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Internet industry sets up association
By Xu Wenwen |
September 29, 2010, Wednesday
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INTERNET firms in Zhejiang Province have created an association to assist in overseeing the sector, writes Xu Wenwen.
The Zhejiang Internet Business Association was set up last Tuesday in Hangzhou to improve the self-discipline and credibility of online merchants.
Zhejiang's leading e-commerce websites like Alibaba.com, Taobao.com (China's largest online destination for shopping), and Onccc.com (Yiwu Chinese Commodity Market Online) all joined the association, the country's first provincial organization of Internet businesses.
Alibaba CEO David Wei was elected as director of the association.
"With the fast development of e-commerce, Internet businesses are increasingly influential, and therefore their responsibility grows," says Wei. "Considering that e-commerce is short of law, it's especially important to ensure those in the industry are disciplined."
Wei says the association will establish a platform in the next year to ensure e-commerce is safe and credible. This includes posting blacklists of dishonest individuals, entrepreneurs and e-commerce platforms.
Besides maintaining order of online transactions and promoting credible management, the organization will provide individuals in the industry with a chance to communicate regularly.
The association will allow both individuals and companies to join while experts and government officials will be invited to give advice.
According to the Zhejiang Provincial Administration of Industry and Commerce, electronic commerce transactions reached 3.6 trillion yuan (US$537.9 billion) in China last year. Zhejiang had a 50-percent share of the market.
The province also has the most e-commerce websites, the most Internet businessmen and the most industry websites in the country.
Last year, Taobao's online trade volume reached 208.3 billion yuan, accounting for about 80 percent of online shopping nationwide.
"As Internet entrepreneurs are becoming a vital part of the economy, they need a guild to establish better credibility," says Yan Qiao, public relations manager at Taobao.
The association will protect its members and strengthen avenues of communication to improve the entire industry.
Though online businesses have contributed significantly to the economy, there are still several problems, including false advertising, low-quality products and fraud.
According to the China Internet Network Information Center, nearly 90 percent of visitors to e-commerce websites worry about buying fake products.
"Internet businesses are relatively new and transparent to the public, thus there is more importance attached to the credibility of these companies," Yan says.
The provincial government is supportive of the association.
"It is hardly possible to check every single online deal because of the huge quantity. The association will help keep the industry clean," says Ma Bowei, deputy director of the Zhejiang Provincial Administration of Industry and Commerce.
In the future, the association will introduce Taobao's credit system as its own platform for safety and credibility. It will also set up an assistance plan for those looking to start an online business.
It is estimated that tens of thousands of members will join the Internet business association.
The Zhejiang Internet Business Association was set up last Tuesday in Hangzhou to improve the self-discipline and credibility of online merchants.
Zhejiang's leading e-commerce websites like Alibaba.com, Taobao.com (China's largest online destination for shopping), and Onccc.com (Yiwu Chinese Commodity Market Online) all joined the association, the country's first provincial organization of Internet businesses.
Alibaba CEO David Wei was elected as director of the association.
"With the fast development of e-commerce, Internet businesses are increasingly influential, and therefore their responsibility grows," says Wei. "Considering that e-commerce is short of law, it's especially important to ensure those in the industry are disciplined."
Wei says the association will establish a platform in the next year to ensure e-commerce is safe and credible. This includes posting blacklists of dishonest individuals, entrepreneurs and e-commerce platforms.
Besides maintaining order of online transactions and promoting credible management, the organization will provide individuals in the industry with a chance to communicate regularly.
The association will allow both individuals and companies to join while experts and government officials will be invited to give advice.
According to the Zhejiang Provincial Administration of Industry and Commerce, electronic commerce transactions reached 3.6 trillion yuan (US$537.9 billion) in China last year. Zhejiang had a 50-percent share of the market.
The province also has the most e-commerce websites, the most Internet businessmen and the most industry websites in the country.
Last year, Taobao's online trade volume reached 208.3 billion yuan, accounting for about 80 percent of online shopping nationwide.
"As Internet entrepreneurs are becoming a vital part of the economy, they need a guild to establish better credibility," says Yan Qiao, public relations manager at Taobao.
The association will protect its members and strengthen avenues of communication to improve the entire industry.
Though online businesses have contributed significantly to the economy, there are still several problems, including false advertising, low-quality products and fraud.
According to the China Internet Network Information Center, nearly 90 percent of visitors to e-commerce websites worry about buying fake products.
"Internet businesses are relatively new and transparent to the public, thus there is more importance attached to the credibility of these companies," Yan says.
The provincial government is supportive of the association.
"It is hardly possible to check every single online deal because of the huge quantity. The association will help keep the industry clean," says Ma Bowei, deputy director of the Zhejiang Provincial Administration of Industry and Commerce.
In the future, the association will introduce Taobao's credit system as its own platform for safety and credibility. It will also set up an assistance plan for those looking to start an online business.
It is estimated that tens of thousands of members will join the Internet business association.
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