Production effort investment strategy in the apparel supply chain based on online reviews
With the gradual enhancement of e-commerce platforms'product review system,consumers are increasingly inclined to rely on other buyers'reviews as a determining factor for their purchasing decisions.In recent years,online sales in the clothing industry have exhibited a noticeable upward trend compared to offline physical stores.When purchasing clothes offline,consumers can genuinely assess the quality of clothing products.However,when buying clothes online,it is challenging to gain direct and authentic experiences solely through merchants'provided images.Other buyers'reviews serve as crucial references for consumers to comprehend clothing products.To mitigate the impact of negative reviews on consumers'purchase intentions,garment manufacturers strive to enhance product quality and value by improving production efforts,thereby offering customers an enhanced purchasing experience and garnering more positive reviews that ultimately influence potential consumers'buying intentions.In the real market scenario,there exists a conflict of interests between garment manufacturers and e-commerce platforms.While e-commerce platforms may not bear the costs associated with production efforts directly,they aspire for garment manufacturers to improve these efforts in order to increase the proportion of positive reviews.This undoubtedly undermines garment manufacturers'interests and diminishes their willingness to invest in production endeavors while also adversely affects both parties involved.Consequently,finding ways to coordinate e-commerce platforms and garment manufacturers towards achieving an ideal state where production efforts are optimized and simultaneously all participants'interests within the supply chain are enhanced has become a pivotal issue faced by contemporary enterprises.The study aimed to explore how each participant in the apparel supply chain develops relevant strategies under the dual influences of production efforts and online reviews.Considering that the production efforts of apparel manufacturers will affect online reviews,and thus have an impact on the purchasing decisions of potential consumers,this study introduced the combination contract of"cost sharing+revenue sharing"to coordinate the interests between garment manufacturers and e-commerce platforms in the apparel supply chain composed of a single garment manufacturer,a single e-commerce platform and consumers,and explores the coordination effect of contract parameters on the apparel supply chain.This study constructed an apparel supply chain model composed of a garment manufacturer,an e-commerce platform and consumers.In the centralized decision-making and decentralized decision-making models,the production efforts of the garment manufacturer,online reviews,retail price and supply chain profits were analyzed,and the apparel supply chain was coordinated through the combination contract of"cost sharing+revenue sharing".Through the model and numerical analysis,it is found that there is a unique optimal decision,whether it is a centralized decision or a decentralized decision.The supply chain profit and production effort of a centralized decision are better than those of a decentralized decision.Through the combination of contracts,the garment manufacturer and e-commerce platform can obtain higher profits,while consumers can also get higher quality products and better shopping experience at the same price;when consumers prefer more production efforts,the garment manufacturer will increase the production efforts of products in order to expand the sales market and make up for the increased costs caused by the production efforts by increasing the wholesale price,while the e-commerce platform will also increase the retail price of clothes in order to maintain profits.
production effortsapparel supply chainonline reviewscombination contract
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