Re-design innovation services in fashion supply chain: Motivated by an online fashion marketplace

摘要

Product design is the key to attract consumers in fashion. To enhance product image, many E-commerce marketplaces may provide re-design innovation service to enhance the products' original design according to the marketplaces' promotion themes. The extant literature shows that the better quality of re-design innovation can attract more consumers to buy products in the e-commerce marketplaces. In this paper, motivated by the real practices of re-design innovation services in an online B2B textile fabric marketplace in China, we examine how the re-design innovation affects a service supply chain in the fashion industry. We develop an analytical model and consider that the re-design innovation service can significantly increase the sales number of products. We derive the optimal retail price and the optimal re-design innovation effort under the revenue sharing contract and entry fee contract, which are commonly adopted in industry. We find that both revenue sharing portion and entry fee can enhance the degree of re-design innovation efforts. More managerial insights are discussed.