Analysis: The long tail of the Internet economy where?

(Research papers Download News) In 2004, when Chris Anderson's Long Tail theory was first proposed, afraid that they did not expect, was touched and described the long tail, the Internet is just the 'long tail effect' tip of the iceberg.

Human cognition is constantly advancing. From today, the long-tail effect on the development of at least two differentiated phases: the long tail and long-tail era of mobile PC era. The difference is that the long tail of the PC era, is under the 'Pareto rule' has not been the traditional business model with some 80% of the population, low cost of polymerization; and Elliot mobile era, it is the demand and supply of innovation, a little more extreme view, is the creation of demand and supply. With more academic language, summed up the 'three changes': subject to change eligibility seller change the space limitations of the buyer, change buy low and sell property transactions.

About the long tail theory, in addition to around 2005 outside the marketing sector has overheated proposed in the application depth and breadth, far short of the level of development of the inheritance. The reason why the disconnection between theory and practice situation, the long tail theory as one product PC Internet era, the limitations of the macro perspective of the long tail theory stiffly compartmentalization of deconstruction; the second is a new concept of the Internet era, a new term another, follow the trend of the majority, thinkers too, can settle down people, few; the third is that more people know not why, after mistaken identity, mechanically, there is always a donkey lip of the mouth when not launched, is tasted, aside abandoned that absurd kinds of misinformation, laughable.

For example, the age of the Internet search engine as big data marketing a key ring, with the lowest cost statistics, analysis of most people's search habits, thereby forming a preference to show the intelligent, the stage should be the best value of the long tail effect . A staff vote, equally weighted voting search, this should be the beginning of a network of democracy, those who have been lost in the tide of history in the face in the crowd, just to posture the long tail, on the web 'jumping tap' Two days later, on PPC came out, came out PR delete posts, long tail were ignorant, this is not a 'who have money, who is the uncle,' the world?

Another example is the electricity supplier, this has been seen as the most typical long tail model case. In the Enterprise 'shock' herd situation, the electricity supplier did not become a paradise for small sellers, but still the industry giant Colosseum. Platform oligarchs appeared, traditional giants line, not the long tail, head bigger. Those who claimed to be representatives of SMEs richest man who is still only represent themselves, on their behalf in exchange for simple logic with maximum flow maximum sales.

Long tail of the Internet economy, especially in the PC era, was still 'Pareto rule' head spat seven dirty eight elements, slap playing loud pops. This stage, the value of long-tail stay in the more theoretical rather than practice. Fantasy traditional business, traditional business model can not aggregate 80% of the population to stay out of the blue ocean market, cut and broken down by way of the Internet, we clearly underestimated the traditional enterprise, 'bigger and stronger,' the determination. If there is a business model that can be replicated, the same product, consumer habits change, the same profitable way, is only a tool to connect buyers and sellers of change, and the application of this tool is very low cost, the advantages of the traditional business opportunities that will left to other SMEs?

So, we see today is that business line is returned intact moved online, the advantages of business enterprises, especially, when the right to use the Internet to expand the consumer groups, long tail and was coerced into a key 20% crowd but they have a more modern sense of call - Cock wire. As long as there is sufficient market potential and major competitors difference, brands willingness to improve and enhance the service experience will not be too strong.

The development of the long tail theory is divided into two stages, is based on the development of mobile port, so the long tail effect play, no longer dependent dependence on traditional business models. The difference between mobile and PC port is that port: port mobile users a more stable long-tailed portrait; the long tail of online time extended indefinitely, the commercial value diversification; Pre sales end result is that the seller transfer the cost of sales, but buyers know more trading initiative. Long Tail theory, the phoenix, from the ashes of time.

Change the qualification of the seller

The traditional business model, especially trade practices under government control, the main qualification seller has actually been a threshold issue. Products sold to Europe, you must first review by the European standard; product sold domestic business entities must have, get examined, sampling; countryside uncle, aunt sell their own swine and sheep, on the local inspection and quarantine stations, urban industrial and commercial markets, It must also be managed. In fact, this implies an intermediate assumptions: not everyone has the qualification of goods sold, which is 'Pareto rule' another layer of meaning.

Long tail end of the movement, it is to break the sales threshold to property rights as the core, to extend sales qualification, sales of the past no qualified people, connected by way of import sales competition platform. This is risky, but worth a try. On the one hand competition for the existing market share, prompting the body to improve the existing sales service; the other hand, ignored the original cover 80% of the fragmentation of the market crowd, upgrade sales. US group that, Uber is also true. Jung had a moment of Taobao Marketplace, in recent years some reason grandmother hurt uncle does not love, is one of the reasons to do with the PC side of thinking, do connect the mobile terminal. To move downstream, Taobao Marketplace transition to flea markets, second-hand goods market, seemed like a way out.

Change the space limitations of the buyer

I used to have an extreme hypothesis: If every household door has a Coca-Cola vending machine, even carbonated beverage market suffered the changing tastes, Coke will not have to decline today tragic situation. Of course, due to cost of sales, this hypothesis is basically untenable. But after changing the space limitations of the buyer, he made the original stimulus space will not make purchase decisions, thereby increasing the capacity of the market, it is the era of mobile port, an extension of the long tail effect. For example, I am in Changsha, to see a movie with friends in Harbin in the far past practice, or trek in Changsha, Harbin, or select a movie theater, obviously this is a waste of resources 'can not plan'; or remittances in the past , ask their friends to buy a ticket yourself, for most people, this is a little profit, and vulgar suggestions. The end result is that such consumer demand will be strangled in the cradle. The era of mobile product innovation, a 'micro-ticket children' easy to get. Moreover, many mobile port scan code of payment, it is actually a change in the buyer's currency physical space to stimulate consumption.

It changed the buy low and sell property transactions

Past trading profit source of the difference in the product's main seller, buy low and sell the idea of deep-rooted, even to the end of the era of the PC, buy low and sell is still the mainstream thinking. But after the advent of air movement, connection time and convenience of buyers and sellers, it has been increased dramatically. Whether it is the key to 20% or 80% of the long tail, long established trading connections, reach the seller's marketing cost is negligible.

Thousands of O2O business, they played cards subsidies, only to seize the consumer phone screen, the ultimate goal is to use the amount of long tail to make profits, but now this road is crazy son O2O enterprises with a partial road , almost possessed by the Devil. Another example is that many internet companies, has become contemporary 'living Lei Feng', they do not make the difference, and even does not charge management fees, transaction only requires the formation of cash flow on the platform, when 20% of the long tail key 80 % after a certain magnitude, the platform will form a pool of funds, and the time difference between the funds would become a source of their profits. Of course, this is also a gray area of the country's regulatory capacity challenges. (Source: First Marketing Network compile: China Electronic Commerce Research Center)

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