Franchise Mode Selection Strategy For Convenience Store With E-commerce Background

As the Internet and e-commerce have entered thousands of households,the concept of "New Retail" has promoted the retail industry’s gradual development towards the integration of online and offline.Some major e-commerce platforms have entered the offline chain convenience store industry.At present,there are mainly two methods for the development of offline convenience stores in e-commerce platforms: the regular mode and the franchise mode.We intend to explore the choice of offline convenience store chain models byecommerce platform when considering unit operating costs and service efforts.We start with a case study of the conflict between Daphne regular mode stores and franchise stores,and the different business model of Suning and T-mall convenience store.We find that operating costs and service effort factors are the key factors in determining the superiority of the chain model.We build a channel selection model for e-commerce platform to develop convenience stores when considering unit operating costs,construct and solve the two-channel supply chain model under the two modes,and verify the conclusion through numerical simulation.When the unit operating costs of the convenience stores in the two channel models are equal,regardless of the level of consumer preference for the channel,the e-commerce platform adopts the regular mode rather than the franchise mode.If there are differences in the unit operating costs of convenience stores under the two chain modes,when the unit operating costs borne by the convenience store in the regular mode compared with the franchise mode exceed a certain threshold,thee-commerce platform should choose the franchise mode.We also add to the discussion of the situation when the online and offline channels adopt the price consistent strategy in the two chain models.It is found that the e-commerce platform adopting the regular mode will prefer to adopt the price consistent strategy,and the ecommerce platform adopting the franchise model will prefer the choice of best price strategy.Considering the current situation that convenience stores are widely adopting service efforts,we divide the service effort strategies of convenience stores under the franchise model into pre-service effort strategies and post-service Two situations of effort strategy.When the offline convenience store adopts service efforts,both the regular mode and the franchise mode can improve profit level for the e-commerce platform,but under regular mode he can obtain more profits than the franchise mode.When the e-commerce platform selects the franchise mode,both the e-commerce platform and the franchised convenience store can obtain greater benefits when choosing the post-service effort strategy compared to the preservice effort strategy.