Top five brands accuse Alibaba of unfair eCommerce business practices
Category: #retail  By Saipriya Iyer  Date: 2018-04-23
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Top five brands accuse Alibaba of unfair eCommerce business practices

In a major turn of activities witnessed across the China eCommerce industry, a major U.S. based clothing brand witnessed a slump of nearly 10% to 20% in its Tmall sales post its refusal to sign a pact with Alibaba. That aside, the U.S. firm participated in the sales promotion activities with JD.com Inc., a China-based eCommerce firm, and an arch business rival of Alibaba. As per the key officials of the U.S. firm, Tmall seemingly has meted out a punishment for having signed a contract with JD.com.

A couple of more executives from the clothing company claimed that the advertising banners had disappeared from the key spots at the Tmall showrooms, while the firm was blocked from the special sales and the items of the firm stopped displaying in the top page of the search engine results. According to the eCommerce director of the U.S. clothing brand, the firm was expected to rank on the top of the search engine page based on its record sales, however, it has allegedly ranked at the bottom.

Reports state that five major consumer brands have claimed that the traffic to their Tmall storefronts had declined after they rejected the offer from Alibaba to enter into strategic alliance. Out of those five brands, three are from the U.S. and China is responsible for a major part of their sales revenue. Alibaba however, has categorically denied the accusations, claiming that it conducts business on Tmall.com in total compliance with the Chinese regulations.

Experts are of the view that the platforms controlling access to Chinese online customers possess enormous power which even reputed foreign firms find hard to retaliate. The U.S. industry group, policy makers in China, and brand consultants have raised concerns over the monopolizing of eCommerce business by Alibaba. Stephen Lamar, the executive VP of the American Apparel & Footwear Association, has asked the Chinese administration to investigate the Alibaba case and take measures to halt the growing unfair business practices in the Chinese eCommerce industry.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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