Coordination of dual-channel CLSC under applying the bundling strategy in the direct channel and jointly advertising investment

With the rise of technology, the fashion industry has experienced a sharp drop in traditional channels, which has been intensified throughout the pandemic outbreak of the coronavirus. While many fashion companies have launched online channels, lack of motivation, awareness, and experience have created some concerns for consumers when it comes to online shopping. To address these issues and considering the importance of advertising investment, a model of dual-channel Closed-Loop supply chain has been formulated in this paper, which takes into account the “Bundling” strategy and cost-sharing advertising investment, by using the Stackelberg game, optimal decision-making variables for decentralized, centralized, and coordinated models have been obtained. To be more exact, the Stackelberg game is introduced between the manufacturer and the traditional retailer. Collaborative efforts among traditional retailer and manufacturer in remanufacturing and recycling waste products can help mitigate resource shortages and environmental crises, resulting in a more sustainable economy. Besides, the bundling strategy is the focal point in this paper, which has been applied to the online demand which encourages consumers to buy products, this strategy results in new demand functions including asymmetric online and offline demands. The online channel brings with it a multitude of benefits, including increased efficiency, reduced environmental impact, improved customer satisfaction, and increased brand loyalty. Additionally, it plays a crucial role in achieving the sustainable goals of the fashion industry. The sustainable development goals offer a comprehensive, far-reaching framework to tackle worldwide challenges, and this research tried to make significant progress in achieving several of these goals. Implementing revenue-sharing and cost-sharing contracts in both forward and reverse channels can help coordinate the supply chain and achieve maximum potential profit. With coordination contracts in place, the supply chain can work towards achieving the 17th Sustainable Development Goal, which is participation in achieving the goals. Results show that the bundling strategy is an efficient approach to increase the demand and the profit of the fashion clothes supply chain. Also, advertising in addition to bundling strategy and recycling and remanufacturing processes can improve the efficiency of the chains. Also, we find out the revenue-sharing contract can share the extra profit fairly and reasonably.