Jumping on the bandwagon of high demand products can be risky

[Alexandoy]

In the internet the word viral is well-known which means something comes up to be suddenly popular. In business there are also the so called viral products like the roasted chicken here where you can see a barbecue stand in almost every street corner. But the hype lasted for less than year that most of the stands selling roasted chicken closed shop due to stiff competition.

When the corona virus came to town there was a mad rush for face masks. It was selling for 10 pesos per piece. Importers were earning good profit because the face mask from China costs only 1 peso – that is times 10 in their selling price. When the other importers joined the bandwagon the demand remained but the supplies was too much which pulled down the price. Now the selling price of face mask is slightly less than 2 pesos per piece. Just a lesson learned for products with a sudden great demand like the face shield now, be careful in joining the bandwagon.

 

[Sammyesx]

You are definitely spot on, there are seasonal or occasional product whose demand will rise due to some certain circumstances, the people that profit from these senerio are people that rushed into the market very early, they know fully well that there will be competition and reduction in demand, but there plan is always to make enough profit while it last.

 

[btaliat]

That's true. I noticed it with nose mask as well. The reason for this is that most people involve in business for money making. Doing business for money is not alone. We should go into business when we know the rudiments of the business and not because we want to make money from the business

 

[Chibson]

I could remember vividly when the Balenciaga and Gucci clothes we are reigning in my place. A lot of people bought the clothes because others are buying and a lot of celebrities are buying also. This made the brand popular in my country and of course they made a lot of profit. I am not moved by such things so I didn't even bother to buy. It is not advisable to jump into high demand products.

 

[Alexandoy]

I could remember vividly when the Balenciaga and Gucci clothes we are reigning in my place. A lot of people bought the clothes because others are buying and a lot of celebrities are buying also. This made the brand popular in my country and of course they made a lot of profit. I am not moved by such things so I didn't even bother to buy. It is not advisable to jump into high demand products.

What's having a hype now are the expensive bags of Gucci and other high end brands. It makes me wonder why people would buy just because that particular bag is used by a popular celebrity. Lucky are the manufacturers of such products because they get to sell a lot just because of the hype. And when the hype fades what happens next?

 

[Mika]

In my opinion, a lot of people fail in businesses because they jump on the bandwagon and start doing selling the same item that a lot of businesses are already selling. If you do a business in a niche that is heavily saturated, you are very likely to fail. IN order to succeed, you need to do business on something that has not been extensively explored.