Alibaba Group Holding Ltd (BABA) Trying To Counter Fakes By Fostering Local Brands


Alibaba Group Holding Ltd (NYSE:BABA) has more than once been accused of not doing enough to clamp the sale of counterfeits in its online marketplaces.

The giant e-commerce company has been the subject of increased scrutiny from regulators in the U.S and back at home where the vice is rampant. However, behind the scenes, the company might be doing more than enough to clamp the long running tussle.

Partnerships With Manufacturers

It is emerging that Alibaba Group Holding Ltd (NYSE:BABA) has gone the extra mile to address areas where most of the counterfeit goods originate from. The company has already partnered with up to 17 shoe manufacturers in the country to cultivate the art innovation in terms of developing unique brands instead of copying. The shoe industry has been the most affected, much to the outcry of global brands like Gucci.

The company affirms that the scheme is a key initiative that should spur innovation and creativity in companies coming up with new brands. There are plans in place to partner with players in the household electronics, toys, and bags industry with a view to informing them of the need to come up with original products. It remains to be seen how successful Alibaba Group Holding Ltd (NYSE:BABA) will be on this front, as manufacturers in the country continue to struggle to sell products with the logo made in China.

Critics Concerns

There is already talk that the scheme is misguided as it will amount in failure in the clamping of the vice that has been found to be more lucrative in terms of returns. Skeptics are calling the e-commerce giant to focus more on pulling down all the fake products in its online stores if it is really serious about the issue.

Critics have also taken to task Alibaba Group Holding Ltd (NYSE:BABA)’s takedown procedures, which they believe are quite cumbersome that only enhance the proliferation of counterfeits on its online platforms.