In the decentralized dual-channel context, traditional physical store retailers control offline channels, while emerging pure online retailers control online channels. Both wholesale products from manufacturers and then sell them through their own independent channels. Under this channel structure, the differences between online and offline lead to fierce price competition. However, since there is no direct constraint relationship between physical store retailers and online retailers, it is difficult to control it through coordination strategies, and the consumer showrooming phenomenon is particularly serious. This section studies the feasibility of physical stores introducing private-label products to resist the consumer showrooming phenomenon, discusses the optimal pricing problem of the supply chain in two cases: physical stores do not adopt a private-label strategy and adopt a private-label resistance strategy, and analyzes the impact of the breadth and depth of product mismatch of manufacturer brands on the demand, pricing, and revenue of the supply chain. Then, the model is expanded by introducing private-label brand awareness. The study found that private label strategy can increase the total demand and revenue of physical stores and reduce the negative impact of showrooming, but physical stores are better off introducing high-end private labels rather than common mid- and low-end private labels. The revenue of physical retailers will increase with the breadth and depth of product mismatch, while the revenue of online retailers will decrease accordingly.

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Research on Pricing Strategy of Decentralized Dual-Channel Supply Chain Considering Private Brand Strategy

  • Limeng Chai

摘要

In the decentralized dual-channel context, traditional physical store retailers control offline channels, while emerging pure online retailers control online channels. Both wholesale products from manufacturers and then sell them through their own independent channels. Under this channel structure, the differences between online and offline lead to fierce price competition. However, since there is no direct constraint relationship between physical store retailers and online retailers, it is difficult to control it through coordination strategies, and the consumer showrooming phenomenon is particularly serious. This section studies the feasibility of physical stores introducing private-label products to resist the consumer showrooming phenomenon, discusses the optimal pricing problem of the supply chain in two cases: physical stores do not adopt a private-label strategy and adopt a private-label resistance strategy, and analyzes the impact of the breadth and depth of product mismatch of manufacturer brands on the demand, pricing, and revenue of the supply chain. Then, the model is expanded by introducing private-label brand awareness. The study found that private label strategy can increase the total demand and revenue of physical stores and reduce the negative impact of showrooming, but physical stores are better off introducing high-end private labels rather than common mid- and low-end private labels. The revenue of physical retailers will increase with the breadth and depth of product mismatch, while the revenue of online retailers will decrease accordingly.