Companies allegedly being punished by refusing to sign exclusive contract with Alibaba
A top US clothing company reported that it has been punished on Alibaba’s Tmall because the company refused to sign an exclusive contract with Alibaba, instead participating in a promotion with JD.com. The company’s sales were expected to rise, but instead they fell by 10 to 20%. Under conditions of anonymity, the representative of the clothing company said that advertising banners vanished from prominent spots in Tmall sales showrooms, the company was blocked from special sales and products stopped appearing in top search results. Executives from five other major consumer brands said that after they refused to enter exclusive partnerships with Alibaba, traffic to their Tmall storefronts fell, hurting sales. Three are American companies with billions in annual sales that rely on China for growth.