Long Tail ( effect)

Long Tail is a concept, a kind of guide their own acts of positioning, and strategic and tactical way of thinking.





a long tail of the origin and meaning
According to Wikipedia,RayBan Sunglasses, the Long Tail (The Long Tail) is the concept of sites like Netflix's business and economic model.
long tail theory is the rise of the Internet age, a new theory by American Chris Anderson (Chris Anderson) proposed. Long Tail theory: Due to cost and efficiency factors, the past, people only focus on important or important things, if the normal distribution curve to describe the people and things, people only concerned about the curve of the will be in the curve and dramatically reduced cost of sales of goods, almost any previous seemingly low demand products to sell as long as there will be people to buy.



two basic principles of The Long Tail



1, everything (Make Everything Available), that is a sufficient supply of aggregate number of products, economies of scale in order to constitute a long tail, to meet the needs of different users;
2, association recommended (Help Me Find It), which is not in selling products and sales of the product asked to form an association, easy to find, so that potential users find that their needs;
3, reduce the friction (Cut The Price In Half, Then Lower It), which cost as much as possible, to make our products more accessible.



Third Economic Perspective
Long Tail



(1) The Long Tail and twenty-eight principle
twenty-eight Law that the business performance of 80% from 20% of the products, business value is the sales curve of the few left-selling products, most popular products right curve, is considered to be non-profit sales force and can not be block. But the long tail theory holds that the rise of the Internet makes more extensive level of sales, 99% of the products have the opportunity to sell, and these products have a long tail characteristics space will have the value of corporate earnings growth. Moreover,DC Hats, the size of the long tail of goods is also staggering, the total value of their goods and selling goods even compete.
the assumption of scarce resources, the traditional economy is a typical supply-side economies of scale, embodied in the demand curve is the Pareto distribution of the head, the user does not fully reflect the buying behavior of demand, not sales of mainstream products equivalent to the demand for its large, mainstream product knowledge, account for most of the market, limiting people's right to choose. Along with the socio-economic and technological development, we have entered a The Long Tail is actually described in abundance economics. Enterprises to adopt the differentiation strategy, by establishing a new low-cost channel sales model compounds meet the specific needs of more personal, when the individual needs of many users to be met, will inevitably lead to the generation of the long tail, forming a unique demand-side economies of scale, a perfect display of the demand curve for the Pareto tail distribution. Therefore, the long tail theory can be said that the emergence of the Internet, corporate business operations a direct result of environmental change, long tail is only under certain conditions the problem from a certain point of view, is the emphasis of the past a good environment to supplement and complete, the two complement each other and complement each other.
(2) The Long Tail and Blue Ocean Strategy
Reconstruction of the long tail
aim is to meet individual needs, through innovative and networks, provide more valuable content, more personal things in by the customer identification, the excitation of its stealth requirements for creating a traditional Popular completely different market segments for a fixed, personalized business model, but did not change the market rules the jungle. Blue Ocean Strategy Value Innovation is a basic principle, rule mining through the creation of market potential beyond the boundaries of traditional market needs and provide personalized products and services.
Long Tail and the Blue Ocean Strategy formulation although there are some differences, but they are based on existing customer demand, and actively find new potential market demand, the consumer's attention shifted from the demand side, supply side market , to provide customers with individual needs, from the existing market to find that piece of the Red Sea had not seen the species of the direct embodiment of the spirit of entrepreneurial innovation.
(3) the law of diminishing marginal cost and marginal effectiveness of increasing regularity.
① the law of diminishing marginal cost. In the traditional economy, the use of large-scale, extensive expansion of the Extensive production methods, promote economic growth was mainly achieved by improving labor productivity. The Long Tail by the agricultural society of customization to meet the many small markets, but it can achieve economic and social forces within and outside the full use of the knowledge of the characteristics of growth rate, changed the traditional large-scale extensive economic mode of production, access to endogenous growth. First, the high initial fixed investment, and low marginal cost, marginal cost decreases. Second, strive to achieve sales of ② law of increasing marginal utility. The Long Tail breaking the traditional economics of human well-known law of diminishing marginal utility is to achieve increasing marginal utility. First, the long tail product pricing with Under the new economic conditions in the Long Tail is the opposite: the price of a commodity or service increases with the sharp increase in the number of users, and this surge in prices in turn attract more users, resulting in multiple benefits, which In the brand-name consumption, consumer credit, Internet consumption is obvious. Second, the effectiveness of innovation is often a lot of long tail products, consumer psychological needs or social needs. Increasingly rapid pace of social life, people gradually into the perceptual world, the pursuit of happiness on the effectiveness of their demands become more intense and sustained pursuit of individual needs. Launched in 2004, Hunan Satellite TV talent show Again, the long tail products or services usually have a higher utility value. Mining Long Tail potential beyond the boundaries of traditional market demand, continue to improve the quality of performance of goods or services, continued to maintain the distinctive differences, continue to give people the feeling of renewed, thereby increasing the effectiveness of consumer satisfaction.
(4) the scope of Long Tail theory is a combination of economy and economies of scale
① long tail product demand economies of scope. First, utility and demand relations with the decision to rely on the demand curve to the right tilt. Sloped demand curve to the right is a basic assumption of economics is one, which means the demand is negatively correlated with the price. Long tail niche in the market, consumers are more concerned about the effectiveness of value, not price.
Second, economies of scope is a special form of tail economy, but not exactly equal to the scope of the economic long tail economy. Compared with the economies of scope, the long tail creative and economic heterogeneity of the economy.
again, guide the user to explore, through the user's individual needs driving product consumption. The Long Tail by a number of popular products available outside of customization, thereby leading to different treatment of each individual customer.
② Long Tail economies of scale in product supply. First, the long tail product is tilted to the right of the supply curve. Products in general is toward the top right of the sloping supply curve, supply and product prices were the same to the relationship. Long Tail theory is that prices have an impact factor from degeneration of a secondary factor was the cost of replacement.
Secondly, the long tail product supply positive feedback economic effects. Long Tail economy, when demand increases, production will have higher efficiency and higher pay, lower prices lead to increased efficiency, thereby creating a higher demand, higher demand and create more supply, is A positive feedback economy.
again, the long tail theory of personalized, differentiated products supplied under the scale. The Long Tail supplier indoctrinated to such a concept,GUCCI Sunglasses, that is, in today's increasingly diverse consumer demand, consumers should pay attention to personalized, differentiated demand, and in the low-cost production,Cheap Air Max Shox, marketing and effective dissemination channels for greater efforts meet this demand. On the one hand to meet consumer demand for personalized, on the other hand need to think about how to achieve business growth model and reduce costs.
long tail of knowledge in the new economy model a new business strategy, it is actually based on knowledge, technology, information, innovation, network, electronic data and other basic production should claim as a precondition to study at the lowest cost of flexible production and promotion of products to the highest quality search and find personalized, differentiated products, by changes in the marginal cost-effectiveness of potential market profit margins appear. And a new dynamic of differentiation and heterogeneity of the exchangeable market. From a certain perspective, it should be the commercial aspects of the new economic theory, is to study a small area outside the mainstream market a range of economic theory, but generally speaking it is not a theory of absolute novelty, is a traditional completely different business model of the new business strategy model.



Four
some inspiration



① Long Tail theory. While the emergence of a promising new theory, but the greater value is to apply the theory, how to apply real-life role of long tail areas of the economy to produce good effects, need to continue to explore.
② facing new opportunities in many markets, long-tailed TV, long tail music, long tail design.
③ group blog, podcast from the
④ Long Tail Micro Center will be the birth of many, not even rule out some micro center grow into the new center, such as Google.
⑤ center will always be there,new era hats, they are not because of the rise of Micro Center was removed.
⑥ tail fashion elements and complicated relationship between the mainstream society.
⑦ huge impact on traditional industries, traditional manufacturing still exist long tail effect is worth further study.