Abstract: Owing to the existence of risk-averse suppliers, this research constructed a newsvendor model of supply chain on the basis of consignment sale model. Through theoretical analysis, this research proved the correlation between suppliers’ risk coefficient, the distributional proportion of retailers’ interests and suppliers’ supplies was negative while the correlation between shared coefficient of retailers’ cost and suppliers’ supplies was positive. Finally, the conclusion was proved to be correct through a numerical illustration. The conclusion set a guidance to formulate a effective supplying contract for predominant retailers.