Alibaba Takes Battle Against Fake Goods To Another Level

After Gucci sued and criticized Alibaba for allowing the trade of fake goods in their online store, the Chinese e-commerce giant Alibaba has started waging a war against counterfeits right at the source..

Alibaba is shepherding 17 shoe manufacturers to encourage home-grown brands online, reviving a  dwindling industry and provide would-be counterfeiters a new source of livelihood.

Some critics downplay this move saying Alibaba should instead concentrate on cleaning its online store and get the widespread fakes goods out of their website.

"Made in China" plan may have its merits. Proponents believe that one of the reasons why there's only restricted development in the fight against counterfeit products in China is the lack viable options for those hawking and making products that infringe on others' intellectual property rights.

Putian in China is the counterfeit goods capital for high-quality fake sneakers. This is also where international brands Adidas, Nike and New Balance- all legitimate footwear makers- outsource their manufacturing process  by employing 10% of of the city's 3 million population. In Putianm copies of branded shoes, almost identical to the genuine product, are being sold not quite discretely, at a lesser price, 

Wi Haiduan, director of the e-commerce office in Putian says the city government has been conducting raids against counterfeits, confiscating about 2 million pairs of fake footwear and arresting 156 workers since last year.

According to Alibaba spokeswoman Crystal Liu, Alibaba has trained the shoe makers in doing online business, provided support in marketing and quality control, and operate sales promotions. In one 3-day campaign, the home-grown footwear brands sold more than 4 million pairs worth $77.5 ,million (480 million yuan), or two every three seconds.  

Alibaba's senior director of Internet security, Ni Liang says the battle plan is a key anti-fake initiative this year. The group intends to venture into household bags, toys, electronics and other markets, trying to build local brands, small producers will turn away from counterfeits and focus on legitimate business.