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<p>The rapid expansion of live streaming has ushered in a new era of e-commerce. In practice, we observe two live streaming modes: third-party live streaming where firms partner with external live streamers with lots of followers to sell products, and self-built live streaming where firms usually train their sales employees to promote their products via live streaming. Furthermore, the manufacturer or the retailer has incentives to introduce live streaming in a supply chain. Hence, we examine the interplay between different introducers and live streaming modes. We consider five scenarios: (i) scenario N where the live streaming is not introduced; (ii) scenario MT where the manufacturer introduces the third-party live streaming; (iii) scenario RT where the retailer implements the third-party live streaming; (iv) scenario MB where the manufacturer opens and operates the self-built live streaming; and (v) scenario RB where the retailer adopts the self-built live streaming. Comparing the optimal outcomes under different scenarios, we find that the manufacturer always benefits from the introduction of live streaming and the retailer can piggyback on a ride and earn more profits when the manufacturer adopts live streaming. The equilibrium strategy is that the manufacturer adopts the self-built live streaming when the live streamer’s sales ability is small. Otherwise, the equilibrium strategy is that the manufacturer introduces the third-party live streaming. In the third-party live streaming mode, the manufacturer and the retailer have incentives to achieve Pareto improvements when the sales ability is small or large. However, in the self-built live streaming mode, the Pareto improvement area appears when the sales ability is large. Moreover, the implementation of live streaming improves consumer surplus and social welfare. The government should encourage manufacturers to use third-party live streaming if the live streamer’s sales ability is large. As consumers’ preference for live streaming increases, the government is increasingly willing to encourage manufacturers to adopt third-party live streaming.</p>

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Manufacturer vs. retailer: who should implement live streaming

  • 期刊论文

  • 发表日期：

    2026年4月29日

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  • Qi Kou

摘要

The rapid expansion of live streaming has ushered in a new era of e-commerce. In practice, we observe two live streaming modes: third-party live streaming where firms partner with external live streamers with lots of followers to sell products, and self-built live streaming where firms usually train their sales employees to promote their products via live streaming. Furthermore, the manufacturer or the retailer has incentives to introduce live streaming in a supply chain. Hence, we examine the interplay between different introducers and live streaming modes. We consider five scenarios: (i) scenario N where the live streaming is not introduced; (ii) scenario MT where the manufacturer introduces the third-party live streaming; (iii) scenario RT where the retailer implements the third-party live streaming; (iv) scenario MB where the manufacturer opens and operates the self-built live streaming; and (v) scenario RB where the retailer adopts the self-built live streaming. Comparing the optimal outcomes under different scenarios, we find that the manufacturer always benefits from the introduction of live streaming and the retailer can piggyback on a ride and earn more profits when the manufacturer adopts live streaming. The equilibrium strategy is that the manufacturer adopts the self-built live streaming when the live streamer’s sales ability is small. Otherwise, the equilibrium strategy is that the manufacturer introduces the third-party live streaming. In the third-party live streaming mode, the manufacturer and the retailer have incentives to achieve Pareto improvements when the sales ability is small or large. However, in the self-built live streaming mode, the Pareto improvement area appears when the sales ability is large. Moreover, the implementation of live streaming improves consumer surplus and social welfare. The government should encourage manufacturers to use third-party live streaming if the live streamer’s sales ability is large. As consumers’ preference for live streaming increases, the government is increasingly willing to encourage manufacturers to adopt third-party live streaming.