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… NPCs have distinct personality traits, motivations, and life goals. Their routines shift with changing circumstances, like time of day or life events, and interactions with players can influence future actions. For instance, a single player choice could lead to a change in an NPC’s lifestyle.</li>
<li aria-level="1">Social simulation: These characters work, socialize, shop, and take part in community events. They can also be folded into player-created storylines, mirroring the social complexity of real urban life.</li>
<li aria-level="1">Generative storytelling: AI-powered narratives ensure each player has a unique experience. Different NPCs generate different arcs and events, continually shaping the world around them.</li>
<li aria-level="1">Natural dialogue: Players can have natural conversations with NPCs like they would with a chatbot, and receive relevant, often surprising, responses.</li>
</ol>
“With Nvidia’s technology, we wanted to give players a new way to view and shape city life—to really live in the world they build,” one developer said.
<figure id="attachment_152502" aria-describedby="caption-attachment-152502" style="width: 1080px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-152502" src="https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim.jpg" alt="Hyungjun Kim, the director leading the development of InZoi." width="1080" height="720" srcset="https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim.jpg 1080w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-768x512.jpg 768w" sizes="(max-width: 1080px) 100vw, 1080px" /><figcaption id="caption-attachment-152502" class="wp-caption-text">Hyungjun Kim, the director leading the development of InZoi. Photo source: Krafton.</figcaption></figure>
You can turn Smart Zoi on or off. When it’s active, NPCs consider everything from household income to romantic tension when making decisions. One might skip lunch to catch a museum exhibit, and the system will even tag this as an “exception,” complete with in-game reasoning.
In some cases, the emotional nuance can be startling. In one Bilibili test video, an NPC family seemed off—frequent fights, no jobs, visibly distressed child. It turned out they were grieving a lost child.
InZoi doesn’t just simulate. It lets you play puppet master. With a tool called the “Zoi Pen,” players can assign characters specific goals by typing short instructions. Tell one NPC to chase a Hollywood dream, and that becomes its life goal. Instruct another to pick fights for no reason, and it’ll gladly take up the role of neighborhood menace.
<h3>GPU meltdown and mood swings</h3>
For all its ambition, Smart Zoi doesn’t come cheap. It’s a resource hog, and its complexity can push even high-end hardware to the brink.
On top-tier setups with RTX 5080 cards, frame rates reportedly drop from 120 to 45 when the feature is switched on, according to 36Kr. On mid-end rigs like the RTX 3070, crowded scenes can at times devolve into jagged slideshow nightmares. Even players running RTX 4090Bs—the cream of the crop—have reportedly seen frame rates sink below 20 FPS. No wonder InZoi has earned the nickname “GPU killer” on Bilibili.
Some settings let players dial down Smart Zoi’s load, limiting it to on-screen characters or capping the queue size. Early reports, however, suggest the performance hit remains significant.
Then there’s the emotional logic. NPCs can swing from joy to rage without warning. One reviewer watched a character go nuclear after stepping in a puddle. Emotional realism? Not quite.
Much of that unpredictability stems from Krafton’s proprietary gaming small language model (GSLM), a lightweight, locally run alternative to cloud-based large language models (LLMs) used by platforms like ChatGPT and DeepSeek. Built to avoid lag and server dependencies, GSLM powers everything from Smart Zoi to Psycat, the in-game feline assistant that fields player questions.
InZoi might be the first game to fully run a system like this on local devices, and that ambition comes through. So do the cracks. Still, even when things go off the rails, the promise of what AI could bring to gaming is hard to miss.
<h3>What’s next?</h3>
When ENIAC, the world’s first general-purpose computer, debuted in 1946, it filled a room and weighed 30 tons. Now, a smartphone in your pocket is vastly more powerful.
Tech history follows a pattern: things shrink, become accessible, and eventually feel indispensable. InZoi may be clunky, demanding, and rough in parts—but it signals where gaming might go next.
If AI can move beyond simulating life to actually experiencing and reacting to it, then we might not be that far from digital consciousness—or at least to characters that behave with unsettling realism. What happens then, when your NPC becomes more interesting than you?
That’s a question for another rainy weekend.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3248594734276870">article</a> was written by Liu Chongjiang for 36Kr.

InZoi is what happens when The Sims meets AI, and the results are gloriously unstable

Artificial Intelligence

Gaming

Deep Tech

Creative

South Korea

… clips and expects to reach 200 million by year-end. It also recently completed a working demo of vehicle control using a distilled foundation model on aftermarket computing hardware. Early results were, in the words of one insider, “surprisingly competent.”
To support its model ambitions, Xpeng has built China’s first ten-exaflop automotive computing cluster. The system reportedly runs at over 90% efficiency around the clock.
Xpeng is betting on the scaling law: bigger models, better data, better performance. It plans to roll out Level 3 self-driving features in the second half of 2025 and begin Level 4 trials by 2026.
But this next phase of autonomy won’t be defined by chips or software alone. Talent matters just as much. Xpeng’s foundation model program is led by its North America-based AI team. Xiaomi, another EV contender, just brought in Chen Long from UK-based Wayve to jumpstart its own VLA push.
It’s an arms race on all fronts: compute, code, capital, and capability. And with Turing hitting the streets, Xpeng just gave itself a fighting chance to lead again.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3249948263293186">article</a> was written by Li Anqi for 36Kr.

Xpeng’s Turing AI chip nears mass production, takes aim at Nvidia

Xpeng Motors

East Asia

China

Transportation

Autonomous Vehicles

Electric Vehicles

Mobility

On March 25, <a href="/company/kuaishou">Kuaishou</a> opened its earnings call for the fourth quarter and full year of 2024 with a familiar overture: <a href="/industry/ai">artificial intelligence</a>. It wasn’t just a buzzword sprinkled in the report, but the headline. CEO Cheng Yixiao made it clear that the company’s future would hinge on AI, not merely as a tool for optimization, but as a force capable of generating new revenue and carrying Kuaishou through the tech cycle’s ups and downs.
That bet is starting to show returns. For the first time, Kuaishou disclosed revenue from Kling, its video generation model: over RMB 100 million (USD 14 million) as of February 2025. It’s a modest figure in the grand scheme of things, but it signals that the company is moving toward monetization, not just moonshots.
Kuaishou’s approach to AI is a two-pronged strategy: supercharge existing businesses while carving out new traffic gateways.
On the user side, AI is sharpening the platform’s recommendations. In Q4 2024, the app reached 401 million daily active users (DAUs) and 736 million monthly active users (MAUs), up 4.8% and 5% year-on-year (YoY), respectively. That’s no small feat in a market where user growth has largely plateaued. According to the company, large models now analyze everything from short videos and livestreams to comment threads and individual interests to serve up stickier recommendations.
AI is also reshaping Kuaishou’s revenue engines: advertising and e-commerce. Its automated ad solution, Universal Auto X (UAX), was cited as a key driver of growth. Online marketing revenue rose to RMB 20.6 billion (USD 2.9 billion) in Q4, a 13.3% increase. For the full year, ad revenue reached RMB 72.4 billion (USD 10.1 billion), up 20.1%. The share of UAX-driven ad spend in external-facing campaigns surpassed 55%, up five percentage points from the previous quarter.
But the strongest signal of generative AI’s traction came from daily ad spend on AI-generated content (AIGC), which reached RMB 30 million (USD 4.2 million) in Q4—up about 50% from the previous quarter. That puts total quarterly AIGC spend at roughly RMB 2.76 billion (USD 386.4 million), accounting for 13.4% of total ad revenue.
For all its behind-the-scenes enhancements, Kling is the showpiece. In Q4, Kuaishou launched version 1.6 of the model and rolled out a <a href="https://kr-asia.com/kuaishous-kling-ai-video-generator-launches-globally-to-challenge-openais-sora">standalone Kling app</a>—an effort to create a new consumer entry point. During a government press briefing in March, Kling was name-checked by Chen Changsheng from the State Council Research Office, who said its performance had already outpaced <a href="/company/openai">OpenAI’s</a> Sora in certain evaluations. Alongside Unitree’s dancing robots and <a href="/company/deepseek">DeepSeek’s</a> global rise, Kling has emerged as one of the poster children for China’s AI ambitions.
Cheng framed Kling as more than a feature, describing it as Kuaishou’s tool to reimagine content creation while defending its turf as a short video heavyweight.
There’s a flipside. Kuaishou’s e-commerce GMV (gross merchandise value) hit RMB 462.1 billion (USD 64.7 billion) in Q4, up 14.4% YoY. That’s slower than the 15.1% growth in Q3—and well below the 20–30% pace of 2023. The deceleration heightens the urgency to diversify, and AI is the company’s strongest card.
Still, investors remain cautious. Kuaishou’s R&amp;D spend in 2024 was RMB 12.2 billion (USD 1.7 billion), essentially flat YoY. That pales in comparison to ByteDance, whose AI-related capital expenditures reportedly reached RMB 80 billion (USD 11.2 billion), according to a research note from Zheshang Securities cited by local media.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3249725268599046">article</a> was written by Lan Jie for 36Kr.

Kuaishou turns to AI—and Kling—to stay sticky in a flatlining market

Kuaishou

Entertainment

Short Video

Live Streaming

Video

Content

… href="https://www.fiercepharma.com/pharma/trumps-liberation-day-tariffs-seem-spare-pharma-threat-industry-specific-duties-and">Fierce Pharma</a> “it’s not that simple,” citing the unlikelihood of being able to fully relocate the manufacturing of drugs to the US or another territory with lower tariffs.
Some see opportunity in the upheaval. One industry insider noted that while the US is still the most profitable pharmaceutical market, demand for medicine spans every corner of the world. Tapping into new regions like Europe or Southeast Asia could inject fresh momentum.
Hybio Pharmaceutical, for one, said it has been weighing such moves for some time and is closely watching how the situation unfolds, aiming to lessen its reliance on the US.
Chinese firms, in fact, have weathered tariff shocks before. When the US hiked duties on Chinese syringes, respirators, and medical gloves in 2024, many companies responded by ramping up overseas production and steering toward more diversified markets.
“For now, we’ll wait and see. Tighten the belt, hold steady for two more years,” said Liang Yu. “By the next midterm elections, maybe things will be clearer.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3245311172263554">article</a> was written by Hu Xiangyun for 36Kr.

Chinese drugmakers weigh options as US mulls pharma tariffs

Biotechnology

Health Tech

… people in countries like Vietnam become better off.
"More and more people are caring about their mental health. If you are by yourself it's more fun to have pets," said Le, 35, who spends around VND 2.5–3 million (USD 96.9–116.3) per month on her cats. "It's nice to have pets waiting on you when you come home from work. It's also for parents to teach their kids about caring and sharing."
"In the past, Vietnamese were so poor we only care about feeding our family. But now we also care about our mental health … so this explains why this industry grows quickly. I think it's also because of our strong economic growth compared to the region."
Pet humanization in places like Vietnam has also shown up in the way consumers feed their animals, moving from feeding pets table scraps to buying food targeted at animal nutrition. In a 2024 Euromonitor survey, 20% of respondents in the Asia Pacific region said they feed their pets table scraps on an everyday basis, down from 25% in 2021.
Vietnam's pet care market is comparatively small in the region, but is among those tipped by Euromonitor for the strongest growth -- just over a third in 2024–2029. At the other end of the scale sits Japan, a very large, highly developed pet care market but one seen growing a meager 0.9% a year over 2024–2029.
Japan has long been known as a center for premium pet goods, from strollers for dogs to Chanel leashes and collars. But it's also a country where the number of household pets has outstripped the number of children under 14 for decades as its society rapidly ages.
"In general, the performance of the pet care industry is closely tied to the number of households," Euromonitor consultant Megumi Matsunaga told Nikkei. "The number of households in Japan has been increasing, even as the population declines. This trend is expected to reverse in the early 2030s. … This demographic shift is likely to negatively impact the performance of the pet care industry."
Demographics and decisions not to have children, for financial or other reasons, play a part in many choices to acquire pets across the region.
In Malaysia, nearly two-thirds of households have pets, according to a study by Global Pets—primarily cats, as dogs are considered "unclean" or impure according to Islam, though some households do still opt for dogs.
And young married couples in their early 30s, like Nicholas Wong and Su Wen, told Nikkei that it is common among their peers to have pets while some are not keen to have children because of affordability issues.
"I think it's more common. On the one hand, it could be about companionship, and on the other, I think some of my friends who are not keen on kids find it more affordable and less of a lifestyle change," said Wong, who works as a risk adviser at McKinsey.
Wong and Su Wen adopted two stray cats at first and are currently nursing and fostering two more cats in his condominium unit in Petaling Jaya, a city just half an hour from the center of Kuala Lumpur. 
Wong said cats are much easier to deal with than dogs and are a better fit with his lifestyle. "I've had dogs before, but the costs and care are higher for dogs. They eat more, and as they age, they tend to develop more health issues," said Wong.
Veterinary services are a significant part of the overall market for pet care, and in some cases also an opening for new technology providers.
At Ohana Veterinary Clinic, located in the upscale residential area of Taman Tun Dr Ismail in Kuala Lumpur, Jawahir Abdullah, a vet for more than a decade, told Nikkei that she has been using AI-driven diagnostics and telemedicine platforms, such as a blood testing machine that can analyze results and compare them with international data.
"We also use software and applications that can scan pets and provide data like weight and temperature," she said.
Some vets rely on alternative tech medicine. Jawahir said alternative treatments like laser therapy and natural remedies are on the rise because owners are "scared of the side effects of drugs," opting for alternatives like turmeric or laser treatments, including traditional Chinese veterinary medicine (TCVM).
While TCVM is not yet formally regulated by Malaysian veterinary authorities, its practices, such as acupuncture, herbal medicine, and food therapy, are increasingly being integrated into some veterinary clinics.
Jawahir reckoned that pet ownership in Malaysia increased by 32% compared with before Covid-19, and the trend has changed significantly in the past decade. Pets can improve the mental health of owners and dogs are very sensitive to emotions, and "they know when their owners are stressed."
"Yes, it's very significant compared to my early days. Now, owners want nutrition, specific treatments, and more. They are willing to spend because they see pets as part of the family," Jawahir said. She also mentioned that her clients are more educated and saw increased knowledge-seeking behavior on platforms like TikTok and ChatGPT, making it easier to explain to her clients.
"Malaysia is still catching up, but the industry has a lot of potential. More people are treating pets as family members, and they're willing to spend on their care. However, vets need to upskill, and the industry needs more manpower to keep up with demand," she said.
Services for pets continue beyond their passing. Cemetery and funeral services are common across parts of Asia, from South Korea and Japan to Malaysia and Vietnam—and can generate hefty bills.
In Hanoi, Le Bui added up the cost of saying farewell to one of her previous pets.
"When my cat Dua (Coconut) died, I put her in a cemetery in Bach Mai district in Hanoi," she said. "Cremation costs VND 12 million (USD 465.1). Burial costs VND 30 million (USD 1,162.8). They offer [a] full service including worshiping, chanting, the '49-day ceremony' and other ceremonies."
The 49-day ceremony is an event for the dead in Vietnam where Buddhist monks chant for hours with family members sitting around an altar, followed by big meals.
"For the pet case I think it's chanting only. It signifies that the deceased has gone to be with Buddha," Le said.
This article first appeared on <a href="https://asia.nikkei.com/Spotlight/Big-in-Asia/Asia-s-pet-boom-lets-food-health-care-tech-players-off-leash">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>.

Asia's pet boom lets food, health care, tech players off leash

Singapore

Malaysia

Thailand

Vietnam

Indonesia

Philippines

Japan

Southeast Asia

India

… applications but requires an in-person visit to finalize documents.
In a hurry? IFZA, Ajman Free Zone, and Shams are known for fast processing—sometimes within the same day.
And for teams not requiring a physical office, virtual office options are available across IFZA, Ajman, Twofour54, and Shams.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3233561958268934">article</a> was written by Chang Weiqian for 36Kr.
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Why the UAE is the next stop for China’s short drama wave

Middle East

… made recent headlines:</h3>
<ul>
<li aria-level="1">OpenAI, the maker of ChatGPT, confirmed it’s raising up to USD 40 billion in fresh capital. The round, led by SoftBank, would unfold in two parts: USD 10 billion in April and another USD 30 billion by December, contingent on its transition into a for-profit entity by year-end. Microsoft, Coatue Management, Altimeter Capital, and Thrive Capital are reportedly among the participating investors.</li>
<li aria-level="1"><a href="https://www.hoopi.xyz/">Hoopi</a>, a platform focused on toy collectibles and trading cards, has completed its first institutional investment round, led by Creative Gorilla Capital (CGC).</li>
<li aria-level="1">Prazer Therapeutics, a biotechnology startup developing targeted protein degradation (TPD) therapies, raised KRW 29 billion (USD 20 million) in a Series B funding round led by Johnson &amp; Johnson Innovation (JJDC). Other investors include Premier Partners, K2 Investment, Mirae Asset Capital, Quad Investment Management, STIC Ventures, K Partners, Kiwoom Investment, and Smilegate Investment.</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: Fore Coffee’s IPO pops on debut, Accenture invests in GoUpscale, GXS Bank acquires Validus Capital, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Hong Kong

On April 10, Anta Sports announced its plan to acquire German outdoor brand Jack Wolfskin for USD 290 million. The deal is expected to close by late Q2 or early Q3 this year, pending standard closing conditions.
This move underscores Anta’s ongoing commitment to its multi-brand strategy and its deepening focus on the outdoor segment. Ding Shizhong, chairman of Anta’s board, said Jack Wolfskin targets the mass outdoor segment, which helps it stand apart from the group’s other high-end outdoor brands.
The announcement gave Anta’s stock a modest boost. By the close of trading on April 11, shares had risen 2.82% to HKD 83.85 (USD 10.8). But not everyone sees the deal as a clear win. Some industry watchers point to Jack Wolfskin’s underwhelming performance in recent years—particularly in China.
<h3>Changing hands, falling behind</h3>
For those outside the outdoor apparel space, Jack Wolfskin may only be recognizable by its paw print logo often spotted in malls.
Founded in 1981, the brand built a loyal following in Germany by offering high-performance gear at accessible prices. Its message—centered on “experiencing nature”—struck a chord with Europe’s middle class. Popular products like shell jackets and hiking boots helped propel it into the top three outdoor brands in Europe by market share.
Jack Wolfskin entered China in 2007, positioning itself as a provider of professional gear without the premium price tag. It expanded rapidly across various market tiers. By 2011, it had more than 200 stores in China. That number climbed to over 700 by 2015.
But the momentum didn’t last.
Between 2006–2018, the brand changed owners four times. In 2018, it was acquired by Callaway Golf from Bain Capital and others for EUR 418 million (USD 475.8 million). Investors were wary—Callaway’s core golf business had little overlap with outdoor apparel, and its stock dipped following the purchase.
Frequent leadership changes left Jack Wolfskin struggling to regain its footing. In 2020, new CEO Richard Collier attempted a brand reset under the slogan “We Live to Discover,” aimed at attracting younger consumers.
Though US-owned, Jack Wolfskin concentrated its efforts on Europe and China, eventually exiting the US market entirely in 2024.
But in China’s increasingly crowded outdoor gear space, Jack Wolfskin has failed to make a mark. Zhang Qing, founder of consultancy Key-Solution, told 36Kr that poor inventory turnover and weak channel management have long dragged on its performance.
Some Chinese consumers now see it as an “outlet brand” due to constant discounts. Meanwhile, competitors like Kailas and The North Face have expanded their presence. Even in Europe, Jack Wolfskin has seen sales decline.
Callaway’s overall performance hasn’t impressed either. In fiscal 2024, it posted USD 4.239 billion in revenue—a 1.1% drop year-on-year (YoY). One of the weak points: Jack Wolfskin’s underperformance in Europe. That may have paved the way for the sale.
<h3>What’s in it for Anta?</h3>
For Jack Wolfskin, Anta represents a chance at revival. With proven experience managing brands like Fila and Arc’teryx, and the resources to support a turnaround, Anta may be able to breathe new life into the faltering brand.
Anta’s multi-brand strategy hinges on focused brand differentiation and global expansion. At its 2024 earnings call, Ding emphasized that each label within the group targets a distinct customer base, with tailored product development and innovation.
Its current brand portfolio includes Anta for mass market sportswear, Fila for fashion-forward activewear, and technical outdoor brands Descente and Kolon Sport. This approach has underpinned strong growth.
In 2024, Anta generated RMB 70.826 billion (USD 9.9 billion) in revenue, up 13.6% YoY. Net profit attributable to shareholders rose 52.4% to RMB 15.596 billion (USD 2.2 billion), and operating profit climbed 8% to RMB 16.595 billion (USD 2.3 billion).
Momentum has continued into 2025. In Q1, retail sales for all brands under Anta recorded YoY gains. Anta and Fila each saw high single-digit growth, while Descente and Kolon Sport posted 65–70% growth.
whereRelatedArticle
Despite these gains, not everyone is convinced. Fashion industry analyst Tang Xiaotang noted that Anta is paying around 60% of what Callaway spent on Jack Wolfskin seven years ago. He remains skeptical, suggesting the brand has already peaked and lacks growth prospects, especially in China.
There are also concerns about brand overlap. In early 2024, Anta rebranded its “champion stores” to focus exclusively on outdoor products, raising questions about whether Jack Wolfskin might cannibalize existing offerings.
But Zhang views internal overlap as part of the plan. “Yes, there will be some internal competition,” he said. “But that’s part of the race. It’s about seeing which brand truly breaks out.”
“Even though Anta has outdoor lines, many buyers prefer specialist brands for technical gear. Jack Wolfskin has had little recent marketing visibility in China, except for one campaign with Karen Mok. That gives Anta space to reinvent it,” Zhang added.
One thing is clear: the outdoor segment is the fastest-growing and most closely watched category in the sportswear market. With Jack Wolfskin now under its umbrella, Anta is poised to expand its presence not just in China, but in Europe too.
As of the end of 2024, Anta operated 243 stores outside mainland China, with footprints in Southeast Asia markets like Singapore, Malaysia, and Thailand. Ding has long stated his ambition for Anta to become a global brand. Each acquisition could be a step toward that goal.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3245559619977224">article</a> was written by Xie Yunzi for 36Kr.

Anta acquires Jack Wolfskin in USD 290 million deal

Anta

Retail

Consumer Services

Europe

… speed.
In recent years, Inditex has also been shifting more production to Turkey and Eastern Europe to further shorten the supply chain for its biggest market, Europe.
Zara now enjoys profit margins of up to 85% of retail price, far above the industry average of 60–70%. This allows the brand significant pricing flexibility in the face of rising costs due to tariffs.
whereRelatedArticle
RBC Capital Markets analyst Richard Chamberlain revealed in a report that prices for 40 Zara items in the US and Mexico were at least 60% higher than in Spain. In Gulf countries, the same products cost 71–91% more than their Spanish counterparts.
Although Adidas and Zara employ different playbooks, both exemplify the fashion industry’s pivot away from a singular obsession with cost-cutting and toward a focus on building supply chain resilience. Adidas is adapting through regional supply chains optimized for tariffs and local markets, while Zara’s European production focus enables speed and better inventory control.
Still, whether through tariff desensitization or nearshoring, these responses remain just that—reactions to the present trade climate. Since last year, many fashion brands have started to reduce their SKU counts, a subtle signal of growing caution. As rising production costs bump up against constrained consumer spending, it remains to be seen how shoppers will respond to locally made goods.
What we’re witnessing is a reckoning. With the benefits of globalization fading, the fashion industry must now strike a new balance between cost, speed, and risk. Who will come out ahead in this new era? It’s still anyone’s game.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3240864202407560">article</a> was written by He Zhexin for 36Kr.

Trump’s tariff playbook leaves fashion facing tough trade-offs

Fashion