Self-livestream or platform traffic support? The role of online channel disadvantage in dual-channel retail

Purpose Digital platforms increasingly control both consumer attention and transaction access, forcing brands to choose between developing self-operated content capabilities and purchasing platform traffic. This study examines how intrinsic online channel disadvantage affects the relative value of self-livestream and platform traffic support in dual-channel retail, thereby identifying when platform dependence creates value. Design/methodology/approach We develop a Cournot game involving a brand, a digital platform and an offline retailer. Self-livestream enhances consumer cognition across channels through endogenous effort, whereas platform traffic support expands online market potential in exchange for revenue sharing. Consumer heterogeneity and cross-channel cognition spillovers are incorporated. Robustness analyses further consider incomplete cognition spillovers, alternative channel-substitution intensities and positive baseline platform commissions. Findings A greater online disadvantage shifts sales toward offline retailing under both strategies, but through different mechanisms. Under self-livestream, the brand reduces its effort as online cognition becomes harder to monetize. Under platform traffic support, the traffic package becomes less convertible into profitable sales. When the fixed cost of self-livestream is moderate, the optimal strategy follows a non-monotonic pattern. Platform traffic is most valuable when the online channel needs additional exposure but remains capable of monetizing it. Under severe online disadvantage, self-livestream regains its advantage through offline cognition spillovers. The pattern remains robust under incomplete spillovers and imperfect channel substitution and positive baseline platform commissions. Originality/value This study distinguishes brand-controlled cognition creation from platform-controlled traffic allocation and reveals that platform traffic support is not necessarily more attractive as online channel disadvantage increases.

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Publication Details

Journal
China and World Business Review
Published
2026-11-03
DOI
https://doi.org/10.1108/cwbr-07-2026-0010
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
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article

Self-livestream or platform traffic support? The role of online channel disadvantage in dual-channel retail

Nan Chen, Wenting Han, Yunlu Liu
China and World Business Review
Supply Chain and Inventory Management
article

Self-livestream or platform traffic support? The role of online channel disadvantage in dual-channel retail

Nan Chen, Wenting Han, Yunlu Liu
article en

Abstract

Purpose Digital platforms increasingly control both consumer attention and transaction access, forcing brands to choose between developing self-operated content capabilities and purchasing platform traffic. This study examines how intrinsic online channel disadvantage affects the relative value of self-livestream and platform traffic support in dual-channel retail, thereby identifying when platform dependence creates value. Design/methodology/approach We develop a Cournot game involving a brand, a digital platform and an offline retailer. Self-livestream enhances consumer cognition across channels through endogenous effort, whereas platform traffic support expands online market potential in exchange for revenue sharing. Consumer heterogeneity and cross-channel cognition spillovers are incorporated. Robustness analyses further consider incomplete cognition spillovers, alternative channel-substitution intensities and positive baseline platform commissions. Findings A greater online disadvantage shifts sales toward offline retailing under both strategies, but through different mechanisms. Under self-livestream, the brand reduces its effort as online cognition becomes harder to monetize. Under platform traffic support, the traffic package becomes less convertible into profitable sales. When the fixed cost of self-livestream is moderate, the optimal strategy follows a non-monotonic pattern. Platform traffic is most valuable when the online channel needs additional exposure but remains capable of monetizing it. Under severe online disadvantage, self-livestream regains its advantage through offline cognition spillovers. The pattern remains robust under incomplete spillovers and imperfect channel substitution and positive baseline platform commissions. Originality/value This study distinguishes brand-controlled cognition creation from platform-controlled traffic allocation and reveals that platform traffic support is not necessarily more attractive as online channel disadvantage increases.

China and World Business Review
Southwest University (CN), Northwestern Polytechnical University (CN), University of Warwick (GB)
Openalex Percentile: Top 9%
Supply Chain and Inventory Management
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