Taiwan’s FTC investigating Xiaomi’s ‘hunger sale’ tactics

Taiwan’s FTC investigating Xiaomi’s ‘hunger sale’ tacticsRemember the other day I said this? “Expect the Meizu MX4 to hit China with massive fanfare, but limited to tiny quantities that'll sell out in a matter of seconds in online flash sales. CYNICAL?! No idea what you mean, mate.”

By sheer coincidence, it’s emerged that fellow Chinese manufacturer Xiaomi is actually being investigated by Taiwan’s FTC, over concerns that Xiaomi is fudging "hunger sale" figures.

Hunger marketing is all the rage out east, and essentially sees consumers driven into a seething frenzy before a tiny number of phones are released, inevitably then selling out in minutes – if not seconds.

The concern here is that Xiaomi has been - according to complaints - exaggerating the number of phones sold, lying about the speed at which they sold out, and/or pulling deals before the inventory is exhausted. If true, it’d make the phones in question more desirable than they might otherwise be; it’s human nature to want what you can’t have.

If the FTC finds Xiaomi guilty, the manufacturer could face a whopping fine of… £12,000. While that won’t exactly break the bank, it’s Xiaomi’s reputation that’s really at stake here.

In semi-related words, since I have a paragraph to fill, some cynics believe Apple actually fuels the rumours of iPhone shortages each year in order to drive the inevitable buying frenzy. Next you’ll be telling me Samsung pays people to badmouth its competitors online.

Read more about: Android

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matt101101 / MOD  Aug. 1, 2014 at 21:03

This is the kind of moronic bullsh*t OnePlus, sorry Oppo, are pulling over here with the OnePlus One.

You get customers excited, release review units and a tiny number of retail units, then wait for the cost of the high-end parts you promised to fall, then release the phone properly when the price to performance ratio is considerably worse for consumers and the profit margins are considerably higher for the company.

It really is the kind of sh*t which needs to stay over there, I thought we were past this kind of rubbish over in the the western world and actually had advertising standards and consumer protection laws.

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