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Consumers in mainland China snapped up affordable products and services in 2024, as they become more budget-conscious in the face of an economic slowdown. But they were still willing to spend on "emotional consumption" to lift their mood or to relax, as reflected in the country's hit products of 2024.
Nikkei has compiled lists of hit products and services in Asia's major economies in 2024, offering a snapshot of economic trends in those countries and regions.
In China, the video game <a href="https://asia.nikkei.com/Business/Media-Entertainment/China-s-Black-Myth-attracts-players-brands-and-game-averse-Communists">Black Myth: Wukong</a> was a smash, selling more than ten million copies in the first three days following its launch on August 20, 2024. Based on the classic Chinese tale Journey to the West, the homegrown game got a boost from state-run media, which gave it extensive coverage to coincide with the launch.
The title, developed by Chinese startup Game Science, is designed for PCs and consoles. It is an unusual hit for the Chinese market, where smartphone games dominate. It also helped lift sales of Sony Group's PlayStation 5 console.
Players are making "pilgrimages" to locations featured in the game. Crowds flocked to a temple in Shanxi, southwest of Beijing, during the October holidays. Visitor numbers during the holidays at major tourist spots in Shanxi jumped 47% from a year earlier to 7.84 million.
A tough labor market and slowing economy are stressing out many Chinese, prompting them to splash out on goods and services aimed at relieving stress and improving mental well-being.
<a title="" href="https://asia.nikkei.com/Business/Media-Entertainment/From-Sony-to-Lenovo-companies-tap-China-s-12bn-fandom-culture" target="_blank" rel="noopener">Anime and manga character goods stores bustled with young people</a>, and the word "guzi" was coined to refer to such items. Japanese characters, including <a title="" href="https://asia.nikkei.com/Editor-s-Picks/Tea-Leaves/China-s-stressed-young-people-find-solace-in-Japanese-manga" target="_blank" rel="noopener">Chiikawa</a> and Haikyu, were among the most popular items.
According to Tokyo-based data analysis specialist Nint, sales of Jellycat stuffed toys, a British character, doubled on the year on Alibaba group's Tmall e-commerce platform in the first 11 months of 2024.
A Chinese research company says the main buyers of Jellycat are between 25–44 years old. It attributes the character's popularity to the growing number of people who want to unwind or feel less lonely, as they face intensifying societal pressures, and often live alone.
Fluffy (real) animals also captured people's hearts. When a pair of giant pandas gifted from the mainland were shown to the public at a zoo in Hong Kong, about 100 people lined up to see them on the first day.
As China's economy lost steam, <a href="https://asia.nikkei.com/Business/Food-Beverage/Yum-China-expands-new-low-priced-eateries-in-sign-of-frugal-times">the restaurant industry expanded the lineup of RMB 9.9 (USD 1.4) food and drink</a> products to attract frugal customers. A cup of coffee at the Cotti Coffee chain and a bowl of soup at hotpot restaurants often go for this price.
Discount stores are also capitalizing on tight consumer budgets. Chinese media report that MMHM Group, a retailer of <a title="" href="https://asia.nikkei.com/Business/Retail/Thrifty-Chinese-consumers-flock-to-discount-snack-shops" target="_blank" rel="noopener">low-priced snacks</a>, doubled the number of its stores to 14,000 over the past year. Many shoppers are also looking for "pingti"—affordable alternatives to brand items—on e-commerce platforms.
In Hong Kong, many shoppers are "tripping north" to <a href="https://asia.nikkei.com/Economy/In-reversal-Hong-Kong-shoppers-flock-to-Shenzhen-to-bargain-hunt">shop and dine on the mainland, where prices are lower</a>. Chinese media report that an outlet of US-based Costco in Shenzhen, is attracting more members from Hong Kong, who can make day trips to the city. The trend is causing headaches for Hong Kong retailers, who face falling foot traffic. Their sales fell, year on year, for eight straight months through October 2024.
Chinese consumers' eagerness to save time, as well as money, was reflected in the popularity of <a title="" href="https://asia.nikkei.com/Business/Business-Spotlight/China-s-minidrama-producers-set-their-sights-on-challenging-Netflix" target="_blank" rel="noopener">short dramas, whose episodes last just a few minutes</a>. The market for these shows is forecast to <a title="" href="https://asia.nikkei.com/Business/Media-Entertainment/China-s-minidramas-make-big-splash-with-6bn-plus-market" target="_blank" rel="noopener">reach RMB 48.4 billion</a> (USD 6.6 billion) in 2024.
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Japanese musicians continued to attract fans elsewhere in Asia, boosting spending of related goods and services. <a href="https://asia.nikkei.com/Editor-s-Picks/Interview/Japanese-guitarist-Miyavi-wants-to-be-a-rock-star-in-China">Rock guitarist Miyavi raised his profile on the mainland</a> after appearing on a show on a video streaming platform affiliated with a state-run broadcaster. He has 1.17 million followers on Chinese social media platform Weibo.
Pop duo Yoasobi performed at a music festival. Other artists, including rock band King Gnu, held concerts in China. Tickets sold out instantly.
The J-pop fever continued in South Korea, too. Yoasobi and singer Kaze Fujii performed in the country. A TV singing contest between Japanese and South Korean singers drew many viewers.
People in Taiwan celebrated their team's victory over Japan in the championship game of the Premier 12 international baseball tournament in November 2024. Tournament merchandise sold briskly, with 100,000 commemorative T-shirts sold in two days.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Business-trends/Chinese-consumers-become-thrifty-but-ready-to-spend-on-relaxation" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Chinese consumers become thrifty but ready to spend on relaxation

Retail

Consumer Services

Hong Kong

… https://console.kr-asia.com/wp-content/uploads/2025/01/China-Hero-Project-The-God-Slayer-480x270.webp 480w, https://console.kr-asia.com/wp-content/uploads/2025/01/China-Hero-Project-The-God-Slayer.webp 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151599" class="wp-caption-text">Poster image for The God Slayer, another title featured in the third phase of the China Hero Project. Image source: China Hero Project via <a href="https://x.com/ChinaHeroPRJCT">X</a>.</figcaption></figure>
Ying Chao (YC): For Unending Dawn, we’re currently expanding the game’s content. This includes adding more levels, combat scenarios, playable characters, and narrative elements. Based on feedback from ChinaJoy playtests and private testing, we’re making further refinements to improve the game’s overall quality and player experience.
<h3>Q: Indie developers seem to prefer platforms like PC or Nintendo Switch for their games, with PlayStation versions often coming later. Why are so few indie titles selected for the China Hero Project? Does this reflect Sony’s stance on indie games, or are there inherent challenges for indie games on the PlayStation platform?</h3>
BB: That’s a great question. First, let me clarify that I can only speak on behalf of the China Hero Project. We don’t receive a large volume of submissions from indie developers—maybe a few dozen in total. While some of these projects show promise, the quality varies significantly.
The selection process for the China Hero Project involves evaluating several key aspects, such as visuals, gameplay, narrative, and technical execution. We don’t impose restrictions on game genres, but the reality is that turning a demo into a polished, market-ready product is a challenge that not all teams can meet.
Additionally, some indie games tackle themes that are difficult for us to support, such as extreme violence or niche, controversial content. Our goal is to help developers obtain official publishing licenses, and such projects can complicate that process. Despite these challenges, we remain open to collaborating with indie developers whose work aligns with our vision and standards.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3115327914823429">article</a> was written by Xue Dexing for 36Kr.

Eight years on, has Sony’s China Hero Project delivered on its promise?

Sony

East Asia

Gaming

Creative

… Chi Minh City said. "It is an easier environment for women to work in than in Japan or other Southeast Asian countries."
Vietnam's declining fertility rate, particularly in the 1990s, has also become a tailwind for spending more money on luxurious items as the economy has grown. Vietnam's fertility rate of 3.6 children per couple in 1990 fell to 1.9 in 2022, the fourth lowest among major ASEAN economies after Singapore's 1, Thailand's 1.3, and Malaysia's 1.8.
Stable domestic politics, relatively cheap labor, and low land costs have all contributed to making the country a very attractive destination for foreign investment for more than a decade. Being located next to China with deep water ports in both the north and south and having good land connectivity to other countries in the Indochina Peninsula are significant advantages. The US-China rivalry has also helped Vietnam position itself as a safe alternative investment destination.
Companies from major sources of foreign direct investment, such as South Korea, Japan, Singapore, and the US, are now not just setting up production bases—they are also realizing that Vietnam is a promising consumer market.
In particular, Japanese companies are increasing their investments targeting Vietnam's upper middle class. <a title="" href="https://asia.nikkei.com/Business/Retail/Japan-s-Takashimaya-targets-wealthy-Vietnamese-shoppers" target="_blank" rel="noopener">Department store Takashimaya</a> plans to build a commercial and office complex in Hanoi in 2027, following the success of its department store in Ho Chi Minh City that opened in 2016.
Real estate giant Mitsubishi Estate started work on four projects in 2024, including large apartment complexes, bringing its total investment in Vietnam to USD 500 million, according to a report by NNA, a Japanese media outlet covering Southeast Asia.
Cosmetics manufacturers like <a title="" href="https://asia.nikkei.com/Business/Consumer/Japan-s-Shiseido-pays-heavy-price-for-dependence-on-China" target="_blank" rel="noopener">Shiseido</a> and Daiichi Sankyo Healthcare are also trying to mine the Vietnamese market, not least because of the economic slowdown in China, where they had been focusing their efforts.
Like many people, Ngoc, the translator, believes the boom is likely to continue, particularly as the "influence of Western consumer thinking about a good life" becomes more pervasive. "People have never had so much money before, they have never had so many opportunities to spend money and show off their wealth," she said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/ASEAN-Money/Luxury-purchases-are-now-mainstream-for-Vietnam-s-booming-consumer-class" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Luxury purchases are now mainstream for Vietnam's booming consumer class

Vietnam

On January 15, the Shanghai United Assets and Equity Exchange announced that Li-Ning has secured the partnership for the Chinese sports delegation’s apparel collaboration from 2025–2028. This marks a significant shift, as Li-Ning replaces Anta Sports as the official sportswear partner for the Chinese Olympic Committee (COC) and its delegates for the next four years.
Later that evening, Li Ning, the founder and chairman of his eponymous company, addressed employees in a rare internal letter. He expressed gratitude for their efforts and highlighted the brand’s commitment to supporting Chinese athletes at major global events, including the 2026 Winter Olympics in Milan and Cortina d’Ampezzo, the 2026 Asian Games in Aichi and Nagoya, and the 2028 Summer Olympics in Los Angeles.
As Li-Ning celebrated, Anta Group, which has partnered with Chinese Olympians for 16 years, issued its own statement. “We will broaden our investment to support the development of a strong sporting nation, continue to provide first-class sports equipment to 25 Chinese national teams, and fully promote our public welfare project ensuring lifelong security for outstanding athletes,” Anta told 36Kr.
On the same day, Anta’s chairman, Ding Shizhong, delivered a speech during the company’s 2024 annual summary meeting. He stressed the importance of a product-oriented culture and underscored the company’s commitment to innovation, stating, “Despite evolving business models, good products remain our foundation.”
<h3>Li-Ning’s return to the Olympic stage</h3>
The last time Li-Ning partnered with the Chinese Olympic Committee (COC) was over two decades ago. In 1990, the brand became a sponsor of the Beijing Asian Games, supplying official apparel for the torch relay and podium attire for the Chinese national team. Between 1992 and 2004, Li-Ning outfitted Chinese sports delegates at the Barcelona, Atlanta, Sydney, and Athens Olympics.
For the 2008 Beijing Olympics, however, Adidas won the Chinese delegation’s apparel contract with a RMB 1.3 billion (USD 182 million) bid. Despite this, Li Ning’s iconic moment—lighting the Olympic cauldron while “flying” through the air—stole the show and left many believing his namesake brand was the official sponsor.
When Adidas’s contract expired in 2009, Anta emerged as the COC’s partner, securing the 2009–2012 cycle with a USD 70 million bid. Anta’s partnership endured for 16 years, during which the company experienced a meteoric rise. Its revenue grew from RMB 5.87 billion (USD 821.8 million) in 2009 to RMB 62.36 billion (USD 8.7 billion) in 2023. The acquisition of Amer Sports during this period underscored Anta’s transformation into a global player, while the brand’s prominence at the 2022 Beijing Winter Olympics cemented its reputation in winter sports.
Industry experts agree that sponsoring the COC significantly bolstered Anta’s international standing, unlocking opportunities at premier global events. Zhang Qing, founder of sports consulting firm Key-Solution, said that Anta’s COC sponsorship played a pivotal role in elevating its brand value, especially as younger consumers embraced national pride. In Zhang’s view, involvement in major events like the Olympics allows professional sports brands to demonstrate their capabilities and positioning.
For the 2025–2028 cycle, Li-Ning secured the COC partnership for approximately RMB 800 million (USD 112 million), according to Lanxiong Sports. This significant investment marks a return to its roots as a professional sports brand, building on its leadership in the domestic “China-chic” fashion trend.
<h3>Diverging strategies: Single brand versus multi-brand</h3>
Li Ning, the company’s founder, has consistently reiterated the brand’s original mission: “My purpose in founding Li-Ning was to create a professional sports brand that supports China’s sports development and integrates the spirit of sports into the company’s operations.” His focus on a “single-brand, multicategory, multichannel” strategy contrasts sharply with <a href="https://kr-asia.com/from-fila-to-descente-how-antas-global-play-is-reshaping-the-sportswear-market">Anta’s multi-brand approach</a>.
In 2009, Anta acquired exclusive rights to the Italian brand Fila in Greater China for RMB 460 million (USD 64.4 million), kickstarting its multi-brand strategy. Over time, Fila became Anta’s top revenue generator, contributing more than half of its total revenue. This paved the way for acquisitions of brands like Kolon Sport, Descente, and Amer Sports. By early 2024, Descente’s operating profit margin had exceeded 30%, with Ding anticipating it to become the company’s third brand to surpass RMB 10 billion (USD 1.4 billion) in annual revenue.
Analysts often cite Anta’s diversified portfolio as a strength, providing resilience against market risks, while the flagship brand remains central to its identity.
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In contrast, Li-Ning’s approach has centered on building its namesake brand. Since launching the “China Li-Ning” fashion line in 2018, the company’s brand value has surged, making it a formidable domestic competitor. However, the China-chic trend has waned as consumer preferences evolve, presenting a challenge for Li-Ning to maintain momentum across fashion and niche sports products.
In response, Li-Ning has doubled down on sports technology. Over the past decade, the company has invested more than RMB 3 billion (USD 420 million) in R&amp;D to enhance its capabilities. “We must continue investing in sports research and professional product development,” said Li in his letter to employees. “Our goal is to provide athletes with world-class gear, enabling them to excel in training and competition.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3125139803527171">article</a> was written by Xie Yunzi for 36Kr.

Li-Ning reclaims Olympic partnership as Anta’s 16-year streak ends

Anta

Li-Ning

… every week, shipping approximately five million parcels daily from China to destinations worldwide.
<h3>36Kr: What drove Cainiao’s focus over these past five years?</h3>
XW: The cross-border logistics market itself presented the opportunity. If overseas consumers wanted to buy Chinese products, they typically only had two choices. They could choose slow and outdated national postal services, costing USD 1–2, or go with faster services like DHL or FedEx that deliver in about three days but charge around USD 100—an expense most consumers wouldn’t justify. By building our own logistics network, we struck a balance between cost and efficiency, meeting the needs of the average consumer.
<h3>36Kr: What services and pricing does Cainiao currently offer?</h3>
XW: In mid-2020, we launched our “USD 5, ten-day delivery” service, which now covers a wide range of global markets. Early last year, we introduced the “USD 10, five-day delivery” option, available in about a dozen major markets. These two services have become our most popular offerings.
<h3>36Kr: Is the five-day delivery service for AliExpress financially viable?</h3>
XW: Right now, shipping costs and the logistics fees paid by merchants and consumers don’t exactly match up, but we’re fine with letting users pay less for the moment to try out better service. Data shows that our five-day service, compared to similar packages arranged by other providers, often has a clear cost advantage.
<h3>36Kr: How do other Chinese cross-border e-commerce platforms stack up in terms of delivery speed?</h3>
XW: It depends on each platform’s logistics strategy. Amazon, for example, primarily focuses on ten-day deliveries and hasn’t yet moved to introduce five-day options. In contrast, platforms like AliExpress, Temu, and Shein have collectively raised the industry standard by emphasizing five- and ten-day delivery options.
With Chinese products already excelling in price and quality, ongoing advancements in logistics are poised to further encourage overseas consumers to increase their purchases.
<h3>36Kr: What are Cainiao’s current cross-border parcel volumes?</h3>
XW: We now handle about five million parcels a day, which is around one-third of all cross-border export packages leaving China. The other two-thirds come from other platforms and smaller shipments. Globally, if you compare us to top logistics companies like FedEx and DHL, they each process roughly one million parcels daily.
<h3>36Kr: How big a share of Cainiao’s export volume does AliExpress command?</h3>
XW: AliExpress is a key client of Cainiao. We have an entire team dedicated to supporting it with custom logistics solutions. We also have another team serving other market clients.
<h3>36Kr: We’ve heard that Cainiao is working to cooperate more with companies like Temu and Shein. Any updates?</h3>
XW: AliExpress is a major client, but we also collaborate with other platforms in specific service areas. These partnerships leverage our logistics network to achieve scale and efficiency.
<h3>36Kr: Does this suggest that internet giants are less competitively rigid with one another now?</h3>
XW: In the past, the focus was largely on strategic defense. Today, the approach is more commercially and market-driven. By allowing more players to leverage Cainiao’s logistics network, we not only achieve better economies of scale but also contribute to upgrading the entire supply chain.
<h3>36Kr: 2024 marks the start of a new five-year plan for Cainiao. What’s next?</h3>
XW: We will keep expanding our global network of major hubs to go beyond just import and export. We’re also investing in large-scale local courier services overseas, such as routes from the Middle East to Europe or from North America to South America, with the goal of building a truly worldwide network. This marks Cainiao’s 3.0 phase.
We’ve already established at least ten local networks worldwide. In Spain, for instance, we handle last-mile deliveries from China to Spain, as well as shipping within Spain and from Spain to France, Poland and other countries.
<h3>36Kr: The “four little dragons” have been aggressively expanding overseas, and AliExpress has risen in importance within Alibaba. How is Cainiao handling these added demands?</h3>
XW: AliExpress has been around for over a decade, and growth took off after the pandemic. Competition is intensifying, but we are collectively enlarging the market for cross-border e-commerce, which is a healthy trend.
Late last year and early this year, we also updated our operating mechanisms: Cainiao and AliExpress signed a framework agreement for a customized solution, simplifying our commercial relationship and enabling more efficient solutions for merchants and consumers alike.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3113457470754562">article</a> was written by Peng Qian for 36Kr.

How Cainiao slashed global delivery times to five days

Cainiao

On-demand Services

E-commerce

Logistics

<h3>Aevice Health secures funding from Denka and Elev8.vc</h3>
Aevice Health, a Singapore-based medtech company, has raised an undisclosed amount of funding from Denka and Elev8.vc. The company specializes in advanced respiratory monitoring solutions, including AeviceMD—a wearable smart stethoscope designed for managing conditions like asthma and chronic obstructive pulmonary disease.
The new funding will support Aevice’s global expansion and bolster its R&amp;D capabilities. AeviceMD, approved for use in Singapore and the United States, enables remote health monitoring by providing actionable insights for healthcare professionals.
This investment follows two funding rounds last year. In May 2024, Aevice <a href="https://kr-asia.com/deals-in-brief-humble-bags-additional-funding-ad-invests-in-aevice-health-recyclesmart-crowdfunds-usd-1-15-million-and-more">received USD 1 million</a> from Japanese medtech manufacturer A&amp;D. Later, in August, it <a href="https://kr-asia.com/deals-in-brief-aevice-health-and-reforged-labs-raise-funding-payoneer-acquires-singapore-based-skuad-six-china-deals-and-more">raised USD 7 million</a> in a round led by Coronet Ventures, with participation from East Ventures and SG Growth Capital.
<h3>Temasek’s GenZero invests in BeZero Carbon</h3>
BeZero Carbon, a London-based carbon ratings agency, has closed a USD 32 million Series C funding round led by Temasek-founded GenZero, with additional support from Japan Airlines and the Translink Innovation Fund.
The round also saw participation from existing investors EDF Pulse Ventures, Hitachi Ventures, Illuminate Financial, ICE, Molten Ventures, Qima, and Quantum Innovation Fund.
Established in 2020, BeZero provides independent, risk-based carbon ratings and risk management tools to aid businesses in investment decision-making. The company operates subsidiaries in New York and Singapore.
The new funds will enable BeZero to expand its coverage across compliance markets and enhance its automation and data analytics capabilities, utilizing AI to scale its ratings and insights.
<h3>Airwallex completes acquisition of MexPago</h3>
Airwallex, a cross-border fintech platform, has completed its acquisition of MexPago, a licensed electronic payment fund institution based in Mexico. Initially announced in October 2023, the acquisition’s closure follows regulatory and customary approvals, cementing Airwallex’s entry into the Latin American market.
This acquisition provides Airwallex with localized infrastructure to assist Mexican businesses and facilitate cross-border transactions for customers entering the region.
MexPago CEO and founder Luis Castillejos Ordaz will assume the role of Mexico country manager for Airwallex, spearheading growth initiatives and client onboarding.
Separately, Airwallex has also obtained a payment institution license from Brazil’s central bank, enabling operations in the region’s two largest economies.
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<h3>W Capital Markets completes Series B round to expand corporate finance services</h3>
W Capital Markets, a Singapore-based corporate finance firm, has completed a Series B funding round with contributions from various investors, including a family office, business executives, and existing backers. Specific investor names were not disclosed.
Founded in 2018 by investment banker Wayne Lee, the firm holds a capital market services license in Singapore. It is also an accredited SGX Mainboard IPO issue manager and a Catalist continuing sponsor authorized by Singapore Exchange Securities Trading Limited.
The capital will be used to expand W Capital’s advisory services, with a focus on supporting companies seeking listings on international exchanges, such as Nasdaq.
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<h3>Skor, MetAI, Hitems, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Skor Technologies, an Indonesian fintech company, confirmed it raised USD 6.2 million in a pre-Series A funding round led by Argor Capital. The round also saw participation from QED Investors, Saison Capital, and new backer Digital Currency Group.</li>
<li aria-level="1"><a href="https://www.met-ai.net/en">MetAI</a>, a digital twin solutions provider, raised USD 4 million in seed funding, with participation from Nvidia, Kenmec Mechanical Engineering, Solomon Technology, SparkLabs Taiwan, Addin Ventures, and Upstream Ventures.</li>
<li aria-level="1"><a href="https://hitems.ai/">Hitems</a>, an AI-driven design platform founded by Ren Lifeng, a former ByteDance executive, secured an eight-figure RMB sum in a pre-Series A funding round. Meituan’s DragonBall Capital led the round, with participation from Jinqiu Fund, HongShan, and IDG Capital.</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: Aevice Health secures new funding, Temasek’s GenZero invests in BeZero Carbon, Airwallex completes acquisition of MexPago, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Latin America

<a href="/company/alibaba">Alibaba</a> is recalibrating its artificial intelligence strategy for consumer-facing businesses. According to independent sources cited by 36Kr, the company’s smart connectivity division is now overseen by Wu Jia, president of Alibaba’s intelligent information business group. Established in 2022, this division, anchored by the Tmall Genie brand, is one of Alibaba’s few hardware-centric consumer initiatives. The division will continue to operate independently, with Song Gang, head of Tmall Genie’s business center, reporting directly to Wu.
In parallel, the Tmall Genie hardware team has started collaborating with Quark’s product team to shape the next generation of AI products. This partnership leverages Quark’s AI expertise to explore innovations like AI-powered smart glasses.
Alibaba did not respond to 36Kr’s requests for confirmation regarding these developments.
The restructuring reflects Alibaba’s broader efforts to organize its consumer-facing AI initiatives more effectively. In December 2023, the Tongyi AI application team was moved from Alibaba Cloud to the intelligent information business group under Wu’s leadership. This move appears to be part of a larger strategy to centralize its AI resources.
These moves also reflect CEO Eddie Wu’s broader leadership overhaul. Since 2024, Wu has been refreshing Alibaba’s management, prioritizing individuals born in the 1980s and 1990s to lead core initiatives. Wu’s expanded responsibilities signify his role as a key figure in Alibaba’s evolving AI strategy.
The intelligent information business group has become a focal point for Alibaba. In addition to Tongyi and Tmall Genie, the group oversees Quark, Shuqi Novel, UC Browser, and the Chaoji Huichuan advertising platform. Notably, Quark has transformed from a browser into a platform offering AI-powered search and educational tools.
This integration combines AI content, applications, and hardware into a unified framework. Foundational models rely on large volumes of interaction data and content, and this approach may help Alibaba better coordinate its AI operations.
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Tmall Genie, launched in 2017 under Alibaba’s AI Labs, was initially central to the company’s internet-of-things strategy. Inspired by the global rise of smart speakers—kickstarted by Amazon’s Echo in 2014—the brand quickly became a contender alongside Baidu’s Xiaodu and Mobvoi. Internationally, it competed with Amazon’s Alexa and Apple’s HomePod. However, as smart speaker sales peaked in China in 2020 and subsequently declined, Tmall Genie shifted focus.
In 2022, the brand broadened its focus by becoming part of Alibaba’s intelligent internet business group. This move sought to integrate the company’s consumer-facing artificial intelligence-of-things (AIoT) ecosystem. Tmall Genie shifted toward B2B markets, building industry alliances and providing partners with AIoT solutions. By that year, the AliGenie system reportedly reached 40 million households, established partnerships with 1,000 IoT platforms, and supported 460 million devices.
Advances in foundational AI models, particularly in conversational interactions and intent comprehension, have rejuvenated the IoT and AI hardware segments. Tmall Genie has been quick to seize this opportunity. In May 2024, it launched the X6 smart device, integrating foundational AI services from Quark and other Alibaba divisions. A new sub-brand, XGenie, introduced products like AI-powered smart glasses, portable smart speakers, and children’s smart tablets.
This evolution reflects broader trends in China’s AI landscape. After an initial push in 2023 to develop foundational models akin to OpenAI’s GPT, the focus in 2024 shifted toward practical applications and deployment. By 2025, attention has turned to AI hardware, with smart glasses and other wearables gaining traction, as seen at the Consumer Electronics Show (CES).
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3119821661442054">article</a> was written by Yong Yi for 36Kr.

Alibaba taps AI for consumer growth, pairs Tmall Genie with Quark

Alibaba Cloud

Artificial Intelligence

Deep Tech

Artificial intelligence

… Pony.ai. I met its founders, Lou Tiancheng and James Peng, when the team was just ten people. At the time, they were valued at USD 100 million, raising USD 20 million. I thought it was expensive, hesitated, and looked at competitors. When I circled back, its valuation had already risen. Later, I realized this: autonomous driving can generate explosive revenue—it’s not just a valuation game.
Revenue and profit are signaled by certain factors. You have to be bold and dive in.
<h3>36Kr: Is the signal about market size?</h3>
HH: Market size doesn’t require a signal. Signals are about the repeatability of small-scale use cases.
<h3>36Kr: Venture capital is often hierarchical. Does your previous position weigh on you?</h3>
HH: I was born in 1982. I’m still young. What baggage could I possibly have?
As a child, I tinkered with radios and telegraphs with Zhou Haiying, the son of Lu Xun. That experience inspired me to study electrical engineering at Shanghai Jiao Tong University. Later, I worked at Microsoft China, McKinsey, and co-founded a fund. Building on what I’ve learned, I’m now dedicating my resources and experience to a new fund. There’s no baggage.
The past 20 years were a time of thriving growth for China’s internet and tech sectors. My career—from an engineering student to a high-tech investor—has been in sync with this era. Those two decades have concluded, and a new journey begins. Moving forward, I aim to keep my mind sharp and my heart even sharper.
<h3>36Kr: Why name the firm Soul Capital?</h3>
HH: Investing with heart is just the most basic layer. Over the next two or three decades, I hope not only to support entrepreneurs with money but also to become a "co-cultivator" of their spirit—supporting them with “soul power.” The most important thing in life is having heart: truly feeling what you want to do and who you want to work with.
<h3>36Kr: That sounds a bit abstract.</h3>
HH: Let me give you an example. Is Elon Musk successful solely because of his personal brilliance? Not entirely. He brings together some of the best people who are as crazy as he is to work on Tesla and SpaceX. How does he convince them? Is it just his intellect? No, it’s his belief—an almost infuriating yet deeply inspiring savior conviction. Does that belief come from his brain? No, it comes from his heart.
<h3>36Kr: Among the entrepreneurs you’ve invested in, who has given you that "soulmate" feeling?</h3>
HH: Many. For example, Zhang Hui, the chairman and CEO of Full Truck Alliance, with whom I’ve had countless conversations about personal spiritual growth.
Another is He Xiaopeng, the chairman of Xpeng. I didn’t invest in Xpeng just because he’s good at building cars. Once, he told me, "I don’t want my child to ask me someday what I’ve done in life, and all I can answer is that I created a mobile browser."
The root reason I invested in them is that their passion and belief resonated with me.
<h3>36Kr: How can you see into someone’s heart?</h3>
HH: By allowing yourself to be imperfect and vulnerable, only then can you see others’ authenticity. Be your true self.
In 2008, when I first entered the industry, I wore suits and ties every day because the most powerful figures in this field were all older men. If someone called me young, I’d take it as an insult. Today, I’ve come to terms with myself. Instead, I’m grateful that, as a GP, I’m still considered young. Youth has something elders can’t possess: time.
<h3>36Kr: Looking back over two decades of RMB fund development in China, we’ve noticed that no matter how exceptional a GP is, their decisions always revolve around survival. Has this changed in the current climate?</h3>
HH: Let me answer that with a number. Over the past few years, I’ve personally invested tens of millions into Soul Capital. This is clearly not about survival but about the meaning of life for the next 20 years.
Today’s VC industry is entering a more segmented phase. Those entering now will need much stronger foundations to survive. These include capability, financial resources, and heart for the business. Without these, you won’t make it.
<h3>36Kr: In previous public statements, you’ve mentioned missing out on investments in companies like Didi, Meitu, and Kuaishou. Is Soul Capital your way of proving yourself?</h3>
HH: I don’t need to prove myself. Yes, I’ve missed many opportunities. But even when I’ve done well, like with Xpeng or Full Truck Alliance, is it because I’m extraordinary? No, it’s because I was lucky enough to join the game. As investors, our contribution is often no more than a percent.
That said, investing still holds meaning in life. Its significance lies in the privilege of sharing this journey with excellent peers, co-cultivating a temple of life.
<h3>36Kr: One last question. Over these challenging years, what has been the hardest thing for you?</h3>
HH: Let me share a memory that has stayed with me over the past few years. Shortly after Shanghai lifted its Covid-19 lockdowns, everyone around me was getting sick. I took my parents to Mount Longhu in Yingtan, Jiangxi. That day, there were only ten people on the entire mountain. Can you imagine? Sunshine, birdsong, no other noise, just family, hope, and love. In that moment, I felt a profound sense of gratitude.
The power of love can transform grief and pain into gratitude and curiosity. You’ve asked me several times what was hardest. My answer is: using a loving heart to understand the world.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3111976959807236">article</a> was written by Chen Zhiyan for 36Kr.

Lightspeed veteran Herry Han bets on China with new VC fund

Shengshu Technology has rolled out Vidu 2.0, the latest version of its video generation platform, designed to make content creation faster, easier, and more affordable. The update enables users to generate video clips in as little as ten seconds while cutting costs by more than half compared to industry averages.
Central to Vidu 2.0 is Shengshu’s universal vision transformer (U-ViT) model, combined with its proprietary full-stack interference accelerator. These innovations allow the platform to deliver high-quality videos at speeds and costs previously unattainable in the market.
With industry-standard costs averaging USD 0.084 per second of video, Vidu 2.0 offers a generation rate of approximately USD 0.0375 per second—55% lower than the norm and half the cost of its predecessor, Vidu 1.5.
<figure id="attachment_151675" aria-describedby="caption-attachment-151675" style="width: 320px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-151675" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Reference-to-Video.gif" alt="" width="320" height="180" /><figcaption id="caption-attachment-151675" class="wp-caption-text">Shengshu’s “reference-to-video” feature ensures consistency in subjects, settings, and visual styles by using select imagery as reference points. This may be valuable for creators in dynamic formats like films and games, where coherence is critical. GIF source: Shengshu.</figcaption></figure>
The update also introduces a new feature offering templates (preset prompts) to simplify video creation. Users can add detailed actions or props with just a few clicks, bypassing the need to manually write prompts. For example, an outfit or setting can be applied directly from the preconfigured library, making the platform accessible even for beginners. Shengshu plans to expand the template library over time, offering users more options for their projects.
<figure id="attachment_151674" aria-describedby="caption-attachment-151674" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-151674" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates-1024x448.jpg" alt="" width="1024" height="448" srcset="https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates-1024x448.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates-300x131.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates-768x336.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates-1536x672.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/01/Shengshu-Vidu-AI-Templates.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151674" class="wp-caption-text">Vidu users can select from a range of templates to simplify and streamline video creation on the platform.</figcaption></figure>
Vidu 2.0 represents a step toward Shengshu’s broader vision of enabling AI-driven storytelling that dynamically adapts to creators’ choices.
Founded in March 2023, Shengshu specializes in deep generative models, combining diffusion techniques and transformers for multimodal applications. The company transitioned from research to commercialization with the initial release of Vidu in July 2024. Shengshu also developed VoxCraft, a 3D asset generation platform.
Vidu’s advancements come as generative AI tools gain global traction. Last month, OpenAI’s Sora expanded public access, and Google integrated its latest video model, Veo 2, into its VideoFX tool, which is currently available to select users with a public waitlist. In China, Shengshu <a href="https://kr-asia.com/can-shengshus-vidu-ai-text-to-video-generator-outcompete-its-rivals">faces competition</a> from domestic players such as Kuaishou’s <a href="https://kr-asia.com/kuaishous-kling-ai-video-generator-launches-globally-to-challenge-openais-sora">Kling AI</a>, MiniMax’s <a href="https://kr-asia.com/minimaxs-hailuo-ai-text-to-video-generator-how-does-it-stack-up">Hailuo AI</a>, and ByteDance’s Dreamina.

AI video generation just got faster and cheaper with Shengshu’s Vidu 2.0

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