The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
WASHINGTON, United States — An anti-counterfeiting group said on Friday it was suspending Alibaba Group Holding Inc's membership following concerns raised by some of its member companies.
The International Anti-Counterfeiting Coalition (IACC) statement follows an AP report that the group's president, Robert Barchiesi, had stock in Alibaba and that he used family members to help run the coalition.
The group told its members that it failed to inform the board about conflicts of interest involving the Barchiesi.
In a letter sent to its members, IACC said conflicts were not disclosed to the board "because of a weakness in our corporate governance procedures."
ADVERTISEMENT
Alibaba has been accused by several brands, including Gucci and Yves Saint Laurent, of being a giant conduit for counterfeiters.
Earlier this month, Alibaba said its online shopping platform Taobao was tightening controls on the sales of luxury goods, requiring sellers to show proof of authenticity, as it fights sales of fake items.
IACC, whose members include Apple Inc and Twenty-First Century Fox Inc, said it was suspending a new class of membership that included Alibaba and two other companies. Alibaba joined IACC in April.
"Whether or not we are a member of the IACC, we will continue our productive and results-oriented relationships with brands, governments, and all industry partners," said Jennifer Kuperman, Alibaba's head of international affairs.
Jack Ma, Alibaba's founder, is scheduled to speak at IACC's spring conference for 2016, IACC spokeswoman Marcia Horowitz said.
By Rishika Sadam; editor: Anil D'Silva.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.