Manufacturer E-commerce Platform Encroachment Strategy Considering Channel Competition and Consumer Green Preference
With the deepening of the national"carbon peaking and neutrality"strategy and the rise of con-sumer environmental awareness,manufacturing enterprises are joining on the bandwagon by launching vari-ous green practices.The rise of e-commerce platforms has opened a new pathway for the manufacturing enter-prises,some of which have begun to establish online sales channels through e-commerce platforms and imple-ment the dual-channel operation mode.Where a manufacturer opens an online channel in addition to its of-fline channel to compete with offline retailers in the terminal market,it is termed"manufacturer encroach-ment".In business practice,a manufacturer can build an online direct sales channel by itself,or engage in online resale or proxy sales via an e-commerce platform.However,manufacturer encroachment is bound to abrade with offline channels and affect their performance.This process is made even more complicated where the en-terprise keeps an eye on consumer environmental awareness and engages in green production practice.This paper studies three channel strategies of a green product manufacturer:no encroachment,encroach-ment by resale,and by proxy sales through an e-commerce platform.In a supply chain composed of the manu-facturer,an offline retailer and an e-commerce platform,it analyzes the impact of consumer green preference,channel competition intensity,and platform commission rate on the equilibrium decision-making of the members on the supply chain,and explores the optimal encroachment strategy through the e-commerce plat-form for the manufacturer.The result shows that:(1)Regardless of whether the manufacturer encroaches or not,as consumer green preference increases,the manufacturer will increase green R&D investment to im-prove the green level of the product,which will benefit the manufacturer,the offline retailer,and the e-com-merce platform all at once;when the competition between the traditional offline channel and the online chan-nel is fierce,in order to ease the price competition in the downstream market,the manufacturer will reduce green R&D investment to protect its own profit.(2)After manufacturer encroachment,the product greenness and profit of the manufacturer will be improved,so it is always motivated toward encroachment;and manufac-turer encroachment may affect the profit of the offline retailer,especially so when it is done via platform proxy sales.(3)The manufacturer encroachment strategy is dependent on channel competition intensity and platform commission rate.In addition,the manufacturer's encroachment behavior through the e-commerce platform may achieve a"win-win"between the manufacturer and the offline retailer.This paper also sheds some light on corporate market channel management:With the development of plat-form economy,enterprises rush to open online channels through e-commerce platforms,but their encroach-ment behavior may damage the profits of offline retailers.In order to prevent offline retailers from withdrawing from the product market,the manufacturers can establish a benefit-sharing relationship with the offline retail-ers to achieve a reasonable distribution of supply chain profits.In addition,manufacturers should pay attention to the strength of different channels and heighten channel differentiation,which can not only ease the fierce competition between the channels,but also benefit themselves and the offline retailers.
consumer green preferencechannel competitionmanufacturer encroachmentchannel selec-tione-commerce platform
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