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China’s quality fake goods has gotten better compared to the original goods in some cases, according to Alibaba Group Holding Ltd founder and executive chairman Jack Ma, in which all efforts to eliminate counterfeit goods sales from its websites just got tougher.   

The manufacturing of the goods has begun operating and are directly sold to consumers through Alibaba platforms, which is run by the same Chinese companies. With the cheaper labor and economies of scale in the country, the Global companies are enthusiast to proceed with its manufacturing in order to save cost.

Although Alibaba’s fight against the counterfeit goods has turned out to be more tough, it still managed to be the world’s best e-commerce company, Mr. Ma said.

A statement of Mr. Ma said today: “The problem is that the fake products today, they make better quality, better prices than the real products, the real names.”

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Furthermore, he mentioned that the main threat to the global brands are the new, and more efficient business models scattered all over the market. It is likely that the masses find satisfaction in the good quality counterfeit products as consumers choose global brands due to the promise of quality from their side.

Loss of Power Branding? 

It seemed that the great branding power that are enjoyed by global brands for longer term, and has generated more profits times the production cost, is capable of losing its ground in the market, which is considered as a fact for consumer discretionary sector.

An exact raw materials are used by those same factories, and was already cast-off on global branding in order to manufacture goods without the fancy company label. However, analysts believe that merchants and shoppers abroad will soon be divided, if Alibaba will fail to wipe out these goods from its websites.  

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Thus, making it a great devastation for the company as it currently faces uncertainties from the international regulators, including brands over the same issue. Moreover, the company’s reputation was filled with fake goods deal, suggesting an unhealthy thing for the long term.  

However, Alibaba had successfully secured the membership in the International Anti-Counterfeiting Coalition -  a nonprofit global organization, which is committed in fighting fake goods and piracy.

As part of Alibaba’s continued struggle, the company was reportedly suspended from the organization in May, after some of its members were questioned regarding their business and in turn created a conflict with the mission of the organization.