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Attention Should Be Paid To The "Long Tail" Of Market Management.

2008/11/15 10:11:00 28

The implementation conditions of the long tail theory can be described as follows: the horizontal axis is a variety, and the vertical axis is sales volume.

Typically, only a small number of products sell well, and most other products sell very low.

The traditional 28 law concerns the red part, and thinks that 20% of the varieties bring about 80% of the sales volume. Therefore, only this part should be retained and the rest should be abandoned.

The long tail theory pays attention to the long tail of blue, and thinks that this part will accumulate a large amount and accumulate enough market share.

"In fact, it is hard to see from the surface that there are bottlenecks in brand development and problems in the management structure of enterprises."

He Dong, the brand operator of Shenzhen ladies' house, said: "while we are dealing with all kinds of things at hand, we are also enjoying the concept of new product positioning thrown out in the market in the past few years, and the benefits that those marketing activities bring to us.

Such returns will work in 35 years.

Moreover, a small number of fancy styles have also led to the sale of our other non selling styles.

In such a brand store, it is difficult for us to calculate profit margins accurately in the data.

Indeed, more and more clothing brands are still living well in the severe winter.

But who can expect a year or six months later?

Although the capital reserve is the key to this economic winter, however, during this period, it is time for every clothing brand enterprise to intensify its meticulous management.

"In fact, in the past few years, when we put a lot of energy into marketing, our profit margins were not large.

And this market influence can continue for a period of time, so our enterprise in the general direction of management is right.

However, such vague effects really benefit from many garment brands such as ours. "

He Dong said so.

The long tail theory is everywhere.

The application of the long tail theory is more than the Internet and entertainment media industry.

More clothing enterprises are also affected by this effect.

In the view of Yang Dayun, a clothing brand management expert, it is difficult to define the quality of the problem, but rather objectively and dialectically analyze the positive results and the revelation that can bring to the brand enterprise.

Yang said that the traditional market curve is in line with the 28 iron rule. In order to snatch the best seller market that brings 80% profits, many brands are in a state of darkness. But the so-called popular products of brands are becoming more and more untrue. For example, the viewing rate of gold TV shows has been shrinking for decades. If it is put on 1970, the best program of today is probably not even accessible to the top 10.

In short, though we are still fascinated by big hits, their economic strength is no longer what they used to be.

So where are the volatile consumers turning to?

The answer is not unique.

They are scattered in all directions, because the market has been divided into numerous different fields.

The emergence of the Internet has changed the situation, so that 99% of the goods have the opportunity to sell. The long tail (so-called niche products) in the market curve has also turned over to become a new profit growth point that we can hope for.

Chu Si Ming, chairman of Beijing round collar tribal brand, believes that the market share that the market share of products with poor demand or poor sales can match or even occupy a larger share of the market share of hot products sold as long as storage and distribution channels are large enough.

However, Yang Dayun said: "the long tail theory is sales volume, not profit.

Management cost is the most important factor.

It costs a certain amount to sell each product, and the cost of increasing the variety also needs to be shared.

Therefore, the profit of each breed is directly proportional to the sales volume. When the sales volume reaches a limit, it will lose money.

A sensible retailer will not sell products that cause losses.

This is the basis of the 28 law. "

This enables many brands to concentrate on a specific target market by subdividing the market, or strictly targeting a market segment, or focusing on a product and service, creating all the management initiatives of product and service advantages, and can not see significant market results in the near future.

Li Lin, general manager of Hangzhou Jiangnan Buyi brand, told reporters: "when the storage and circulation of commodities are wide enough, the cost of commodity production is dropping rapidly, so that individuals can make production, and the selling cost of goods has dropped dramatically. Almost any product that has previously looked as if demand is very low will be bought whenever it is sold.

These demand and the share of the common market share of the products with low sales volume can be compared to the market share of the mainstream products, or even larger.

Today, when consumers are faced with unlimited choices, there are great changes in the things they really want and the channels they want to acquire, and a new set of business models is also rising.

Even so, some garment enterprises can enjoy the profits brought by the long tail in the fierce market.

In this regard, Yang Dayun gave several suggestions to managers: first of all, whether or not the brand still has a large market space, you must know that at the moment we must make efforts to re emerge and enhance the level of competitive advantage.

Secondly, no matter how messy the product market is, the brand operators must have a sense of the competition rhythm and competitiveness of their brands.