Alibaba, truly bleeds because business transactions with this most popular Chinese company who is also a huge sponsor of Guangzhou Evergrande FC, is on the the decline due to imitations.
Jack Ma, executive chairman of Alibaba Group Holding Ltd, said that counterfeit products hurt Alibaba as well as China’s economy.
In an interview with Xinhua, Ma said Alibaba was a victim of counterfeits as the sale of one fake product could lead to the loss of five customers.
“I don’t believe success can be built on dishonesty,” he said, dismissing some comments that Alibaba took advantage of counterfeits.
Ma said the customer complaint rate was only 0.0116 percent, much lower than that of brick-and-mortar shops.
“Also customers can get refunds and compensation if they buy counterfeits and the shops concerned closed will be “, he said, adding that “Alibaba spends hundreds of millions of yuan each year on tracking and fighting counterfeits”.
While admitting that the impact on Alibaba is limited, Ma said counterfeits could fundamentally harm the Chinese manufacturing sector. “It leaves visible wounds on Alibaba, but it could severely affect the economic transition,” he said.
Many Chinese and foreigners have stopped buying goods from Alibaba due to counterfeits and scam.
Security for producers and satisfaction for consumers should be the priority right now if Alibaba is to achieve meaningful goals in e-commerce.