A fad is a temporary fashion; a craze, interest or activity that (some) people follow enthusiastically, but lasts for a short period of time. Generally, brands that chase fads don’t tend to do well in the long term. They are designed for a selected group as they generally don’t appeal to the broad consumer market. This generates an early sales peak, followed by a sharp drop as a result of changes in consumer interest and perspective.
I believe that brands that chase fads, or try to create them will not necessarily fare badly in the market place. However, in order for this to happen a company must make sure that their item/trend can hold the collective imagination of the society for an extended period of time. And if not, then try to retain it by means of innovation to the existing/new item (i.e. Apple iPods: the classic iPod to the newly released colour Touchpod)
Consumers can often be fickle in their behaviour and spending pattern as different ethical issues and concerns arise. Therefore, companies that chase fads must be aware of the fluctuations in trends in consumer mindset and be prepared to innovate in order to stay afloat in the business. A good example of this is the new high-waisted fashion apparel for women (jeans and skirts). Brands know that this form of clothing is a short-term trend. This market knowledge enables them to be creative and launch a new item in the market in time for the season change as consumer interest in the previous item drops.
Nowadays, there is also a growing focus on social and environmental issues that has marked a change in cultural shift (i.e. measures taken by members of society to reduce individual carbon offset). This notion of ‘cool to care’ is now the driving force behind consumer behaviour or concerned con ...