Southeast Asia’s online economy hit $100 billion for the first time in 2019, according to Google and Temasek.
The report expected it to grow to $300 billion by 2025. This is great for the Lazada Group, Southeast Asia’s leading e-commerce platform, currently owned by the Alibaba Group.
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You can find almost anything on Lazada: in 2020, the Lazada marketplace had more than 350,000 brands and sellers. Just like other marketplaces, Lazada has its share of counterfeit goods for sale.
Overcoming Southeast Asia challenges
Lazada currently operates in six countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. In 2019, it claimed to have more than 50 million active buyers annually.
Multinational corporations and local companies wish to seize the opportunity to target the growing middle-class population in Southeast Asia, as they increase their spending and shape their purchasing behavior.
The region makes progress in overcoming challenges such as internet access, logistics and payments. Today it has wide and affordable internet access to large segments of the population. Southeast Asians use smartphones, and they are highly engaged mobile internet users.
Their engagement is enhanced with new services, livestreams, gamification, LazGames and flash sales.
Logistics solutions improve, and so are digital payments. Lazada’s logistics network includes warehouses and hubs. Logistics partners are also part of the solution.
According to the company’s website, “In 2016, Lazada became the regional flagship of the Alibaba Group, and is backed by Alibaba’s best-in-class technology infrastructure.”
Counterfeits on Lazada
With so many products, there are many issues with counterfeit items on the Lazada platform.
Here is an example: Lazada Philippines Seller/Vendor Blacklist. Scammers on Lazada are known to open pop-up stores for a few short weeks and then shut them down, just to open new ones.
In the Philippines, in September 2020, a Senate panel flagged the sale of thousands of counterfeit goods on Lazada. “There is a chance for consumers to buy these things to the detriment of their health…
Obviously the platforms are not doing enough to stop these unscrupulous activities on their own platforms,” said Sen. Gatchalian.
Lazada counterfeit rules
Lazada prohibits the sale of counterfeit products on its platform. It has joined Alibaba’s Intellectual Property Protection Platform. Through this, brands can require the removal of infringing products from the Lazada marketplace.
With the increase in online shopping, Lazada had announced in Q4 2020 it is tightening its rules against counterfeits on the platform, reported CNN Philippines.
“It’s not just about that product — fake goods can lead to the deactivation of the entire shop,” warned Lazada chief operating officer Carlos Barrera.
How to avoid buying fakes on Lazada
On Lazada, LazMall guarantees 100% authenticity. To back its promise, Lazada offers five times money back for non-authentic purchases on LazMall and 15-day easy returns.
Not all sellers are on LazMall. Knowing it is often difficult to tell replicas from genuine products, especially on online platforms, there are things you can do to reduce the risk of fakes when shopping online.
Like other online platforms, remember that the lowest price is not always the best price. Before buying a product, you can go to the official store to better understand the retail prices. Yes, there are flash sales and great promotions, but if it is too good to be true, it probably is.
Even if an item looks genuine, the illegitimate seller may be using the official product photos, infringing on copyrights, then sending a different product.
Another issue is gray marketing. These are genuine products imported from other countries without the owner’s permission. It means that you will not have the same warranty and support. To avoid this, check the item’s warranty.
Especially with cameras, watches, smartphones and similar products – consider if the discount is worth the lack of warranty. Another way is to check ratings and reviews. If you are still uncertain, contact the seller to get more information.
How to prevent counterfeits on Lazada
Counterfeits on Lazada can harm your brand, but you can fight them.
1. Become a LazMall seller
When buyers go on Lazada, they may be uncertain about products sold by third-party sellers.
Working towards a solution, brand owners and authorized resellers can become LazMall sellers. LazMall is a virtual mall within the Lazada platform featuring brands and authorized brand distributors. LazMall promises 100% authenticity.
It also offers fast delivery and a money-back guarantee for LazMall customers.
Authenticity is significant. Sellers must ensure the authenticity of the products they submit to LazMall. One confirmed case of fakes, and the seller is removed from the LazMall platform.
Guaranteed authenticity results in a higher conversion rate because consumers have fewer concerns about fake products. They can shop with confidence. Many customers buy only from LazMall and “Easy Return” sellers, rather than from “Return to Seller” vendors.
Customers can easily see which sellers are on LazMall:
So, what do you need to become a LazMall seller?
* Have a registered trademark or brand
* Provide proof of authenticity
* Offer a 15-day return policy
How can you maintain the LazMall status?
* Maintain a high seller rating
* On-time delivery
* Offer good chat response time
* Get no less than 30 orders per month
2. Register intellectual property for protection
To protect your brand and products from counterfeits on Lazada, have registered intellectual property rights, especially trademarks. Since trademarks are territorial, make sure your trademarks have protection in all Lazada territories.
3. Report counterfeit issues to Lazada
If you register and upload your proof of IP rights, Lazada will process your takedown requests.
4. Use Wiser Market brand protection agency
Wiser Market online brand protection
Counterfeits on Lazada and other e-commerce platforms damage your brand and profits. Sellers of counterfeits bid against you in advertising, they attract potential sales and damage your brand’s reputation with low-quality products.
The lucrative trade in fakes results in more sophisticated illegitimate sellers using online platforms to expand their presence. Continually protecting your intellectual property rights is a daunting task due to the scale and complexity of modern eCommerce and digital environments.
We offer a solution.
Wiser Market is an online anti-counterfeit agency. Our brand protection solution is designed to combat online counterfeiting and brand abuse on a large scale while achieving an exceptionally high success rate.
We search and monitor globally, identifying brand and IP infringements, then effectively enforce your IP rights: removing fakes and deterring counterfeiters from abusing your brand.
At Wiser Market, we believe in a proactive brand protection strategy. Our highly effective brand protection services, from detection to enforcement, result in over 95% success rate in taking down counterfeits.
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