Study On Trade-in Strategy Of E-products OEMs Under Dual Sale Channels

Nowadays,the renewal speed of electrical and electronic products is faster and faster.Recycling and disposing waste electrical and electronic products are meaningful to the development of circular economy.The old-for-new project is also one of the commonly used promotion methods for electrical and electronic enterprises.With the development of and the popularity of e-commerce,manufacturers of electrical and electronic products begin to expand direct channels,striving to expand their market shares and seek more profits,thus a dual-sale-channels supply chain is formed.Under the background of dual-sale-channels,the decision strategy of the manufacturer in exchange-old-for-new project includes not only whether the project should be implemented,but also which channel should be chosen to implement the exchange-old-for-new project,that is,the rebate which consumers get from giving back the old products can be used in which channel.In addition to promoting sales volume,the old-for-new project will also have impacts on the competition between direct channel and retail channel,which will affect the total profits of manufacturers in both channels.Based on the dual-sale channels,this paper constructs Stackelberg game models of no trade-in strategy,trade-in strategy implemented through direct channel and implemented through retail channel.Considering that the rebate of the old-for-new project can be made in two different orders,decided before prices decision-making or decided when the prices decisions are made,this paper considers the modeling separately.This paper solves the optimal decisions,channel sales and corresponding profits of the manufacturer and retailer under the equilibrium state.Based on this,this paper discusses whether producers should implement the old-for-new project,which implementation channel should be chosen,and the influence of different decision-making orders on the above results.The results show that manufacturer benefits from the implementation of the exchange-old-for-new project.The choice of the old-for-new project implementation channel depends on the rate of return that can be obtained from recycling old products.When the rate of return is small,it is better to implement the old-for-new through retail channel.Otherwise,manufacturers are more willing to implement the old-for-new project through direct channel.Comparing the two decision-making orders,manufacturers prefer the order that rebate decided before price decisions.Retailers prefer the order that rebate decided when the prices are decided,if the project is implemented through direct channel,and prefer the order that rebate decided before prices if the old-for-new project is implemented through retail channels.