Ma Yun Recalled 2015 Talk About Alibaba'S Reputation Next Year.

about Alibaba For the group, the year ending 2015 is a tragic year. The regulatory authorities in China and the United States have criticized the fake products on Ali's website, and Kai Yun group has also filed a lawsuit. Affected by this, Ali's market value evaporated more than 50 billion dollars. With the slowdown of China's economic growth, the overseas market is becoming more and more important for Ali. But Ali wants to win the trust of overseas merchants and shoppers. It needs to restore its reputation in 2016, straighten out its image and get rid of the trouble of counterfeit goods.

The lingering problem of counterfeit goods

The Star Wars fans who are struggling with money can buy statues and lightsabs of Darth Vader only for 4.59 US dollars. Rugby player Tom Brady (Tom Brady) sells only 1/10 of the Jersey store. The price of a pair of Beats Solo headphones is only 107 dollars, about half of the official price.

These are cheap goods on Ali's Taobao network. Taobao is an online market similar to eBay, which is a bridge between buyers and sellers. Billionaire Ma Yun is trying to change Ali's reputation, which is regarded as a haven for low-priced fakes and unlicensed goods. 21 months ago, Ma called these fake products "cancer". After a tragic 2015, Ma is about to enter 2016. In 2015, regulators in China and the United States criticized the fake products on Ali's website, and Kai Yun group also filed a lawsuit. Affected by this, Ali's market value evaporated more than 50 billion dollars.

In order to achieve the goal of winning trust from overseas merchants and shoppers, Ali is crucial to rectify the company's image next year. Ma Yun hopes that within 10 years, overseas revenues will account for more than half of the company's total revenue. China's economic slowdown has made Ali's goal even more urgent. In China, Jingdong is winning users, partly from the company's independent management. Stock And sell products directly to users. Michel Ma Michelle Ma, an analyst at Bloomberg Intelligence, thinks Jingdong's business model is much easier to monitor.

"The problem of counterfeit goods should have been solved now," said Cyrus Mowala, managing director of CM Research, a London research firm. "But the fact is, it has not been solved." Cyrus Mewawalla said. This worries investors.

Crack down on counterfeit goods

Ali's dilemma in dealing with counterfeit goods and problem products is part of China's broader problems. In China, piracy is rampant, from DVD to household appliances. But over time, China's rising middle class wants to buy goods of higher quality, which requires Ali to clean up the fake goods on its platform.

Alibaba is offering ads from third party businesses to generate revenue from Taobao platform. Taobao merchants sell a wide variety of products, ranging from toys, food to medical equipment. Since these goods are not independently managed by Ali, it is difficult to confirm whether they are genuine.

However, Ali said they are working hard to crack down on counterfeit goods.

Ali said in an e-mail statement last Friday: "Ali is committed to protecting intellectual property rights and cracking down on counterfeit goods. Counterfeit is a problem that all the electricity suppliers in the world will encounter. We are doing everything we can to crack down on fake goods.

Ali set up a counterfeiting team of more than 2000 people. In 2014, the first public offering (IPO) moved forward in addition to 90 million product links. Ali website shows that brand owners can report infringement through the online complaint platform, and those who are accused of selling fake goods have 3 days to produce evidence to refute accusations, otherwise the goods will be put off the shelves.

Ali also works with Nike, Adidas and other brands to remove counterfeit products on Taobao. Gym shoes Watches and handbags have been punished by thousands of businesses.

List of malicious markets

However, Ali's efforts have not stopped external criticism.

Last week, the US Trade Representative Office warned Ali that if you want to stay away from the list of "malicious markets", you must do better in cracking down on counterfeit goods. In 2012, Taobao was removed from the list of "malicious markets". The US trade representative's office issued a stern warning to Ali that the company's actions to crack down on counterfeit goods and respond to complaints next year will be monitored.

The US trade representative's office said that rights holders criticized Ali's complaint platform for its slow response, hard use and lack of transparency. Although the Taobao network has not been listed in the "malicious market" list again, the office of the United States trade representative suggested that Ali simplify the registration and request execution procedures, shorten the time to remove the link and release the penalty.

If Taobao is again listed on the "malicious market" list, it will damage Ali's reputation in the United States. Ali is listed in the US and is trying to cultivate relations with American retailers and entertainment companies.

Ali is the operator of China's largest e-commerce platform and is highly dependent on its domestic market. China accounts for more than 80% of its revenue. As China's economic growth slows, growth in other markets around the world is crucial for Ali.

Overseas expansion

"In the next 10 years, Ali will no longer be satisfied with the Chinese market. They also want to attract foreign merchants to sell products in China," Michel Ma said.

Ali was created by Ma Yun and others and completed a record IPO in September 2014. But four months later, the SAIC issued a "white paper", accusing Ali of allowing businesses to operate unauthorized stores without selling business licenses, selling counterfeit brand names and counterfeit wines and handbags.

Despite Ali's protest, SAIC also said that the white paper had no "judicial effect", but the impact on Ali's share price was significant. After criticizing the SAIC, Ali shares fell more than 40%, hitting a record low in September.

Kai Yun group prosecution

After the lawsuit was withdrawn in 2014, Kai Yun group again filed a lawsuit against Ali this year, accusing Ali of connivance. Ali said that the allegations of Kai Yun group had no basis.

After that, the office of the US trade representative issued a warning to Ali. The report coincides with the AAFA's previous accusations against Ali selling fake products. AAFA chairman Juanita Dugan (Juanita Duggan) said Ali did not want to eradicate counterfeit goods, perhaps because she was afraid of losing customers and worried about the transfer of these customers to other platforms.

Saki Chandler, senior director of international trade at consumer Technology Association (Sage Chandler), said that large quantities of goods were available on e-commerce sites, making it more difficult to supervise fake products. Amazon and eBay also encountered similar problems in the early days.

Amazon's strategy to combat counterfeit products includes immediate suspension of sales and destruction of stock in distribution centers. EBay said they would take the initiative to remove suspicious goods, impose sales restrictions, and cooperate with law enforcement authorities and rights holders.

"To solve this problem fundamentally, or fake goods will appear one after another," Chandler said. "As long as there are fake goods, they have to keep fighting."