In a meeting with Van Adib, CEO of eCast, the latter proposed a "98 rule" that made Anderson refreshing and changed his research direction.Van Adib discovered a secret from the statistics of digital music demand: the audience has unlimited demand for 98% of non popular music, and the non popular music collection market is huge and boundless.The audience stared at almost everything!He called this "Rule 98".
Schematic Diagram of Long Tail Theory
Anderson realized that Adibuk's "98 rule", which was contrary to common sense, implied a powerful truth.So he systematically studied the sales data of Amazon, Rhapsody, Blog, Google, eBay, Netflix and other Internet retailers, and compared them with the sales data of Wal Mart and other traditional retailers, and observed a phenomenon that conforms to the statistical law (the law of large numbers).This phenomenon is just like a demand curve on the two-dimensional coordinates of quantity and variety, dragging a long tail to the end of the horizontal axis representing "variety", hence the name Long Tail.
The long tail theory believes that, due to the factors of cost and efficiency, when the space and channels for commodity storage, circulation and display are wide enough, the cost of commodity production drops sharply so that individuals can produce, and the sales cost of commodities drops sharply, almost any product that previously seemed to be in extremely low demand will be bought as long as it is sold.The common market share of products with low demand and sales volume can be compared with or even greater than that of mainstream products.
Chris Anderson first discussed the "long tail" issue in an article published on Wired, and then this article became one of the most influential contemporary business articles, and the word "long tail theory" also frequently appeared in conference rooms and media around the world, becoming the focus of discussion among business people.The long tail theory won the "Best lda of 2005" award of Business Week, and was called "the most important innovation in 2006" by GQ magazine.
The Long Tail Theory quickly became the most cited article in the history of the magazine after it was published on Wired in October 2004.In particular, the blog platform that has absorbed boundless wisdom has constantly enriched new materials and cases.Anderson could not help but immerse himself in it, and finally created a best-selling book "The Long Tail Theory" which has an impact on the business world.[1]
Job change
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On November 3, 2009, Anderson, the executive editor in chief of Wired, an American technology website, announced that he would resign as the editor in chief of Wired and become CEO of a robot company.
Since 2001, Anderson has been the editor in chief of Wired. In 2009, he and others founded the robot company "3D Robotics".Anderson will be the CEO of the company later.
Anderson said in a personal statement: "For me, this is an opportunity to pursue the entrepreneurial dream. The mission of Wired is to influence and record the digital revolution. This mission will continue and expand."
3D Robotics is a robot manufacturing company located in San Francisco.This company was originally born from the online community "DIY Robot" created by Anderson, which specializes in personalized household robots.
In an article published in Wired in June, Anderson talked about the development trend of robots.He said that the new generation of cheap, micro robots can actually be seen as many smart phones running special software.[2]
Free: The Future of Business is a book published by CITIC Press in 2009 by Chris Anderson.This book explains that the new "free" is not a marketing strategy of "left pocket out, right pocket in", but a new excellent ability to reduce the cost of goods and services to zero.
The Long Tail Theory is a book published by CITIC Press in December 2006. The author is Chris Anderson (America).This book mainly introduces the development of the long tail market.
