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Logtail review10/11/2023 ![]() Then as population growth began to slow down in the 60s, counterintuitively, the growth of so many new brands and retailers took off. With the new broadcast media play, the few megabrands just got bigger (in line with Anderson’s theory that they alone could afford the costly marketing and distribution system). At the same time, this was the debut of the era of mass marketing through a limited number of broadcast and print mediums. There were also a limited number of major national brands during this period. It’s About Overabundance and Unlimited Selectionįrom a historical perspective, following WWII (before the Internet), there were only a limited number of national retailers such as Sears, and JCPenney, plus a lot of small local “moms and pops” and department stores. So-called “pure play” apparel retail websites represent even fewer online sales. apparel sales, albeit growing faster than traditional retail. Online apparel retailing only accounts for less than 10 percent of total U.S. However, by focusing his theory on the Internet, Anderson misses a critical and perhaps more important reason for the proliferation of niche brands through the traditional distribution channels of retail stores. And the very, very big number is only getting bigger.” In fact, he claims that the number of available niche products outnumber the “hits” or megabrands by “several orders of magnitude.” An infinite array of smaller, niche brands are spread across the horizontal axis (called the Long Tail) and distributed through the Internet.Īnderson posits, “…a very, very big number (the products/brands in the tail) multiplied by a relatively small number (the sales of each) is still equal to a very, very big number. Brand Proliferation Is Not Just About the InternetĪnderson’s theory is visually represented in the accompanying long tail chart: blockbusters and megabrands on the vertical axis (called the “Head”) are distributed through traditional retailers such as Walmart, Macy’s, Neiman Marcus and others. Conversely, today the Internet provides unlimited, cheap and global distribution, affording the “nichers” and specialists to take share (in the aggregate) away from the megabrands.īoth the loss in share and declining growth of the megabrands would lend credibility to his theory, if not for the fact that many of these brands are not losing solely to Internet retailing. ![]() In short, the shift is away from the few dominant blockbuster megabrands favored by consumers during the mass market and mass media era of the mid-20th century to the millions of small niche brands/products/services made possible by the unlimited distribution capacity and precision or niche marketing capability of the Internet in the 21st century.Īnderson says that mid-20th century companies focused on creating the next bestselling novel, chart-topping rap song, or megabrands, like Levi and Gap, because the cost of distribution and limited shelf space in physical stores meant that profitability depended on a high volume of sales. Anderson’s theory argues that because of this unlimited distribution and total supply/demand accessibility, a huge paradigm shift has occurred. ![]() Likewise, on the supply side, the Internet provides a parallel level of accessibility to an unlimited array of vendors and their products/services. The long tail theory predicates that the Internet has spawned an unlimited number of retail sites that are quickly, easily and cheaply accessible to consumers. And this evolution predated the scale provided by the Internet. However, his theory, which is largely based on the power of the Internet, overlooks the reality of how distribution and brand proliferation has evolved in the apparel/retailing industry. At the same time, many of the 20th century megabrands, such as Levi, Gap, Lee Jeans, and others, have slowed - and in many cases declined. In fact, some current megabrands already have, without consciously calling it their “long tail” strategy.Īnderson’s long tail is a theoretical rationale for the explosive growth in numbers of niche apparel brands across all retail sectors. So it’s timely to revisit the theory and suggest how current struggling brands such as Gap, Levi, and other megabrands might stimulate some new growth by incorporating Anderson’s theory into their brand strategies. ![]() However, he didn’t give the heads-up to most of last century’s traditional megabrands and retailers that they might also participate and accelerate their growth by implementing the theory. Can Be Reality for Traditional MegabrandsĪ decade has passed since Chris Anderson wrote The Long Tail: Why the Future of Business is Selling More for Less, and his theory is being proven as reality.
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