Abstract:

With the development of e-commerce， the agency selling mode， which is different from the traditional reselling mode， has emerged and developed on the platform. Driven by the growth of online retail， platforms are beginning to introduce their store brand products. The sales mode within the supply chain will have an impact on the introduction decision of the platform. In addition， when the platform introduces the store brand， the decision on how the product is produced is an important issue for the platform. On this basis， the competitive factors between two different brand products are considered with different quality difference， and game theory is used to discuss the sales mode selection of the manufacturer and platform， the introduction of platform-owned store brand product and production decisions.In the rest of this paper， the profit models of supply chain members are constructed when the platform introduces store brand products and chooses three production modes （in-house production， outsourcing to the on/off chain manufacturer） under two sales modes （i.e.， reselling or agency selling）. Second， the corresponding optimal solutions are obtained and the platform’s store brand introduction decision is discussed. Finally， the sales mode decision of the manufacturer and the platform is explored， and on this basis， the sales mode equilibrium decision after Pareto improvement of the supply chain is obtained.The results show that， firstly， there is a conflict between the manufacturer and the platforms’ sales mode selection， but the Pareto improvement can achieve the coordination of the sales mode of the supply chain members. Secondly， the sales mode will affect the platform’s introduction decision. In the reselling mode， the platform always introduces its store brand. In the agency selling mode， for a high competition - medium/high value product， the platform has the motivation not to introduce store brand； otherwise， the introduction of private brands is the optimal strategy. Finally， the decision on how the platform’s store brand products is produced is related to the type of product and sales mode. For a product with low （high） value， the platform will always choose the in-house production （outsourcing to the off-chain manufacturer）. For a product with medium value， the platform chooses the in-house production （outsourcing to the off-chain manufacturer） in the reselling （agency selling） mode.

Key words: sales mode selection, store brand product, production mode, equilibrium strategy