Limited editions. Teaser campaigns. Hype.
Limited drops create a sense of urgency and scarcity that leave customers craving more. The result: merchandise flies off shelves.
“Drops” are special release products that are either scarce in quantity (due to intentional limited production) or scarce in availability (due to a limited-time purchase window). Often they won’t be restocked, either.
The rise of drop culture—while not an entirely new concept—has recently gained momentum and capsized traditional production cycles.
What’s more, it’s bringing renewed enthusiasm to the retail space (both offline and on) and is making a profound impact on retail by generating audiences of raving fans excited to snatch up these special edition items.
Table of Contents
- Why are limited drops becoming popular?
- Benefits of limited product drops
- Examples of retailers using limited drops
- How to get started with limited drops
- The future of limited drops
Why are limited drops becoming popular?
To understand the big picture and answer questions about the rise of limited drops, we have to look at it from two sides:
- Why this strategy is so popular among brands
- Why customers are excited about drops
Let’s look at brand strategy first. Drops work well for companies because:
- They tap into FOMO. Instead of using discounts and racing to the bottom with competitors, drops offer brands the chance to leverage exclusivity and scarcity, which generates FOMO and often justifies a higher price point on merchandise in customers’ minds.The end result: more sales and higher margins.
- They simplify inventory managementand forecasting. Drops give brands full control over inventory. Producing small batches that sell out quickly means very little guesswork around stocking and sales projections, which makes inventory forecasting ultra-simple.
- They create a community of collectors. Brands that leverage limited drops are typically ones with avid support from their customers, meaning it’s a logical next step for those with loyal followings. Avid fans often become collectors of these special, coveted items.
- Word of mouth. A successful drop release can create a positive word-of-mouth buzz (and sometimes even press) for brands, thus attracting new audiences and potential customers.
On the other side, customers seem to love product drops as well. Some are even willing to wait in line for hours, compete with bots online, and enter countless raffles just to get products from a limited collection. Here’s why:
- The power of social media. We can’t deny that social media has a transformative influence on our shopping behavior. According to Instagram, 70% of shopping enthusiasts turn to this social media platform for product discovery. Limited drops ride the wave of hype that only social media can create. In other words, social media is at the core of this strategy.
- Scarcity is a powerful sales motivator.60% of people make purchases because of FOMO (often within 24 hours). For some, the fear of missing out on a scarce item is so intense they’re willing to pay more to get what they want on marketplaces like Goat and Stockx if they missed out on the initial launch date. This behavior is heavily influenced by social media, collector culture, and the pressure people have to own something they identify with.
- A generation shift. Customers from different generations have different needs, behaviors, and expectations. It’s not just because of life stage and income differences; it’s more a mindset distinction, especially when it comes to using technology. Data from the Census Bureau shows that more than half of the US population is now within the millennial generation or younger. In other words, the predominant customer today is always “on”: they’re active on social media and shop across channels and platforms, giving brands more touchpoints in which they can interact with them.
Limited drops are data points for a product roadmap. They allow brands to test emerging trends and gather feedback from customers on products and qualities that might eventually warrant inclusion in their core SKU lineup. They also allow brands to partner with influencers and other like-minded businesses to mutually expand each other’s core audiences. Finally: limited drops are a boon to retention because they activate excitement amongst top customers and recapture the attention of customers who are at risk of churning.
Benefits of limited product drops
Drop culture creates excitement and something to look forward to for shoppers. At the same time, it brings significant benefits for brands. Let’s take a look at a few.
Generates demand and hype
Launching creative and well-timed promotional campaigns has the potential to make your brand go viral. This is a cultural change for many retailers who’ve long had a semi-annual release mentality. Creating the feeling of scarcity and urgency generates hype and demand, which can make products fly off the shelves almost instantly after release.
I wish every merchant would try a limited edition of their bestselling product. It prints money, especially after you’ve sold out a few times and customers learn the scarcity is real.
Gamifies shopping
The human need to belong is strong. It dictates how we behave, socialize, and shop. Limited drops create buzz that’s hard to resist. The reasoning is simple: people want the feeling of exclusivity and uniqueness. Dropping limited editions gamifies the experience, allowing customers to hunt and earn what they want before it sells out.
Creates social media buzz
As social media is often one of the core pillars of limited drops, brands that lean into social media consistently have a competitive edge. What’s more: new features and functionality are cropping up. For example, Instagram recently launched a new feature that lets businesses promote their product drops and generate hype. With Instagram Drops, consumers can browse these special items and receive launch reminders about limited-edition products they’re interested in.
Lowers overhead and minimize risk
Not knowing how many products you can sell and tying up cash in excess inventory can put businesses at risk. With limited drops, brands can plan small-scale product batches and sell out quickly, which helps minimize financial risk and overhead costs.
Manage your inventory with confidence
Only Shopify POS helps you manage warehouse and retail store inventory from the same back office. Compare inventory costs to revenue, see which items are selling out or sitting on shelves, forecast demand, and more.
Examples of retailers using limited drops
Today businesses from around the world and across verticals use limited drops to achieve virality and boost sales. Let’s look at nine brands reaping the benefits of limited drops.
Sporty & Rich
What started as a mood board on Instagram has evolved into a full-fledged lifestyle and activewear label. Founded by Emily Oberg, Sporty & Rich offers thoughtfully designed products focused on longevity over fast fashion, with releases that arrive in curated drops throughout the year. The added reason the brand uses limited drops is because it reduces excess inventory and helps it achieve its goal of being a zero-waste brand.
Supreme
Supreme is often the first brand that comes to mind when we talk about drop culture. Supreme’s founder, James Jebbia, popularized this type of limited release, and today, the skateboarding lifestyle brand is famous for weekly drops (almost always on a Thursday at 11 a.m.) The $2 billion brand is also known for its special collaborations with other brands, such as Levi’s, Lacoste, Rimowa, Nike, Stone Island, and more.
KITH
Streetwear brand KITH was founded by Ronnie Fieg in 2011, and now, every Monday, the brand drops a new series of clothing, both in stores and online. With more than two million followers on Instagram, as soon as KITH announces a new release, it sells out immediately. Aside from its apparel, the brand also has popular footwear collaborations with brands such as Puma, Asics, and New Balance. What differentiates KITH from other streetwear brands is its unique partnerships, like one with HBO featuring a vintage logo capsule collection and another with premium Japanese restaurant, Nobu.
Poolside FM
Poolside FM is a retro internet station with an ’80s vibe. To add a new layer to the brand, it recently launched a new sunscreen—Vacation. In line with PoolsideFM’s branding, the new sunscreen is all about a retro vibe—from product packaging to visuals to website design. Its drop-style rollout generated huge buzz for the brand and its new product.
Aime Leon Dore
New York fashion label Aimé Leon Dore made its debut in 2014 and became instantly popular among streetwear fans. The brand is known for its refined style as well as popular collaborations with partners such as New Balance, Woolrich, and Porsche. Aimé Leon Dore leverages the power of social media to announce its new releases, which has proven wildly successful.
Outer
DTC furniture brand Outer disrupts the furniture industry in many ways. Aside from introducing an online-first outdoor furniture shopping experience, it also has brought drop culture into the furniture space. With limited-edition product releases, Outer generates excitement and attracts new customers while also monitoring the pulse of its customers to help it develop new products.
Billionaire Boys Club
Billionaire Boys Club is a men’s streetwear line launched by Pharrell Williams and NIGO in 2003. The brand mantra is “Wealth is of the heart and mind. Not the pocket.” The brand is known for its spaceman logo, which signals customers when there’s a new drop.
Saturdays New York City
New York–based clothing and lifestyle brand Saturdays New York City has significant, influential power. It all started in 2009 from a small SoHo store. More than a decade later, Saturdays NYC has grown into an international lifestyle brand. For one of its collections, it partnered with the British luxury lifestyle brand Barbour, for a capsule collection that brought a combination of surf and city culture with iconic motorcycling heritage.
Last Crumb
Think limited drops are impossible for some industries, like food/beverage? Think again. Last Crumb is a luxury cookie company offering Michelin-star-quality desserts sold in limited editions. Its secret to success is organic marketing through owned channels, such as email and social media, in parallel with influencer marketing campaigns. Everyone who wants the inside scoop and to be among the first to find out about a new drop has to join its email list.
If I had $1,000 to give to a lawyer, I probably could’ve had a better lease. But when you’re really under-financed, you take shortcuts.
How to get started with limited drops
Do limited drops sound like something you’d like to test? If you want to emulate this strategy, here are six simple steps that will help you with a successful drop release.
- Create a sense of urgency. If it’s not urgent, it can wait. And if it can wait, it’s not that important. That’s psychology. Announcing the exact date and giving customers a limited time frame makes your product exclusive and desired.
- Make an illusion of scarcity. People always want something that not everyone can have. Again, psychology. Most of the examples you’ve seen in the previous section are scarce by choice, not because they’re hard to produce. Adding a scarcity dimension makes the hype greater and influences customers into buying.
- Leverage the power of social media. It’s been proven time and time again that social media has the ability to fuel growth through virality. If you want success with your limited drops, make sure to build a solid base of social media followers excited about your brand and your products in general.
- Don’t overdo it. Timing is an essential part of the equation. While there are many examples of brands releasing new drops every week, the only way to keep exclusivity is to offer small batches that won’t be restocked soon after they sell out.
- Make sure it’s worth the hype. All the brands we’ve talked about have one thing in common: quality. You can’t bet on a limited drops strategy for the long run if you’re not focused on high-quality products. Once customers get disappointed in your brand, there’s no going back. Don’t be afraid to create a buzz, but make it worthwhile.
- Get ready for the craze. Preparation is the key to success. Customers that are willing to wait in line and pay a lot of money to get your product expect a world-class customer experience from start to finish. Aside from checking if your website can handle spikes in traffic and a solid enterprise resource planning system, you need to create a frictionless experience with a versatile retail POS for unifying in-store and online sales.
The future of limited drops
Limited drops may be the next ecommerce battleground, as more tech-savvy brands figure out how to generate hype to stand out within a crowded social media feed.
Manage your inventory with confidence
Only Shopify POS helps you manage warehouse and retail store inventory from the same back office. Compare inventory costs to revenue, see which items are selling out or sitting on shelves, forecast demand, and more.
Limited edition drops FAQ
What does limited drop mean?
A limited drop is a new product line release that’s only available for a limited time. Many businesses use limited drops to create buzz and hype around new products, increasing short-term sales.
What does drop mean in retail?
Drop typically means “launch,” as in a new product launch or collection launch. It’s also another word for a release, like when you’re releasing new products out to the public.
Why do brands do drops?
Brands do limited drops in order to generate excitement around their products and create a unique, limited-time offering for their customers. This is a great tactic for increasing short-term sales in order to stay on target for your goals or to reach a new one.
What is a drop strategy?
A drop strategy is a documented plan on how your company plans to create, promote, and release drops to your customers. It’s a good idea to have major limited drops every so often; however, you don’t want to employ this tactic too often or your customers will become numb to it.
FAQs
What does limited drop mean? ›
Limited drops create a sense of urgency and scarcity that leave customers craving more. The result: merchandise flies off shelves. “Drops” are special release products that are either scarce in quantity (due to intentional limited production) or scarce in availability (due to a limited-time purchase window).
What are brand drops? ›Brands do limited drops in order to generate excitement around their products and create a unique, limited-time offering for their customers. This is a great tactic for increasing short-term sales in order to stay on target for your goals or to reach a new one.
Why do brands do drops? ›A product drop is when a brand announces a new launch or release of a product in small or limited quantities. By doing this, they create a sense of urgency, cutting through the busy online sales space with their unique offering.
What is a drop in fashion? ›A drop is a limited release of merchandise, often as a marketing technique by streetwear fashion brands.
What does drop in only mean? ›ˈdräp-ˌin. : a casual visit or brief stop. : one who drops in : a casual visitor.
What does a product drop mean? ›Product drops are when a company releases a limited-edition product line for a short period of time. It's an effective tactic for tapping into the competitive nature of consumers who are looking for unique products, as momentum builds around the exclusivity of a collection.
Who started drop culture? ›Although streetwear and sneaker brands are often credited with starting the trend, Roncha argues fast fashion companies like H&M, Zara and Primark are the actual forefathers of drop culture.
Where did drop culture come from? ›Discover how product drops grew from an underground streetwear brand in Tokyo to being embraced by the world's biggest luxury fashion houses, sneaker brands, and social media companies.
What is brand hype? ›Hype allows brands to promote their image above the actual quality of the product. Streetwear brands have collaborated with luxury fashion to justify charging premium prices for their goods.
What is a drop strategy? ›A “drop” is an online marketing strategy that comes from the fashion world, and perfected by New York-based skater brand Supreme. Supreme releases limited-edition runs of 5-15 new products every Thursday at 11 am, using a digital strategy borrowed from Japanese streetwear culture.
Why do people go after brands? ›
BRANDS PROVIDE SAFETY.
You're most likely to pick a national restaurant brand over a local one because you're familiar with the national brand. It's the safe and predictable choice because you know what to expect. Brands offer safety and reduce the risk of disappointment.
Conclusion: Reasons why customers leave
Customers leave because they don't need your product. Because your product is too expensive. Because your product doesn't solve their problems. Because they don't like you.
- Create a sense of scarcity. First and foremost, you need to build hype around your drop by highlighting the exclusive nature of your product. ...
- Time your releases wisely. ...
- Harness the power of social media. ...
- Consider partnering with personalities. ...
- Ensure your product lives up to the hype.
A product drop is the release of a product that's scarce in availability or scarce in quantity. This means it's either a time-limited product release, or one where supply is intentionally low. Product drops typically take this second form of limited supply.
What is a drop in retail? ›If I understand your question, then eCommerce "drop-in shopping" refers to a specific set of circumstances concerning 1) the customer, and 2) how they came to visit a merchant's website. Typically, drop-in customers are those who are visiting a merchant for the first time.
How can you tell if someone is listening on Alexa? ›Turn on a notification sound to alert you when Alexa is listening to your conversation (using “Sounds” under “settings”). Turn off “personal results” from the Google Home app (under “settings” and “more”).
What drop means in slang? ›slang. to ingest an illicit drug orally; swallow.
What does it mean to drop someone slang? ›1. verb, slang To end one's friendship with someone. Yeah, I did drop Kelly, but only because our friendship was so toxic. 2. verb, slang To punch someone and cause them to fall down.
How do you plan a product drop? ›Generate buzz with your promotion strategy
The key to a successful product drop is hype. Your goal is to create as much excitement and urgency among your fans as possible. In the days leading up to the drop, share content that showcases its value and exclusivity to encourage more people to set launch reminders.
A product drop is an iteration of a flash sale, but these launches usually happen IRL and span an even shorter period of time than the typical flash sale. Usually, these drops are special release products that will only be available for a limited time or there's a limited quantity for customers to get their hands on.
What is a drop in quality? ›
a noticeable deterioration in performance or quality.
What is Supreme drop culture? ›Demand for Supreme's drops greatly outstrip supply with merchandise often selling out within seconds. The carefully crafted drops have created a habit that keeps customers coming back to Supreme each week to see what new merchandise is up for sale.
How many times a year does Supreme drop? ›Supreme releases two collections a year – one for Spring/Summer, and one for Fall/Winter.
What is hype fashion? ›Hype-fashion is streetwear that has been hyped-up by celebrities, famous personalities, or piquing the interest of potential customers through exquisite and unique articles of clothing. Some examples are Supreme, Adidas, and even Gucci. People that are obsessed with hype-clothing are often referred to as 'hypebeasts'.
How do online drops work? ›Drops are unlocked by watching any participating channel for the amount of time set by the game developer to earn a reward. Once you complete the time requirement, you will be able to claim the reward. You can only gain progress toward a reward on one channel at a time.
What's the goal of hype marketing? ›The entire purpose of hype marketing is to generate a specific (and highly appealing) image of the product you're promoting. Now, the same could be true of any great marketing campaign, but there's one key difference with hype: the image you paint is misleading. Take, for example, the entertainment industry.
How do you build hype? ›- Plan Your Campaigns. When sending campaigns to create product hype, you want to be thinking about conditioning the next action. ...
- Segment Your Audience. ...
- Take Pre-Orders. ...
- Hold a Social Media Giveaway. ...
- Promote Scarcity & Exclusivity in Your Messaging. ...
- Involve Your Customers Early On. ...
- Timing is Everything.
Is Hype a good brand? Yes, overall they have great reviews. At the time of writing, there are a few people disgruntled with customer services and packing errors but every brand will have a percentage of issues.
How do you solve a drop in sales? ›- Understand Why Sales Slumps Happen. ...
- Create a Happier Workforce. ...
- Set Clear and Achievable Goals. ...
- Set Out Incentives. ...
- Invest in Training. ...
- Optimize Your Marketing Strategy. ...
- Re-evaluate Your Audience. ...
- Stay Positive.
For example, if 2000 people visit your website but only 200 people make a purchase, the drop off rate would be 90%. Many businesses use page tracking tools like Google Analytics to better measure this particular metric.
How does social media promote clothing brands? ›
- Use All the In-App Shopping Features.
- Create a Facebook Group (or a Few)
- Find the Right Influencers and Fashion Bloggers.
- Dominate the Right Hashtags.
- Equip Your Social Profiles for Customer Service.
- Get Creative Sharing Reviews and Testimonials.
A branding will first scab over, which can last from a few weeks to just over a month. At this phase, the appearance of the branding is a bright red raised scar, which slowly becomes lighter than the normal skin tone. This phase lasts about twelve months, and the scar tissue may rise slightly more during this time.
What makes a brand loved? ›Brand love is a marketing strategy that looks to adopt brand-loyal customers and turn them into advocates or influencers for your brand. In an effort to achieve this culture, brands must foster customer satisfaction, customer value and relationship marketing.
Can we live without brands? ›Without brands, people will buy products and customer utility exists. Life does go on, but not with the same deliciousness as a life with brands. Without free markets and brands, innovation is nonexistent and the price of poor quality goods is high. Brands are part of our lives and there's no way around it.
What can destroy a brand? ›Regardless of the power of any brand and the passion of its followers, there are three key missteps that can erode brand value faster than you can say “sinkhole”: React poorly in times of crisis. Exhibit tone-deaf leadership. Choose to enforce rules rather than collaborate with your community.
Can you do dropshipping with clothes? ›Clothing dropshipping businesses (or fashion dropshipping) sell clothes via third parties that handle stock storage and shipping. Without the need to store products or manage inventory, businesses can work with very little overhead.
How do you tease a new brand? ›...
7 ways to build excitement about a new product on social media
- Create a hashtag. ...
- Get creative with your promotional deals. ...
- Tell a story. ...
- Give a sneak-peak. ...
- Team up with local artists or businesses. ...
- Have a giveaway. ...
- Video teasers.
- That's a beautiful color on you. ...
- The fit is perfect for you. ...
- I love your style! ...
- That dress really brings out your eyes. ...
- You look amazing! ...
- You have such a great fashion sense. ...
- I need to get my hands on that jacket/dress/pair of shoes!
Drop card marketing can be extremely profitable for just about any business if done properly. Most businesses don't even know that this type of marketing technique even exists. This is a plus for businesses that use drop card marketing to increase the number of customers they have and their profits.
What is a Drop and Shop Program? ›Introducing Drop & Shop – a new way to donate, shop and save! Donate your gently used clothing and home goods any day of the week, & receive a 1-time-use QR code on your e-receipt. Simply show the QR code on your phone the next time you shop & receive 15% off your next purchase!
› business › blog › riding-the-prod... ›
Riding the Product Drop Trend to Success
The Business of Hype: How to Master the Drop CoreMedia
Product Drops: 8 Strategies, 5 Benefits & 20+ Examples
slang. to ingest an illicit drug orally; swallow.
What does a drop mean on Instagram? ›What are Instagram Drops? Instagram's latest social commerce feature is designed to help brands build hype around upcoming product launches. Named and modeled after the product drop trend, Drops allow consumers to browse, discover and purchase upcoming releases through the Instagram Shopping tab.
What is considered 1 drop? ›The minim was defined as one 60th of a fluid dram or one 480th of a fluid ounce. This is equal to about 61.6 μL (U.S.) or 59.2 μL (Britain). Pharmacists have since moved to metric measurements, with a drop being rounded to exactly 0.05 mL (50 μL, that is, 20 drops per milliliter).
What is a drop in quality? ›a noticeable deterioration in performance or quality.
What does dropping a girl mean? ›1. verb, slang To end one's friendship with someone. Yeah, I did drop Kelly, but only because our friendship was so toxic. 2.
What does dropping the soap mean? ›Etymology. From the exposure of one's buttocks when bending over in a male group shower, in reference to prison rape.
What is drip slang? ›Drip is a term to refer to someone's cool sense of style. Hip-hop culture popularized the term, and it gained popularity as a way to describe a person's impressive and trendy appearance.
Why has my Instagram engagement suddenly dropped 2022? ›Over the last few years, I've noticed a significant drop in my impressions, engagement, and number of new followers. The reason: Instagram's 2022 Algorithm. Thanks to the last few updates, only 10% of your followers are able to see your post.
What does drop mean in social media? ›A “drop” is an online marketing strategy that comes from the fashion world, and perfected by New York-based skater brand Supreme. Supreme releases limited-edition runs of 5-15 new products every Thursday at 11 am, using a digital strategy borrowed from Japanese streetwear culture.
What does a drop in group mean? ›
A drop-in center is a service agency for either the mentally ill, homeless people, teenagers, and other communities that offers a place where people can go to obtain food and other services.
How much is a dropper full of CBD? ›Each drop contains 2.5 milligrams of CBD. Next, you can calculate how many drops you need to reach your goal dosage. Let's say you want to consume 25 milligrams each day. With this CBD oil dosage calculator as your guide, you would find that you needed to consume 10 drops, or 0.5 milliliters, to reach 25 milligrams.
How much do droppers hold? ›This basic glass pipet is also known as an eye dropper or pipette. It holds about 1ml or 20 drops.
What is a full dropper? ›A dropperful is the amount of liquid that fills the glass tube of the dropper top when the bulb on the dropper top is squeezed and released. The liquid may fill the glass tube only a small portion of the way, but that is considered a “dropperful”. A dropperful equals approximately 30 drops.
What does sharp drop mean? ›1 having a keen edge suitable for cutting. 2 having an edge or point; not rounded or blunt. 3 involving a sudden change, esp. in direction.
What is a drop off in performance? ›drop-off - a noticeable deterioration in performance or quality; "the team went into a slump"; "a gradual slack in output"; "a drop-off in attendance"; "a falloff in quality" falling off, falloff, slump, slack.
What is a drop in order? ›Drop shipping is when a seller ships its customers' orders direct from its supplier's warehouse. Drop shipping is a popular logistics and supply chain shipping strategy in the e-commerce retail industry.
› drop ›