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MENTAL MODEL · M4661

Long Tail Theory

Long Tail Theory
BusinessHigh supportEconomics
Included
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

In the Internet age, due to the significant reduction in storage and distribution costs, the total market size of products with low demand and low sales (long-tail products) can rival or even exceed that of a few best-selling products.

SCAFFOLDING EFFECT

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The commercial value of niche markets. It explains why platforms like Amazon and Netflix can offer a vast array of niche products, and why personalization and diversification have become important features of the digital economy. The Long Tail Theory provides opportunities for small businesses to compete with large enterprises.

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When storage and distribution costs approach zero, the cumulative total profit of a large number of niche, low-sales products can match that of a few best-sellers, and the demand curve exhibits a long tail.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Long_tailZH · Explicit
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