Jingdong Group CEO Liu Qiangdong: What Is Behind The Rampant Counterfeit Goods?

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Liu Qiangdong, group CEO, said at the annual meeting of Chinese entrepreneurs that they respect the Chinese entrepreneurs who start from scratch. Liu Qiang Dong also called on the state to increase the protection of knowledge products.

"I listened to the scene for more than 1 hours today, but I felt very silent."

Liu Qiangdong said that the current domestic rampant fakes, a part of the seller was miserable, affordable advertising, resulting in a click on the Internet to reach 5 to 10 yuan.

"This trend drives more businesses to sell fake products and create a vicious circle."

Liu Qiangdong said that this kind of bad money drives out good money, which led to the closure of more than 10 thousand shops in China's clothing and footwear industry in the first half of this year.

"Rampant fakes make businesses continue to hold down workers' wages. When a worker has only 2000 yuan, he can't have more consumption."

Behind the rampant counterfeit goods, another consequence is that businesses continue to lower the quality of goods and consumers lose their goods to China.

The pfer of trust to Japan and Europe has led Chinese manufacturers to enter a vicious circle.

"The consumption of Chinese consumers abroad is 1 trillion and 100 billion this year, of which 60% is spent on shopping. The best beaches in the world are very difficult to see Chinese, but there are many Chinese in the mall.

About 6000 to 700 billion of the consumption is shopping abroad.

"How does this make China's economy better?" Liu Qiangdong said. China's intellectual property protection wants to associate with good industries, such as the IT industry, with GREE and Haier in the home appliance field. These enterprises are not less competitive in the world than any other country.

The film and TV industry has also made rapid progress in recent years. Some films, such as Sherlock's troubles, and the TV drama "Langya list" have been well received and achieved good results.

Liu Qiangdong said that the reason for these good results is to increase knowledge copyright protection.

The following is a speech by Liu Qiangdong:

Liu Qiangdong: today I saw the crowd full of people at the conference hall, and many people stood.

I think entrepreneurs should be the most dynamic group in the community, but today, sitting in the hall for more than an hour, we found the meeting very boring.

Just now, the guests were particularly grateful on the stage. All the starting entrepreneurs were my most respected. I once read the story of the Jingdong on the Internet. 30 years ago, I rode a bicycle for air conditioning installation, a bicycle started, and 11 years ago, I set up a four square meter counter in Zhongguancun.

Suning has been developing for 25 years today, and its growth rate has exceeded 10% in the first three quarters of this year.

I believe that any enterprise can survive for 25 years. It must put credit in the first place. Enterprises without integrity can never survive for 25 years.

Just now, a good friend asked me that there was a bet in August 30, 2012 with the Near East. In three years, when appropriate, we could consider this topic again. (laughter)!

Today, one point of view is that everyone is saying that the Chinese economy is experiencing temporary difficulties. And from my industry perspective, the problem I see is intellectual property rights.

If China does not put intellectual property rights first, then the Chinese economy will never get better because intellectual property has already put Chinese brands in a vicious circle.

Shoes, the same shoes online, I believe that the one hundred sellers have been enough, so that there have been enough competition, but now there are 300 thousand sellers selling identical shoes, the prices continue to decline, some of them sell fake products, fake shoes run high, a click of 5 yuan to 10 yuan, the sale of genuine goods, a look at selling fake goods to make more money, profits driven more sellers selling fake products.

Why is China now?

The days were very sad. In the first few days of the first half of this year, the media reported that the entire Chinese clothing and footwear brand had closed more than 10000 stores, because the sales of fake goods were 3 to 5 times the sales of genuine products.

A large number of fake goods have brought pressure to the brand dealers. Brand dealers are catering to consumers in order to pursue sales, to cope with this competition, and constantly reduce their quality. The price is cheap again and again, and sales are bigger and bigger. Finally, they lose the trust of consumers and lose the premium of brand.

Let Chinese consumers curse Chinese brands, they are all liars, and have no ability to produce high quality products, so we are going to buy them in Japan and Europe.

Take the other two reverse examples, IT industry, home appliance industry, intellectual property rights have been relatively fully protected industries, China's brands enter the whole county, Haier and home appliances are beautiful, we are not only able to compete with Japanese enterprises, but also compete with any other enterprises in the world. The competitiveness of Chinese entrepreneurs is actually not weaker than any other country. As long as intellectual property rights are protected, Chinese brands can survive.

The second example is the movie. In recent years, China's film market has been blowout. But let's not forget what the foundation is.

The foundation is that in recent years, the government has stepped up the crackdown on Internet piracy. It is hard to find a pirated movie online.

The intellectual property rights have been protected, the Chinese film market has risen, and the Chinese filmmakers market has also risen, and the films taken by China have also risen.

A few years ago, when the pirated video in China was flying all over the world, there were several good films in China, and few box offices could exceed one hundred million.

As long as we can fully protect intellectual property rights, it is a chance for Chinese enterprises to be protected. First of all, Chinese enterprises, because foreign enterprises have achieved continuous profits in various countries in the world, China's short time piracy infringed its brand, and China's brand originated in China's market. After a pair of shoes were designed by designers, the one thousand brands on the Internet were exactly the same after a day, causing Chinese people to be reluctant to design and create, so they copied and copied them.

Without the premium, the profits of the enterprises will be reduced, forcing Chinese entrepreneurs to lower the wages of the workers, and how to spend money after the employees get less income.

Today, an industrial worker in Shenzhen only takes 2600 yuan, and has no ability to buy gifts for mom and dad even in the new year. Do not expect these people to have strong spending power, so that Chinese brands have no way out, which is a vicious circle.

Crazy overseas consumption, this year Chinese people spent 1 trillion and 100 billion in the world from 1 to October. According to our survey, 60% of the cost is shopping. The best beaches in the world are hard to see Chinese figures. Almost all the big shops in the world are Chinese. Tourism is not tourism but has become shopping oriented. The consumption of $6 billion has been placed overseas, so that Chinese retailers have lost their opportunities and our taxes are gone.

I hope all entrepreneurs will appeal to the government to increase the protection of intellectual property rights, not only to protect foreign intellectual property rights, but also to protect China's intellectual property rights and Chinese brands. Thank you!