Wang Kai. Modeling Online and Offline Integration with Retailer Acting as The Leader. Dynamic Systems and Applications 29 (2020) No. 6, 2210 – 2218

https://doi.org/10.46719/dsa20202964

ABSTRACT.
With deepening and expanding of e-commerce’s application field, traditional retailers face severe shock. Transformation and upgrading have become its important and urgent problems. According to the basic idea of online and offline integration, traditional retailers’ profit function is constructed based on four hypothesis. Trough Stackelberg game mathematical model, one theorem and four inferences are got. Such conclusions are got. Traditional retailers can add online channel in conditions that offline sales cost within certain range and online sales reaching a certain scale. Product wholesale price is not affected by online sales, but affected by offline sales. Higher demand will make traditional retailers choose online channel to sell its products. Online and offline profit level depend on online construction scale of traditional retailers. At last, some suggestions are put forwards for traditional retailers’ transformation and upgrading based on online and offline integration.

Keywords: traditional retailer;O2O business model; transformation and upgrading; online and offline.