Why is the future of business selling less of more?
BIA Core Library Book
Author: Chris Anderson (Editor of Wired Magazine)
Mass markets don’t control the world anymore. The defining feature of the 20th Century economy is yielding its prime position to a horde of small unique tailored offerings and niche markets.
For much of the last 100 years mass markets made economic sense. Limited marketing channel bandwidth (only so many TV commercial time slots) and high costs of product entry (you had to build a factory) conspired to limit choice and create products shared by most of the population. Whether it was music (Top 40 hits), books (Best Seller Lists), restaurants, or soap, markets were dominated by a few winners at the head of the Power Curve.
The proliferation of channels and marketing message bandwidth combined with dramatically lower cost of production have changed the rules. Now numerous but relatively small niche offerings, have been empowered to create and market to unique customer needs. These are the “long tail” of the Power Curver”
Think Indie Bands, small target audiences, low cost marketing, niche providers of music … small individuall … but cumulatively combining to rival the faltering mass market hits.
Chris Anderson, the lead editor of Wired Magazine, makes the case that the falling barriers to entry fundamental transformations and as a result, the continuing rise of niche markets is likely to be a permanent long term trend. Opportunities wait for those who master the new tools and use them to create high value niche offerings.