Alibaba launches anti fake drive

Counterfeit designer products is a big problem in emerging markets, both online and offline. Alibaba takes drastic steps.
Source: English.alarabiya.net

Chinese ecommerce giant Alibaba announced its new anti-fake drive to showcase the company’s determination in eliminating fake goods, reports Reuters.

Alibaba has recently been hit with controversy regarding the company’s stance on counterfeit products, resulting in its ejection from a US based anti-counterfeiting alliance weeks after its entry.

At an intellectual property conference on July 1, Alibaba announced a new online system that will help track and remove fake goods. This announcement follows its top anti-piracy official’s request for more active cooperation with designers and branded goods companies.

In the face of such a complex problem we can’t be complaining about each other, or criticizing each other…We have to have everybody involved and work together. – Jessie Zheng, Chief Platform Governance Officer, Alibaba Group.

This collaborative attempt follows not only the ejection from the anti-counterfeit alliance, but also a mutiny from luxury goods brands Michael Kors and Gucci. This is a positive move from the ecommerce giant, as it shows unity with global brands, and highlights their commitment in wiping out counterfeit products.

The online system, known as the “IP Joint-Force System” will streamline IP-related communications with brands and Alibaba in order to simplify the removal of listings of suspected counterfeit products. The online initiative is in line with founder Jack Ma’s insistence that “fake goods have no place on the site“. This is considered the company’s first active stance against counterfeiting, following a series of anti counterfeit rhetoric, and should be considered a positive turn of events.

This online initiative could possibly lead to a series of anti-counterfeit platforms from collaborators, with Alibaba inspiring the movement it started in the first place.

A version of this appeared in Reuters on July 1. Read the full article here.

JD.com holds annual sale

JD’s record breaking sales Source: gbtimes.com

JD.com, one of the largest Chinese online retailers and Alibaba competitor, announced that the company generated 100 million orders on its annual one-day sale in  June, according to Internet Retailer. This marked a 60% increase compared to the same sale last year.

12x Spike in Foreign Brands in Chinese Ecommerce Sale

Foreign brands contributed to this surge, as sales within JD.com’s section for foreign-brand items were 12 times greater than last year’s sale. Sales on Apple smartphones, Lenovo laptops, Beats headphones,and Nestle food products were all comparatively greater than China-based brands in their respective categories. This stems from Chinese consumers’ growing desire for foreign-made goods amid concerns about quality and safety standards. By 2020, more than a quarter of the population will shop digitally for foreign products, according to eMarketer in its first analysis of the consumer trend. More than 60% of Chinese consumers would pay more for products made in the U.S. rather than China, according to The Boston Consulting Group.

Sales on Apple, Lenovo, Beats and Nestle food products were all greater than its Chinese counterparts. This stems from Chinese consumers’ growing desire for foreign-made goods amid concerns about quality and safety standards.

Sales days to generate online retail business during off season.

Online retailers around the world are offering one-day summer sales in order to generate business during the off season. Companies such as JD.com and Amazon note their highest sales during the winter holiday season. Amazon had its first Prime Day in July 2015 and generated 18% more sales than it did on Black Friday in 2014, reports Fortune.

This is also happening in Southeast Asia. More than 130 ecommerce sites in Indonesia are joining forces to hold the three-days promotions called Harbolnas (National Online Shopping Day) where the transactions recorded is up to $158 million (Rp 2.1 billion).

More online retailers could host these types of one-day promotions in order to generate off-season sales and increase brand awareness before the winter holiday season.

By Rara Kinasih

Nestle brand commerce strategy with Alibaba

The Swiss company yesterday kicked off the six-month campaign by launching 67 products on Tmall.com, Alibaba’s leading B2C online-shopping site, that have never been available in China before, including Nido milk powder from the Netherlands, Nestlé Damak chocolate from Turkey, Nescafé Gold from France, and Nestlé and Wyeth infant nutrition products from Switzerland, the U.K. and Germany. The three-day Super Brand Day promotion features discounts on a total of 154 products from 30 Nestlé brands.

Other marketing activities Nestlé has planned in the months ahead will showcase its brands to Chinese customers countrywide via what Alibaba calls its “ecommerce media ecosystem,” a growing digital marketing network encompassing social, mobile and web-based media outlets.

Nestle Brand Commerce Strategy With Alibaba is Aggressive

For example, Nestlé marketing will be featured prominently on popular video programs on Alibaba Group’s Youku Tudou video streaming site, one of China’s top online video platforms. The campaign includes a Nestlé video that can be viewed on virtual reality headsets, marking the first time Youku Tudou has worked with a brand partner on a virtual reality campaign in China. Starting in August, Nestlé also plans to feature its products on Alibaba’s Tmall Country Pavilions.

Alibaba Group CEO Daniel Zhang said his company is combining digital media with data on consumer behavior to enable multinationals like Nestlé to undergo a “digital transformation,” building their brands and managing customer relationships in innovative new ways. “We will continue to expand on our partnerships and infrastructure to deliver access to the widest selection of the best products from around the world to consumers,” Zhang said in a statement, “whether they live in Beijing or a rural village in the farthest edges of the country.”

Nestlé is basing its upcoming China campaign on its 150thanniversary. The company launched its first Tmall virtual store in 2008 and has 14 flagship outlets on the platform.

Faced with disappointing growth in China recently, Nestlé is focusing on ecommerce to help jumpstart sales, according to aBloomberg story. Nestlé’s ecommerce business is growing at triple-digit rates in China and is more profitable than sales in physical stores, according to Bloomberg.

Read the full story on the Alizila blog, written by Jim Erickson.