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| Friday, 14 May 2010, 13:06 HKT/SGT | |
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Source: BusyTrade | |
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SHANGHAI, May 14, 2010 - (ACN Newswire) - The Long Tail, a concept that was popularized by Chris Anderson in 2004, challenges the traditional Pareto Principle (also known as the 80/20 Principle) in the realm of E-Commerce; because in the E-Commerce era, the Pareto Principle ignores exactly where the business opportunities lie.
In April, BusyTrade (http://china.busytrade.com) launched its Gold Mine Service package. The package emerged like a gift to SMEs. The newly registered members only need to pay RMB688 (or USD100) to enjoy a package of premium services from BusyTrade. This package was originally designed as a marketing strategy to give more SMEs an opportunity to experience an innovative charging model created by BusyTrade ---- Pay-As-You-Go. However, more than 5,000 companies applied for this service, far more than experts expected.
As an existing B2B platform, The Gold Mine Service package was actually offering only traditional Pay-As-You-Go services such as information posting, rank bidding, hot ads space and so on. What attracted SMEs in particular were BusyTrade's popularity, strong reputation, premium services and most importantly, ultra-low pricing. Companies like Google and Amazon have already used The Long Tail strategy, and today, BusyTrade is demonstrating another example of The Long Tail reflected in e-commerce.
According to the Ministry of Commerce, there were 40,420,000 registered SMEs in China by the end of 2009, but only 5% of them were involved in E-commerce. For most SMEs, high operating costs are their primary concern. Those SMEs, who wish to join the E-commerce movement but have held back because of expensive fees, now form a vast long-tail market.
The unveiling of the Gold Mine Service offers all SMEs an opportunity to taste the benefits of E-commerce. Differing from an annual fee charging model adopted by other B2B websites, every single service in BusyTrade can be paid for with the Busy Dollar, a virtual monetary system innovated by BusyTrade. That is to say, BusyTrade would not accept the traditional annual fee system.
According to traditional economic theory, lowering the price from RMB2500 to RMB688, (USD300 to USD100), is nothing less than business suicide, but the actual market response has proved otherwise; as the scale created by rapid new membership demonstrates the long tail well, BusyTrade has hit the nail on the head. On the verge of economic recovery, could there be anything better than an ultra-low price for new E-commerce members?
Although Gold Mine Service package has come to an end, BusyTrade is planning further strategic deployments after conducting detailed market research. At that time, BusyTrade's global site ( http://www.busytrade.com) will take new initiatives too. Continue to walk the Long Tail with BusyTrade!
B2B research : B2B Ranking http://www.b2branking.com
Contact:
Emily Cui
Tel: +86-21-51001810
Fax: +86-21-51001810-4
Email: emily@busytrade.com
Topic: Press release summary
Source: BusyTrade
Sectors: E-Commerce
https://www.acnnewswire.com
From the Asia Corporate News Network
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