The economics of the long tail theory works in the following way – This eventually creates more choices for the consumers to choose from and helps the seller stand out by catering to a niche or micro-niche. He states that globalization and the internet revolution has made it really easy and economical to produce and stock a large amount of less-demand products.

His argument in the book revolves around how consumers in the modern economy are shifting towards individualized niche products than being attracted to a small number of ‘hit’ products. He used the book to explain the market that is being created and catered to with the advent of the internet and availability of endless information. The concept of long tails was introduced by Chris Anderson in his book named ‘ The Long Tail: How Endless Choice is Creating Unlimited Demand’.

Unlike the usual strategy of product promotion, the long tail strategy focuses more on inventory management and selling multiple less popular products to generate as much profit from the long tail as the hit head. Long tail marketing is a business strategy of equalling or exceeding the market demand of a hit product by stocking, offering, and marketing many less demand volume niche products. The stores focus on stocking up and promoting these popular products to earn most of the profits while other products in the inventory continue to sell in a usual pattern with no single item making a big impact. These popular items could be a newly released gadget, movie, book, game or any recently acclaimed product. In the usual retail environment, a small group of popular products dominate sales.

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