This paper examines the manufacturer encroachment on both forward and reverse flows of a closed‐loop supply chain with two different design for remanufacturing (DfRem) approaches. We show that both DfRem approaches lead to Pareto improving encroachments under certain conditions. Design for modularity (DfM) compensates for the retailer's encroachment loss through dual positive spillover effects via lower wholesale price and higher buyback price to selling and collecting activities. Design for durability (DfD) simultaneously expands the retailer's sales and stimulates offline collecting via buyback price reimbursement. DfD outperforms DfM in achieving more profitable win‐win encroachments.

This paper investigates manufacturer encroachment on a green supply chain wherein alternative environmental labels are utilized to disclose the hidden product greenness attribute. We show that both self‐ and government labels facilitate and adjust the promotion effect of encroachment on product greenness, stimulating green demand and retail prices for profitability improvement and raising wholesale prices for investment sharing. The difference is that self‐labeling's low credibility and complete self‐interest features only induce inferior greenness increments and coordination effects. Government labeling outperforms self‐labeling in simultaneously optimizing the interests of the manufacturer, retailer, and society, presuming the benefits of greenness improvement reimburse investments.