Research On Decision Optimization Of Online Retailers Under Store Brand Competition

Store brands has a potential trend of growth and development space.In recent years,ecommercial development has reached its limit.Online retailers progressively introduce store brands in order to increase their profits and enhance their competitiveness.The introduction of store brands can bring many advantages to retailers,such as cost savings,profits maximization,improvement of competitiveness and customer loyalty.However,this introduction requires clear management and cost control strategies in the supply chain.Customers' consumption decisions are becoming more rational,less influenced by brand awareness,and more to price and quality of goods.The middle class promotes the increase of quality-oriented consumption.While developing focused differentiation business strategy for high end customers,the sinking market has also become an important target of e-commerce in recent years,which includes large population and low e-commerce penetration.The sensitivity of goods price and quality differs between customers from different markets,which affects retailers' category selection and determinations on price and quality balance.Therefore,it is critical to implement strategic optimization of online retailers regarding price and quality sensitivity of customers.Considering price and quality sensitivity of customers and distinguishing the positioning market of brands,a two-stage retail supply chain of online retailers and manufacturers has been chosen in this research.The thesis discusses the threshold of the introduction store brands of self-employed and platform retailers,as well as the commodity category selection and pricing and quality strategies.The research shows that: retailers can gain profits from it if they can manage the supply chain effectively and strictly control the cost of warehousing and logistics.When referring to the middle and high-end market,it is suggested that retailers should determine the main factors according to the introduction purposes of store brands.When referring to the sinking market,it is suggested that retailers should improve quality of products.Self-employed retailers should introduce products with higher price sensitivity,reduce the price gap between the two brands with the increase of price sensitivity of customers.And it is suggested that the platform retailers should introduce products with low price sensitivity,and guide manufacturers to make price decisions by adjusting platform commission rates to avoid low price competition.In addition,in order to present the practical meaning of this research,we compared the conclusion and current business states of store brands within JD and Tao Bao.