OEM’s sales formats under e-commerce platform’s private-label brand outsourcing strategies

Liu, Peng; Yang, Xiaodong; Zhang, Rong; Liu, Bin

doi:10.1016/j.cie.2022.108708

Cited by 12 publications

(7 citation statements)

References 63 publications

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“…This can be attributed to the fact that the e‐tailer sources PB products from a third‐party supplier M 2, which mitigates the production monopoly effect of M 1 and reduces his bargaining power. Consequently, a decrease in the wholesale price leads to a corresponding decrease in the sales price, which is consistent with the results of Liu, Yang, et al, 2022. Proposition 4 (b) illustrates that the introduction of the PB will harm the NB's demand in most cases, as it could potentially increase competition.…”

Section: Analysis Of Equilibrium Outcomessupporting

confidence: 87%

“…Moreover, the literature on the PB sourcing strategy is rarely studied and is closely related to our work. In this regard, Liu, Yang, et al (2022) study the interaction between the e‐tailer's outsourcing selection and the sales mode of original equipment manufacturers (OEMs). They suggest that the platform favors outsourcing to the third‐party manufacturer when OEM adopts a resale mode.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Mills (1995) and Ru et al (2015) demonstrate that the downstream firm introducing the PB can reduce the double marginalization and will benefit the upstream firm, while Choi and Coughlan (2006) Moreover, the literature on the PB sourcing strategy is rarely studied and is closely related to our work. In this regard, Liu, Yang, et al (2022) study the interaction between the e-tailer's outsourcing selection and the sales mode of original equipment manufacturers (OEMs). They suggest that the platform favors outsourcing to the third-party manufacturer when OEM adopts a resale mode.…”

Section: The Pb Introductionmentioning

confidence: 99%

“…Notably, once the e‐tailer introduces the PB, he will inevitably face upstream supplier selection issues. Selecting the NB supplier within the supply chain and selecting the third‐party supplier outside the supply chain are two main sourcing strategies (Li et al, 2023; Liu, Yang, et al, 2022). For instance, JD.com, a giant e‐tailer in China, sales PB JMEAL Wenchang chicken with supplier—Hainan (Tanniu) Wenchang Chicken Company Limited which also sales the NB Tanniu Chicken in JD.com (JD.com, 2023c; JD.com, 2023e).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Optimal fresh agricultural products private brand introduction and sourcing strategy considering different power structures

Cao

Gao

2023

Manage Decis Econ

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In recent years, many fresh e‐tailers have introduced private brands (PBs). The introduction of PBs will increase product competition and incur fixed fee for e‐tailers; thus, e‐tailers need to consider whether to introduce PBs and where do they source their fresh products. To address these challenges, this paper develops theoretical models. The results show that introducing PB benefits e‐tailers if the construction fee of the PBs is relatively low. Interestingly, national brand (NB) suppliers have an incentive to negotiate with e‐tailers to order PB products from them. Moreover, the willingness to introduce PBs is influenced by the power structure.

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Section: Analysis Of Equilibrium Outcomessupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Section: The Pb Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Optimal fresh agricultural products private brand introduction and sourcing strategy considering different power structures

Cao

Gao

2023

Manage Decis Econ

View full text Add to dashboard Cite

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“…The immense market potential in online retailing has prompted e‐commerce platforms to develop their own private label products, directly competing with manufacturers’ products on their platforms. For instance, Amazon launched its first private label, Amazon Basics, in 2009, and https://jd.com/ and Alibaba Group have also recently entered the private label market (Liu et al., 2022; Zhang and Hou, 2022). As e‐commerce platforms typically lack production capabilities, they often choose to outsource the production of their private label products to upstream manufacturers who simultaneously sell their products on the platforms (Liu et al., 2022; Li et al., 2023).…”

Section: Introductionmentioning

confidence: 99%

Information and selling mode strategies in a supply chain with an outsourced private label product

Wang,

Chen,

Yang

et al. 2024

Int Trans Operational Res

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This paper examines the interplay between the information strategy of an e‐commerce platform and the selling mode strategy of a manufacturer within a co‐opetitive supply chain, as well as the identification of the optimal supply chain strategy. We develop a supply chain model where a platform outsources production of its private label product to a manufacturer, who also sells its national brand product through the platform. The platform must decide whether to acquire consumer quality preference information at a cost and share it with the manufacturer, while the manufacturer needs to choose between the reselling mode or the agency selling mode for its national brand product. The two driving effects (competition‐intensification effect and mode differentiation effect) are identified. Our findings show that the platform will acquire and share information when the acquisition cost is sufficiently low, leading to the “competition‐intensification effect.” Additionally, the manufacturer prefers the agency selling mode when cost‐quality efficiency is low, and the reselling mode otherwise, driven by the “mode differentiation effect.” In cases where information sharing is absent, the manufacturer is more likely to choose the agency selling mode. Interestingly, when the cost‐quality efficiency of the manufacturer's product is moderate and the information acquisition cost is low, the “competition‐intensification effect” and the “mode differentiation effect” offset each other, resulting in the expansion of the region where the manufacturer chooses the reselling mode due to the platform's information‐sharing strategy. As a result, this enhances a cooperative relationship between the manufacturer and the platform. We also derive the optimal supply chain strategy, providing insights into both the manufacturer's selling mode and the platform's information strategies in online retailing.

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Contract manufacturer encroachment and its impact on OEM’s sales mode and social welfare in a platform-based supply chain

Liu,

Shen

2024

Ann Oper Res

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OEM’s sales formats under e-commerce platform’s private-label brand outsourcing strategies

Cited by 12 publications

References 63 publications

Optimal fresh agricultural products private brand introduction and sourcing strategy considering different power structures

Optimal fresh agricultural products private brand introduction and sourcing strategy considering different power structures

Information and selling mode strategies in a supply chain with an outsourced private label product

Contract manufacturer encroachment and its impact on OEM’s sales mode and social welfare in a platform-based supply chain

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