E-commerce giant spent £103 million to fight counterfeiting
iNVEZZ.com, Tuesday, December 23, Alibaba Group Holding Ltd (NYSE:BABA), the world's largest e-commerce company, said in response to accusations of selling counterfeit goods that it had taken down 90 million listings that may have breached intellectual property rights, Bloomberg has reported. The company had also spent over one billion yuan (£103 million) in its fight against counterfeits.
The newswire cited chief risk officer Polo Shao as saying at a press conference today in Hangzhou that the fake product listings were taken down across Alibaba’s e-commerce platforms through September this year. Alibaba has been tackling counterfeit products with more aggression over the past few years, especially in the run up to its record-setting $25 billion listing on the New York Stock Exchange in September.
According to a separate release, the Chinese e-commerce giant said it had spent one billion yuan since the beginning of 2013 to the end of last month to block counterfeit products and boost consumer protection. Alibaba chief executive Jonathan Lu commented in a statement: "From Alibaba Group's perspective, we bear a serious responsibility in this fight against counterfeits."
Bloomberg quoted Vanessa Zeng, an analyst at Forrester Research Inc. in Beijing, as saying: “Selling counterfeits has been one of the key criticisms that Alibaba has faced […] Even though the company’s shares have done well, it doesn’t mean that Alibaba isn’t aware of the risks down the road.”
In yesterday’s trading, Alibaba shares closed down 1.7 percent at $108.77. The company’s stock has advanced 15.8 percent since its trading debut in September.
According to the Financial Times, as of 20 December 2014, the consensus forecast amongst 35 polled investment analysts covering the Chinese e-commerce giant has it that the company will outperform the market. The median target of the 34 analysts offering 12 month price targets is $120.45 with a low estimate of $75.0 and a high of $148.0.