The online shopping market in China is one that is fierce with competition. This competition is great for consumers, as they are going to be getting better deals on the products that they purchase. However, for companies like JD.com who are going up against Alibaba, it can seem like there are many unfair practices taking place. Or at least, those are the allegations that JD.com has been making against Alibaba since they first started marketing towards Single’s Day.
The First Allegation from JD.com
Single’s Day was a huge success for online shopping in China, as it was expected to be. However, many are still wondering what will happen with the allegations that JD.com has been putting out there concerning Alibaba. Prior to Singles Day, JD.com made a complaint with the State Administration for Industry and Commerce stating that Alibaba was telling merchants that if they were utilizing Alibaba’s platform, they could not communicate with other online platforms for Singles Day in China.
JD.com stated in their Weibo account:
“After receiving reports from dozens of apparel retailers that a competitor is inappropriately pressuring them to pull out of JD.com’s Singles Day promotions, we have formally requested an SAIC investigation.”
JD.com Sues Alibaba
Along with this accusation, JD.com is also suing Alibaba on the basis of false advertisement. During the run up to Singles Day, one of the Alibaba’s key messages that they were advertising was their ability to get items to you within the same day. JD.com is stating that their same day delivery system that Alibaba is offering was misleading. JD.com claims that Alibaba is only cover eight core districts within Beijing, which they are not able to deliver to the entire city, thus they are misleading consumers.
Alibaba has not been reached for comment on either of these situations. However, JD.com is making their opinion known. A spokesman for JD.com stated:
“It’s wrong for competitors to mislead the market by claiming they can match this when they can’t.”
The spokesman was speaking of their advertisement for same day delivery. In terms of the accusation made against Alibaba for bullying retailers, then this boils down to unethical business practices. It will be interesting to see how these accusations will affect Alibaba and when they will break their silence on all that is going on.