Strategy behind flash sales

Let’s say that you’re hungry and you’re going to a restaurant. You’ll look at the menu and will order only the things you know mostly and will have.

Then one day, the restaurant is advertising that there is going to be “Chef’s spl food” for the season. Some xyz will be food prepared and served only between 7-10pm, on a specific date. They’ll tell it’s surprising, delicious, organic etc characteristics.. 

It will have limited slots and hence, advance booking will be required and it might open in couple of days from the day it is advertised. 

By seeing the advertisement, you’ll be tempted to know what’s so spl in it and why is it available only in limited quantities and only at a specific time alone. 

You’ll get the urge that you should definitely know why and want to try out somehow. You’ll try to go but it would have got over or you couldn’t get it reserved. The curiosity and urge will increase. 

They’ll again do for the next season. This time you’ll be determined to somehow try it out. Then there are chances where you could have missed it again. The cycle will continue and by chance,  somehow you manage to get booked and taste it..

When it happens, you’ll be like you got something which others tried and couldn’t get it.. So you’ll be proud and happy about it. You’ll start boasting about it and this acts as word of mouth publicity for them. Its very powerful and nothing can beat it.

Now let’s consider the current situation. E-Commerce business is booming, Traffic is increasing day by day.. Who are these buyers? Tech savvy and educated customers.. 

When they publish flash sales with good specifications etc, at lower price (Chinese products). That too advanced registration and limited stock, you’ll try to get it.. But wantedly they won’t sell more units. 

From the registrations, they’ll try to estimate the demand for their products and ship but less than that. They artificially create a hype that so many products sold in a minute or so and stocks are no longer available. 

Those who didn’t get will be disappointed and will try to buy from next flash sales. Word of mouth will spread.. Newspapers will advertise.. Create a greater hype.. 

These products are mostly targeted at the youths.. Particularly college students.. They need cheap and good specs.. They create this irresistible feeling and subliminal perception towards their products.. They’ll create an artificial necessity for it.. 

Thus ppl fall for it and the company gets good publicity while making huge profits. It’s latest marketing gimmicks played by their Marketing department!!!