Long Tail economy

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					Long Tail economy
?Directory 【"long tail" of the origin and meaning】
* 【"Long Tail" is defined】
* 【Successful "long tail" case】
* 【】 On the Long Tail Theory
* 【Inspiration】 Long Tail

【"Long tail" of the origin and meaning】
    ?Long Tail (The Long Tail) The concept is "Connection"
magazine editor in chief Chris Anderson in October 2004 the "Long
Tail" article first proposed, such as Amazon and Netflix to describe the
business and economy class website mode.

"Long tail" is actually in the power-law statistics (Power Laws)
and Pareto (Pareto) distribution of a colloquial expression.

       For example, we used Chinese characters actually not much, but the frequencies
of high, so these characters occupy a few large red area on the map; most of the
characters rarely used, they belong to that long blue tail. Chris believes that as long as
the storage and distribution channel is large enough, is hard to poor sales of products
or co-occupy the market share and those who can be a small number of hot products
in the market share occupied by rival even greater.

【"Long Tail" is defined】 "long tail" has
no formal definition, Chris Anderson argues that the ideal tail should be interpreted
the definition of "long tail" of the three key components:

Hot product changes to the niches
Rich economies (the economics of abundance)
Aggregate many small markets into a big market

Currently the closest definition is:
"Long Tail is the realization of the sum of many small markets is equal to,
if not greater than, some big market"-Jason Foster
"The Long Tail is to become as unremarkable in the time everywhere you
can get" - Eric Akawie
"The Long Tail is that 80% of the past not worth selling
"Long Tail is a story about: previously considered marginal, underground,
independent (artist?) Products now account for one common share, enough to be hot
commodities with the best-selling rival"-Bob Baker
Best slogan:
"Trickle converging River"-Joshua Wood
"Law of the end of 28!"-Eric Etheridge
"No matter not sell, constantly selling!"-Jim Treacher
"A small number multiplied by a very large number equal to a large
number!"-Rajesh Jain

【Successful "long tail" Case】

1, Google is the most typical "long tail" company, its growth
course is to advertisers and publishers of the "long tail"
commercialization process.

    Millions of small businesses and individuals, had they never played ad, or have
never played a large scale advertising. They are small enough for advertisers to
disdain, and even they themselves could not have thought to advertise. But
Google's AdSense ads that threshold down to: the ad is no longer
unattainable, it is self-help, low cost, anyone can do; the other hand, thousands of
Blog sites and small-scale commercial web sites, put ads in their site has become an
easy task.

    ?Google currently has half the business comes from these small sites, rather than
placing ads in search results. Millions of small and medium enterprises represent a
huge long tail advertising market. How long this tail can, I am afraid no one can

2, Amazon
A former Amazon employee incisive overview of the company's
"long tail" nature: we now sell the fundamental difficulty in
marketing the book to those in the past than those we are now selling books over the
past can sell much more dynamic.

There are many, such as Netflix and so on.

【 】 Chris Anderson on the Long Tail theory in "The Long Tail
concept," a book to tell us that the future of commerce and culture is not
popular product, not the head of the traditional demand curve, but in the past been
regarded as "losers" in those products - the demand curve is
infinitely long piece of the tail. Internet and the associated infinite choice is changing
our world. Who can use this, tomorrow's markets belong to whom.
"Long tail" of the true essence of economics is rich, with
unlimited choice and reveal the truth about consumer demand, this new business
model has started budding. ITunes and the music industry has been changed Rhapsody,
and soon, the same change would occur in every conceivable industry. If everyone
can get everything, the world will be like? If the millions of less popular products,
some little more than the total value of the value of popular products, the world will
be like? If a group of children without profit motive can record a song, make a video,
but also the same as those of large companies rely on network communication of their
works, the world will be like? "Connection" magazine editor in
chief Chris? Anderson in an article in the first of the "long tail"
problem, now, this article has become one of the most influential one of the
commercial article. To movies, books and music industry as an example, he showed
us the Internet to create a new world, in this world, ordinary and alternative products,
total sales of hot products with top to match. He invented the "long
tail" to describe this phenomenon, since then the word began to frequent
the world's meeting rooms and the media. Now, in this highly anticipated
book, Anderson shows us the process, but also reveals the endless new opportunities:
opportunities for new producers, new aggregators opportunities, new opportunities for
fashion leaders. He discusses the reputation of the economy, end of stock, Wal-Mart
effect, the power of collaborative production, as well as extensive and complex the
rise of parallel cultures. From toys to advertising and then to the kitchen equipment,
Anderson proved that long tail economics, the magic in all industries. Long-tailed
storm swept in, any of us can not miss!

   ?Long Tail Theory is everywhere? The application of long tail never stops Internet
and entertainment media industry.

Traditional market curve is consistent with iron rule of 80/20, in order to grab 80% of
profits that bring best-selling product market, we kill or be Tianhundian, but we called
the hot commodity is increasingly a misnomer, for example, television ratings gold
rate has been shrinking for decades, if placed in 1970, a file is the best program I am
afraid the list of the top 10 are difficult to access. In short, although we are still
fascinated by the large popular, but their economic power has shrunk. So consumers
who have turned volatile on? The answer is not the only. They scattered in all
directions to the because the market has been divided into many different areas. The
emergence of the Internet has changed this situation, making 99% of goods have the
opportunity to sell, the market curve in the long piece of the tail (the so-called niche
products) also re-energized, as we have high hopes for new profit growth.

Amazon best-seller list administered by the class first, GOOGLE CEO Schmidt,
Yahoo founder Jerry Yang grand recommended. The new economics of fertility age to
overturn the 80/20 rule!

 ?About every consumer unmet needs, meet their needs, not to ignore this long tail.
Reading this book must have inspired.
【Inspiration】 a long tail, for some companies, the Long Tail is 28 subversion law. In
the new business model, the company's profit is no longer rely on
traditional 20% of the "quality customers", but many previously
neglected clients, their huge number, enough to make you earn that pours; from point
of view of the company's products, competitive products main market of
the old routine will become dead end;

2, the market is facing many new opportunities, Long Tail TV, long tail music, long
tail design ... ... what is dragging the long tail? Many think of it?

3, a group blog, podcasts from the "long tail" benefit.
(China's special circumstances, not in this conclusion)

4, Elliot will be the birth of many of the micro-center, or even remove some micro
center grow into new centers, such as Google.

5, the center will always be there, they will not because of the rise of micro-center
was "removed."

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