Research On Pricing And Promotion Strategy In A Beauty Products Multi-Channel Supply Chain Of E Company

With the rapid expansion of China’s cosmetics market and the rapid growth of the Internet,the cosmetics market has formed the status of online and offline multichannel sales.However,multi-channel sales produce price competition among channels.In addition,due to the development of young consumers of cosmetics in China,consumers tend to try cosmetics offline and then compare prices online,which is the cross-channel behavior of consumers.It reduces the incentive for offline stores to promote sales.And as a leading enterprise in the cosmetics industry,E has a lot of pressure.In order to gain more profits,E company will carry out promotional gifts activities.Under the background of consumers’ cross-channel behavior and retailer’homogeneous product competition at low prices,aiming at the two seasons of no promotion and gifts promotion of E company,through model analysis and numerical analysis,this paper studies the optimal pricing,the optimal promotional effort level of the offline store and the optimal promotional gifts of a multi-channel supply chain consisting of a supplier with an offline store and an online store and a retailer with an online store,and uses the improved cost-sharing contract to improve the profits of the supplier and retailer.The main contents and conclusions of this paper are as follows:(1)In the non-promotion season,considering the cross-channel behavior of consumers,a Stackelberg game model with suppliers as the leaders was constructed to analyze and compare the optimal decision and profit of the supply chain under centralized decision making,decentralized decision making and improved costsharing contract.The results found: As more services of offline stores overflow online or more consumers overflow into agents’ online stores,the official price of the supplier’s optimal offline stores and online stores will decrease,the sales effort level of the optimal offline stores will decrease,the optimal wholesale price will increase,and the optimal profit of the supplier will decrease.The improved cost-sharing contract can make the multi-channel supply chain achieve a certain degree of coordination,so that the profit of suppliers and agents is greater than the profit under the decentralized decision.(2)In the season of gifts promotion,starting from three situations: only offline store carries out gifts promotion,only online store of the supplier carries out gifts promotion,and both offline and online store of the supplier carry out gifts promotion,this paper analyzes the optimal pricing,sales effort and decision of gifts value of Enterprise E’s multi-channel supply chain when consumers have cross-channel behaviors,and compares the optimal profit of the three situations,and finds that: The influence of cross-channel consumer behavior on supply chain in gifts promotion season is the same as that in non-promotion season.As the influence factor of the value of gifts on demand increases,the supplier will increase the optimal value of gifts,increase the optimal retail price,improve the optimal sales effort level of offline stores,and increase the optimal wholesale price.The retailer will also increase the optimal retail price of online stores,thus increasing the optimal profits of both the supplier and retailer.By comparing the three strategies,it is found that when the cost of unit gift is larger and the cost of unit sales effort of offline store is larger,the supplier will get more profit,if it conducts both online and offline gifts activities than if it conducts only online or offline gifts activities.