Research on the Long-Tail Profit Mechanism of Niche Brands in the Live-streaming E-Commerce Scenario_Vol. 2 No. 6 (JSE 2025) _Journal of Statistics and Economics (ISSN: 3005-5733)

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Research on the Long-Tail Profit Mechanism of Niche Brands in the Live-streaming E-Commerce Scenario

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DOI: https://doi.org/10.62517/jse.202511608

Author(s)

Lu Xinyu

Affiliation(s)

School of Business Administration, Beijing Normal-Hong Kong Baptist University, Zhuhai, Guangdong, China

Abstract

This study investigates the survival challenges of niche brands in the live-streaming e-commerce environment, focusing on the impact of the platform's commission rate (α) and traffic exploration rate (θ) on brand sustainability. We construct a two-stage Stackelberg game model with the platform as the leader and the brand as the follower, incorporating streamer effort (e) and exploration rate (θ) in the demand function using a constant-elasticity demand specification. The model derives the brand's optimal pricing and promotion strategies, considering platform constraints on break-even (no-loss) outcomes. Our findings show that greater exploration increases brand profits but with diminishing returns; platform profit follows an inverted-U shape with respect to exploration, achieving an optimal interior point; higher commission rates raise the exploration required for break-even; and streamer effort significantly complements exploration, reducing the required threshold for brand viability. These results provide a quantitative basis and operational guidelines for platform governance involving the coordination of commission rates, exploration efforts, and streamer incentives.

Keywords

Live-Streaming E-Commerce, Niche Brands; Long-Tail Theory; Stackelberg Game Model; Commission Rate; Traffic Exploration Rate; Streamer Effort; Break-Even Frontier; Platform Governance; Profit Mechanism

References

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