<p>Inventory management has long been a critical challenge for brands, particularly in the fashion industry, where rapid shifts in consumer demand often lead to overstock. Live streaming commerce has recently emerged as an powerful channel for accelerating inventory depletion, although collaborating with high-influence streamers entails significant commission costs. Therefore, how to choose live streaming sales strategies, what type of streamers to choose and how to optimize pricing and inventory during a sales period are problems for brands. To address the above problems, we first investigate pricing and inventory decisions for brands when employing a specific fixed streamer under three sales strategies: normal sales (N), live streaming sales (L), and normal sales first and then live streaming sales (NL). We find that when the commission rate falls below a certain threshold, brands should adopt the L strategy. For moderate commission rates, the NL strategy is recommended, while the N strategy is optimal for exceptionally high commission rates. Moreover, we find that the brand faces an optimal range of streamer types, as its profit does not always increase with streamer influence. For this purpose, we study the optimal streamer type selection, pricing and inventory ordering strategies in L and NL strategies. We prove the existence and uniqueness of the optimal solutions for streamer type selection and pricing. Through a simulation study, we observe that the optimal profit of the brand increases first and then decreases with the increase of the sales mode switch point.</p>

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Optimal streamer type selection, pricing and inventory strategies in live streaming commerce

  • Yanfen Zhang,
  • Jinrong Liu

摘要

Inventory management has long been a critical challenge for brands, particularly in the fashion industry, where rapid shifts in consumer demand often lead to overstock. Live streaming commerce has recently emerged as an powerful channel for accelerating inventory depletion, although collaborating with high-influence streamers entails significant commission costs. Therefore, how to choose live streaming sales strategies, what type of streamers to choose and how to optimize pricing and inventory during a sales period are problems for brands. To address the above problems, we first investigate pricing and inventory decisions for brands when employing a specific fixed streamer under three sales strategies: normal sales (N), live streaming sales (L), and normal sales first and then live streaming sales (NL). We find that when the commission rate falls below a certain threshold, brands should adopt the L strategy. For moderate commission rates, the NL strategy is recommended, while the N strategy is optimal for exceptionally high commission rates. Moreover, we find that the brand faces an optimal range of streamer types, as its profit does not always increase with streamer influence. For this purpose, we study the optimal streamer type selection, pricing and inventory ordering strategies in L and NL strategies. We prove the existence and uniqueness of the optimal solutions for streamer type selection and pricing. Through a simulation study, we observe that the optimal profit of the brand increases first and then decreases with the increase of the sales mode switch point.