Dynamic Pricing for Fashion Supply Chain with Blockchain Supported Value Authentication

The fashion industry is facing a challenge in pricing seasonal fashion products. Our study explores the dynamic pricing strategy for fashion supply chain that blockchain technology is employed to enhance fashionably designed value perceived by customers and identify heterogeneous fashion-sensitive customers. We propose pricing models on game theory in the presence of blockchain supported value authentication. Our research indicates that blockchain adoption could enhance the perceived fashion value of customers and further increase the customers’ willingness to buy and consequently profit. We compared basic priding (SF) and blockchain common pricing (CP) strategies that heterogeneous fashion-sensitive customers are differentiated by blockchain driven fashion value authentication data. Our results demonstrate that the equilibrium price in blockchain pricing model CP is higher than basic SF. And, the blockchain could increase the expected profit of fashion supply chains.