Episode Overview

Podcast: The Foundr Podcast with Nathan Chan
Episode: 604 — (Solo) What Labubu and Apple Can Teach You About Scarcity Marketing
Date: November 11, 2025
Host: Nathan Chan

Nathan Chan uses this solo, bite-sized episode to delve into the power of scarcity as a marketing strategy. Drawing on examples from Pop Mart’s Labubu figurines, Apple, The 5th Watches, and entrepreneur Lily Lou, Nathan explores how authentic scarcity builds urgency, cultivates community, and boosts perceived value—not only driving sales but also fostering brands with cult-like followings.

Key Discussion Points & Insights

1. Scarcity as a Proven Marketing Strategy

• Scarcity isn’t new: "Scarcity isn't new when it comes to using in your marketing. You look at Apple, they have people camping overnight to get the new iPhone. They strategically limit the amount of new iPhones that they put out." (03:40)
• Authenticity matters: Nathan emphasizes that scarcity must be genuine to be effective and trustworthy.

2. Case Study: Labubu & Pop Mart

• Elements of Scarcity:
  • Hard to find
  • Randomized content in each box ("you don't know what you're going to get")
  • Unpredictable restocks
  • Social proof via viral unboxing experiences and communities
• "What has really taken off is this concept around these Labubus and why everybody wants them. It's got FOMO, urgency, and social proof." (06:52)
• The comparison to Pokémon cards: Nathan likens the unboxing excitement and seek for rare versions to childhood card collecting, now amplified by social media.

3. The Drop Model in Practice

• The 5th Watches:

  • "They only sell the product on the 5th of every month. They used to lock the site and you needed a special password. ...No one was doing it. And they made buying a watch feel like an event and they had limited quantities." (08:03)
  • Waitlists and anticipation: "We had a wait list of over 10,000 plus people...waiting to buy that product when the store opened. So that's how it starts." (09:05)

• Student Example – Lily Lou:

  • Pet hair resistant loungewear launched with genuine stock limitations
  • "She only could afford a limited amount of stock...and then she built up hype. And then off one TikTok video, boom, $6,000 worth of product sold out." (12:12)

4. The Psychological Triggers Behind Scarcity

• Urgency to act ("if you don't buy now, you might miss out")
• Desire for rarities ("I really wanted to get a black Labubu...So that wants me to keep buying because that's the rare one.") (14:10)
• Mystery and unpredictability: Not knowing exactly what you’ll get makes the experience engaging.

5. Community as a Force Multiplier

• Scarcity + Community: "Scarcity without community is also a missed opportunity. So you want to lean into the buzz...the culture." (16:04)
• Labubu: Trading culture online enhances excitement and perceived value.
• The 5th Watches: Viral waitlist system where sharing earns people higher placement.

6. The Dangers of Inauthentic Scarcity

• "You don't want to make this a fake scarcity marketing type gimmick, because that doesn't feel good. That feels deceitful, and that makes the customer feel really crappy." (15:18)
• Consistency reinforces trust: When brands break their own rules (by restocking too quickly or extending windows), they lose credibility.

7. Unpredictability and Fun in Scarcity Models

• Supreme’s infamous "brick" drop as an example of playful scarcity-driven hype.
• "That unpredictability builds anticipation. Same with the fifth watches. ...Exactly five days. Then the doors shut. So that consistency made people trust the scarcity." (18:41)

Notable Quotes & Memorable Moments

• On the feeling scarcity creates:
  "It's really about positioning your product as something that's worth waiting for." (08:49)

• On artificial scarcity:
  "Whatever you do, don't create fake scarcity. ...You want it done right. It creates urgency, it builds community, it adds perceived value, and it really positions your product in a really, really strong way." (21:10)

• The role of community:
  "The key takeaway here is scarcity without community is also a missed opportunity." (16:04)

• Consistency as trust:
  "If you break your own rules, your audience will stop trusting you. You will lose faith." (19:44)

Highlighted Timestamps

• 03:40 — Scarcity isn’t new: Apple and product launches
• 06:52 — Why Labubu is a sensation: scarcity, FOMO, and social proof
• 08:03 — The 5th Watches: exclusive event model
• 09:05 — Greta Van Riel’s launch strategy: Building a massive waitlist
• 12:12 — Student example: Limited supply, explosive demand through TikTok
• 14:10 — Psychological triggers for buying: rarity and the desire to collect
• 16:04 — Community amplifies scarcity’s effect
• 18:41 — Why unpredictability matters: Trust through consistency and anticipation
• 19:44 — The risk of breaking your own scarcity rules
• 21:10 — Summary of authentic scarcity’s real value

Key Takeaways for Founders

• Scarcity, when authentic, increases perceived value and urgency.
• Combine scarcity with community to intensify demand and encourage sharing.
• Use consistent, reliable rules around scarcity to build trust.
• Never fake scarcity; it erodes customer goodwill and damages your brand.
• Unpredictability and the "drop" model, coupled with social sharing, keep excitement and anticipation high.
• Scarcity marketing is powerfully effective across diverse products—from collectibles and watches to loungewear and technology.

Nathan’s Parting Thought:
"It makes people feel something. It makes that buying experience so much more fun than just the product itself. And at the end of the day, that is what great marketing is all about." (21:47)