Research On Retailer Introduction Of Store Brand Strategy Based On Delay Costs

In recent years,with the development of Internet technology and the increasingly fierce competition from e-commerce platforms,many retailers are desperate to choose to improve their competitiveness to gain more profits.Therefore,a large number of retailers choose to sell national-brand products while choosing to introduce store brand products.But at the same time,they also face many problems.For example,the positioning of store brand products,the cost of delaying the introduction of store brand products,and the selection of product manufacturers.As the upstream of the retailer,the large manufacturer brands are also facing some problems accordingly.For example,whether to help retailers to produce store brand products,and whether to hinder them after learning about store brand.Therefore,it is of great interest to investigate the issue of introducing store brand brands and manufacturer selection for retailers considering delay costs.Based on the existing research and related theories,this thesis constructs a two-stage game model led by the manufacturer and uses the inverse induction method to find the equilibrium solutions in different situations,with the objective of maximizing the profit of the retailer and the profit of the manufacturer,and provides a reasonable analysis for the decision of both of them.The main research process and its summary are as follows:The first two chapters of this thesis elaborate the background and significance of the research,summarize the introduction of private brands at home and abroad as well as the competition between private brands and manufacturers’ brands,product positioning problems and find their shortcomings,thus leading to the research content of this thesis.At the same time,the related contents of store brand,manufacturer brand,store brand strategy,and so on are explained respectively to provide theoretical support for the subsequent research.Without considering the delay cost,the supply chain model of retailer introducing store brand is established based on the manufacturer’s choice,and the equilibrium solutions under the four scenarios are solved by using the inverse induction method.Then,the equilibrium solutions under different scenarios are compared to obtain the respective optimal cases of retailers and manufacturers,and the impact of store brand product quality on the profits of retailers and manufacturers is analyzed through numerical simulations.The study shows that when store brand is introduced without considering the delay cost,if production cost is low and the store brand product quality is lower than the manufacturer brand product quality,the manufacturer’s profit shows a decreasing trend while the retailer’s profit shows an increasing trend;if production cost is high,when the store brand product quality is lower than the manufacturer brand product quality,the manufacturer’s profit decreases while the retailer’s profit When the quality of store brand products is higher than the quality of manufacturer’s brand products,the profits of both manufacturers and retailers will increase;in general,the introduction of store brand products is beneficial to retailers and manufacturers tend to choose to help produce store brand products.In the case of delayed cost,the supply chain model of retailer’s introduction of store brand is established based on the manufacturer’s choice,and the equilibrium solution of the four scenarios is obtained and analyzed by using the manufacturer-led Stackelberg game approach to establish the supply chain model.The study shows that when there is a delay cost,manufacturers are more willing to produce store brand products if the quality of store brand products is lower than the quality of manufacturer brand products,and they are not willing to produce store brand products if the quality of store brand products is higher than that of manufacturer brand products.The impact of delayed cost on retailers is mainly reflected in the fact that the quality of store brand products is lower than the quality of manufacturer’s brand products.