Industrial Engineering Journal ›› 2019, Vol. 22 ›› Issue (6): 118-126.doi: 10.3969/j.issn.1007-7375.2019.06.016

• practice & application • Previous Articles     Next Articles

The Influence of E-commerce Introduction Strategy of Private Brands on the Choice of Manufacturers' Sales Modes

CAI Renlei, NIE Jiajia   

  1. School of Economics and Management, Southwest Jiao tong University, Chengdu 610031, China
  • Received:2019-01-09 Published:2019-12-24

Abstract: The introduction of private brands and the choice of manufacturers' sales modes are prevailing business phenomena nowadays. The relationship between the introduction of private brand products and the choice of manufacturers' sales modes are studied, and the Stackelberg game model of both parties is constructed. The reverse induction method is used to calculate the profits of channel members under different strategies. On this basis, the profits of both parties are compared to get the equilibrium strategy under different conditions. The study found that the choice of the manufacturer's sales mode is influenced by the introduction of private brand strategy in e-commerce. When the commission ratio is too low or too high, the introduction of private brand strategy will not affect the choice of sales modes. At this time, the commission fee determines the sales mode selection; when the commission ratio is moderate, the manufacturer will introduce the agency mode under the introduction of private brands, and otherwise he will choose the distribution mode; in addition, the platform commission ratio and the consumer's recognition of the private labels will affect the introduction of private brands. The higher degree of consumer recognition has prompted e-commerce not to introduce private brands.

Key words: sales mode, private brand, commission ratio, private brand recognition

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