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Alibaba chief Jack Ma says fakes are better quality than authentic luxury goods | |
(35 minutes later) | |
Jack Ma, chairman of China's e-commerce giant Alibaba, said many fake goods are now of better quality and cheaper than the authentic articles. | Jack Ma, chairman of China's e-commerce giant Alibaba, said many fake goods are now of better quality and cheaper than the authentic articles. |
Alibaba, China’s biggest online retailer, has been strongly criticised for failing to do enough to stop counterfeit goods being sold on platforms such as Taobao. | Alibaba, China’s biggest online retailer, has been strongly criticised for failing to do enough to stop counterfeit goods being sold on platforms such as Taobao. |
“The problem is the fake products today are of better quality and better price than the real names. They are exactly the [same] factories, exactly the same raw materials but they do not use the names,” he said during a speech on Tuesday at Alibaba's headquarters in Hangzhou. | “The problem is the fake products today are of better quality and better price than the real names. They are exactly the [same] factories, exactly the same raw materials but they do not use the names,” he said during a speech on Tuesday at Alibaba's headquarters in Hangzhou. |
“We have to protect [intellectual property], we have to do everything to stop the fake products, but OEMs are making better products at a better price,” he added. | “We have to protect [intellectual property], we have to do everything to stop the fake products, but OEMs are making better products at a better price,” he added. |
The State Administration for Industry and Commerce (SAIC) said that many products sold through Alibaba’s Taobao and Tmall platforms infringed trademarks or were substandard, fake, illegal or dangerous, in a report published in January this year. | The State Administration for Industry and Commerce (SAIC) said that many products sold through Alibaba’s Taobao and Tmall platforms infringed trademarks or were substandard, fake, illegal or dangerous, in a report published in January this year. |
In May, Alibaba was suspended from the International Anti Counterfeiting Coalition (IACC) watchdog over piracy concerns. | In May, Alibaba was suspended from the International Anti Counterfeiting Coalition (IACC) watchdog over piracy concerns. |
Jack Ma’s comments are unlikely to be welcomed by luxury good makers. | Jack Ma’s comments are unlikely to be welcomed by luxury good makers. |
Kerin, the company behind luxury fashion brash such as Gucci and Yves Saint Laurent, launched a lawsuit against Alibaba, alleging that it encouraged and profited from the sale of fakes on its platform. | Kerin, the company behind luxury fashion brash such as Gucci and Yves Saint Laurent, launched a lawsuit against Alibaba, alleging that it encouraged and profited from the sale of fakes on its platform. |
The American Apparel and Footwear Association wants to put Alibaba’s Ebay equivalent, Taobao, on the US government’s black list for fake products as the growth of the internet and e-commerce has increased the challenge for rights holders to protect their brands. | The American Apparel and Footwear Association wants to put Alibaba’s Ebay equivalent, Taobao, on the US government’s black list for fake products as the growth of the internet and e-commerce has increased the challenge for rights holders to protect their brands. |
Cao Lei, director of the China E-Commerce Research Center, told Bloomberg that it was “inappropriate” for Ma to blame the high quality of counterfeit goods. | Cao Lei, director of the China E-Commerce Research Center, told Bloomberg that it was “inappropriate” for Ma to blame the high quality of counterfeit goods. |
“For some individual cases what he’s saying might be true, but it’s wrong to generalize the phenomenon,” she said. | “For some individual cases what he’s saying might be true, but it’s wrong to generalize the phenomenon,” she said. |
Jack Ma said in a statement released following his speech: “This is simply my observation of the issues facing brands and manufacturers. Counterfeiting is not a quality problem; counterfeiting is an intellectual property problem.” | Jack Ma said in a statement released following his speech: “This is simply my observation of the issues facing brands and manufacturers. Counterfeiting is not a quality problem; counterfeiting is an intellectual property problem.” |
His comments came as Alibaba provided its first financial forecast since going public in 2014. | His comments came as Alibaba provided its first financial forecast since going public in 2014. |
Alibaba predicts sales are forecast to rise 48 per cent in the year ending March 2017. | Alibaba predicts sales are forecast to rise 48 per cent in the year ending March 2017. |
Analysts were expecting 40 per cent revenue growth on average for the 2016/2017 financial year, according to Bloomberg. | Analysts were expecting 40 per cent revenue growth on average for the 2016/2017 financial year, according to Bloomberg. |
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