Rarity

There are varies way make things or experiences become rare. Namely limited edition, uncommon, handmade stuffs with long lead time, limited time frame, niche, scarce, being eliminated / neglected, et cetera. A brief chat of RARITY from different aspects – social, economy, technological and culture.

Limited edition usually refers to products, can be a book, can be a record disc, can be a performance ticket; but in most of the cases, it refers to luxuries goods. This is tricks by the business society. Everyone want to be special, want to be different from others, those limited luxuries goods make them feel good and satisfied from the ownership of an precious item. Role of that piece of luxury item here represent one’s identity.

Uncommon here refers to exclusive products or services, something not happened in most occasions, or a nature scene. A record disc with celebrity’s signature can be very expensive, an one off campaign by famous brands, last show before retire, or, if you saw a frog flying in the sky (just an extreme non exists example). Since those products or services are only happened once and will not happened again ever most likely, people are willing to pay for it, and to visit the special scenes.

Handmade stuffs with long lead time, craftsmanship become as art under the rapid development of technology. Time before machines and technologies, all items are handmade. From clothes, accessories, furniture, tools, houses, everything. The need of handmade is less at the early stage of machines and technologies appear for businesses’ mass production. Skills of handmade – craftsmanship is eliminated. After time passes, desire of handmade are backed as people start getting bored with technologies since is too common nowadays and things happened too rush, same as fast fashion.

Limited time frame has similar function as limited edition. Limited nights of shows makes you want to participate; limited time to an special offer gains more sales and draws people’s attention; pop-up stores makes you purchase more or even purchase something not necessary; pop-up restaurants makes you willing to queue for two hours for a meal. Nature scenes as well for example sun rise, waterfall or Northern lights.

Niche market – brands with particular focus aimed to satisfy group of target customers. Price may not be high, quantity may not be limited, but with specified or special features that gained particular need of customers.

Scarce refer to insufficient food and resources. Lack of food and resources not only happen in low income groups and third tier countries, but even well developed countries. Low income group do not have enough food because of no money to buy. Third tier countries do not have enough food because of poor living environment that cannot farm. But why well developed countries facing the same problem? The reason is over developed – things were polluted and over use natural resources.

Lots of sunset industries being eliminated / neglected. It may be replaced by technology, factories relocated to non developed cities for lower production cost, or simply just people do not need it anymore – with no desire on it.

VALUE from rarity occurred. As mentioned earlier about different types of rarity, they all have a same hidden meaning – value. Value here is not the actual value, is the desirable value, depends on how much people are willing to pay for their desire.

Why rarity affects value? In general, less quantity always with higher value. From Austrian School in 19th century, Marginal Revolution explained the economy behavior with the Law of Diminishing Marginal Utility, say it in a simple way – relationship between demand and supply. While with more supply, the product, service or experience will be closer to the use value. While with less supply, vice versa will be closer to the exchange value.

Again in general, less quantity always with higher value, but not totally true, especially on outdated products, declining industries and neglected spaces. Rare not a must become valuable, it will be worthless if there is no demand.

Value is always flexible, depending on the need at particular period of time. Some outdated products, declining industries and neglected spaces were with low values due to trend, social change, technology development and market development at early times. They may turned into antiques, virtuosity or not worth a pin, depends on how much desire from consumers or being rediscovered.

Value and rarity sets the boundary of economy, from need to desire – physical theory by Maslow (1970), who proposed the hierarchy of needs ranging from basic physiological needs to needs of self-actualization.

Value of rare items forms collecting too, from objects, art pieces, stamps, coins and more. Individuals have a nature desire to collect things with varies reasons, in more often, collecting is on the economic side for buy and sell the desirable value. Sotheby’s or second hand shops, value or worthless – it needs a good investment strategy and calculation via materialism.

What rarity means from a SOCIAL aspect? The first thing came up in mind is Gunnies World Records. People make and break records by varies kinds of achievements, doing special things, something amazing, not easy or not much people can make the same.

Declining animals from freshwater pieces, terrestrial pieces to marine pieces. Some were caught by human for food or luxury items, and some were disappeared by over develop of land use. To protect conservation areas then become another issue due to this reason also. More and more public parks and nature scenes are no longer exists as property developers can gain more from skyscrapers. News about protecting conservation areas and parks in Hong Kong can be easily found, noises and objections from different parties are very common, after years of development from harbour village into top tier commercial city, people start missing the greenery.

Also because of this well developed city, we lost the starry sky. Night view of Victoria Harbour is an signature scene in Hong Kong, artificial lights from high rise buildings lights up the city, no doubt it is beautiful however, the stars are hidden behind the beautiful lights.

Look from macro perspective world widely, there a thousands of magnificent scenes, including Milford Sound New Zealand, The Amazon Rainforest South America, Aurora Borealis Northern Hemisphere, and more. People will travel from far distance, walk for days to mountain top enjoying good scenes, especially under global warming, those scenes may disappear in the near future.

From healthy lifestyle perspective, need of urban farming and organic food getting higher due to the lack of nature scene and the simple natural life. Digging out green space in a commercial city is a hard task, therefore sky garden and roof top farming become more comment. Some of the roof top farming also become the freshest ingredients for the restaurant downstairs.

For a more humanity angel, physical communication become an expensive activity among people, neighbourhood community shifted from in person to virtual. People connects with others via electronic devices, and even they are in the same place, still talking with their devices but not the person sit next by. Results from researches proofed that people are losing their writing and speaking skill.

Rarity in ECONOMY, luxuries good is the most comment party using limited editions as a marketing tool. For example Hermes’ handmade hand bag, GPS function watches, diamonds, Ferrari in exclusive colours and collaborate with celebrities.

Hundred years ago, products are made by need – the use value as mentioned earlier. Products are function oriented instead of design oriented at that time. This changed by time with the growth of economy, customers desire more because they have more money in their pocket, seeking satisfaction of happiness – the desirable value.

Hermes is one of the luxury brand committed with handmade technique. Only 15 bags can be made every month at their Pantin factory in France. No storage, made by order, one quota only for their VVIP. This is the reason keeps their products at top value – including how long that those VVIP willing to wait, not only the pay. An opposite example is Louis Vuitton, they hired McKinsey as their production management since 2005, shorten the production time and increase the production quantity. This benefit more people can own a Louis Vuitton bag easily but, they lose the rarity under the law of diminishing marginal utility.

Another similar example is Panerai, with very limited pieces be produced every year. Performance, material and design of course are the elements making people willing to pay and wait, but the most reason is – limited in quantity. Their Luminor watch is competitive as Rolex now.

Russia Government announced there is a huge diamond mine in Seventies which can meet the market need for three thousand years. Reason of Russia Government not announce the news thirty years ago is to maintain the market price, otherwise diamonds will have no different as stones in one night.

Sometimes in the luxuries industry is not easy as what people think. They have a elegance mask covered, they cannot lower the price even under crises in order to maintain their image and position in up market. Just like Ferrari, mentioned by Amedeo Felisa – CEO of Ferrari. They are not only sell cars, they are a global brand with F1 formula, sponsored racers, racing crews. Thought the profit margin has no incensement at that year, but at least they maintained it and to protect their brand successfully.

There should have no one disagree that TECHNOLOGICAL is the hottest trend in this Internet of Things (IoT) generation. Every people have one to two types of mobile devices in average from mobile phones, tablets, mini computers, digital cameras to wearable technologies.

People desire more and more from what they seen from movies (for example Mission Impossible) Why technology goods are counted as rarity? Because here the technology stuffs we mentioned here is not the current launched products. Companies no matter what their products are, they always release their prototypes / news to test the market and engage with potential customers for them to have big desire on the products which is not ready to launch in market.  Time of waiting – always the one of the good factor goes with rarity.

Bitcoin – the virtual currency launched in 2008. It makes lots of people getting crazy to gain one. Some even hire IT professions and purchase set of strongest computer systems to decode their pre-set formulas. Cost of Bitcoin from ten thousand of Bitcoins for two pizzas to US dollar three thousand each in 2015 as predicted by economy experts.

Space travel by Virgin Airline – Galactic is another crazy yet prestige travel experience that lots of billionaires on the waiting list. Thought under testing period since 2009 and one piolet dead during the first test early 2011.

CULTURE is the sector of rarity is a bit different to economy aspect. It is more international. There are two different of results that culture things will become valuable or be neglected. Most of the items under culture aspect need to process the change of time. For example declining industries, old cameras, gramophone records, carpenters, handmade, traditional food, tailors, et cetera.

Again under society’s development and the law of diminishing marginal utility, products, services and experiences will have less value when there are plenty of supply. Give and example on experience – a bowl of plain rice taste extremely good when you are hungry, five steaks will not taste good when you are full. Here taste good or not is not judged by the food itself, it was determined by people’s physical need as one bowl of plain rice is rare to a hungry man at particular period of time. And it means that rarity and value are always flexible, depends on the need at that time.

Back to examples of actual products, traditional cameras and gramophone records are two out of many that passed the declining situation to rarity nowadays. There was a television programme interviewing gramophone records collectors and sellers, almost no gramophone records in the markets since cassette tape, CDs, MDs, iPods are superseded. However the demand is hot again in the past two years. Price of one gramophone records from double to ten times higher due to the market need.

If products can come over this declining period, they may have an uncountable value in future, but of course, not every declining products will become valuable in the end, some may end with being neglected and lost in market.

To conclude, there is no right or wrong being rarity, everything in the world needs a balance, gives and take always happen for you to choose. From this study, we found that more than only luxuries goods can be rare, but also general products, services and even experiences. Remember there is no fixed price or condition to the definition of rarity apply to any of the above, it change time by time affected by the actual value, desirable value, use value, exchange value, the need in particular period, social issue, economic issue, political issue – is a complex calculation.