Scarcity - Society and Business

Scarcity - Society and Business

Living in the hustle and bustle of a big Indian city, I often find myself rushing between tasks. One memory stands out vividly: hurrying from the metro to catch a bus after college, I paused and asked myself, "Where do you have to be in such a hurry?" This moment of self-reflection made me more aware of the general attitudes I see around me. People are always rushing to get somewhere—whether it's reckless driving on the streets or taking shortcuts by driving the wrong way, all in an attempt to save time.

These shortcuts, in some ways, symbolize the microaggressions, cheating, and illicit practices people indulge in to bend rules and get ahead in life. This raises an important question: Why are social cooperation and civility so rare? Is this behavior systemic? Is it driven by a perceived scarcity of resources versus the overwhelming population? Why are we so afraid of seeing others succeed? In this piece, I aim to explore the psychology behind this mindset and segue into consumer behavior, particularly how businesses in India tap into this scarcity mindset in their marketing strategies.

My Experience

I, too, have been guilty of not living in the moment—constantly thinking about the next task, always focused on the future. Deep down, this comes from a place of anxiety and a desire to maximize productivity. While this might sound like a dream come true for the so-called "Morning Routine Bros" (let’s call them MRBs for now), I assure you it leads to suboptimal life experiences. You are never fully present and never able to slow down to appreciate what you have.

Growing up in a migrant family where resources were scarce and my parents worked incredibly hard, I suspect these feelings stem from childhood experiences. Never having abundance as a child has made it difficult for the adult version of me to rest; I always feel the need for more. But what is "more," and what really matters in life? Those are questions for another piece (after all, who doesn’t like to think they’ve figured out the meaning of life?). But scarcity has certainly shaped many aspects of my life.

On a micro level, what does this scarcity mindset cause? Research suggests that it leads to tunnel vision, suboptimal decisions, hoarding, and even anxiety. Not everyone has the luxury to self-actualize and understand the deeper causes of their behavior, and depending on their circumstances, this can exacerbate their condition. This mindset reflects a broader societal issue—a symptom of an overpopulated and underserved nation, where many of us engage in behaviors typical of a scarcity-driven, low-trust society.

Herd Behaviour

People behave quite differently in groups compared to when they are alone. An empathetic, kind-hearted individual can become indifferent and apathetic in a crowd. How often have we witnessed someone fall, become the victim of a crime, or face distress, only for no one to step forward and help? Why should they, the crowd may think? "What do I have to gain from this?" or "What if I get in trouble?" The reluctance to act is concerning in a nation that preaches "unity is strength." When the opportunity for collective action arises, we often fail to capitalize on our numbers.

This raises another question: Why the hesitation? Why the selfishness? These are signs of a low-trust society. A quick Google search defines such a society as one that lacks shared ethical values. This, in turn, leads to dysfunctional corporate and governmental systems. These structures, often corrupt or absent, fail to meet people’s needs. How many times have we felt cheated or disillusioned by government agencies or law enforcement?

I often wonder if this is a chicken-and-egg problem. Are we apathetic and individualistic because our government systems are dysfunctional, or is it the other way around? The truth is, the government is made up of people just like us. Perhaps, by being more conscious and righteous in our actions, we can set an example for others. Maybe one day, through collective effort, we can cultivate a society where trust and cooperation prevail.

FOMO

In my 20s, I experience FOMO (Fear of Missing Out) every day. If I see someone living in another country, I immediately want to move abroad. If I see someone with a luxury watch, I suddenly feel like I need one too. As social creatures, we crave connection, a sense of belonging, and staying in the loop. I believe this is one of the reasons why BuzzFeed quizzes and personality tests are so popular, and why astrologers still hold such sway over society. Marketers have cleverly tapped into this aspect of human nature time and time again.

One example that stands out is a promotion at Social, where they offered cocktails for just ₹50. Who wouldn’t jump at that? On that day, the restaurant was absolutely packed. People might wonder if they were losing money with such a deal, but were they really? Once you’re there, you’re likely to get hungry and order overpriced fries or other add-ons. When scaled, these seemingly great deals drive huge traffic, create buzz, and bring in more revenue than expected.

Another innovative marketing tactic that comes to mind is when BoldCare’s founder publicly shared his credit card details on Twitter, even giving out OTPs for people to make purchases. While it reportedly cost him around ₹5 lakhs, it generated millions of impressions online. In a scarcity-driven country like ours, these bold marketing strategies offer incredible returns, proving that in the right context, the cost of a campaign can be outweighed by the massive attention and engagement it garners.

Conclusion

The scarcity mindset pervades many aspects of Indian society, from individual behaviors to corporate strategies. Whether it's the rush to get ahead, the hesitance to help others, or the fear of missing out, scarcity plays a central role in shaping how we live and interact with others. At the societal level, this leads to dysfunctional systems and low levels of trust, where cooperation is seen as risky and self-interest is paramount. On the business front, this mindset is exploited to great effect, with companies tapping into our deepest fears to create urgency and drive consumption.

Breaking out of this cycle requires a collective shift—away from scarcity and toward abundance, trust, and cooperation. By becoming more aware of the psychological underpinnings of our behavior and making conscious choices, both as individuals and as a society, we can begin to foster a culture that values long-term well-being over short-term gains. Only then can we create a society where trust, empathy, and cooperation become the norm rather than the exception.