The Chinese giant of ecommerce wants to stop fake market.
Alibaba, the Chinese giant of ecommerce
Alibaba is the e-commerce platform that started it all for Jack Ma, back in 1999 to make the e-world a better, simpler place in the ebusiness in China. The group is the biggest, with a monopoly over e-commerce in China with an estimated 80% market share (Wall Street Journal). Needless to say, the chinese giant has come a long way from its unique website B2B market place and has now almost every kind of e-commerce services from e-travel to B2C platform and even cloud computing services with Aliyun.
Jack Ma VS counterfeiting
Alibaba has been hit hard by a study revealing that 40% of the products on Taobao were fake (report on this website). Jack Ma reacted swiftly and launched a QR based countermeasure.
In order to fight this problem, Dotless Visual Code has been created. An Israeli start-up called Visualed, revealed this new tool coming from the QR Codes line. QR Codes are used in the field of O2O (Offline to Online). They are types of bar code cubes in two dimensions constituted of black units disposed in a white background square.
Alibaba’s Dotless Visual Code
Unlike basic QR Codes, Dotless Visual Codes are composed of a color picture or a logo inside the code. They have been elaborated during an Alibaba event in order to launch the new platform against counterfeiting called “Blue Stars”.
This new platform offers to makers the chance to print their codes themselves. Then, when a client will scan a code using the Alibaba’s smartphones application “TaoBao,” this one will immediately receive information about the product but mostly about the authenticity.
The particularity of those codes is that they can be read only once. Thus, fraudsters won’t be able to go back on the product information sheet to copy it.
Some big brands already used this system such as L’Oréal and Ferrero. Together, they already created million of Dotless Visual Code for their products sold in China.
China is the country of fake market. Not once a foreign brand didn’t see its products reproduced identically and resold two times cheaper, if not more. Yet, today, it’s the giant of the Chinese ecommerce that want to fight fake market through new technology. But are those codes really reliable ?
PR stunt or real will to tackle the problem?
Often, China is the scene of PR stunts that are not followed by any real actions. Is Alibaba the same or does it want to change something that has always been in order to re-establish its reputation?