Jack Ma, chairman of China’s e-commerce giant Alibaba, said many Chinese-madeÂ fake goods are now of better quality and cheaper thanÂ real ones.
Alibaba has come under fire in recent years for the ease at which knock-off goods are available to consumers on its online Taobao marketplace.
“The problem is that the fake products today, they make better quality, better price than the real product, than the real names,” he said in a speech at Alibaba’s investor’s day inÂ Hangzhou on Tuesday.
âItâs not the fake products that destroy them, itâs the new business models.â
Ma pointed out that in some cases the same factories that produce goods for top brands also make replicas using the âexact raw materials but they do not use the namesâ.
Still, the Chinese ecommerce giantÂ wants to work with brands to protect their intellectual property. “We have to stop the fake products,” Ma said.
He added thatÂ there are 2,000 staff combatting fake products, but he admitted that they cannot solve the issue completely, but has ability to do better.
Last month, the company was kicked outÂ of the International AntiCounterfeiting Coalition, a global nonprofit that fights fakes.
Alibaba handles more ecommerce than Amazon and eBay combined. It expects to reach US$423 million online shoppers around the world this year, mostly through its Tmall.com and Taobao Marketplace sites. It aims to have US$2 billion consumers by 2036 and double gross merchandise volume to 6 trillion yuan ($911 billion) by fiscal 2020.