BCN-09-10 ‘Ababis’ and ‘Star Wnrs’: Knockoffs thrive in China e-commerce

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‘Ababis’ and ‘Star Wnrs’: Knockoffs thrive in China e-commerce

BEIJING, Nov 11, 2018 (BSS/AFP) – Sneakers on a popular Chinese e-commerce
platform look like Adidas, but are branded “Ababis”. Underwear resembling
Calvin Klein are called “Caiwen Kani”. Toys with an uncanny resemblance to a
certain blockbuster movie franchise opt for “Star Wnrs”.

As China held its massive annual “Singles Day” online sales event on
Sunday, shoppers could still find cheap imitations on Alibaba’s Taobao app
despite the company’s efforts to curb sales of counterfeit goods.

US and European companies have long complained about the theft of
intellectual property in China, a central issue in the US-China trade war.

President Xi Jinping renewed a pledge this week to protect IP rights, and
a law is set to take effect on January 1 to punish e-commerce companies if
fake goods are sold on their platforms.

But few moments of the year highlight the policing mountain authorities
face quite like Singles Day — China’s equivalent to “Black Friday”.

AFP was able to find a veritable treasure trove of knockoffs on Taobao
ahead of the November 11, or “Double 11”, shopping spree. During last year’s
event, consumers spent a record $25 billion through Alibaba’s platforms.
According to the company, $10 billion had been generated in the first hour
of this year’s sales. By 11:00am (0300 GMT), sales had hit $20.5 billion.

Almost every Chinese smartphone has a version of the Taobao app, making it
one of the world’s largest online trading platforms with 634 million active
monthly users.

While the majority of products sold are genuine, imitations abound.

A pair of “Ababis” trainers — with four instead of Adidas’ inimitable
three stripes — retails at the mouth-watering price of only 39 yuan ($5.70).

“Balenciaca” sneakers with an uncanny resemblance to the Balenciagas worn
by the likes of Kim Kardashian cost just $18.

Fake Louis Vuitton handbags retail at just $17, well below the price of
the authentic product.

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In the streets of Beijing, some people struggled to figure out if the
products shown to them by AFP journalists were the real thing.

“I can’t really tell the difference,” said Li, a 26-year-old man staring
at a pair of “Caiwen Kani” underwear. “It looks authentic. It is original.”

– ‘Jack David’ whiskey –

A small TIE Fighter from the Star Wars Lego franchise costs $2, if you are
willing to overlook a slight flaw in the product’s “Lepin” and “Star Wnrs”
packaging.

“I would buy it,” said Wang Yu, 37, looking at box. “I think all products
are kind of copying each other. I can accept it as long as it suits children.
But under the condition that it’s good quality.”

People buying booze can take a shot at alternative products.

The alcohol section offers whiskey by “Jack David” while Bordeaux wines
carry unusual names: “The Heart of Freedom”, “Bravespirit”, “Dragon Were
General”.

In 2016 Taobao was put back on the US Trade Representative’s blacklist of
“most notorious” markets for its sale of pirated and counterfeit goods and
violations of intellectual property.

According to the EU’s Intellectual Property Office, counterfeiting costs
434,000 jobs in Europe and 60 billion euros ($68 billion) per year.

In a statement to AFP, Alibaba said it requires all merchants to respect
IP rights and has stepped up efforts to take down listings of counterfeit
products.

“Alibaba’s IP protection systems and technologies are among the best in
the industry and we are always looking for ways to improve them,” the
statement said.

Alibaba said it has made it easier for small businesses to protect their
IP rights. It also supports law enforcement investigations and takes
infringers to court, filing 48 lawsuits against counterfeiters in the past
year.

The number of requests to take down listings saw an annual decline of 44
percent between September 2017 and August 2018.

Delphine Sarfati-Sobreira, representative of the Union of Manufacturers in
Paris, said one out of every two companies falls victim to knockoffs, costing
them up to 10 percent of their turnover.

Smaller companies “face difficulties that sometimes push them to give up
or, even worse, go bust,” she said.

The law comes into force in January and aims to knock the knock-offs off
the online retail platforms, but some companies remains sceptical.

“It’s pure hypocrisy,” said Hubert Ricard, an export consultant for French
wine company “La Guyennoise”, complaining that some provincial authorities
are “very often” part of “manufacturing and distribution of copies of wines”.

BSS/AFP/HR/1000