Dealers conduction of internet selling at lower price than guiding price by brands or manufacturers has a huge impact on the brand owner of whole price system, and seriously disrupts the original dealer system. In order to quick return and small margins merchants sell at low-price of branded products , but once the sales manner has bloomed, it would be result in a vicious price war among businesses, damaged the profit of brand owner, have a heavy blow on cooperation initiative between dealers and brand owners, and bring out doubts from new agents and declining brand vitality.
Fleeing products mean that products aren’t purchased accord to the provision channel of brand owner in distribution network due to all levels of the dealers and agents, branches and others driven by interests and make the distribution of products across regional and across channel sales. As a result of chaos of goods channel, the product price system is damaged, the interests of the merchants was emptied and the dealer would lose heart for the product and brand , and the enthusiasm of dealers would be dampen. Therefore there aren’t high-quality distributors hindered brand development;
Fleeing products phenomenon caused price confusion and blocked channels is a serious threat to the brand of intangible assets and the normal operation of enterprises. When the market order was disrupted, all kinds of fake and parallel imports would begin to flood in the market and then consumers would lose trust in the brand.
Unauthorized sales refers to that sales aren’t pre-approved by the brand owner and individuals or companies set up online shop to sell privately; offline dealers without permission to sell in the online shop is also one of unauthorized sales. Unauthorized sales to reduce the enthusiasm of authorized online businesses lead to online authorized dealers complain, undermine the balance of interests of dealers disordered balance of the two channels; unauthorized shops dumping products would have severely damaged brand price system.
Fake goods refers to sales without authorization of the brand owner, no formal channels of purchase, manufactured by a seller in private, to borrow brand awareness, reputation, sales and peddling of substandard quality and unqualified products. Inferior products make the quality not to be guaranteed; it makes negative impact and loses confidence for the brand after consumers bought; it seriously affects the brand image, is shorten the brand vitality, and has a significant impact for the development of the brand.
Taobao intellectual property can be divided into trademark infringement, copyright infringement and patent infringement. It refers to behaviors that the brand of the unauthorized brand owner thefts the trademark for sales products, theft brand flagship official website of picture text and video for their own product links and product appearance patents, utility model patents, invention patent.
Disrupting sales volume of the brand flagship has a serious impact on brand image and reduces conversion rate; it has harmed the interests of regular distributors, so that their loyalty and activity has decreased in result of brand stagnation and no profit.
