Live-Streaming Commerce in the Supply Chain with Equity Cooperation: Independent or Cooperative?

Live-streaming commerce (LSC) has been adopted by an increasing number of supply-chain enterprises to enhance their market competitiveness. However, the question of who will lead live-streaming e-commerce in the supply chain (SC-LSC) is a key issue, especially when there is equity cooperation between upstream and downstream enterprises. Three main SC-LSC models are examined: independent SC-LSC run by manufacturers, independent SC-LSC run by retailers, and cooperatively run SC-LSC. Then, a novel LSC demand function composed of online popularity, price discount and sales conversion rate is proposed. Furthermore, four scenarios have been comprehensively investigated considering whether there is an online-to-offline drainage effect and whether there is equity cooperation. Regardless of the scenario, having both parties reach an agreement on a given SC-LSC model is difficult, and even equity cooperation cannot promote SC-LSC cooperation. In most cases, manufacturers tend to offset the losses caused by the drainage effect by adopting high wholesale prices, which will in turn exacerbate retailers’ resistance to SC-LSC. These findings provide insight into how LSC is modeled and how LSC can be better implemented in various types of supply chains such as that of Gree Electric.