Live streaming strategy under multi-channel sales of the online retailer

This paper studies the live streaming strategy under multi-channel sales of the online retailer. We analyze two traditional online sales strategies: (1) Single online strategy (Strategy O), (2) Online and ESBO (‘Experience in store and buy online’) strategy (Strategy OS), and live streaming strategies: (1) Online and live streaming strategy (Strategy OL), (2) Online and ESBO & live streaming strategy (Strategy OSL). We find the impact of live streaming on the online retailer’s profit is related to the product standardization and product quality. For more standardized products with high quality, Strategy OL has the largest profit. However, for highly personalized products, adding live streaming will slightly reduce the retailer's profit. In addition, we also find that live streaming has an advertising effect and a cannibalization effect. For standardized products, retailer who has Strategy O, adding the live streaming will reflect the advertising effect, while retailer who has opened a showroom reflect the cannibalization effect. For personalized products with higher quality, adding live streaming reflects the advertising effect. Taking the retailer's development objectives and product attributes into account, we make recommendations on the choice of sales strategy from the perspective of demand and profit. Finally, we also discuss the criteria for the government to take supervisory measures on live streaming sale.