Pricing Decision Of Mixed Channel Supply Chain Considering Omnichannel Strategy Of Online Retailers

With the rapid development of the Internet and online shopping,the online retail market has become increasingly mature.Although online consumption continues to grow,the growth of online retailer has slowed down significantly due to the limitations of the limited growth space of the online market and homogeneous competition,and it is urgent to seek new changes.In addition,with the comprehensive upgrade of China’s consumption structure,consumers increasingly pay attention to the consumer experience and shopping service level,and the traditional e-commerce model has been difficult to meet today’s consumer needs.Therefore,the new problem that online retailers urgently need to face and solve is how to integrate online channels with physical retail channels,to realize an integrated omni-channel retail model.In reality,online retailers mainly choose to open their own offline physical stores or choose to hold shares or acquire original the offline physical supermarket to achieve omnichannel sales,which will affect the pricing decision of supply chain members.Based on the above background,focusing on the mixed channel supply chain composed of an manufacturer and two retailers,a pricing decision model based on game theory of online retailers opening offline physical stores and implementing horizontal shareholding strategies are established respectively.The aim is to studies the omni-channel strategy selection strategy of online retailer and the impact of implementing different channel strategies on supply chain pricing and member profits.The main research contents and conclusions of this paper are as follows:Firstly,a supply chain decision-making model for online retailers opening offline physical stores was constructed,and the optimal pricing and member profits of the supply chain in the context before and after online retailers opened offline physical stores were compared.The study show,as the offline market share of online retailers increases,manufacturer’s profits increase,traditional retailer’s profits decrease,and online retailer’s profits increase first and then decrease.Compared with the situation where online retailers do not open offline physical stores,opening online offline physical stores can effectively improve the profits of online retailers,manufacturers and supply chains.When the offline market share of online retailers is below a certain threshold,the addition of offline physical stores by online retailer will also make traditional retailers more profitable.At this time,the profits of all members in the supply chain will be optimized.Secondly,the supply chain decision-making model of online retailers implementing horizontal shareholding strategy was constructed,and the optimal pricing and member profits of the supply chain in two situations before and after the online retailer opened offline physical stores were compared and studied.The study show,on the mixed channel supply chain of the online retailer’s implementation of the horizontal shareholding strategy: As the online retailer’s horizontal shareholdings increase,the profits of manufacturers and traditional retailers will decrease,and the profits of online retailers will increase.Compared with the situation where the online retailer does not implement a shareholding strategy,the online retailer’s implementation of a horizontal shareholding strategy can improve the profit of the online retailer.The sum of the profits of the traditional retailer and the online retailer is optimized,but the profits of the manufacturer and the traditional retailer cut back.Thirdly,Based on the analysis of calculation examples,the channel decision and balanced profit in the two cases of online retailers opening offline physical stores and online retailer implementing horizontal shareholding strategie are compared.The study show,comparative analysis of the mixed-channel supply chain of online retailers implementing two omni-channel strategies: Based on a case study,it is found that the online wholesale prices,retail prices,and total market demand of online retailers when they open offline physical stores are greater than the online retailer’s implementation of horizontal shareholding strategy situation.Compared with the case where the online retailer implements the shareholding strategy,the manufacturer has a greater profit in the case where the online retailer opens an offline physical store.When the online retailer’s market share in the offline market is higher than a certain threshold,the online retailer’s profit is greater in the case of opening an offline physical store,while the traditional retailer’s profit is smaller.