The Long Tail Thesis : Conceptualizing China’s Entrepreneurial Practices in Fintech and Electric Vehicles

Dai, Shuanping; Taube, Markus GND

Purpose
This paper aims to explore the functionality of long tail markets (LTM), where the consumers cannot be reached or are ignored by the traditional mainstream businesses, in new products and business development.

Design/methodology/approach
First, the authors review two Chinese entrepreneurial practices in the Fintech sector and low-speed electric vehicles (LSEV) and describe their stylized facts; second, they explore a possible theoretical LTM framework to underscore these practices; third, they make a connection between LTM and existing business models and analyze its significance and practical implications in business, in particular, in developing economies.

Findings
The LTM business approach has helped Chinese companies in the Fintech sector and LSEVs gain global attention. The success factors of LTM for businesses are identifying a specific customer base, being aware of localization products and playing skillfully with regulations; the LTM approach has several overlaps with existing studies on niche products and base of the pyramid market.

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Dai, Shuanping / Taube, Markus: The Long Tail Thesis. Conceptualizing China’s Entrepreneurial Practices in Fintech and Electric Vehicles. 2020.

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