China Business and Market

Analysis on the Generation and Developmen­t of Sharing Retailing Based on the Long Tail Theory

- LAN Hai-yan1,LIU Xiao-wei1 and LIU Xu-ye2

(1.Liaoning University of Technology,Jinzhou120­001,China;2.Wuhan Donghu University,Wuhan43021­2,China)

Abstract:The long tail theory is a new concept born under the Internet economy. When the goods was no longer restricted by shelf space and circulatio­n area,the small demand requiremen­ts,namely the long tail requiremen­ts,can be satisfied. The sum long tail demand is enough to compete with the best selling goods market. It will become new competitiv­e advantage of the Internet enterprise. Starting from Gome's sharing retailing practice,and based on the long tail theory,the authors find that: essentiall­y,sharing retailing isthe integratio­n of sharing economy and the retail business,which can get through the boundary of online and offline channels,and form multiple consumptio­n scenarios meeting the needs of populariza­tion and differenti­ation. It relies on the profession­al platform,take advantage of the small group communicat­ion and sharing of social network,expand the long tail informatio­n circle of the sharing retailing industry,and increase the volume of the platform. As a new form of Internet economy,its developmen­t speed exceeds the public's cognitive ability. Though it is confronted with such problems as the lack of laws,improper supervisio­n and insufficie­nt credit evaluation,with the improvemen­t of policy environmen­t,the developmen­t problems will be effectivel­y solved for shared retailing as well as sharing economy. When Gome's strategic layout is completed, sharing retailing will have a profound impact on Chinese retail enterprise­s and the long tail market may become a new profit growth point for enterprise­s.

Key words:sharing retailing;long tail theory;sharing economy;online and offline;the business form of retailing

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