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The Rocket businesses are growing fast - revenue was up 74 percent in 2013 - and they have succeeded in attracting over 1 billion euros in capital from a raft of high-profile investors - most recently German service provider United Internet AG and Philippine Long Distance Telephone Company.

Chief Executive Oliver Samwer, who founded Rocket Internet in 2007 with his brothers Alexander and Marc, sees huge opportunities for digital businesses in emerging markets, noting that the cities with the most active Facebook users are Bangkok, Jakarta and Istanbul - with no U.S. city in the top 10.

In Southeast Asia, Rocket has had a freer run to do both fashion with Zalora and general wares with Lazada, although Alibaba has positioned itself to expand in the region by taking a stake in logistics firm Singapore Post.

SINGAPORE/MOSCOW/BERLIN, Sept 5 (Reuters) - Germany's Rocket Internet faces daunting logistical challenges and rising local competition from Lagos to Laos as it races to capture customers in emerging markets before e-commerce titans Amazon and Alibaba can catch up.

Rocket has the top e-commerce sites in terms of overall rankings in Indonesia, the Philippines and Thailand, while its Jabong fashion site ranks No. 2 among all e-commerce sites in India. In Malaysia, Lazada is No. 3 shopping site and Zalora is No. 1 in fashion, according to SimilarWeb measurements.

That spells mounting losses as the venture capital company gears up to launch an initial public offering (IPO) this month that will help provide the war chest it needs to build and defend what it hopes will be the largest online shopping empire outside the United States and China.

"You cannot think of beating the Chinese on cash, because they have so much of it," Giulio Xiloyannis, managing director of Zalora Malaysia, told Reuters. "You beat them on branding and product quality."

Rocket has the top e-commerce sites in terms of overall rankings in Indonesia, the Philippines and Thailand, while its Jabong fashion site ranks No. 2 among all e-commerce sites in India. In Malaysia, Lazada is No. 3 shopping site and Zalora is No. 1 in fashion, according to SimilarWeb measurements.

Xiloyannis said it took Amazon 10 years to break even. "When I look at Zalando, I see a venture which has done it in half the time - I see the Rocket companies performing faster than the first pioneers of e-commerce in terms of breaking even."

In Russia and Brazil, home to the two Rocket businesses with the highest sales in 2013, Alibaba's AliExpress is already a force to be reckoned with: it is No. 2 shopping site in Brazil behind local firm MercardoLivre and no. 2 in Russia behind Avito, according to web traffic measurement firm SimilarWeb.

To that end, the Rocket online fashion stores are investing in building their own fashion labels and spending on advertising, a lesson learnt from Zalando, which gained widespread recognition in Europe with its "scream for joy" slogan and ads showing delighted shoppers ripping open parcels.

Rocket Internet spokesman Andreas Winiarski says the company sees its cash-on-delivery offer as a key competitive advantage. "Cash is reconciled on a daily basis when sales representatives return to the transit warehouse in the evening. Ultimately, fraud occurs with credit cards and not cash," he said.

In Southeast Asia, Rocket has had a freer run to do both fashion with Zalora and general wares with Lazada, although Alibaba has positioned itself to expand in the region by taking a stake in logistics firm Singapore Post.

Online fashion store Lamoda in Russia is leading the way in many of those areas. It expects to have over 1,000 delivery staff and more than 500 vehicles by the end of 2014 and over 2,000 staff by 2015 as it seeks to reach more clients in such a vast country. It also wants to distinguish itself by offering a free try-on service at the door.

The Samwer brothers have gained notoriety for cloning businesses pioneered in Silicon Valley in new markets - most notably German online auction site Alando which they sold to eBay, the site it was modelled on; and Amazon Zappos-copy Zalando, now Europe's biggest online fashion site which is on track to list soon.

That spells mounting losses as the venture capital company gears up to launch an initial public offering (IPO) this month that will help provide the war chest it needs to build and defend what it hopes will be the largest online shopping empire outside the United States and China.

In those markets, Rocket has sought to focus on fashion with its Dafiti and Lamoda sites rather than the general merchandise of AliExpress. Dafiti is No. 16 overall in e-commerce in Brazil, but is No. 1 in online fashion. In Russia, Lamoda is at No. 15 - but in fashion, it is No. 2 behind local rival Wildberries.

The Rocket businesses are growing fast - revenue was up 74 percent in 2013 - and they have succeeded in attracting over 1 billion euros in capital from a raft of high-profile investors - most recently German service provider United Internet AG and Philippine Long Distance Telephone Company."We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so," said a company statement. "Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation."

Like China's consumer and Internet market, Alibaba is still growing rapidly. The company's revenue in its latest quarter ending in June surged 46 percent from last year to $2.54 billion while its earnings climbed 60 percent to nearly $1.2 billion, after subtracting a one-time gain and certain other items.

Poland will decide within a month whether to accept or reject U.S. Raytheon's offer to provide first Patriot missiles in 2019, Rzeczpospolita daily quoted the Defense Minister Antoni Macierewicz as saying.

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"You cannot think of beating the Chinese on cash, because they have so much of it," Giulio Xiloyannis, managing director of Zalora Malaysia, told Reuters. "You beat them on branding and product quality."

BEIJING (AP) — The owner of fashion brands Gucci and Yves Saint Laurent has accused Alibaba Group in a lawsuit of profiting from sales of counterfeit goods despite the Chinese e-commerce giant's pledge to combat the trade in fakes.

But while Rocket Internet has launched about 70 companies - ranging from online fashion to food delivery and marketplaces for real estate - in more than 100 countries, many in the last couple of years, it is still far from being a giant.

"This lawsuit is part of Kering's ongoing global effort to maintain its customers' trust in its genuine products and to continue to develop the creative works and talents in its brands," the company said in a statement.

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Most of Alibaba's 279 million active buyers visit the sites at least once a month on smartphones and other mobile devices, making the company attractive to investors as computing shifts away from laptop and desktop machines.

It says it can launch a company within 100 days by drawing on expertise in areas like legal, finance, communications, marketing and business intelligence at its Berlin head office, helping it start an average of three to six new firms a year.

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"They are smart to go into markets where most other big players don't have a footprint and (elsewhere) round out the offers of Alibaba and Amazon," said Forrester e-commerce research director Zia Wigder.

The 144-page complaint says Alibaba's computer algorithms were "intentionally designed" to offer counterfeits when consumers search for brand names. It says that when "knockoff," a term for a counterfeit, was used in a search, Alibaba's system added "handbag."

Kering sued the Chinese company in July, also in New York, but later withdrew the suit, saying the two sides agreed to "work together in good faith" to protect intellectual property ensure a "healthy and vibrant e-commerce ecosystem for consumers, merchants, and brand-owners alike."

Alibaba, the world's biggest e-commerce company by sales volume, has launched a series of initiatives to keep counterfeit goods off its platforms following complaints by trademark owners. The company says it has 2,000 employees dedicated to anti-counterfeiting and consumer protection work and spent 1 billion ($160 million) on that in 2013-14.

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