What is the long tail theory

In the "Long Tail Theory" by Chris Anderson, former chief editor of Wired magazine, thinker and prophet of the Internet era, the short head is the economy of scale, and the long tail is the economy of scope.

Generally speaking, economies of scale, that is, the fewer varieties, the lower the cost; Economy of scope, that is, the more variety, the lower the cost.

Economies of scale lead to large-scale production of a single variety, and economies of scope lead to small batches of multiple varieties. The long tail theory actually talks about how to gradually shift from relying solely on economies of scale to relying on economies of scope.

Orlande's long tail

Some people are worried that the light color variety of Oulang, the user has more choices, although it will increase the value of users, but also let users pick eyes. But Olante's answer to the market is: "Give customers a rich choice of light and color, but also help them search."

On the one hand, it is necessary to provide more choices of light and color varieties for the segmented scene application market, and on the other hand, it is necessary to help customers achieve professional light and color search and selection services, light and color consulting, word-of-mouth marketing, and reduce selection costs through the development of information value-added services.

Subdivide the value of light color and long tail thinking

Oulang marketing director Stephen Richardson mentioned that the current LED industry has entered a mature stage, competition is very fierce, the fewer varieties, the lower the cost of this regular model of business model, the result is in a price war and low added value.

In this case, the more variety, the lower the cost of this long-tail business model, showing a very positive practical significance.

Especially in the field of commercial lighting, professional color points and light quality will help owners attract consumers into the store, improve shopping desire, and more prominent brand value, which naturally greatly improves the premium ability of lighting companies.