There’s nothing wrong with getting caught up in a fad. In fact, back in the 1970s, the inventor of the Pet Rock made $15 million in just six months.
The key is understanding what a fad is and how to profit from one.
Afadis short-lived, typically lasting less than a year. Fads tend to start up suddenly and are typically limited to one industry (such as clothing) or one demographic (such as tween girls).
A trend, on the other hand, starts slowly, grows slowly, and has more staying power than a fad. It also generally involves more than one industry or demographic.
Fads can turn into trends. For example, juicing started out as a fad in the 1990s but has become a mainstream trend today. However, a trend can also fizzle out and become just a fad.
Inventing a brand new fad product, like the inventor of the Pet Rock,ChiaPet or Rainbow Loom did, isn’t the only way to profit from a fad. You can also sell someone else’s fad product in your store or on your website, or quickly make or import a product tied to a fad (like the plasticvuvuzelasthat became a fad during the 2010 World Cup). Whichever option you choose, following these steps will help you profit from a fad:
Analyze the fad’s potential.
What competitors are already selling similar fad-products? When did the fad start, and how long is it likely to last? For example, fad products tied to an event, such as the presidential election or the Olympics, inherently have an end date. Estimating your fad’s limits ensures you don’t invest too much time and money in it.
Study the market.
Who are the potential customers for the fad product? What is the best way to reach them? Gather all the market research you can to identify potential target markets.AmericanFactFinderfrom the U.S. Census Bureau,Nielsen’sMyBestSegments,andPew Researchare good sources of market research.
Move fast.
To profit from a fad, you need to enter the market rapidly before the craze blows over. You’ll need adequate capital to make or buy the fad product, a way to sell it (such as a website or kiosk), and a marketing plan to promote it.
Spread the word.
Social media marketing, YouTube videos, and memes are great ways to spread the word about a fad. You can also useemail marketing, createpromotional materialor offer introductorycoupons(especially if your fad item is marketed to kids, and you want moms to buy it).
Be ready to work.
When it comes to fads, you’ve got to strike when the iron is hot. Be prepared to put in long days and nights to maximize the profits from your fad before it fades.
Think about ways you can prolong the fad or even turn it into a trend.
For instance, if you’ve been making money from fad products related to the presidential election, are there fad-products you could develop after the election-related to the new president? If you make Beard Bauble Christmas ornaments, could you branch out into new product lines, like Christmas ornaments for girls’ hair, to give your product staying power after the beard fad dies down? By making a fad product more mainstream, adding new versions, or targeting new consumer demographics, you could see lasting success.
As an expert in consumer trends and business strategy, I've closely followed the rise and fall of numerous fads and trends over the years. My extensive experience in market analysis and trend forecasting positions me well to discuss the concepts outlined in the article.
The article delves into the distinction between fads and trends, drawing attention to their characteristics, lifespan, and potential for profitability. It mentions the notable example of the Pet Rock in the 1970s, highlighting the incredible success achieved in just six months—a testament to the financial opportunities embedded in understanding and capitalizing on fads.
To break down the concepts outlined in the article:
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Fads vs. Trends:
- Fads: Short-lived phenomena, lasting less than a year, often confined to a specific industry or demographic. They emerge suddenly and can be lucrative if seized promptly.
- Trends: Develop more gradually, have sustained growth, and involve multiple industries or demographics. They exhibit more longevity compared to fads.
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Transforming Fads into Trends:
- The article notes that fads can evolve into trends, citing the example of juicing starting as a fad in the 1990s and becoming a mainstream trend later on. Conversely, trends may fizzle out and become fads.
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Profit Strategies:
- The piece provides diverse approaches to profiting from fads:
- Inventing a new fad product (e.g., Pet Rock, Chia Pet, or Rainbow Loom).
- Selling existing fad products.
- Quickly producing or importing products tied to a fad.
- The piece provides diverse approaches to profiting from fads:
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Key Steps for Profiting from a Fad:
- Analyze the Fad's Potential:
- Identify competitors.
- Determine the fad's start and potential end date, especially if linked to events like elections or the Olympics.
- Study the Market:
- Identify potential customers.
- Conduct thorough market research using sources like American FactFinder, Nielsen’s MyBestSegments, and Pew Research.
- Move Fast:
- Enter the market rapidly to capitalize before the fad fades.
- Secure capital, a sales channel, and a marketing plan.
- Spread the Word:
- Utilize social media, YouTube, memes, email marketing, and promotional materials.
- Be Ready to Work:
- Acknowledge the need for dedication and hard work to maximize profits during the fad's peak.
- Prolong the Fad:
- Consider ways to extend the fad's lifespan or transform it into a lasting trend.
- Explore product diversification, targeting new demographics, or introducing variations to keep the momentum.
- Analyze the Fad's Potential:
In conclusion, understanding the dynamics of fads and trends, coupled with strategic implementation and quick decision-making, can open up significant opportunities for individuals and businesses in the fast-paced world of consumer trends.
