Vertical Channel Conflict Management Strategy For E-commerce Supply Chain Under Platform Brand Empowerment

In recent years,platform e-commerce enterprises have developed rapidly.As these enterprises have grown,their roles in the e-commerce supply chain have also changed,gradually changing from transaction organizers to empowering partners.For example,in 2017,JD announced the "Millions Jingdong Convenience Store Program",followed by Alibaba and Suning,competing to launch "Tmall Small Store" and "Suning Store",which empower convenience stores from big data,brand and other dimensions to promote the integrated online and offline operation of e-commerce.Although the empowerment behavior of platform e-commerce enterprises has benefited the enterprise itself and the participants in the supply chain in many cases,it must be acknowledged that the platform e-commerce enterprises are still in the exploration stage for "empowerment ".In practice,it will inevitably encounter some difficulties,among which vertical channel conflicts are more prominent problems.For example,platform e-commerce enterprises such as JD are unable to fully control the offline merchants(JD Convenience Store),thus allowing merchants to purchase a certain percentage of goods from other sources.Since the business target of the merchant is inconsistent with the platform e-commerce enterprises,the quality level of the purchased goods is often lower than that of the platform e-commerce enterprises.The unqualified goods will cause certain damage to the brand's goodwill,and lead to vertical channel conflicts,so that everyone in the chain can't get the most potential benefits.Based on the above realistic background,this paper uses the cost sharing mechanism,the minimum order quantity incentive mechanism and the game theory and other tools to analyze the vertical channel conflict problem and coordination mechanism design in the platform's brand empowerment scenario.This paper firstly reviews the research status of platform empowerment,the related research on ecommerce supply chain channel conflict,the research status of supply chain coordination mechanism and the research status of goodwill theory.Secondly,it constructs the second level of vertical channel conflict.The supply chain model analyzes the quantitative decision-making,decentralized decision-making,empowerment cost-sharing mechanism and minimum order quantity incentive mechanism.The retailer purchases quantity from two channels and the brand empowerment level of platform e-commerce enterprises.Based on the respective benefits of the supply chain members,it is discussed whether the enabling cost sharing mechanism and the minimum order quantity incentive mechanism can coordinate the vertical channel conflicts of the platform e-commerce supply chain.Research shows that both the empowerment cost-sharing mechanism and the minimum order-volume incentive mechanism can coordinate the vertical channel conflicts of the platform-type e-commerce supply chain.The minimum order quantity incentive mechanism has better coordination effect on channel conflict than the empowerment cost sharing mechanism.Then,the above research is extended to the situation of information asymmetry,and when the platform e-commerce enterprises do not understand the quality level of the retailers' other purchase channels(there are two levels),how should the platformtype e-commerce enterprises design appropriate incentives to mitigate vertical channel conflicts among members of the supply chain.It also analyzes how the platform ecommerce companies as core enterprises use the mechanism design method to identify the quality level of retailers ordering products from other channels.Research shows that platform e-commerce companies can increase the number of retailers ordering products from platform e-commerce companies by designing appropriate incentive mechanisms.The separation strategy is the optimal strategy for platform e-commerce enterprises,which can alleviate vertical channel conflicts.And increased the profit of platform e-commerce companies.In this paper,the research on the vertical channel conflict of e-commerce supply chain under the scenario of platform brand empowerment and the design of coordination mechanism enrich the research content of the channel conflict of ecommerce supply chain,trying to provide useful reference for the coordination mechanism of vertical channel conflict between platform e-commerce enterprises and retailers.