Long tail distributions are a relatively arcane fascination by statisticians. Roughly, a long tail mimics the 80/20 rule; also known as a Pareto distribution. But in a series of articles and books by Chris Anderson (editor of Wired), it’s clear that long tail markets have emerged as a very interesting observation of how the global culture and technology expansions have shaped consumer businesses. As a short example, Amazon has more revenue (and assumed profitability) from the long tail
Long Tail Markets
The bulk of the sales in the lighting industry appears to have shifted from handful of dominant players to a constantly growing number of smaller players emboldened by the lower barriers to entry offered by LED technology and new online channels of distribution.