A Study Of Coordination Merchanisms In The Service-driven Dual-channel Fashion Supply Chains

In recent years,as the rapid develops of E-commerce,using Internet for direct sales has become an important marketing tool of many fashion industry.There are many advantages of selling products use E-commerce,for example,the suppliers can save cost by selling products with network platform,online channel also can provide services for the evaluation of product information or the comparison of different products,etc.Nevertheless,the traditional way also owns some traits that E-commerce can hardly realize.For instance,customers can experience and use the products in person,the retailers can optimize the environment for customers' better shopping experience.So the service level has become a very important factor that influence the customer decision,company profit and marketing strategy in fashion industry.It also puts forward new challenges to the dual-channel of the supply chain management.Therefore,how to determine the optimal level of price and service cost are the problems of supply chain managers and researchers concerning in different channel mode.So this paper studied the dual-channel supply chain through comprehensive application of Consumer Utility Theory,Game Theory and Optimization Theory.First,we studied a two-echelon supply chain consisting of one supplier and one retailer without supply chain coordination,the supplier produce only one kind of product.We get the optimal decision of equilibrium under different channel models by establishing three decision models,including a traditional single-supplier-single-retailer retail channel(Scenario R),a supplier-owned direct channel(Scenario D),a dual-channel supply chain with a retail channel and a direct channel(Scenario RD).The research show is studied by the numerical example combining the H fashion enterprise,in the case of inconsistent pricing,with the increasing of offline service cost,both retailer and supplier are prefer to choose their own distribution channel,but dual-channel strategy will bring the highest profit for the whole supply chain.Research show,when offline service cost of unit product is too high,dual-channel supply chain is not a good choice for retailer,that means retailer won't support of adding online direct channel.Then,we studied the channel pricing and the selection problems when the traditional sales channel(Scenario R)and a dual-channel supply chain(Scenario RD)implement a revenue sharing contract.Combining the actual situation of H fashion enterprise,we do the numerical example and found that when the revenue sharing percentage increasing within limits,the parties of supply chain are prefer to choose the dual-channel supply chain strategy.In order to solve the problem of lack of coordination in supply chain,it will achieve the coordination through the revenue sharing contract if certain conditions are satisfied.Research shows how much profit can supplier and retailer gain will mainly depend on percentage of benefit-sharing under revenue sharing contract.With the increase of revenue-sharing proportion,traditional retailer channel become more competitive,that means retailer has a stronger bargaining power under dual-channel supply chain strategy.Finally,we sum up the main contents of this paper and give advices on supply chain management according to H enterprise's actual situations,then pointing the inadequate aspects and works to be furthered in research.