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Fake Cosmetics ecommerce get punishment in China

Fake Cosmetics ecommerce get punishment in China

World leader in cosmetics online seller of China apologized Monday after a media investigation revealed that a third store had sold counterfeit luxury goods through its website.
New York Stock Exchange listed Jumei International Holdings, which operates the platform Jumei.com, said it had closed the store in delinquency and removed all its products from sale.

Apologize

"We sincerely apologize to all customers who bought the supplier and will provide services to non-conditional return of products," the company said.


Jumei said it continues to investigate how the vendor was able to provide authentication certificates and customs complete products for counterfeit products. source

China is a big market for cosmetics ! 

Jumei International Holdings shares fell 4.18 percent to $ 30.28 (HK $ 234.7) per share on Monday in the wake of the news.

Websites punished

Tech.qq.com technology news portal reported Monday that a store on Jumei.com sold Chinese-made counterfeit watches and designer clothes fake luxury. Brands whose products are copied and sold on the platform include Armani, Hermes and Burberry, the report alleged.
The report highlights the widespread sale of counterfeit goods on Chinese sites.
He said the offending distributor had forged dozens of certificates produced and sold counterfeit goods to a number of online retailers prominent, including the second largest shopping site in China, JD.com, and Amazon.cn.
The revelation prompted JD.com to remove similar products on its site.
"The sale of counterfeit goods is a common problem faced by all e-commerce enabling third parties to sell on their platforms sites," said Doug Young, a professor of financial journalism at Fudan University, blogging on the Internet in China.

Guaranty the Authenticity of Cosmetics Products

"It is difficult for the operator platform to ensure the quality and authenticity of the products offered by these third-party merchants, because there are often hundreds or even thousands of these merchants on many of these platforms.


"Jumei is a much younger company and has much less experience in the business. So it's not really a huge surprise that he always tries to find ways to ensure that the goods are counterfeit not sold on its platform by third-party merchants. "
Jumei.com was launched in 2010 with its focus on group-buying real cosmetics, but later expanded its products for the luxury goods business women. The total sales of products sold on its website topped 6 billion yuan (HK $ 7.54 billion) last year and raised $ 245 million from its IPO in New York in May .

Jumei said he planned products sold on its website "to the highest standard and strict process" and promised "they are 100 percent authentic."

sources :
LInkedin

The potential of the Chinese e-commerce

The potential of the Chinese e-commerce

In 2014, the potential of the Chinese e-commerce is:
632 million Chinese Internet users of which 527 million use their phones to stay connected almost constantly.
271 million e-shoppers on 2013
RMB 47.6 billion or 400 billion RMB spent waiting to 1 trillion yuan (115 billion euros) in 2015 online.

Online Shopping habbit

The online shopping habits of Chinese e-shoppers are becoming more stable showing that the market is coming soon to maturity (iResearch).
Habits are more stable, more predictable. Forecasts are more reliable, the digital marketing strategies are becoming more efficient ... and consumers increasingly demanding. With a sector such as this one, you definitely need to implement the right methods.
We will initially address that is directly on the website then go on disseminating content to your customers and finally the payment methods used in China.

Chinese special needs 

Your site should be simplified Chinese needs  Fast loading pages The Chinese internet is not as fast as in Europe or the United States which means that pages with too many heavy elements such as loading large videos or non-optimized web images will make you lose significant traffic. Indeed, the diversity of supply if a page takes too long to display the Chinese customer will simply change and go buy elsewhere. A home page containing as much information
To show you the difference here is two screenshots:
Firstly the site Taobao, China's staple of e-commerce:

source: http://www.capitaine-commerce.com/2014/07/30/39342-les-elements-fondamentaux-a-retenir-pour-reussir-dans-le-commerce-en-chine/

Wanda Group and Tencent want to destroy Alibaba in the Chinese ecommerce Market

Wanda Group and Tencent want to destroy Alibaba in the Chinese ecommerce Market

China Dalian Wanda Group and Tencent Holdings Ltd. (0700.HK) said Friday that they would establish a 5 billion yuan ($ 814 million) e-commerce joint venture with Baidu Inc (BIDU.O), as companies push the high growth of e-commerce sector. The joint venture, which will be registered in Hong Kong, will be 70 percent owned by the private company Wanda, while Chinese Internet giants Baidu and Tencent will hold 15 percent, respectively, Wanda and Tencent said in separate statements.
China is the largest market for e-commerce world, with its No. 1 player, Alibaba Group Holding Ltd  transactions more goods from Amazon.com Inc (AMZN.O) and eBay Inc (EBAY . O) combined.

Tencent+baidu 

By partnering with Tencent and Baidu, Wanda will become the biggest platform online-offline for electronic commerce in the world, said Dong Ce, the chief executive of the new company. -Online-To offline, or O2O, involves people using their smartphones to find and buy goods and services, often physically close to them.
"O2O is the largest e-commerce pie ... this is just the beginning," said Wang Jianlin, chairman of Wanda and the richest man in China with a net worth of $ 16 billion, according to Forbes.
The alliance will also compete with Alibaba for a slice of the growing pie. The rival Tencent and Baidu is also rapidly expanding its offerings of e-commerce and mobile O2O.
In the April-June quarter, Alibaba mobile revenue was roughly a third of its total turnover, compared to 27.4 percent in the first three months of the year.

The Agreement

The agreement is structured in three years, Tencent said. The initial investment by the three companies will amount to 1000 million yuan, the company said.
"Within five years, the total investment will be around 20 billion yuan," Wang said. "We will bring new investors to increase cash flow." according to this ecommerceagency
Wanda, who bought the American cinema operator AMC Entertainment Holdings Inc (AMC.N) in 2012, is a conglomerate of commercial property, luxury hotel and cinema.
The Beijing-based company said the joint venture, which still has not called Wanda, but Wanda is referred to as electronic commerce, will launch the e-commerce services in its 107 commercial real estate properties across China this year.
In 2015, the cluster services have been established in all its malls, hotels and resorts, Wanda said.

LET'S GET Social

Social media and video games giant Tencent and Baidu, the dominant search engine in China, help build the alliance finances internet and payment of products, services, big data and customer account and affiliate systems.
For Tencent, the agreement will give them the opportunity to expand their online payment service in the new e-commerce company and Wanda existing properties, the company said.
"The three partners will further deepen collaboration in initiatives such as traffic exchanges, media and advertising resources sharing, benefits of membership, internet payment and financing, big data, etc," Tencent said.

Advantages of this alliance

This includes WeChat TenPay and Payment, which is linked to popular mobile messaging application WeChat, known as Weixin in China. WeChat more popular application of China had 438 million monthly active users by the end of June and has quickly become a digital Swiss army knife, capable of everything from messaging to purchase meals and book taxis.
Tencent also be able to expand its online video library, drawing from Wanda licensed content, including movies and television.
Baidu declined to comment on

source reuter