Research On Decision Making Of E-commerce Private Brand Introduction Based On Power Structure Differences And Customization Efforts

Traditional retailer private brands have developed for many years.Large retailers such as Yonghui and Wal Mart have launched their own private brands.However,in pace with the fast growth of big data technology and the prosperity of e-commerce platforms,more and more e-commerce platforms have begun to explore the development of private brands.First of all,through literature review this paper concludes the biggest difference between e-commerce private brand and traditional retailer private brand is that e-commerce platforms,as online retailers,have accumulated a large amount of consumer data in the sales process.E-commerce platforms can make use of big data resources to make customized efforts in the development private brands,consequently the products are more competitive and meet the core needs of consumers.Secondly,it is found that not only large-scale online retailers,but also some small-scale e-commerce platforms have introduced private brands.Based on the above two findings,this paper studies the decision-making of ecommerce private brand introduction based on power structure differences and customization efforts of e-commerce platform.The Stackelberg game theory is used to establish three kinds of game situations:not introducing private brands,strong ecommerce platforms introducing private brands,weak e-commerce platforms introducing private brands.By comparing the price,demand and profit of three scenarios,this paper finds that:first,the conditions for e-commerce platforms to introduce private brands are that the potential demand coefficient of private brands and the cost efficiency of customized technology are higher than a certain value,and the threshold for weak e-commerce platforms to introduce private brands is higher;second,when the commission rate is high,strong e-commerce platforms have more advantages in introducing private brands;when the commission rate is low,and the substitution degree between brands and the cost efficiency of customized technology are high,the weak e-commerce platforms have more advantages;third,the introduction of ecommerce private brands can improve the profits of manufacturers and channels under certain parameters.For manufacturers,the introduction of private brands by strong ecommerce platforms is more favorable,while from the perspective of the whole channel,the introduction of private brands by weak e-commerce platforms is more favorable.