Research On Competition And Cooperation Of Online And Offline Retailers

With the development of Internet technology,the e-commerce industry has developed rapidly,making a great contribution to China's economic development.Online retail provides consumers with the convenience of home shopping and enables them to easily browse commodity information through the network.With the emergence of e-commerce,brick-and-mortar retail is faced with great challenges.They adjust prices or open online channels in response to falling sales.The emergence of the O2 O mode for the development of offline retailers fortunes,some electric business platform for the offline retailers open sales channels,offline retailers can through electric business platform to display and trade of goods,and then through the offline stores to distribution of consumers,such as J.D.and Walmart,Amazon and Future Group's cooperation.For self-run e-commerce,there is a strong competitive relationship with offline retailers to compete for the same market.Under the fusion mode,although ecommerce can obtain the service fees paid by offline retailers,the sales of its self-run products will inevitably be affected.And though offline entities increase sales channels,they have to bear the costs of platform fees and offline delivery.Therefore,how to compete and cooperate between online and offline retailers and e-commerce platforms is the focus of this paper.In addition,with the prosperity of online retail,consumers are paying more and more attention to the service quality of logistics,and the position of the online retail industry in logistics and distribution service is increasing day by day.In addition to competing on price,retailers are starting to compete for consumers through service quality.When providing services to consumers,retailers can deliver orders to their platforms for delivery,or they can choose to deliver by themselves or use third parties.Many e-commerce platforms have invested heavily to improve their logistics,among which J.D.and Amazon are the leaders in e-commerce logistics and delivery services.Providing logistics services to other online retailers has become one of the revenue sources of e-commerce.Under the competition of price and service,it is also worth paying attention to how the offline retailers choose the distribution mode to realize the maximum profit.In this paper,we first studied the competition and cooperation between offline and offline retailers in the O2 O model,considering the pricing strategy of online and offline price consistency and price inconsistency of physical retailers,taking into account consumer heterogeneity and distribution services.By Comparing the equilibrium solution between the platform and the retailer under the competition mode and the competition mode,We determined the reasons and conditions for the cooperation between the retailer and the e-commerce platform.The main conclusions are as follows:(1)under the cooperation,the price of offline retailer and platform is lower than that of competition mode;(2)cooperation increases the total demand of physical retail and reduces the demand for self-operated products of the platform;(3)cooperation increases the profit of e-commerce platform,and the willingness to cooperate is strongly affected by mismatch cost;(4)retailers' willingness to cooperate is affected by mismatch cost.When the mismatch cost of products is moderate,retailers are willing to cooperate and their willingness to cooperate increases first and then decreases with the increase of mismatch cost.(5)service quality has the opposite effect on the platform and the retailer.The higher the service quality of the platform is,the more favorable it is for the retailer to cooperate and the worse it is for the platform;The higher the service quality of retailers is,the better the platform cooperation is,but the lower the cooperation willingness of retailers is.(6)under the pricing strategy of inconsistent online and offline prices of physical retail,there is more space for offline retailers to cooperate with the platform.Based on the competition and cooperation relationship between retailers and ecommerce platforms,we then researched the retailer's optimal service strategy under the coexistence of price and service competition,and reached the following conclusions:(1)On the whole,when the retailer 's own service level is higher or lower,the retailer can adopt a mixed service strategy,it is more beneficial to itself to adopt a different service strategy from its competitors.when the retailer 's own service level is moderate,the retailer should adopt The same service strategy.(2)Individually,when the competitor 's service strategy is platform services,the retailer 's cooperation with the platform is optimal if and only if the product mismatch cost is low or the retailer 's own service level is low;when the competitor 's service strategy is When self-delivering,the retailer and platform cooperate best if and only if the retailer's own service level is relatively large.(3)Only when the platform service level meets certain conditions,all online retailers use platform services to maximize platform profits.Otherwise,retailers will adopt a hybrid strategy that is more beneficial to the platform.