What happened
Xian Yu 闲鱼, China’s top online marketplace for used goods and overstock, has added a new feature allowing shoppers to filter search results by the seller’s Sesame Credit score.
Why it matters
Consumer mistrust is a major problem for China’s online retailers. China is the world’s largest producer of counterfeits (Business of Fashion):
According to US Chamber of Commerce estimates, Greater China is the source of 86 percent of the world’s counterfeit goods, a portion valued at a staggering $397 billion.
The rampant proliferation of fakes has damaged domestic consumer trust, and e-commerce platforms – particularly those focused on P2P sales – are using Sesame Credit as a weapon in the battle to soothe buyer skepticism.
Sources
- Trivium China research
- Business of Fashion: A Turning Point for China’s Stance on Counterfeit Luxury Goods
Kendra Schaefer
