Alibaba has been asked to look into the counterfeit goods that have been on its online stores for long now and the latest strive by the company is to create authentic brands in country for these illegal sectors.
Latest Alibaba news is regarding the criticism it has faced and also sued by Gucci, a luxury brand for the e-commerce giant facilitating the trade of counterfeit goods. At the same time, the company has been quietly planning a scheme in order to try curbing the fakes at this source.
Alibaba has been working with almost 17 shoe manufacturers in Fuijan, coastal city of Putian, to nurture the brands that are home grown, invigorate the flagging industry and also offer the would-be counterfeiters a source which is better or legal for livelihood. According to the critics, this planning and scheme is mistaken and the company should be focused on cleaning the marketplaces of all the listings of fake products which its online stores comprised of.
However, the “Made in China” plan is the reason, to some proponents as to why there has been little or limited progress in order to eliminate the fake goods; there is significant lack of alternatives that are this attractive for the ones that are creating and also hawking the goods that trespass on the property rights of others.
Alibaba news reports that Song Zonghu expressed, "You can crack down forever and never see an end to it. Creating new opportunities while cracking down is the way to go. Everybody has to eat."
The Internet Security director for the Chinese e-commerce giant, Ni Liang says that this scheme is an essential counterfeit initiative which the company has taken this year. The organization aims to expand this to the bags, toys, household electronics and various other industries. It hopes that by introducing local brands, these manufacturers involved in fake goods shall be turned away and shall serve the legit sectors.
The e-commerce giant has skilled the shoe manufacturers when it comes to the online business, or marketing and quality control, and how to run the sales promotions. A 3 day campaign was held and the shoe brands had sold more than 4 million pair of shoes.
A businessman, Song has seen the scheme of the e-commerce giant as one lifeline towards economy and also says that his Siweiqi brand shoes have a future depending on the continued support with exposure and sales promotion. The canvas shoes by his brand look like the Converse All-Stars.
Sales bump is one aspect, however building a brand that is successful is an entire other story. The CMR China says that the key for Alibaba is to let the world know that it is striving to crack on fakes. Making a new brand out of nowhere is a difficult thing that it is looking into.
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