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36Kr (EN)

… relationships with luxury department stores and duty-free retailers, an experience that shaped his broad view of Estee Lauder’s distribution strategy.
At the onset of the pandemic, de La Faverie recognized the transformative potential of social media and e-commerce in retail. In a podcast, he remarked that while in-store shopping would eventually rebound, certain changes were here to stay.
Confronting the issue of “over-distribution” in Western markets, de La Faverie pointed to the untapped potential in China’s smaller cities, where online sales are increasingly crucial. He anticipated that online channels could eventually drive 50–60% of Estee Lauder’s sales in China, around 40% in the US, and roughly 30% in Europe.
To meet these targets, however, de La Faverie noted that it would take more than simply listing products online. Estee Lauder, he argued, would need an entirely new approach to connecting with consumers—beyond just lowering costs or boosting marketing efficiency.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3016267636434432">article</a> was written by He Zhexin for 36Kr.

Estee Lauder names new CEO, pivots from tradition toward e-commerce and emerging markets

E-Commerce

Retail

… cancel auto-renewals for apps.
The investment in AI is considerable. According to Vivo’s global AI research institute, the company’s cumulative spending on AI exceeds RMB 23 billion (USD 3.2 billion). Zhao said that Honor’s AI experience surpasses Apple’s in the Chinese market, similar to the advantage Apple once had over Android in connectivity.
<figure id="attachment_150633" aria-describedby="caption-attachment-150633" style="width: 720px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-150633" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1024x448.jpeg" alt="" width="720" height="315" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1024x448.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-300x131.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-768x336.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1536x672.jpeg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison.jpeg 1920w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-150633" class="wp-caption-text">Chinese competitors like Xiaomi have increasingly used Apple’s iPhone 16 as a benchmark for describing model specifications and new features. Image source: 36Kr.</figcaption></figure>
<h3>Price increases amid supply chain strains</h3>
In October, flagship models from Vivo, Xiaomi, Oppo, Honor, and OnePlus saw price hikes, ranging from RMB 100–300 (USD 14–42).
An industry insider attributed the hikes to inflationary pressures from rising interest rates and geopolitical conflicts, which drove up the cost of materials like nickel and chromium by at least 5%. Among components, processors and memory experienced the largest price jumps. Analyst Kuo Ming-Chi noted that the new Snapdragon 8 Gen 4 processor now costs USD 180 per chip—a 15% increase.
Memory prices have also hit a two-year high, with the price of 1TB flagship models rising by RMB 500 (USD 68).
Despite some brands cutting back on features, such as haptic engines, fingerprint scanners, and dual speakers, flagship models have largely retained their specifications. “Supply chain price hikes are squeezing everyone,” an industry expert said.
The competition between Android and Apple phones in China is intensifying, with recent data indicating a shift. Counterpoint’s Q3 2024 report shows Apple’s market share fell by 2.6% year-on-year to 13.5%, while domestic brands gained: Vivo’s share rose by 10%, Huawei surged by 30%, and Xiaomi grew by 13%, though Oppo and Honor saw slight declines.
October’s flagship launches were pivotal for each brand, with entry-level models positioned against the iPhone 16 Pro and higher-end models taking on the iPhone 16 Pro Max.
Chinese brands are targeting Apple’s core user base: standard iPhone users who are increasingly upgrading to Pro and Pro Max models. Market data shows a 44% year-on-year increase in iPhone 16 Pro and Pro Max sales—the very segment Chinese brands are now vying to capture.
As China’s smartphone market grows tighter and supply chain pressures mount, Chinese brands have little room for a gradual approach. The battle for high-end market dominance is on, and they are all in.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3014364182619657">article</a> was written by Qiu Xiaofen for 36Kr.

Chinese smartphone giants unite to challenge Apple’s grip on the high-end market

Apple

Xiaomi

OPPO

China Tech

Japan, Korea, and the West

Deep Tech

Smartphones

Smartphone

… https://console.kr-asia.com/wp-content/uploads/2024/11/Station-Ai-Event-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/Station-Ai-Event.jpg 1920w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-150661" class="wp-caption-text">Station Ai hosts a variety of events, from small gatherings to large conferences.</figcaption></figure>
whereRelatedArticle
<h3>Strengthening ties with international startups</h3>
Station Ai’s vision includes fostering global innovation by building connections with international startups. The center offers resources to foreign startups entering the Japanese market and facilitates joint ventures with Japanese companies. Currently, Station Ai partners with organizations in nine countries and 21 universities and research institutions. At the opening event, representatives from the National University of Singapore, Shanghai Jiao Tong University, and Tus-Holdings of Tsinghua University Science Park underscored the center’s international reach. Aichi is increasingly seen as an entry point for foreign startups looking to establish a presence in Japan.
Despite this promising start, Hirotaka Sahashi, CEO of Station Ai, acknowledged ongoing challenges.
Speaking in Japanese, Sahashi said, “Transforming Aichi, once seen as barren ground for ventures, still presents many hurdles. We have the infrastructure in place, but now it’s time to enhance our services and content.” He added that strengthening international partnerships and boosting foreign startup occupancy are top priorities.
With a mission to nurture startup innovation, Station Ai aims to invigorate the regional economy and foster new industries in the years to come.

Aichi unveils Station Ai, Japan’s largest innovation hub, targeting Asia’s startup future

Japan

From delivery services to financial products, a growing number of Chinese and Hong Kong businesses have stepped up operations in the Middle East amid growing geopolitical tensions with the West.
The region's growing population and favorable industrial policy are among the pull factors as Western markets, in particular the US, appear challenging after Washington began imposing sanctions on Chinese entities under national security laws.
Chinese and Hong Kong business executives who have been visiting the Middle East the past two years are beginning to see some results, thanks to policy support from Chinese authorities.
A growing number of Chinese technology and electric vehicle companies have gained a foothold in the Middle East under China's Global South strategy aimed at forging closer ties with developing economies, according to Bill Qian, chief investment officer of Abu Dhabi-listed crypto mining and blockchain company Phoenix Group.
"The US is the hardest," said Qian, summing up the freedom of Chinese companies to operate abroad. "As for Europe, since it's not a single market, it depends on how you navigate" each country, added the CIO, who relocated from China to the United Arab Emirates in 2021 when he was in charge of mergers and acquisitions for blockchain company Binance.
Qian and other Chinese founder-backed crypto exchange platforms have established footholds in the Middle East, enticed by investor-friendly regulatory frameworks. The footholds give them an option other than Hong Kong, the only Chinese city that allows crypto trading.
AIFT, a Hong Kong-licensed virtual insurer formerly known as OneDegree, announced in September that it had obtained approval through a Dubai entity to provide an insurance product for licensed Web3 platforms or blockchain technology-enabled internet services. Dubai Insurance, AIFT's partner in the emirate and one of its four shareholders, is also keen to work with other Chinese companies looking to expand in the Middle East, Abdellatif Abuqurah, the insurer's CEO told Nikkei Asia in Hong Kong recently.
"There are certainly many interactions among politicians and businessmen," said Alvin Kwock, CEO of AIFT who commended the increase in flight frequency between Hong Kong and the Middle East compared to a year ago.
Hong Kong regulators are actively facilitating closer ties with the Middle East. In his policy address in mid-October, Chief Executive John Lee vowed to enhance hospitality services such as providing information in Arabic and halal food to visitors from the Middle East and Southeast Asian countries. Securities officials have begun closer communications with their Middle East counterparts with the aim of tapping opportunities in each other's market.
China's outbound direct investment rose 13.2% from the previous year to USD 85.3 billion in the first half of 2024, according to consultancy Ernst &amp; Young (EY). Greenfield investments in electric vehicles and digital infrastructure are among the projects Chinese companies are pursuing in Southeast Asia and Middle East regions under China's Belt and Road Initiative (BRI), EY said, citing large market potential and open attitudes toward foreign investors.
For Middle Eastern investors looking for opportunities in Hong Kong and the mainland, the primary goal is to attract technology, talent and capital to their home markets, businesses executives say.
"We are building the gateway, and it would be a near-future thing to attract more investments from the Middle East into the mainland," Ding Chen, CEO of CSOP Asset Management in Hong Kong told Nikkei Asia in an interview late last year. The company manages the Hong Kong-listed CSOP Saudi Arabia exchange-traded fund, which tracks the country's equities. Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is an anchor investor in the ETF.
Chinese businesses remain committed to the Middle East despite rising competition. This month, a leading Chinese tech company, Meituan, launched the Keeta delivery service in Riyadh, Saudi Arabia. Hong Kong's CSOP is preparing to list an ETF in the Middle East that tracks equities listed in the Chinese city.
whereRelatedArticle
The Executive Centre, a flexible workspace provider headquartered in Hong Kong that invested USD 30 million to open its first center in Riyadh, said demand has been "piling in" for offices in the region as Chinese companies expand operations to mitigate downturn pressure even as they remain cautious about geopolitical risks.
"They are dedicated to China but they're using The Executive Centre as a hedge against costs and future uncertainty," Paul Salnikow, the group's founder and CEO, told Nikkei Asia.
For SenseTime Group, a Chinese artificial intelligence company blacklisted by the US, competition is coming from Western peers rather than Chinese companies, said George Huang, head of SenseTime's Middle East joint venture with a unit of the Public Investment Fund.
SenseTime has focused on expanding in Saudi Arabia and the UAE since 2018, aiming to double its headcount in Saudi Arabia to 150 people in 2025.
"It's just competition, it does not matter where you are from," Huang told Nikkei Asia.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Belt-and-Road/China-Hong-Kong-companies-tap-Middle-East-as-Western-ties-sour" 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>.

China, Hong Kong companies tap Middle East as Western ties sour

MENA

Deals in brief: Lenovo’s Leshines gains Saudi backing, Ampd Energy and Ensonic secure funding, Swiggy bags USD 606 million from anchor investors, and more

Venture Capital

Angel Investing

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

India

… September, it launched <a href="https://daoinsights.com/news/and-did-the-star-buck-in-ancient-time-starbucks-debuts-microdrama/">I Opened a Starbucks in Ancient Times</a>, which reportedly attracted over 170 million views and over a million interactions.
Sources close to Starbucks told 36Kr that the minidrama preserved the brand’s values, focusing on quality coffee, attentive service, and a sense of partnership. To connect locally, the storyline incorporated traditional Chinese themes and a touch of romance. In one scene, the male lead confesses his feelings by making a caramel macchiato for the female lead—a symbol of sweetness from the heart.
Starbucks has spent 25 years growing in China, propelled not just by products or promotions but by the concept of a “third space.” This may explain why Niccol is doubling down on Starbucks' identity as a community hub. Rather than battling on unfamiliar ground with aggressive discounts and endless product options, Starbucks may find it wiser to shore up its original strengths.
In a twist, a day before Luckin’s earnings release, reports surfaced that the Chinese coffee giant is planning an entry into the US market next year, with adjustments underway in supply chain and technology.
Luckin aims to target US cities with high populations of Chinese students and tourists, leveraging its affordable coffee experience from China. Plans are reportedly in place to offer coffee at USD 2–3, undercutting US rivals, and the company has been airing ads during NBA games to build recognition ahead of the launch.
In an open letter to customers, partners, and stakeholders during his first week, Niccol reaffirmed Starbucks’ commitment to its roots, pledging to focus on four areas: empowering baristas, caring for customers, seizing each morning, reinforcing Starbucks as a community coffeehouse, and telling the Starbucks story.
Returning to basics may be a noble pursuit, but the immediate challenge remains: Starbucks will soon face its largest competitor from China, right on its home turf.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3017398123341063">article</a> was written by Li Xiaoxia for 36Kr.

With Luckin Coffee on the rise, Starbucks scales back discounts and returns to its roots

Coffee

… startup that has achieved this is UrbanMetry, a data analytics company that uses novel indicators to track urban lifestyle patterns and unlock opportunities for real estate investors. Government capacity gaps in Southeast Asia make it difficult to obtain reliable data about the region’s cultural and physical landscapes across different geographies, which is crucial for informed real estate and property investment decisions. Without accurate information, investors struggle to assess risks and allocate resources effectively, which can lead to misaligned products, ultimately stymying investment.
UrbanMetry’s climate risk assessment project in Malaysia, which maps local areas prone to landslides and floods and overlays these with mortgage data, has managed to not only identify potential hazards but also guide future urban planning and disaster mitigation. Not only does this help property developers, governments, and banks in generating comprehensive risk evaluations for properties, it also paves the way for smarter, more resilient cities.
The journeys of eFishery and UrbanMetry underscore the power of embracing experimentation and innovation at the fringes. For startups, this approach creates a first-mover advantage, revealing insights and solutions others have yet to uncover.
<h3>Innovating with people and planet at the center</h3>
Innovation shouldn’t just be technology-centric—it also needs a human touch.
When developing solutions, startups must consider not only practical needs but also the human aspects of their products or services. This involves addressing specific cultural needs that may be underserved—a consideration especially relevant in a region as diverse as Southeast Asia, with its array of cultures, languages, and religions.
For example, Indonesian fintech provider Hijra has achieved a 99.7% repayment rate on its Shariah-compliant financing, rapidly becoming the largest fintech startup within the Islamic finance market. Hijra’s edge was in recognizing the unmet demand for Shariah-compliant financial services in a region where Islam is the most widely practiced religion. By aligning its offerings with cultural values and religious principles, Hijra not only builds trust within the community but also demonstrates how a human-centric approach can drive significant growth and impact in underserved markets.
Another area for innovation lies in conscious consumerism. <a href="https://cube.asia/better-for-you-young-urban-consumers-are-trading-up/">92%</a> of Generation Z and Millennial consumers in Southeast Asia prioritize health, social and environmental attributes in their purchasing decisions. By aligning business practices with these values, startups can tap into demand for socially and environmentally responsible products, fostering deeper consumer loyalty and engagement beyond price and functionality.
Furthermore, sustainable innovation also provides a competitive advantage. An example is A Little Wild, Southeast Asia's first commercial-scale farm that has used syntropic agroforestry—a form of regenerative agriculture—to transform 10% of a 138-acre oil palm plantation. In these restored plots, carbon capture is twice that of traditional oil palm areas. This is achieved using closed-loop systems for resilience and self-sufficiency that merge indigenous knowledge with scientific rigor, enhancing farming techniques to give degraded land a new lease of life. The farm’s produce appeals in particular to eco-conscious consumers willing to pay a premium for sustainably grown agricultural products.
By rooting themselves in a purposeful mission, startups stand to resonate with a wider audience that shares the same values.
<h3>A sea of opportunity for those who find their edge</h3>
Beyond traditional innovation hubs like Silicon Valley, Southeast Asia offers many avenues and resources that startups can tap on. But challenges are  plenty too. The sheer diversity in cultures and languages pose a barrier to scaling, as solutions must be tailored to local customs and linguistic requirements.
Additionally, the receptiveness of more traditional companies to new ideas and technologies remains a hurdle. The challenge and opportunity lie in convincing these companies that collaborating with innovative outfits can help them derisk the adoption of new ideas, while helping them stay relevant in a rapidly evolving marketplace.
Ultimately, the unique challenges Southeast Asia presents can also serve as a <a href="https://www.tatlerasia.com/gen-t/innovation/four-drivers-of-innovation-in-southeast-asia-2024">catalyst for creativity</a>. By drawing from the strategies of the region’s innovators, startups can find inspiration to identify new, green pastures for growth.
About the author: This article was authored by Michelle Khoo, leader of the Deloitte Center for The Edge Southeast Asia. With over a decade of experience in advising business and government leaders on long-term strategies, Khoo is passionate about shaping a more sustainable, fairer, and inclusive future in both physical and digital realms. Her work revolves around artificial intelligence, sustainability, metaverse, disruption, and innovation.

Pioneering innovation: Turning challenges into competitive advantages

Singapore

Malaysia

Thailand

Vietnam

Philippines

… 10,000 (USD 1,400) for the first, second, and third versions, respectively, with more price hikes anticipated.
Li Auto has also bolstered its brand with intelligent driving, offering E2E capabilities across all Max models. As a result, user satisfaction has risen significantly.
In Q2, Li Auto reported that 70% of its vehicles priced above RMB 300,000 (USD 42,000) are equipped with AD Max, its advanced autonomous system, priced at RMB 20,000 (USD 1,400) more than the Pro model—reflecting a strong demand for intelligent driving features.
<h3>Buying GPUs and building data centers</h3>
In addition to car sales for data collection, automakers are rapidly building their GPU capabilities. Tesla, according to its Q3 earnings report, currently holds AI capacity equivalent to 67,500 Nvidia H100 chips—totaling about 67.5 exaflops. Tesla aims to increase this capacity to 88.5 exaflops with the addition of another 21,000 H100 chips by the end of October.
Beyond substantial Nvidia GPU acquisitions, Tesla is also advancing its in-house Dojo supercomputer, targeting a capacity of 100 exaflops, bolstered by 8,000 H100 GPUs expected by year-end.
This intensifying GPU competition is sparking reactions among Chinese automakers. Due to US export restrictions, Nvidia’s H100 is more challenging to acquire in China, pushing companies there to rely on the A800, a more affordable but less powerful alternative. Currently, Huawei leads in computing power within China, with 7.5 exaflops derived from both Nvidia GPUs and its own Ascend chips. While Ascend’s toolchain has limitations, Huawei’s proprietary supply secures steady progress in cloud processing.
Following Huawei, Li Auto holds 5.39 exaflops of capacity, achieved with approximately 10,000 Nvidia GPUs. According to industry estimates, attaining this capacity with A800 chips would require around 16,800 units. Cloud GPUs have become more accessible since last year, with A800 servers priced at around RMB 950,000 per eight-card module. Nevertheless, achieving such computational strength remains a significant financial undertaking for Chinese automakers.
Li Auto aims to reach 8 exaflops by the end of the year, recently partnering with Volcano Engine to establish a joint data center, with further expansion under consideration. Meanwhile, Xpeng has reached 2.51 exaflops—around 7,800 A800 GPUs—and targets 10 exaflops by 2025. Nio currently trails with 1.4 exaflops, or about 4,300 A800 cards.
For context, China’s national compute capacity was 246 exaflops as of June 2024 (FP32 basis), equivalent to roughly 492 exaflops at FP16 precision. Huawei, Li Auto, Xpeng, and Nio collectively contribute around 3.5% of this national total.
Amid this race, smaller companies are making strides through partnerships: IM Motors collaborates with Momenta, and Great Wall Motors has joined forces with DeepRoute.ai to accelerate market entry. The global AI model landscape has reached unprecedented scales, with some Chinese companies investing over USD 50 million just to enter the field. Leading Chinese AI firms are now building trillion-parameter models, fueled by extensive computing resources, with companies like Kimi and Stepfun assembling massive GPU clusters in collaboration with cloud providers.
A parallel shift is emerging in the automotive industry. Automakers are evolving from conventional car sellers into AI-driven tech companies, leveraging massive data and computing resources to push toward fully autonomous vehicles and embodied intelligence. In this intensely competitive, low-margin field, the pursuit of greater computing power is relentless, with the ongoing price war signaling that AI differentiation could be the ultimate key. For automakers, the high-stakes game of compute has only just begun.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3013286807217667">article</a> was written by Li Anqi for 36Kr.

China’s automakers pour billions into AI compute race, chasing Tesla’s lead

Xpeng

Tesla

Li Auto

Autonomous Vehicles

Mobility

… https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte-225x300.jpg 225w, https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte.jpg 1080w" sizes="(max-width: 360px) 100vw, 360px" /><figcaption id="caption-attachment-147157" class="wp-caption-text">Luckin Coffee’s “sauce-flavored latte” was crafted in collaboration with Kweichow Moutai. The beverage is infused with “moutai,” a type of liquor named after the town where it originated. Image source: Luckin Coffee.</figcaption></figure>
Li Yingbo, COO of Cotti, said in an interview that Cotti plans to adjust products according to local tastes, from coffee bean roast levels to sweetness. However, 36Kr noted that Cotti’s Middle Eastern menu largely mirrors its Chinese offerings, with milk-based coffees as the mainstay.
So far, Cotti’s adaptations for international markets have involved only minor changes. Meeting the Middle East’s specific demands may require more substantial R&amp;D investment and a broader selection of specialty offerings, which would add strain to its overseas supply chain.
Relying on low prices and broad market penetration alone may prove more challenging than anticipated for Chinese coffee brands seeking to establish a presence in the coffee-rich Middle East.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2997339623206787">article</a> was written by Ye Danxuan for 36Kr.

Chinese coffee brands set sights on Middle East as next big market

Luckin Coffee

Cotti Coffee

Middle East