Research On The Financing Strategy Of Manufacturers Considering The Strong Platform

With the development of the Internet and financial technology,e-commerce platforms have become the main channel for many small and medium-sized manufacturing enterprises to sell products.Some powerful large platforms can also provide financing services for their partners to meet the production needs of manufacturers with limited funds.However,as a core enterprise,the platform often has a greater ambition.The platform gives play to its home advantages in various ways,such as opening a proprietary platform store for production outsourcing or introducing private brand products(platform encroachment),which may lead to a competitive and cooperative relationship between the platform and manufacturers.This study focuses on the balance between the financing needs of manufacturers and platform competition and discusses the financing strategy choices of manufacturers under different modes.This paper first constructs a dual-channel supply chain model,where the platform wholesales and purchases manufacturers’ products and sells them in the platform’s selfoperated stores.The manufacturer can respond to the profit exploitation of strong platforms by opening direct sales channels.At the same time,this paper also constructs a supply chain model based on platform encroachment.The manufacturer sells products on the platform,and the platform can participate in the market competition by introducing its private brand.By calculating the model,we analyzed the impact of independent sales strategies of the platform and the manufacturer on supply chain equilibrium.We further studied how the financially constrained manufacturer can achieve a win-win situation with the platform while obtaining financing.The research results show that when manufacturers choose to open direct sales channels,the platform is still willing to provide financing for manufacturers.When the financing rate is endogenous,the platform and the manufacturer prefer internal financing in the supply chain.On the other hand,although platform encroachment can reduce the financing costs of manufacturers,product competition still makes manufacturers lose more.If there is no platform encroachment,manufacturers will adopt the platform financing strategy.While the commission rate is low enough,manufacturers prefer to choose the bank financing strategy.In other words,the competition caused by platform invasion may cause manufacturers to give up platform financing,thus causing losses to the platform’s interests.In general,although the platform indirectly deprives manufacturers of some of their profits,manufacturers will choose platform financing in most cases to allow interest income to flow within the supply chain and improve its efficiency and overall income.The platform should control the negative impact of private brands on manufacturers,appropriately increase the commission rate and reduce the financing interest rate to attract manufacturers to participate more actively in product production and market competition.The platform needs to achieve a win-win situation through multi-party coordination.This research creatively adds manufacturers’ dual channel strategy and platform’s private brand strategy to the research of supply chain finance,enriching the application scenarios and providing operational strategy references for small and medium-sized manufacturers and e-commerce platforms.