The final profit growth of tricycle Enterprises

The final profit growth of tricycle Enterprises

The long tail market makes the road of development more accessible

 

  The most popular economic law in the market is the "28 theorem", that is, 80% of an enterprise's profits come from 20% of its projects. The long tail theory can be said to subvert the 28 theorem. The long tail refers to the remaining 80% of the projects, so that many marginalized and independent products can jointly occupy a market share, so that the long tail market can compete with the popular market and create no small profits, which is undoubtedly a key development direction for tricycle enterprises.

 

  First of all, the long tail market is mostly unpopular products, and these unpopular products have a certain consumption base and a large base. When all unpopular products are gathered together, the consumption market is huge and potential. Secondly, the profit created by the long tail market comes from its sales volume. As long as the cost decreases, its profit will rise sharply. Finally, the long tail market is formed for the personalized needs of consumers, which can stimulate the implicit needs of consumers and has a broad market prospect. Therefore, the application of the long tail theory will make the development road of tricycle enterprises more accessible.

 

Two step solution to market operation

 

  Knowing the advantages of the long tail market, tricycle enterprises will naturally carry out industrial operation according to their advantages. First, the profit source of the long tail market mainly comes from its sales volume. The larger the sales volume, the higher the profit. Therefore, tricycle enterprises should try to reduce the threshold of unpopular products, increase the sales volume of unpopular products, create more small consumers, and gather many scattered sales into a huge commercial value of the long tail market; Second, the profit of the long tail market also depends on its cost. The lower the cost, the higher the profit. Therefore, tricycle enterprises should actively apply the Internet sales platform, save the early-stage costs such as inventory and stores, and improve the profit of the long tail market.

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