Alibaba Group Holding Ltd. is taking a different approach to fighting the prevalence of counterfeit products on its websites - and it's not what the industry has been calling out for.

After luxury brand Kering SA filed a lawsuit against the Chinese conglomerate regarding allegations of supporting the sale of fake products, Reuters reports that Alibaba has started a pilot program that aims to help local companies improve their products and allow them to compete with bigger names.

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According to reports, Alibaba is testing the new scheme through the shoe-making industry in the city of Putian in Fujian province, China. The news outlet said Alibaba has chosen 17 shoe manufacturers in the region for the project. 

Song Zonghu, whose company is one of the 17 selected by Alibaba, noted that closing down counterfeiters will never end, and that a crackdown coupled with "creating new opportunities" will help eradicate the problem.

Putian is known as one of the most notorious cities in China that produces counterfeits of famous consumer brands. New York Times has described the city as a "nest for counterfeit-sneaker manufacturing," while Want China Times dubbed it the "mecca of global fake shoe-making industry."

Alibaba Group Senior Director of Security Operations Ni Liang told Reuters that the project will be one of the company's main anti-counterfeit programs in 2015. He noted that the program will be expanded to cover manufacturers that produce electronics, bags, toys and other industries.

Alibaba is optimistic that this will encourage small companies to stop counterfeiting and become legitimate sellers.

The scheme also includes providing the 17 companies with training on how to sell online. Alibaba spokeswoman Crystal Liu reported that a three-day campaign made for the shoe companies allowed them to reap about ¥480 million Chinese in sales.

Jeff Zhang, head of Alibaba's domestic retail marketplaces, also told Reuters that the company has received over 60 applications from companies in other sectors, expressing their interest in joining the program.

As well-meaning as Alibaba's plan is, some groups have criticized it. Marketing firm CMR China Managing Director Shaun Rein said Alibaba's plan is "unlikely to be successful," while American Apparel & Footwear Association said the program is not the fastest and easiest way to attack the problem.

Alibaba has a long history of allegations from different companies who claim that the e-commerce company is not doing enough to remove the listing of counterfeit products on its websites.

In a recent statement, Alibaba executives noted that the companyis used to working with various brands regarding intellectual property issues and that it prefers to solve problems through "constructive cooperation," according to JS China.

TagsAlibaba fake goods, Ni Liang, Putian