The Chinese e-commerce giant
Alibaba (NYSE: BABA) is facing serious problems because of a possible trade in counterfeits.
The Paris-based holding company Kering SA, which owns the world famous brands
like Gucci, Balenciaga and Yves Saint Laurent, has filed a lawsuit in a court
in Manhattan against the Chinese corporation. The prosecution – the Internet
company facilitates the business with illegal goods of numerous counterfeiters with
its online shopping sites, marketing and payments.
Alibaba rejects the accusations
as groundless. According to the company over the years, it has assisted various
international brands in combating counterfeiting.
This is the second time that
Kering brands sued Alibaba. In July last year there was a similar situation ,but
a little bit later the suitcase was withdrawn. Then Kering and Alibaba
announced that they intend to work together in the fight against counterfeits.
But according Kering since then the things are in a deadlock.
Similar lawsuits emphasize
financial risk for Alibaba. In September, the company raised 25 billion dollars
from investors in record high IPO.The Internet company for a long time has to
deal with allegations of distribution of a large number of counterfeit products
on its shopping platform Taobao. The greatest danger for the Chinese is the
possibility of damage to the reputation and image among investors and brand manufacturers.
Last year some manufacturers of luxury
goods such as Burberry, which is now officially selling their products on the
sites of Alibaba, received assurances that the Chinese will take serious
measures to fight the illegal trade. However, Alibaba has not concluded such
agreements with all affected manufacturers of luxury branded goods.
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