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China Law Blog

But isn't China big enough so that there are countless places within it that constitute the long tail? Second, third, and fourth tier cities for instance.

Craig Maginness

I think you're absolutely right. There are long tails in China -- both smaller geographic markets as you suggest, as well as consumers who buy ones-ies and twos-ies. A long tail business could exploit small submarkets in China just as Amazon and NetFlix have in the US.

But if you have a business with that kind of inverse economy of scale, my point is that there are other markets open to you that are not available to many companies that depend on larger economies of scale.

A side benefit I might note is that you can travel to exotic locales in micronesia, for example, to visit customers and enjoy your mai-tais on the beach without the Wal-Mart sales rep shilling in the next cabana.

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