![]() Yet, I don't think it's done their stock price much harm in the long run.” I'll leave it up to you to decide who would have the resources to do such a thing and benefit most from it,” he said.īrennan doesn’t think the recent investigations should worry investors too much, “Alibaba's Taobao has been classified as a ‘notorious market’ by the United States Trade Representatives and been sued many times by brands. “This whole thing has the hallmarks of being a pre-orchestrated smear campaign. Pinduoduo went on to go public in one of the largest IPOs of the year. Yet, that didn’t seem to alarm investors. Just days ahead of its trading debut, Beijing-based Daddy's Choice, a maker of diapers and maternal products, sued Pinduoduo for trademark infringement in a New York Federal Court. “There would be nothing to solve if they employed the correct business practices, setting stringent standards since day one and following strict due diligence checks with merchants before selling on their platform,” he said. While counterfeiting is a widespread issue in China, Wong says Pinduoduo is using the nation-wide situation as a scapegoat to escape responsibility. “However, this is a totally unacceptable business practice and response in the eye of an investor.” “Maybe this one step at a time, trial and error approach seems acceptable to them,” he said. Wong, however, isn’t convinced by Dada’s statement. We’ll take it a step at a time, starting with the TV and baby formula complaints.” If they can't even eliminate fakes of books about their own company it speaks to the scale of the problem.”Īt a press conference on July 31st, Pinduoduo’s co-founder Dada (达达) was reported as saying: “This is an industry-wide problem and it’s unrealistic to ask 3-year-old Pinduoduo to solve it, we’re just not capable. what I received was a fake photocopied version. “To give you one personal experience, last year I went on Taobao and bought a book about Jack Ma. “Would anyone in China be surprised that there are fake goods on any of the major e-commerce platforms? Absolutely not, it's an industry-wide problem,” he said. Matthew Brennan, WeChat expert and cofounder of China Channel, agrees.
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