Two ways to tackle counterfeit goods

The Main Point

Two leading international luxury brands use different methods to protect their brands in China, neither of which reflect well on Alibaba.

Key Events

Alibaba sued in NYC by owner of Gucci

  • Paris-based Kering SA, owner of Gucci and Yves Saint Laurent, is suing Chinese online shopping giant Alibaba in Manhattan Federal Court, claiming it knowingly made it possible for counterfeiters to sell their products throughout the world.
  • It claims that Alibaba conspired to manufacture, offer for sale and traffic counterfeit products bearing their trademarks without their permission.
  • An Alibaba spokeswoman said “We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so,” said the spokeswoman. “Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation.”

 

Sephora chooses JD.com over Alibaba to protect against counterfeits

Cosmetics retailer Sephora announced today in Beijing that it opened an online “flagship” store on JD.com, Alibaba’s rival, in part to reassure Chinese consumers they are buying authentic make-up in a country where around up to 20% of the cosmetics market is counterfeit. JD.com generates over half its revenue from selling goods in its own warehouses, which means it can guarantee authenticity for Sephora

Sources for this Story:  

How Sephora fights fakes in China

https://fortune.com/2015/05/13/how-sephora-fights-fakes-in-china/

 

Luxury brands hit Alibaba with counterfeit suit

http://www.scmp.com/news/china/economy/article/1800561/luxury-brands-hit-alibaba-counterfeit-suit