Dive Brief:

• To bolster its efforts in combating the sale of fake goods on its marketplace, Alibaba has launched an English-language version of its counterfeit-reporting hotline, TaoProtect, that Western retailers can use to report knock-off goods.

• Alibaba also reportedly has volunteers plus 2,000 employees looking out for fake goods on its online marketplaces, Taobao and Tmall, and this year formed a task force of 300 to tackle the matter.

• The retail giant has been under near constant pressure from brands and the American and Chinese governments to crack down on the problem. 

Dive Insight:

Alibaba is working hard to become the top conduit for international brands to sell their wares in China. The company earlier this summer announced that 20 retailers, including Zara and Timberland, would be selling exclusively through Alibaba in the country, which negates the need for these retailers to open physical stores in China and could help them with marketing efforts there. 

The Chinese retail giant has made no secret of its ambitions for global growth, hiring a former Goldman Sachs executive as president to lead global expansion just last week. Yet its vast counterfeit sales problem has remained a sticking point.

While the company has a formidable war chest from its IPO, an innovative founder, and an appetite for growth, if it can't shake this reputation or if more brands continue to find counterfeits a problem, its fortunes could dim. This is especially true after Alibaba's rival, JD.com, announced that it will also begin selling retail goods from foreign countries on its website in China last month.