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… such sensitive data in-house, they create high entry barriers for external AI vendors, leaving limited room for independent firms like Nova Insight.
<h3>Why pursue an independent IPO?</h3>
As insurers expand in-house AI capabilities, Nova Insight’s decision to go public raises questions. For one, why did ZhongAn invest in an external AI company rather than develop solutions internally? Two factors may explain this.
First, while large insurers can afford proprietary AI systems, smaller and mid-sized firms still rely on external vendors for digital transformation. This leaves market space for independent firms like Nova Insight.
Second, ZhongAn’s own financial performance has been volatile, suggesting possible capital recycling motives.
Currently, three shareholders each hold stakes of 10% or more: ZhongAn Insurance with 31.65%, Nova Insight’s chairman and CEO Lu Min with 28.76%, and HongShan with 15.9%.
According to Wind data, ZhongAn’s net profit over the past five years was RMB 554 million (USD 77.6 million), RMB 1.17 billion (USD 164 million), a loss of RMB 1.36 billion (USD 190.4 million), RMB 4.08 billion (USD 571 million), and RMB 603 million (USD 84 million). Operating profit fluctuated similarly. By mid-2025, ZhongAn recorded a net cash outflow of RMB 373 million (USD 52.2 million).
If Nova Insight’s IPO succeeds, ZhongAn could benefit from a valuation uplift and potential partial exit, improving its balance sheet optics.
Market conditions have also turned more favorable. Hong Kong’s average daily turnover rose 118% year-on-year in the first half of 2025, with IPO fundraising surpassing all of 2024 and reclaiming the global top spot.
ZhongAn’s share price has risen more than 40% year-to-date as of October 15, while other major insurers—Ping An, China Pacific, China Life, PICC, and New China Life—have also gained significantly.
Regulatory reforms, including dynamic adjustments to assumed interest rates and unified reporting standards, have reduced liability costs and improved insurers’ balance sheets.
Meanwhile, stable bond yields, a “slow bull” equity market, and looser liquidity under expected US rate cuts have drawn more capital into Hong Kong. Sector valuations remain below historical averages, leading analysts to project continued upside for insurance stocks.
Against this backdrop, if Nova Insight’s IPO proceeds, it could turn ZhongAn’s long-term strategic bet into a well-timed market opportunity.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3512743785159811">article</a> was written by Wang Hanyu for 36Kr.

ZhongAn’s Nova Insight files for Hong Kong IPO amid mounting losses

Insurance

Hong Kong

China

<a href="/company/nvidia">Nvidia</a> is reportedly developing an internal robotaxi project, according to 36Kr. The plan was announced at a recent company meeting and will be led by senior director Ruchi Bhargava.
People familiar with the matter said the new initiative will follow a single-stage “end-to-end” technology route, in which one neural network is trained and reinforced through simulation-generated world models. This approach is likely similar to <a href="/company/tesla">Tesla’s</a> “Full Self-Driving” (FSD) system.
In January, Nvidia introduced Cosmos, its world foundation model. The platform integrates text, image, video, and sensor data to generate synthetic video that conforms to physical laws. The model has already been pretrained on more than 20 million hours of data.
Cosmos’ main advantage lies in its ability to create complex driving scenarios that are difficult to reproduce in the real world, expanding the boundaries of autonomous driving capabilities. The direction is already gaining traction in the industry, with Chinese automakers Li Auto and Xpeng developing their own world models.
Nvidia has also partnered with General Motors, Mercedes-Benz, and Toyota to co-develop or deploy autonomous fleets powered by its technology. In May, CEO Jensen Huang said that the Level 4 autonomous fleet built with Mercedes-Benz would launch this year.
However, the new robotaxi effort is a separate project. “The company plans to invest USD 3 billion and launch operations in the US,” one person close to the project told 36Kr, adding that budget allocations and objectives are becoming clearer in team discussions.
<h3>Not late to the robotaxi race</h3>
Huang has repeatedly said that autonomous vehicles represent not only the first major commercial application of robotics but also a sector with significant economic potential. The US robotaxi market appears to support that view, showing signs of acceleration in 2025. Waymo, a leading player, expanded commercial operations to two additional cities, including Austin, and is preparing pilot programs with safety drivers in six more, such as Denver. As of April, Waymo provided more than 250,000 paid rides per week in the US.
Tesla launched its robotaxi service in Austin, Texas, and the San Francisco Bay Area in September. Investors noted that Tesla’s robotaxi app downloads on launch day exceeded Uber’s by roughly 40% and were six times higher than Waymo’s historical peak.
Regulatory changes are also paving the way for growth. The US National Highway Traffic Safety Administration (NHTSA) plans to propose amendments in 2026 that would remove existing rules requiring human drivers and manual controls, enabling robotaxis to adopt vehicle designs without steering wheels. The NHTSA also pledged to shorten the review period for autonomous vehicle exemptions from years to months to speed up deployment.
Despite these developments, the industry remains early in its commercialization phase. Waymo operates about 700 vehicles in the US, while Tesla’s initial fleet in Austin consists of only a few dozen. The debate between Waymo’s and Tesla’s differing technological paths, and how Level 4 autonomy will mature, remains unresolved. The current momentum represents a phase of intensive validation rather than a fully developed market.
For Nvidia, its core strength remains in chips and computing ecosystems, not in fleet operations. “You can think of the robotaxi project as Nvidia’s training ground,” a person close to the team told 36Kr. “In <a href="/industry/embodied-intelligence">embodied intelligence</a>, large models are widely accepted as the core technology. But in practice, deploying and fine-tuning them in autonomous vehicles is still challenging. Nvidia wants to strengthen that engineering capability.”
<h3>Catching up through experimentation</h3>
Nvidia began developing autonomous driving software in 2015, but it has yet to release a high-level driving system for mass market vehicles. In 2020, it partnered with Mercedes-Benz to provide <a href="/industry/ai">artificial intelligence</a> architecture, including an autonomous driving solution and an intelligent cockpit for the automaker’s next-generation vehicles.
According to 36Kr, Mercedes-Benz executives drove from Los Angeles to San Francisco in June 2024 to test Nvidia’s and Momenta’s driver assistance systems over a thousand kilometers. After four years of Nvidia’s work, Momenta’s software, which was tuned in just one month, reportedly performed better. As a result, Mercedes replaced Nvidia with Momenta for assisted driving in several of its models in China.
whereRelatedArticle
Nvidia’s challenges extend to Level 4 autonomy. “Nvidia has been benchmarking against Tesla’s FSD internally,” one insider said. “The company conducted multiple comparison tests this year and was surprised by Tesla’s results. On routes between 500–600 kilometers, Tesla’s FSD required only one or two driver interventions. Nvidia still has a sizable gap to close.”
Bhargava, who leads the project, has maintained a low profile. Available records show she has co-authored several of Nvidia’s academic papers on autonomous driving.
From a broader perspective, Nvidia still trails Waymo and Tesla in several areas, including talent depth, production-grade algorithm engineering, complex data accumulation, and on-road testing experience. However, as a core chip supplier, Nvidia has unique advantages in developing robotaxi systems. Its Drive Thor chip, with 2,000 TOPS (tera operations per second) of computing power, could significantly improve end-to-end model inference. Combined with Nvidia’s extensive experience in AI training clusters and software toolchains, this foundation supports rapid model iteration.
Perhaps most importantly, Nvidia has the financial capacity that few autonomous driving companies can match. In the second quarter of 2025, it reported a net profit of USD 26.4 billion, while Waymo’s total investment to reach its current scale is about USD 12 billion. In an AI sector that demands deep capital reserves, Nvidia’s chip business provides the financial cushion for long-term experimentation in the robotaxi space.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3459164474922630">article</a> was written by Xu Caiyu for 36Kr.

Nvidia is reportedly planning a robotaxi project to challenge Tesla, Waymo

Nvidia

Transportation

Autonomous Vehicles

Mobility

… though it has not yet turned a profit. The company plans to list on Shanghai's STAR Market, often seen as China's equivalent of the US Nasdaq, this year.
Eswin said in its prospectus that it controlled about 7% of global capacity for 12-inch silicon wafers as of the end of last year and is the "leading wafer supplier" for most new chip plants in China. In total, China now accounts for around 15% of global production capacity, Bernstein's Dai estimated. But by 2026, that figure could rise to one-third, with Eswin alone capturing more than a 10% share globally, according to the company.
The company counts China's top chipmakers like SMIC and Hua Hong as key clients, and also serves international players such as UMC, GlobalFoundries, and Powerchip, all makers of mature chips. Eswin logged a net loss of RMB 737.6 million (USD 103.2 million) in 2024, on revenue of RMB 2.12 billion (USD 296.8 million), an increase in the latter of 43.9% compared to RMB 1.47 billion (USD 205.8 million) in 2023.
Eswin says wafer-making requires significant investment and typically takes several years to reach the breakeven point. The company also acknowledged geopolitical risks and says it is striving to use as many locally sourced raw materials and manufacturing equipment as possible.
Other notable Chinese silicon wafer makers include National Silicon Industry Group, which holds more than 6% of the global market, Zhonghuan Advanced, and Hangzhou Lion Microelectronics. National Silicon Industry Group and Hangzhou Lion, like Eswin, reported net losses in 2024. Zhonghuan Advanced is not a publicly traded company. 
Clark Tseng, senior director of market intelligence at Semiconductor Equipment and Materials International (SEMI), said Chinese chipmakers have strong incentives to use more local materials suppliers like wafers. It is believed that non-Chinese chipmakers purchasing these wafers generally use them for test runs, rather than for mass production, he added, but that could soon change.
"It is only a matter of time before Chinese wafer suppliers catch up with global rivals … and they have many Chinese customers to hone their capabilities," Tseng said.
The chip analyst said smaller wafer suppliers may feel the pressure from Chinese competition sooner than the global top three players. "If Chinese chip suppliers can provide a large volume with a certain quality in a particular segment, then the existing suppliers must move up their value chain, developing higher-end solutions to stay in the competition," he said.
Gokul Hariharan, co-head of Asia Pacific technology, media and telecom equity research with JP Morgan, said the trend of Chinese semiconductor companies trying to use more local wafers as they expand capacity is set to continue.
But this does not mean Chinese wafer makers are quickly penetrating the global market, he added. While newcomers can compete relatively easily in wafers used for older chipmaking processes, when it comes to cutting-edge chips, the expertise required is very different. "It's not an apples-to-apples comparison," the chip industry veteran said.
Bernstein's Dai sounded more downbeat about the global market outlook amid an intensifying competitive environment. "The only way to avoid being edged out as competition intensifies is to focus on the most advanced wafers, differentiate and pursue new technologies or applications that can drive fresh demand for silicon."
For Hu, the silicon wafer distributor representative shaken by Chinese price-cutting, China's business environment is already ruthless. "Most players sell products as long as it generates free cash flow, not based on production cost," he said. "They have their own rules of the jungle. To be honest, an elimination race may be coming, and everyone needs to fasten their seat belts."
This article first appeared on <a href="https://asia.nikkei.com/business/technology/tech-asia/in-silicon-wafers-china-s-emerging-local-stars-rattle-global-giants">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

In silicon wafers, China's emerging local stars rattle global giants

Deep Tech

Semiconductors

Japan

… by this expanding base.
Ultimately, Tesla’s long-term vision depends on continued sales growth. As long as investors accept the tradeoff between margins and expansion, Tesla can justify short-term profit sacrifices as part of its strategy to cement long-term leadership.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3504242004860041">article</a> was written by Ding Mao for 36Kr.

Tesla unveils new budget cars to take aim at China’s EV challengers

Tesla

Electric Vehicles

Europe

… When Twinkle Twinkle’s “Savor the Moment” series launched on September 29, its plush keychains sold out almost immediately, reportedly fetching resale premiums of up to 15 times on the Dewu app. On Popop’s mini program, Twinkle Twinkle-themed silver jewelry is priced above standard silver pieces.
Since 2024, market expectations for both Pop Mart and Laopu Gold have been driven largely by the global appeal of their products. As the brands and IPs lose some of their luster, investors are reassessing valuations in what analysts describe as a healthy correction that could help eliminate speculative excess and support long-term growth.
Ultimately, both companies need to strengthen their brand identities to sustain high valuations and price premiums. Only by doing so can they seize new opportunities amid record gold prices and secure fresh momentum for growth. For Pop Mart, breaking into the jewelry segment and reshaping the gold market may prove as challenging as its earlier ventures into film and theme parks.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3504229737733253">article</a> was written by Xie Yunzi for 36Kr.

As gold prices soar, Pop Mart and Laopu Gold take opposite bets on sparkle

East Asia

Retail

Consumer Economy

… aria-level="1">Traditional drug developers are adopting AI tools without building foundational models. They rely on open-source AI and strong lab capabilities to accelerate programs where they already have expertise in targets and indications.</li>
</ol>
Ma said the key metric for evaluating players is their ability to understand and evolve models. While fine-tuned open-source models may achieve strong results, solving real-world discovery problems often requires breakthroughs at the algorithmic level.
Another expert noted that few firms can afford the cost of training foundational models. Compared with language models, biological data is more expensive to generate. One China-based AI firm, backed by a major tech company, reportedly spent tens of millions of RMB synthesizing and testing thousands of AI-generated antibodies, but still lacked the data volume to reach efficiency thresholds.
Wang agreed, saying that firms able to rapidly generate high-quality experimental data will have the strongest models:
<blockquote>“In the past, automation and high-throughput experiments were about improving screening efficiency. In the AI era, they are also about producing structured, iterative datasets that directly feed model training and optimization.”</blockquote>
Algorithms and data remain the twin pillars of AI drug discovery. Commercialization, however, converges on one goal: producing molecules with real therapeutic value and winning buyer recognition through BD deals.
“As things stand, every new drug company will use AI to some degree. For AI-driven pharma firms, building models alone isn’t enough. They must deliver viable molecules to earn value,” Ma said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3443394736051590">article</a> was written by Hai Ruojing for 36Kr.

AI-driven drugmakers fuel wave of cross-border deals in China

Biotechnology

… class="wp-caption-text">Aridge (formerly Xpeng AeroHT) showcased its “Land Aircraft Carrier” (pictured) at Etisalat’s pavilion during GITEX Global 2025. Photo by KrASIA.</figcaption></figure>
<figure id="attachment_157832" aria-describedby="caption-attachment-157832" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157832" src="https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module.jpg" alt="Photo of the air module of Aridge’s Land Aircraft Carrier, on display at GITEX Global 2025." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/10/GITEX-Global-2025-Aridge-Land-Aircraft-Carrier-Air-Module-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157832" class="wp-caption-text">Photo of the air module of Aridge’s Land Aircraft Carrier, on display at GITEX Global 2025. Photo by KrASIA.</figcaption></figure>
Across town, Expand North Star marked its tenth edition with a program emphasizing innovation, capital, and cross-border collaboration. Hosted by the Dubai Chamber of Digital Economy, the event brought together early- and growth-stage startups from sectors such as fintech, digital health, and sustainability.
The four-day showcase concluded with the Supernova Challenge 2.0, described by DWTC as one of the world’s largest startup competitions. South Korean startup AIM Intelligence took the top prize of USD 100,000, while Chucao Technology Consultants from Chile and Aerialoop from Ecuador placed second and third, respectively.
<figure id="attachment_157828" aria-describedby="caption-attachment-157828" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157828" src="https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners.jpg" alt="Photo of the Supernova Challenge 2.0 winners." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Supernova-Challenge-2.0-Winners-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157828" class="wp-caption-text">Photo courtesy of DWTC.</figcaption></figure>
Brazil served as Expand North Star’s first “country partner,” highlighting growing ties between Latin America and the Middle East. Led by ApexBrasil, the country’s trade and investment promotion agency, the partnership brought more than 50 Brazilian startups and innovation hubs to Dubai. Chile and Ecuador also had a strong presence, contributing to what DWTC called the event’s most internationally diverse edition to date.
<figure id="attachment_157827" aria-describedby="caption-attachment-157827" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157827" src="https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion.jpg" alt="Photo of the Brazil pavilion at Expand North Star 2025." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/10/Expand-North-Star-2025-Brazil-Pavilion-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157827" class="wp-caption-text">Photo of the Brazil pavilion at Expand North Star 2025. Photo courtesy of DWTC.</figcaption></figure>
To further extend the global reach of the GITEX event series, DWTC announced plans to expand its annual lineup by launching new editions in Turkey, Brazil, and Serbia. GITEX is scheduled to debut in Istanbul in September next year, followed by Sao Paulo and Belgrade in March and May 2027, respectively. The Brazil edition is positioned as a broader entry into the Latin American market.
In a statement, DWTC said the new locations reflect its mission to bridge emerging markets with the global technology ecosystem. “Our vision is to champion bold, future-shaping innovation on every continent and forge cross-border collaboration, which is especially imperative in the decade of AI,” said Trixie LohMirmand, executive vice president of DWTC and CEO of Kaoun International, DWTC's international arm.
Next year, GITEX Global and Expand North Star will move to Expo City Dubai and shift on the calendar from October to December. The transition will begin with the GITEX Scale Summit on December 7, followed by the main exhibition from December 8–11, 2026.

GITEX Global 2025 wraps in Dubai with strong turnout and new editions on the horizon

Middle East

… Huacang Capital, with continued support from existing investor Monad Ventures. Surgepine Capital acted as the financial advisor. The funding will accelerate development and capacity building in preparation for mass production of its hybrid tiltrotor cargo models. —<a href="https://36kr.com/p/3507049762495616">36Kr</a></li>
<li aria-level="1"><a href="https://www.designorder.cn/zh">DesignOrder</a>, a generative design software provider for industrial applications, has secured an eight-figure RMB sum in a pre-Series B round from Yonghua Capital and GF Xinde Investment, with StarOcean Capital serving as the financial advisor. The funds will be used for product R&amp;D and market expansion, including international outreach. —<a href="https://36kr.com/p/3506932610587778">36Kr</a></li>
<li aria-level="1"><a href="https://www.synapath.com/">Synapath AI</a>, an embodied AI data platform, has raised an eight-figure RMB sum in an angel round co-led by Oriental Fortune Capital and JG Investment. The capital will support ongoing training and scaling of its multimodal embodied data pipelines. —<a href="https://36kr.com/p/3503102458780802">36Kr</a></li>
<li aria-level="1">Anavi, a power systems developer, has secured several million RMB in an angel round solely backed by Clearwater Bay II Fund. The company will use the funds to refine its functional prototype and prepare for subsequent fundraising. —<a href="https://36kr.com/p/3472117191808905">36Kr</a></li>
<li aria-level="1"><a href="https://www.robot-gym.com/">RobotGym</a>, a Shenzhen-based eldercare robotics company, has completed a second extension round worth tens of millions of RMB in angel funding from Leaguer Financial, with Yuanhe serving as the financial advisor. The funds will be directed toward technology iteration, product engineering, pilot deployments in elderly care scenarios, and early market expansion. —<a href="https://36kr.com/p/3501633263164548">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Valtor, Supabase, Yup, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://valtorsolutions.com/">Valtor Solutions</a>, a construction sourcing and procurement firm based in the Philippines, raised USD 700,000 in a pre-seed round led by climate tech venture builder Wavemaker Impact.</li>
<li aria-level="1">Supabase, an open-source backend-as-a-service provider, raised USD 120 million in a Series E round co-led by Accel and Peak XV. The round also saw participation from Figma and existing investors Y Combinator, Coatue, Felicis, Craft, and Square Peg.</li>
<li aria-level="1">Yup, a digital bank based in Southeast Asia, secured USD 32 million in its Series C1 equity round from US-based investors including Moore Strategic Ventures, Spice Expeditions, and Platanus, alongside existing shareholders.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Tim Draper invests in Ryder, Verta raises seed funding, Xendit acquires Payex, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Philippines

Southeast Asia

… influencer marketing, relying instead on slower, community-driven engagement. In the past, this signaled authenticity. Today, it risks irrelevance.
Decathlon built its empire on affordability and a massive integrated supply chain. Its open showrooms doubled as marketing, drawing large numbers of entry-level consumers. But as outdoor shifts toward fashion, that populist approach restricts upward mobility. In 2023, its global revenue grew only 1.15%, prompting a transformation.
Ahead of the 2024 Olympics in Paris, Decathlon rebranded globally, cutting product lines, adding design emphasis, and upgrading its image. The goal was to move upscale while fending off <a href="/company/shein">Shein</a> and <a href="/company/temu">Temu</a> from below. Yet a structural paradox remains: its DNA is scale and cost control, while premium branding relies on scarcity and differentiation. The two are difficult to reconcile. Once the gateway brand for generations, Decathlon now faces the challenge of proving it can remain a choice across consumer tiers.
whereRelatedArticle
If Decathlon is “trapped” in the mass market, Fjallraven is “stuck” in being defined by a single product. The unexpected success of its Kanken backpack in 2012 drove strong sales but also fixed the brand’s image, overshadowing its Swedish heritage and fabric technology.
In response, Fenix Outdoor, which operates Fjallraven in China, began shifting strategy in 2016. It closed bag-focused stores in favor of full-fledged flagship outlets, tweaked classic apparel for local tastes, and launched the more stylish ValleyRiver line to capture Kanken-driven traffic. It narrowed its marketing to hiking and trekking, emphasizing a philosophy of enjoying nature rather than conquering it.
Compared with peers like Anta or Pelliot, its marketing moves remain modest. Lin and global president Alex Koska share the view that pacing, rather than chasing growth at all costs, is more important. The tradeoff is clear: by avoiding influencer-heavy campaigns, Fjallraven risks invisibility in the broader market. Its community-based messaging fosters loyalty among core users but may leave its technical positioning muted beside louder rivals.
<figure id="attachment_157808" aria-describedby="caption-attachment-157808" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157808" src="https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken.jpg" alt="Photo of the iconic Kanken backpack in an icy outdoor setting." width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/10/Fjallraven-Kanken-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157808" class="wp-caption-text">Photo of the iconic Kanken backpack in an icy outdoor setting.</figcaption></figure>
<h3>Final note</h3>
As the tide recedes, a central question emerges: will outdoor growth in China be built on real landscapes or on virtual feeds? So far, the evidence points to the latter. It is efficient, but also precarious, as trends and moods shift quickly.
If outdoor apparel is worn mainly as fashion rather than for activity, the category risks becoming another version of stylized workwear. In that case, the true competitors for outdoor brands will not be one another but Zara, Uniqlo, and luxury labels.
For now, the momentum seems irreversible. Brands have grown reliant on traffic-driven sales, and consumers are accustomed to paying premiums for symbolic value. Outdoor gear is far from essential, and calls to return to functional roots seem unlikely.
The rules of the market have changed, pulling players toward extremes. At one end are the “symbol makers,” racing to create new desires before old ones fade. At the other are the “professionals,” who must abandon mass appeal and focus on smaller, loyal communities.
Those attempting to straddle both walk a narrow path, using technical credibility to support symbolic value and recycling profits into expertise. It forms a loop, but one that is difficult to sustain.
The bets are down, and the sector cannot easily turn back.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3462127217481347">article</a> was written by Wang Li for 36Kr.

In China, the outdoor boom is starting to look more like a fashion cycle than a lifestyle shift

Fashion

Creative