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Production outsourcing for limited-edition luxury goods with consideration of consumers’ origin preferences
Transportation Research Part E: Logistics and Transportation Review ( IF 8.3 ) Pub Date : 2020-06-11 , DOI: 10.1016/j.tre.2020.101975
Baozhuang Niu , Lei Chen , Fengfeng Xie

Origin decisions related to the manufacture of limited-edition luxury goods can be critical for luxury brands, because consumers often have strong origin preferences. We hence study two competing luxury brands’ production outsourcing decisions by incorporating tradeoffs among competition intensity, origin preferences, and quantity limits. Interestingly, we find that when luxury brands have the option, they tend to outsource production to an overseas contract manufacturer even when origin preferences for overseas goods are not strong and the downstream competition is mild. Correspondingly, if a brand’s rival has no outsourcing options, its profit might be hurt when origin preferences for overseas goods and competition intensity are both moderate.



中文翻译:

考虑到消费者出身偏好的限量版奢侈品生产外包

与限量版奢侈品生产相关的原产地决定对于奢侈品牌可能至关重要,因为消费者通常对原产地有强烈的偏好。因此,我们通过在竞争强度,原产地偏好和数量限制之间进行权衡取舍,研究了两个竞争性奢侈品牌的生产外包决策。有趣的是,我们发现,当奢侈品牌有选择权时,即使在海外商品的原产地偏好不强且下游竞争温和的情况下,他们也倾向于将生产外包给海外合同制造商。相应地,如果一个品牌的竞争对手没有外包选择,那么当对海外商品的原产地偏好和竞争强度都适中时,其利润可能会受到损害。

更新日期:2020-06-11
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