Using economics, explain why fads and fashions come and go.?

Answer 1

A fashion/fad is always new and cutting-edge. Those who wish to market an item as a fad can do so intentionally, targeting a certain demographic: age group, race, economic status, etc. Consumers buy what they think they need. Consumers think they need to be popular; people who are popular are fashionable. (All of those statements are influenced by the media/marketing.) So an ad/commercial/magazine picture will market something as cutting-edge.

Stores can then price this item accordingly, at a high price to show consumers that it is valuable and worth spending more money than they usually would on that type of item. So consumers buy it.

At first, only a few consumers buy the item, usually the more well-to-do consumers (who are perceived as popular). Other companies recognize this potential fad and begin producing knock-offs to sell to customers who cannot afford the "real thing." The number of consumers buying/using the product grows quickly.

Before very long, the number of "fad" items being used is huge. There are the originals, fakes, possible fakes...it's hard for consumers to tell what's an original and what isn't anymore. The product is no longer cutting-edge or new, because everyone and their grandmother has one. It's old news; stores can no longer sell it for its original, inflated price. Consumers lose interest, and the fad is gone.

As an example, think of the beanie baby cycle. At one time, certain beanie babies ("rare" ones) sold for hundereds of dollars. Now, they're not worth two bucks because the market is so bloated with them. The bigger the fad, the faster that cycle plays out; the faster the fashion exhausts itself.

Answer 2

Fashions and fads come in because of preference/reputation/quality/cost and many reasons beyond whats stated. Once this is established companies will price these items higher and the demand will go up as well. When there is a new fad developed in which people run towards. The demand goes down and the price goes down and eventually the supply will go down as well (hence the fad LEAVING). The price will be lower and we all know no one wants any cheap shyt. The new fad occurs the same way. You cannot produce something and have it booming if the consumer does not buy into it.

Answer 3

Money makes the world go round.

Capitalists have money. They want to make more money.

The common man has some money. Not enough to make him/her rich, but enough to make him/her feel like he/she can be perceived as rich.

Capitalists want to take the little money from the common man's pocket to stock up on their big bank accounts. What best way to legally take that money? They play on the need of the common man to be perceived as rich.

Hence, the Capitalists come up with these fads and fashions to allure the common man to spend what little money he/she has. And they keep changing these fads and fashions when they realize that they are not selling anymore.

It's a vicious cycle for the common man.

Answer 4

Hurrah, that's what I was looking for! Thanks to author of this question.