tóubù xiàoyìng

Meaning:

“头部” literally means “head,” and “效应” means “effect.” This term, appearing in Chinese media frequently, is roughly the same as the “80-20 rule,” or the “Pareto Principle.” It was named after Italian economist Vilfredo Pareto back in 1895. He noticed that people in society seemed to divide naturally into what he called the “vital few,” or the top 20 percent in terms of money and influence, and the “trivial many,” or the bottom 80 percent. Later, he discovered that virtually all economic activity was subject to this principle, in that 80 percent of the wealth of Italy during that time was controlled by 20 percent of the population. We Chinese also use such terms as “头部品牌” (top brands) and “头部公司” (top companies), which dominate the market and various industries.

Example:

A: 你对投资股票有什么建议？

Nǐ duì tóuzī gǔpiào yǒu shénme jiànyì？

What do you suggest if I want to invest in stock markets?

B: 遵循头部效应，买入各行各业的头部公司。

Zūnxún tóubù xiàoyìng ，mǎirù gèháng gèyè de tóubù gōngsī。

Follow the “80-20 rule” and buy the top companies of various industries.