JD Pressurizes Alibaba Over The Sale Of Fake Goods

Alibaba is facing severe stress over the issue of counterfeits offered for sale on its platform.

Alibaba’s competitor is pressurizing it over counterfeits. Richard Liu has sent a message to his leading rival in China, online trading tycoon Jack Ma, stating that getting rid of fake goods is easy. Online trader JD.com’s CEO and chairman addressed the media by stating, “It would take a programmer only a day to do it, Can you imagine buying a Gucci bag for 80 yuan (US$12.47)?”

Alibaba news affirmed that he was citing comments given by Mr. Jack, China’s biggest ecommerce corporation’s executive chairman. He was cited in an article written in Forbes magazine in November that stated luxurious brands were concerned about counterfeits on the Hangzhou-based enterprise’s Taobao electronic sales bazaar must instead focus on their commercial models, and he asked the question that whether Gucci and rest of handbag brands’ prices are too costly.

“Do Chinese entrepreneurs deserve the respect of the world? We must change,” Mr. Richard replied on the Chinese social network. Mr. Ma did not respond to the Forbes article but previously has stated that faking is a “cancer” the enterprise has to get rid of it.

Mr. Richard’s point of view marks the most recent broadside amidst one of the most intense competitions in the business world of China. The two organizations have fought over issues – small and big. Together they show the growing factionalization of China’s web, with Alibaba leveling against the partner of JD, Tencent Holdings limited. There intensifying rivalry could possibly cut down the online choices of customers – as vendors say they should take sides – and lure more regulation from the state.

Alibaba is approximately five times larger as far its market capitalization is concerned and has been earning profits over a long period time, whereas JD has been able to post years of red ink and does not anticipate to earn a profit in the nearby future. However, Mr. Richard stated that major enterprise JD has proved to be profitable for a short period.

Alibaba news today affirmed that both the ecommerce organizations differ from each other. JD is known for managing most of its logistics and inventory, whereas its competitor plays the role of a network that builds a connection between buyers and vendors.

Mr. Richard claims that his mechanism, which involves the sale of items from companies directly to shoppers, respects intellectual property in a better manner and that expanding middle class section of the most populated country wants quality, not just affordable gadgets.

Alibaba Breaking news reported that claim has played a role in winning favor from venture capitalists, the stock of JD rose by 40% so far in 2015, while Alibaba’s share price has decreased by 18%.

“China’s Internet industry still practices the law of the jungle,” he stated. “We want to bring it to the civilized world.”