Abstract:

Under the background of new retail， more and more online retailers realize the seamless integration of online and offline by providing offline channel. However， the opening of offline physical stores also brings huge capital pressure to retailers in terms of inventory cost and store rent. In order to solve the problem of capital shortage， retailers try to seek trade credit financing from suppliers. Therefore， the supplier's trade credit greatly affects the retailer's channel decision. The profit models of retailers and suppliers are constructed and compared under three situations： online retailers with single online channel， opening offline physical stores with sufficient funds and opening offline physical stores with capital constraints but suppliers providing trade credit， so as to explores the impact of trade credit on channel selection of capital constrained retailers. The results show that when the online retailer has capital constraints， if the value of the degree of channel differentiation lower than a certain range after the offline channel is provided， the retailer's optimal strategy is to accept the trade credit contract and open offline physical stores when the supplier provides trade credit. This decision is also applicable to the situation where there is competition between retailers. At the same time， in order to ensure that suppliers have the motivation to provide trade credit， only if certain conditions are met， retailers can obtain trade credit financing from suppliers to open offline physical stores. Through the above analysis， it aims to provide meaningful management enlightenment for the financing decision and offline channel layout of online retailers with capital constraints.

Key words: new retail, offline physical stores, capital constraints, trade credit, channel decision