Recently, I was pulled into an emergency meeting with a client. As a result of a high profile Tmall launch, we are under attack. Harassment like this is typical for foreign brands who launch successfully in China.
- Fake Orders: 1/3rd of orders are competitors making use of Tmall's unlimited 7 day, right-of-return policy. They try to hit store rank and reputation (high return rates) and cause losses.
- Aggressive Audits: The commerce department and the tax authority both have tried to fine and hamper my client's operations.
- Gangster Thugs: They show up to our client's physical showroom and refuse to leave, intimidating office staff.
Such aggression is the mark of SUCCESS in China... not failure. The more of a threat you are to incumbents, the more likely you will be a victim. We've dealt with this so many times with so many brands I thought sharing it would be an eye opener.
If you've had experience, share it here please! I'd love to know how you handled it. (FYI, we have proven counter measures, so we usually win long term, but may take a hit...which can be costly)