CHINA TOPIX

05/12/2024 07:45:09 pm

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Alibaba to Rake in $15.61 Billion From High-End Goods

Alibaba To Rake In $15.61 Billion From High End Goods

(Photo : Reuters) Alibaba is hoping to earn up to $15 billion annually from high-end goods.

E-commerce giant Alibaba is leveling up its products by including more high-end goods in a bid to boost the sagging image of its online marketplace after being accused of selling low quality and fake signature items.

Reports indicate that Alibaba will work with a team of four quality inspection organizations to make sure that the products being sold on its platform are of high quality and will meet China's standards.

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Alibaba plans to invest billions of yuan to entice quality product manufacturers to sell on the Taobao marketplace.

With this set up, Alibaba expects to rake in an annual sales target of 100 billion yuan ($15.61 billion) - just from high-end goods alone.

Economic analysts say Alibaba's move to partner with manufacturers of quality goods will not only give exporters the opportunity to tap into China's domestic market, but will boost the image of the e-commerce giant as among the best online marketplace for international and domestic shoppers.

Hangzhou-based Alibaba President Jin Jianhang said that more Chinese consumers are leaning towards overseas goods and products to the detriment of the local manufacturing companies.

"Many believe that made-in-China products cannot meet the demands of the country's increasingly choosy middle-class consumers," Jin said.

Jin pointed out that there are many companies in China that are manufacturing the products of well-known overseas brands.

Alibaba's Taobao marketplace has been accused of selling counterfeit goods, affecting the reputation and sales of the company..

"Taobao's growth momentum has been slowing because of the difficulty in cracking down on counterfeit and poor quality goods," Jin said.

In April, Alibaba set up a channel on the site dedicated to the sale of products of high-end manufacturers.

More than 4,500 high end manufacturers participated and set up online stores on the channel with sales expected to reach 15 billion yuan by the end of the year.

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