Will the presence of 'fashion knockoffs' benefit the original-designer-label product supply chain?

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Title: Will the presence of 'fashion knockoffs' benefit the original-designer-label product supply chain?
Authors: Wang, Yingjia1 (AUTHOR), Xu, Xiaoyan2 (AUTHOR), Choi, Tsan-Ming3 (AUTHOR), Shen, Bin4 (AUTHOR) binshen@dhu.edu
Source: International Journal of Production Research. Mar2024, Vol. 62 Issue 5, p1541-1566. 26p.
Subjects: Fashion, Supply chains, Fashion merchandising, Supply chain management, Clothing industry
Abstract: Fashion knockoffs, which refer to the copycat behaviours of some brands in fashion apparel, are widely seen. It is commonly believed that the presence of fashion knockoffs harms the original-designer-label (ODL) product seller. Motivated by the industrial interviews and real-world observations, we build game-theoretical models to examine the impacts of fashion knockoffs on the ODL product supply chain and its agents with the consideration of risk attitudes. Explicitly, in the basic model, we consider a common manufacturer producing for both a knockoff product seller and a risk sensitive ODL product seller. The ODL product seller and the knockoff product seller make pricing decisions to optimise their own profits. We interestingly find that the presence of fashion knockoffs benefits the ODL product supply chain and its agents when (i) the ODL product seller is risk averse and the ratio of demand uncertainty is relatively small or (ii) the ODL product seller is risk seeking and the ratio of demand uncertainty is sufficiently large. The findings indicate that a risk averse (seeking) ODL product seller is more prone to benefit from the presence of fashion knockoffs when selling fashionable (classic) products. [ABSTRACT FROM AUTHOR]
Copyright of International Journal of Production Research is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Will the presence of 'fashion knockoffs' benefit the original-designer-label product supply chain?
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  Data: <searchLink fieldCode="AR" term="%22Wang%2C+Yingjia%22">Wang, Yingjia</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Xu%2C+Xiaoyan%22">Xu, Xiaoyan</searchLink><relatesTo>2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Choi%2C+Tsan-Ming%22">Choi, Tsan-Ming</searchLink><relatesTo>3</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Shen%2C+Bin%22">Shen, Bin</searchLink><relatesTo>4</relatesTo> (AUTHOR)<i> binshen@dhu.edu</i>
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  Data: <searchLink fieldCode="JN" term="%22International+Journal+of+Production+Research%22">International Journal of Production Research</searchLink>. Mar2024, Vol. 62 Issue 5, p1541-1566. 26p.
– Name: Subject
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  Data: <searchLink fieldCode="DE" term="%22Fashion%22">Fashion</searchLink><br /><searchLink fieldCode="DE" term="%22Supply+chains%22">Supply chains</searchLink><br /><searchLink fieldCode="DE" term="%22Fashion+merchandising%22">Fashion merchandising</searchLink><br /><searchLink fieldCode="DE" term="%22Supply+chain+management%22">Supply chain management</searchLink><br /><searchLink fieldCode="DE" term="%22Clothing+industry%22">Clothing industry</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Fashion knockoffs, which refer to the copycat behaviours of some brands in fashion apparel, are widely seen. It is commonly believed that the presence of fashion knockoffs harms the original-designer-label (ODL) product seller. Motivated by the industrial interviews and real-world observations, we build game-theoretical models to examine the impacts of fashion knockoffs on the ODL product supply chain and its agents with the consideration of risk attitudes. Explicitly, in the basic model, we consider a common manufacturer producing for both a knockoff product seller and a risk sensitive ODL product seller. The ODL product seller and the knockoff product seller make pricing decisions to optimise their own profits. We interestingly find that the presence of fashion knockoffs benefits the ODL product supply chain and its agents when (i) the ODL product seller is risk averse and the ratio of demand uncertainty is relatively small or (ii) the ODL product seller is risk seeking and the ratio of demand uncertainty is sufficiently large. The findings indicate that a risk averse (seeking) ODL product seller is more prone to benefit from the presence of fashion knockoffs when selling fashionable (classic) products. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of International Journal of Production Research is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1080/00207543.2023.2196352
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      – Code: eng
        Text: English
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        PageCount: 26
        StartPage: 1541
    Subjects:
      – SubjectFull: Fashion
        Type: general
      – SubjectFull: Supply chains
        Type: general
      – SubjectFull: Fashion merchandising
        Type: general
      – SubjectFull: Supply chain management
        Type: general
      – SubjectFull: Clothing industry
        Type: general
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      – TitleFull: Will the presence of 'fashion knockoffs' benefit the original-designer-label product supply chain?
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            NameFull: Wang, Yingjia
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            NameFull: Xu, Xiaoyan
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            NameFull: Choi, Tsan-Ming
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            NameFull: Shen, Bin
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          Dates:
            – D: 01
              M: 03
              Text: Mar2024
              Type: published
              Y: 2024
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