Optimal online selling format in live-streaming under a dual-channel structure with streamer types and spillover effects

The rapid development of live-streaming e-commerce has challenged traditional dual-channel supply chains, spotlighting the online channel promotion strategies of manufacturers in live-streaming e-commerce environments. This paper explores a supply chain comprising a manufacturer, a traditional retailer, and a live-streaming e-commerce platform. Within this dual-channel framework, the manufacturer has two options for promoting the online direct sales channel: self-promotion or collaboration with streamers through the live-streaming e-commerce platform. In collaborating, the manufacturer can choose to partner with either ordinary streamers or celebrity streamers. The research presents the following findings: First, the promotional effort level of celebrity streamers is the highest in most scenarios. However, interestingly, when the potential market demand rate and sales retention rate of the online channel are high, the manufacturer’s self-promotion model exhibits the highest promotional effort level. Second, regardless of the sales retention rate for the online channel, when the spillover effects are weak, and the potential market demand ratio for online is low, the manufacturer maximizes offline sales through self-promotion. Additionally, regardless of changes in the spillover effects, when the sales retention rate and the potential market demand ratio for the online channel are high, the manufacturer achieves the most offline sales using ordinary streamers for promotions. Finally, if the potential market expansion driven by celebrity streamers is substantial and the product retention rate is very high, or both the base commission rate and additional commission rates are low, the manufacturer’s optimal strategy is to choose a celebrity streamer for promotions. But as the potential market expansion driven by celebrity streamers decreases and product retention rate gradually declines, or when the streamer's commission rate is high, the manufacturer tends to opt for the self-promotion model.