China Is Strengthening Its Control Over The Loosely Regulated E-Commerce Industry.

For now, the new rules are unlikely to get Tmall out of counterfeit or parallel imports. But according to New York data provider L2 Inc. Researcher Emma Li's statement shows that the size and quantity of Tmall's parallel sellers is not easy to be supervised, and the form is rather grim.

China is strengthening its control over the loosely regulated e-commerce industry. The move may increase pressure on companies such as Alibaba, but it is also expected to clarify the norms that the Chinese government hopes to foster in the e-commerce industry. According to data tracer eMarketer estimates, China's online retail spending in 2014 reached $427 billion, and it is expected to exceed $1 trillion in 2018.

China's Ministry of Commerce said in March 31st that it hoped to crack down on the practice of forging credit ratings by forging trading records and buyers' evaluation, which is usually referred to as "brush credit". As part of a broader draft of law, the Ministry of Commerce hopes that retail platform operators will ban businesses from making fictitious credit ratings, and operators who do not provide such information will face a fine of up to 500 thousand yuan.

Over the past few months, Chinese regulators have criticized e-commerce companies for failing to crack down on sales of counterfeit and shoddy products and other immoral acts.

Officials also said that the Chinese government could introduce a draft electronic commerce law before the end of the year.

Alibaba announced that measures have been taken to improve the quality of the platform. Last month, rules were issued to restrict Tmall merchants.

The measures of the Chinese government may bring more pressure to Alibaba. Alibaba's online shopping platform Taobao website has about 8000000 merchants, the new regulations may require Taobao to strengthen supervision. Elinor Leung, an analyst at CLSA in Hongkong, said the government's move would make China's electricity supplier market more sustainable.

She said that this is a necessary process to establish a real consumer market in China, no one can bypass this process, and Alibaba is no exception.

A Alibaba spokesman said the company always adhered to Chinese law Laws and regulations to support the government departments to take measures to promote the healthy development of China's electricity supplier industry.

Since last month, Alibaba Only brand dealers and their authorized dealers are allowed to open shop in Tmall mall. This rule applies to cosmetics, shoes and bags. clothing Sports related products.

Alibaba has announced the list of merchants who have been allowed to enter Tmall mall. There are more than 5000 brands on the list. Alibaba also requires businesses such as daily goods to display their brand merchandising authorization.

Zhang Jianfeng, the head of Alibaba retail platform in China, said in an interview in March that businesses are required to display distribution authorization in order to improve the threshold for entering Tmall mall. Only those high quality goods and services can enter Tmall mall.

Analysts and branding said that the new regulation took a big step, which would reduce counterfeit goods and so-called so-called "parallel imports" which did not receive brand authorization and sell at a low price. Parallel goods include factories that produce super orders and goods imported from lower priced countries. The sale of parallel goods is not illegal in China, but this practice will damage the brand image and disrupt its marketing strategy.

The Alibaba said the penalties for selling fake sellers on Tmall include retreating its stores, deducting full margin or informing relevant departments. Sellers on Taobao also face strict penalties.

The company said it spent more than $16 million a year to fight against counterfeiting, and 2300 employees and 5400 volunteers were involved in monitoring the selling behavior on their platforms. Data mining technology was also used.

Fake and parallel products are flooding the global e-commerce platform. But the size of the Alibaba platform and the demand for discount products by Chinese consumers make the company's related problems even more serious. The company has been increasingly skepticism since its record $25 billion initial public offering in September last year.