It is a special server side URL redirection to tell the User-Agent (browser or serach engine crawlers) that page has moved from this location permanently. Since the redirection occurs with sending minimum http header information to the User-Agent, it takes minimum time to get redirected.
Now the question is, why “301 redirection” is so much important to a site owner. There is a valid reason for it.
Search engines simply transfer the SEO credibility of the former URL to the redirected URL. So, if you change a page name of your old pages, it is a wiser decision to arrange for a 301 redirection for each old page URLs to a new page URL. If you do not do 301 redirect for your old pages, the search engines will treat all new pages a brand new pages and you will simply lose the associated SEO credibility of your old pages. Most of all the visitors will get “404 not found” pages when they come to the old pages from the search engines.
The best way of implementing a “301 redirection” is placing few lines of code at .htaccess file for an apache web server. The code may differ depending on the redirection requirement. You may know more at 301 Redirects and www/non-www Canonical Problems
If you are running an ASP.NET site you can manage it at the web.config file. Just edit the XML files with its syntax.
In fact you can do it writing script (PHP or ASP.NET) too.
Hope this will give a general idea on 301 redirection.
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