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Alibaba to Host High-end Brands to Boost Image

| Dec 09, 2015 09:29 PM EST

Alibaba is trying to boost its image after being accused of selling counterfeit and low-quality products.

Leading e-commerce firm Alibaba Group Holding Ltd. is planning to host high-end brands in a fresh bid to boost its image after it received accusations of selling poor-quality and counterfeit goods.

The company revealed on Monday that it will invest tens of billions of yuan to gain over 10,000 high-end manufacturers and have them set up online stores in its platform, Taobao. It has also set an annual sales target of 100 billion yuan for high-end items.

Additionally, Alibaba shared it has partnered with four quality inspection organizations to ensure that the products they sell are in accordance with Chinese quality standards.

For analysts, the announcements made by the e-commerce giant will not only help exporters strengthen their share in China's consumption market, but will also boost the firm's image both in the local and global online shopping community.

Alibaba president Jin Jianhang remarked that there is a growing demand for overseas products.

"Many believe that made-in-China products cannot meet the demands of the country's increasingly choosy middle-class consumers," he said. "But in fact, there are many original equipment manufacturers in China producing for famous overseas brands. The problem is how to match demand with supply more effectively."

Earlier in April, Taobao has set up a vertical channel dedicated to selling products from high-end Chinese manufacturers.

Data from Alibaba shows that over 4,500 manufacturers--majority of which are exporting or producing for foreign brands--have virtual stores on their channel. By the end of 2015, their sales are expected to hit 15 billion yuan.

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