to have generated sales of $USD26 million.

Hype also plays to a consumers Fear of missing out.^[12]

Popular culture

The term ‘hypebeast’ has been coined to define consumers vulnerable to hype marketing. The origins of the term come from the Hong Kong based company Hypebeast. The behaviours of the hypebeast define hype marketing; the purchase of popular goods they can’t afford to impress others.^[13] Hype also manifests itself in queues with brands often retailing hyped products through pop-up stores.^[14][15]{ The use of Hype has created a range of associated expressions;

• 'Drop' - the actual release of the product
• 'Cop' - to purchase the product
• 'Taking the L' - unsuccessful in attempt to purchase product

Many luxury brands release hyped products via their Online shop. This has led to the creation of companies that allow consumers to use bots to guarantee or improve their chances of purchasing a limited-edition product.^[16]

References

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