What does the Long Tail Theory refer to?

The Long Tail is a new theory that emerged in the Internet age, proposed by American Chris Anderson. The long-tail theory holds that due to the factors of cost and efficiency, when the places and channels for the storage, circulation and display of goods are wide enough, the cost of producing goods drops sharply so that individuals can produce them, and the cost of selling goods decreases sharply, almost any product that previously seemed to have extremely low demand will be bought as long as it is sold. The common market share of these low-demand and low-volume products can be compared to or even larger than the market share of mainstream products.

This is the question of this year's Tsinghua Master of Laws re-examination, which has been asked by many people.

To put it simply, we usually only focus on the most important things, and ignore the small things or small people, and those small things or small people can produce a long tail and a lot of energy, which is the long tail effect, which can be used in many places, especially in business. For example, a famous** is the world's largest online advertiser, it doesn't have a big client, and its revenue comes entirely from small and medium-sized enterprises that are ignored by other advertisers. These small and medium-sized enterprises constitute the long tail and bring a lot of benefits to this **.

I hope it can help you, there are books dedicated to the long tail theory, you can take a look at it, it's quite interesting

Long tail theory It is a new theory that rises in the new era, in the relevant books, network public relations companies have special explanations, if the landlord is interested, you can search for encore public relations**.

1. The long-tail theory refers to the fact that as long as the storage and circulation channels of products are large enough, the market share occupied by products with low demand or poor sales can be comparable or even greater than the market share occupied by a few hot-selling products, that is, many small markets converge into market energy that can match the mainstream.

2. In other words, the sales volume of the enterprise does not lie in the head of the traditional demand curve that represents the "best-selling goods", but the long tail that represents the "unpopular goods" that are often forgotten.

01 The long-tail theory is a new theory emerging in the Internet era, which refers to the fact that as long as the storage and circulation channels of products are large enough, the market share occupied by products with low demand or poor sales can be comparable to or even larger than the market share occupied by a few hot-selling products, that is, many small markets converge into market energy that can match the mainstream.

Chris Anderson, editor-in-chief of Wired magazine, likes to look at numbers to spot trends. A meeting with Ecast CEO Van Adib, who proposed a "Rule of 98" that changed the direction of his research by proposing a "Rule of 98" that was refreshing to Anderson. Van Adib has discovered a secret from the stats of the numbers on call:

Listeners have unlimited demand for 98% of non-popular**, and the non-popular** collective market is incomparably huge and boundless. The audience stares at almost everything! He called this the "Rule of 98."

Anderson realizes that Adib's "Rule of 98," which defies common sense, contains a powerful truth. Therefore, he systematically studied the sales data of Internet retailers such as Amazon, Rhapsody, blog, Google, eBay, Netflix, etc., and compared them with the sales data of traditional retailers such as Wal-Mart, and observed a phenomenon that conforms to statistical laws (the law of large numbers). This phenomenon is just like a demand curve on the two-dimensional coordinates of quantity and variety, dragging a long tail to the end of the horizontal axis representing the "variety", hence the name of the long tail.

To put it simply, the so-called long-tail theory refers to the fact that as long as the channels for the storage and circulation of products are large enough, the market share occupied by products with low demand or poor sales can be comparable or even larger than the market share occupied by those few hot-selling products, that is, many small markets converge into a market energy that can match the mainstream. In other words, the company's sales volume does not lie at the head of the traditional demand curve, which represents the "best-selling goods", but on the long tail that represents the "unpopular goods" that are often forgotten. For example, a large bookstore typically has 100,000 books, but a quarter of book sales in the Amazon web store come from books ranked after 100,000.

The proportion of sales of these "unpopular" books is growing rapidly, and it is estimated that they will account for half of the entire book market in the future. This means that when consumers are faced with unlimited choices, there have been major changes in what they really want and the channels they want to obtain, and a new set of business models has also emerged. In short, the unpopular products involved in the long tail cover the needs of almost more people, and when there is a demand, more people will be aware of this need, so that the unpopular is no longer unpopular.