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Chinese startup <a href="/company/deepseek">DeepSeek's</a> feat in generative artificial intelligence development is changing market dynamics here as well, with software companies like NEC replacing hardware makers as the driving force of Japan's AI stocks.
DeepSeek's <a href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/DeepSeek-crashes-Nvidia-stock-with-prospect-of-cheaper-AI">announcement last month</a> that it has developed advanced AI with less advanced and fewer chips has emboldened developers like startup Preferred Networks, one of Japan's leading AI companies.
"If talented engineers work on it for about six months to a year, even companies with few GPUs can imitate it," Daisuke Okanohara, Preferred Networks' chief executive researcher, said, referring to graphic processing units seen as crucial to generative AI development.
The stock market has also been sensing the change. Comparing February 5's stock prices to those on January 24, before DeepSeek's breakthrough became widely known, hardware-based companies like electric cable maker Fujikura and chip-testing equipment maker Advantest fell 14% and 16%, respectively.
Meanwhile, NEC rose 17% and Nomura Research Institute 15%. Both companies, which focus on AI software, ranked within the top five of the Nikkei Stock Average in terms of price increase over that span.
The trigger for the sharp rise in software stocks was their strong results, which a fund manager at Nikko Asset Management attributed to "the growing expectation that AI services will become more widespread due to the low costs demonstrated by DeepSeek."
The level of excitement seems more pronounced in Japan than in the US. Based on a simple calculation of software stock price changes from January 24, based on QUICK FactSet data, US stocks rose an average of 1% as of February 4, while Japanese stocks were up 8% as of February 5.
NEC is a prime example of those expectations. It is tenth in the world in papers submitted to prestigious international AI conferences.
The company is also developing and using cost-effective, high-performance AI models.
"We expect NEC's domestic AI services to become more widely used, boosting earnings," said Nissay Asset Management's Kosei Mikuni. Nissay has included NEC shares in its active funds as a top stock.
DeepSeek managed to develop an AI that appears to be on par with US competitors at a fraction of the cost, an ingenuity born out of US sanctions that prevented it from procuring cutting-edge chips.
Japan finds itself in a similar situation, though the circumstances are different—Japanese developers have trouble procuring cutting-edge GPUs due to lack of funding, not export restrictions.
Looking at sales ratio by region for Nvidia, the leader in advanced AI chips, for the February-October 2024 period, the US accounted for the largest portion with 45%, followed by Singapore with 19%, Taiwan with 17%, and China with 13%.
Japan barely registered as one of the many countries and regions accounting for the remaining 6%. NEC mainly uses Nvidia Blackwell generative AI products from two generations ago.
There is room for AI use in Japan to grow. The percentage of companies using generative AI is 84% in the US and 85% in China, while in Japan only 47% use the technology, according to JP Morgan.
This slow adoption also gives Japanese AI-related companies plenty of opportunities to grow earnings if usage becomes more widespread.
But for companies like Fujikura and Advantest, there are concerns declining demand for cables and equipment for data centers will hit them hard as AI competition shifts away from GPUs.
"In addition to the unknown impact of DeepSeek, price movements have become large, and AI-related stocks are increasingly seen as risky," said Rina Takeda, head of equity sales at Citigroup during a discussion with a hedge fund.
As several investors who had been bullish on data center and semiconductor stocks are considering reducing their holdings, she expects AI stocks to remain soft.
This article first appeared on <a href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/As-DeepSeek-inspires-AI-underdogs-Japan-software-stocks-surge">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>.

As DeepSeek inspires AI underdogs, Japan software stocks surge

East Asia

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Artificial Intelligence

Deep Tech

Japan

… model, as it is driven more by geopolitical tensions and luck.
Over time, Chinese platforms may adopt various compliance strategies to better grow their overseas presence, such as separating international and domestic brands, segmenting servers or implementing IP restrictions, she said.
"While there may be a brief honeymoon period between the two cultures, the reality of cultural clashes between China and the West is inevitable. In the future, differences in perspectives, cultural tensions and conflicting values around lifestyles are likely to become increasingly apparent among users from both countries," Hu added.
Questions have been raised about whether Xiaohongshu will launch a separate app to separate its Chinese and overseas users, but people close to the company told Nikkei that it does not currently have the capacity to do that. It would also be a risky move amid the present geopolitical tensions, they added.
"Xiaohongshu is an innovative platform without a direct US competitor, but I'm doubtful that the current buzz is sustainable," said Jacob Cooke, co-founder and CEO of Beijing-based e-commerce consultancy WPIC Marketing and Technologies.
"Xiaohongshu could potentially serve an unfilled market niche in the US, as no US platform so seamlessly blends user-generated content with recommendations as Xiaohongshu does in China. However, Xiaohongshu will need to significantly scale in the US, and user behavior will need to evolve before it can function as more than a TikTok substitute," he added.
And while Xiaohongshu has launched a translation function to facilitate communication between Chinese and English speakers, this method of interaction is not sustainable for most users, let alone creators who are not able to monetize their content in the same way as they can on TikTok, Plotnick said.
"It's not a short-term solution for them. There are some brands and creators, athletes, musicians, and celebrities who can benefit in the long term if they are willing to play by the rules, but for the average user, this is not a home, it's just a window," she added.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/TikTok-refugees-a-mixed-blessing-for-Chinese-app-Xiaohongshu" 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>.

"TikTok refugees" a mixed blessing for Chinese app Xiaohongshu

TikTok

Xiaohongshu

Not many people know this, but <a href="/company/shopee">Shopee</a> sellers looking to expand beyond their home market used to face complex and time-consuming hurdles. Selling overseas required merchants to create and manage separate accounts for each target country, adding a logistical burden that hindered growth.
To address this challenge, Shopee introduced the Shopee International Platform (SIP) in 2018, offering an easier way for sellers to reach international buyers without the need to handle multiple storefronts. Instead, Shopee would take care of the operational complexities, including listings, pricing, logistics, and customer service.
Each country’s SIP rollout has been staggered, with different sellers gaining access to specific export markets depending on their home base:
<ul>
<li aria-level="1">2018: Taiwan-based sellers started selling to Singapore, Malaysia, and Indonesia.</li>
<li aria-level="1">2019: Malaysia-based sellers gained access to Singapore.</li>
<li aria-level="1">2020: Indonesia joined the program, with sellers able to reach most ASEAN countries.</li>
<li aria-level="1">2021: Vietnamese sellers expanded into Singapore, Malaysia, the Philippines, and Taiwan. The Indonesia SIP was widened to serve Brazil, Mexico, Chile, and Colombia.</li>
<li aria-level="1">2022: Thailand’s SIP launch opened doors to Singapore, Malaysia, the Philippines, and Taiwan.</li>
<li aria-level="1">2023: Philippines-based sellers began exporting to Singapore and Malaysia. The Malaysia SIP commenced exports to Thailand and Chile.</li>
</ul>
The latest update to the program is the launch of the SIP in Singapore, allowing Singapore-based merchants to sell directly to buyers in Malaysia and Thailand. Plans are also underway to expand coverage to the Philippines, further strengthening Singapore’s access to Southeast Asia’s growing e-commerce landscape.
The launch follows a pilot phase that saw more than 8,000 Singapore sellers onboarded. Over three months, Shopee said orders and gross merchandise (GMV) surged by eight times, indicating strong demand and a positive impact on business growth. Among the sellers that have benefited are Global Pet Company, which expanded its pet food business without the overhead of a physical store, and Candy Cottage, a confectionery retailer that tapped into new customers abroad.
At its core, the SIP streamlines cross-border selling by allowing merchants to focus on their local shop, while Shopee automates the expansion process. Once a seller’s products are listed, Shopee manages pricing adjustments, shipping, customer inquiries, and even promotions for overseas markets. Sellers only need to fulfill orders to Shopee’s local warehouse, with Shopee handling the rest.
With SIP, Shopee aims to offer a hybrid approach to cross-border e-commerce, combining seller autonomy with regional support. As more markets are integrated, the platform continues to evolve as a scalable model for international expansion in Southeast Asia.

Shopee expands cross-border program to help Singapore sellers go regional

Sea Group

Shopee

Southeast Asia

On-demand Services

E-commerce

Consumer Economy

Singapore

In the span of a month, <a href="/company/deepseek">DeepSeek</a> has gone from an obscure venture to a global sensation, upending Silicon Valley’s hierarchy in the artificial intelligence race and sparking a regulatory firestorm. The company’s open-source V3 and R1 models, launched in January, have fueled an adoption surge that is already forcing industry heavyweights—and governments—to take notice.
Yet, as with any disruptive force, DeepSeek’s ascent has come with baggage. Governments are launching investigations, security researchers are raising red flags, and lawmakers in the US are debating whether DeepSeek should even be available to the public.
DeepSeek’s namesake AI assistant debuted publicly on January 11 as a free app, and the numbers since have been staggering.
According to data from <a href="https://mp.weixin.qq.com/s/lWbzaiIm8hRMu9xgy5NFKg">Aicpb.com</a>, a platform tracking global AI adoption, DeepSeek averaged 22.2 million daily active users (DAUs) in January—equivalent to roughly 41.6% of ChatGPT’s DAUs (53.2 million). DeepSeek has also overtaken ByteDance’s Doubao, another Chinese AI assistant that managed about 17 million DAUs during the same period.
DeepSeek’s first 20 days post-launch have left an impression, averaging 21.6 million DAUs—surpassing ChatGPT’s 14.6 million in the same period.
DeepSeek’s monthly active users (MAUs) reached 33.7 million, making it the fourth most used AI app globally, behind ChatGPT (349.4 million), Doubao (78.6 million), and Nova (56.6 million), a proofreading AI tool.
Aicpb.com’s tally accounts only for (mobile) app usage and omits web users.
As of end-January, the DeepSeek app ranked first in 157 countries and regions on the iOS App Store. The top five countries where the app has gained the most traction are China (30.7%), India (13.6%), Indonesia (6.9%), the US (4.3%), and France (3.2%).
The sheer velocity of DeepSeek’s expansion has prompted swift responses from governments worldwide, with some already initiating probes, imposing restrictions, or outright banning the app.
In Europe, Italy was the first to launch an investigation, quickly followed by France, Germany, Ireland, the Netherlands, Portugal, and the UK. Outside of Europe, Australia, Taiwan, South Korea, and—most significantly—the US have all moved to curb or scrutinize DeepSeek’s operations.
While US consumers still have access to DeepSeek, federal agencies such as the National Aeronautics and Space Administration (NASA) and the US Navy have warned employees against using the app on government devices. Legislators, meanwhile, are weighing an outright ban.
The current proposal comes from US senator Josh Hawley, who introduced a bill that would criminalize the import and export of AI products between the US and China. If passed, the law could punish individuals who knowingly download Chinese AI technology, including DeepSeek, with up to 20 years in prison or a USD 1 million fine—or both.
The crackdown mirrors the US government’s handling of TikTok, which faced a Supreme Court-backed ban that was only halted following direct intervention from Donald Trump, who recently returned to the White House for his second presidential stint. DeepSeek, however, may face an even steeper uphill battle, given the national security implications of AI technology.
whereRelatedArticle
The fear surrounding DeepSeek isn’t entirely unfounded. Since its launch, security researchers have uncovered troubling vulnerabilities in its infrastructure.
One of the most damning findings came from <a href="https://www.wiz.io/blog/wiz-research-uncovers-exposed-deepseek-database-leak">Wiz Research</a>, which reported that it had accessed a publicly exposed database belonging to DeepSeek. The database contained over a million lines of log streams, including chat histories, secret keys, backend details, and other sensitive information. The database reportedly allowed full control over operations, meaning anyone who discovered the exposure could manipulate DeepSeek’s internal data. DeepSeek patched the vulnerability after being notified.
Despite the regulatory storm, industry leaders have responded to DeepSeek’s emergence with measured optimism. OpenAI CEO Sam Altman, speaking in Tokyo on February 3, acknowledged DeepSeek’s capabilities but said he remains confident in his company’s lead:
<blockquote>“DeepSeek is certainly an impressive model, but we believe we will continue to push the frontier and deliver great products, so we’re happy to have another competitor, … We’ve had many before, and I think it is in everyone’s interest for us to push ahead and continue to lead.”</blockquote>
DeepSeek’s breakneck rise presents a paradox: it is both the biggest success story in open-source AI to date, and the fastest-growing regulatory headache for governments worldwide.
Yet, from a user perspective, DeepSeek’s popularity speaks to a hunger for powerful AI models, regardless of where and how they are made. With 70% of its users outside China, the app has demonstrated broad global appeal even as governments scramble to decide their next move.

DeepSeek hit 33.7 million users in January—but is a crackdown imminent?

… algorithms to improve business performance may face disruption as independent AI agents reduce their influence over consumer choices.
Another possible outcome is that every app or platform could eventually be powered by its own AI agent. While still speculative, AI agents could evolve to network and coordinate with one another, enabling dynamic and complex interactions across multiple systems.
This would mark a significant update from current models. OpenAI’s Operator, for instance, is (currently) designed to interact with existing platforms through a browser interface. Future AI agents, however, could be capable of planning and synchronizing actions across robots, agents, users, and systems.
In the context of e-commerce, consider how this progression might unfold:
<ol>
<li aria-level="1">AI assistants (current): These AI-powered tools assist users in product discovery, price comparisons, and recommendations within the platforms they are embedded in.</li>
<li aria-level="1">Platform-specific AI agents: These agents help users track and make purchase decisions within a specific platform, learning from explicit user input and behavior as well as backend data collected and analyzed by the platform.</li>
<li aria-level="1">Independent AI agents: These agents operate across multiple platforms, tracking products and making purchase decisions based on predefined user preferences. However, their capabilities may be constrained by the framework established by their provider. For example, OpenAI’s Operator interacts with browser screens but may lack access to backend data that platform-specific agents can leverage.</li>
<li aria-level="1">Future AI agents: Every digital touchpoint—retail sites, logistics providers, payment gateways—could be fronted by AI agents capable of communicating with each other. These AI agents wouldn’t just retrieve data but could dynamically negotiate, plan, and execute transactions based on user-defined goals.</li>
</ol>
<h3>The future of commerce: Fully automated, or human in the loop?</h3>
Agentic commerce will likely streamline routine shopping, but will humans be entirely removed from the process? Not necessarily.
Everyday essentials like groceries and household supplies are well-suited for full automation. AI agents can monitor inventory, track price fluctuations, and make purchases at optimal moments—removing the need for manual oversight.
On the other hand, high-value or experience-driven purchases—such as cars, luxury goods, and fashion items—are less likely to be entirely delegated to AI. While agentic AI can streamline research, facilitate comparison shopping, and even assist in negotiations, the final decision will likely remain with the human buyer, where personal preference and tactile experience play a crucial role.
After all, would you trust an AI agent to pick your next car or luxury handbag based purely on past data and algorithmic predictions?
<h3>Risks and challenges of agentic commerce</h3>
Despite its promise, agentic AI presents serious challenges that must be addressed before it reaches mass adoption:
<ul>
<li aria-level="1">Trust and reliability: AI agents will need near-perfect accuracy in decision-making. The risks of purchasing the wrong item, misunderstanding a user's intent, or making unauthorized purchases could erode consumer trust.</li>
<li aria-level="1">Ethical and security concerns: Delegating financial authority to an AI raises concerns about fraud, unintended purchases, and misuse of personal data. How do users retain control over autonomous systems acting on their behalf?</li>
<li aria-level="1">Business model disruption: If AI agents optimize purely for price and efficiency, what happens to brand loyalty, advertising, and retailer-driven engagement? Businesses may have to rethink how they engage customers.</li>
</ul>
Agentic commerce is on the horizon, and OpenAI’s Operator is a significant step toward making it real. As AI agents become more capable, shopping is expected to shift from a manual, decision-heavy process to an optimized and more automatic experience.
Still, the transition won’t happen overnight. Retailers, AI developers, and regulators will need to collaborate on guardrails that ensure transparency, security, and user control.
For now, we stand at a tipping point: the shopping cart is still in your hands—but maybe not for much longer.

Agentic commerce is near: AI could soon turn into your personal shopper

OpenAI

Just weeks after Honda and Nissan revealed <a href="https://kr-asia.com/honda-and-nissan-in-merger-talks-to-secure-ev-future">plans to explore a merger</a> that could have created the world’s third largest automaker, those discussions appear to be unraveling. According to a <a href="https://asia.nikkei.com/Business/Business-deals/Nissan-to-suspend-merger-talks-with-Honda">Nikkei Asia</a> report, Nissan has informed Honda of its decision to suspend talks, citing fundamental disagreements over valuation and governance. Meanwhile, conflicting statements from both companies suggest that discussions remain ongoing—though uncertainty looms large over the fate of the deal.
Sources cited by Nikkei Asia said that Nissan balked at Honda’s proposal to make it a subsidiary, a deviation from the original plan to form a joint holding company with near-equal influence. The automakers had agreed to determine their respective valuations based on average share prices before the memorandum of understanding (MoU) was signed in December. However, rough estimates suggest the arrangement would heavily favor Honda, whose market capitalization is more than five times Nissan’s size—an imbalance that has become a key point of contention.
Another sticking point was Nissan’s turnaround plan. Honda had set a January deadline for Nissan to present a clear restructuring roadmap before moving forward with integration. Nissan, which has struggled with declining sales and profitability in recent years, unveiled a plan to cut 9,000 jobs globally, with layoffs in North America and Thailand. But Honda reportedly found Nissan’s proposals inadequate and urged more aggressive restructuring measures.
According to <a href="https://www.reuters.com/markets/deals/nissan-ceo-uchida-tells-honda-ceo-mibe-he-wants-terminate-merger-talks-asahi-2025-02-06/">Reuters</a>, Nissan CEO Makoto Uchida met with Honda’s CEO Toshihiro Mibe on February 6 to inform him that Nissan wants to formally withdraw from the MoU. Nissan’s board is expected to finalize this decision before it announces its latest earnings.
Despite the reports, both automakers have refrained from making a definitive statement. In a carefully worded response, Honda and Nissan acknowledged media reports but maintained that they are “in the stage of advancing various discussions… We plan to establish a direction and make an announcement around mid-February.”
A report from <a href="https://www.automotivedive.com/news/nissan-honda-merger-talks-ongoing/739318/">Automotive Dive</a> also claims that talks remain ongoing, citing a Honda spokesperson who said that more details will be shared at an appropriate time.
If talks collapse, Nissan will be left to pursue its turnaround independently, while Honda may seek alternative partnerships to solidify its position in the automotive market.
For now, the merger’s fate hangs in the balance, and all eyes are on Nissan’s next move.

Nissan hits the brakes on Honda merger talks, throwing the deal into limbo

Honda

Nissan

Transportation

Electric Vehicles

Mobility

… https://console.kr-asia.com/wp-content/uploads/2025/02/HairOriginals-Piyush-Wadhwani-Jitendra-Sharma.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151925" class="wp-caption-text">Photo of Piyush Wadhwani (left) and Jitendra Sharma, co-founders of HairOriginals. Photo courtesy of the company.</figcaption></figure>
whereAdBanner.Uptake
<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1"><a href="http://fwjtech.com/">Azimuth Technology</a>, a Shanghai-based indoor positioning technology company, has secured nearly RMB 100 million (USD 14 million) in a Series A funding round. The round was led by a BeiDou research institute under China North Industries Group Corporation (Norinco), with Shenzhen Capital Group (SCGC) and Shanghai Ruihe Asset Management participating. Azimuth focuses on integrating indoor navigation with outdoor satellite positioning systems to provide unified high-precision positioning solutions. —<a href="https://36kr.com/p/3133663375677955">36Kr</a></li>
<li aria-level="1"><a href="http://www.lexangre.com/">Lexangre</a>, an AI-powered consumer hardware startup, has raised nearly RMB 200 million (USD 28 million) in an angel round of financing. The investment was led by IDG Capital, with Monolith, Matrix Partners, ZhenFund, HongShan, and Vitalbridge participating. —<a href="https://36kr.com/p/3142202686265865">36Kr</a></li>
<li aria-level="1"><a href="https://www.tangjimed.com/en/">Tongee Medical Technology</a>, a Hangzhou-registered medtech company, has raised nearly RMB 100 million in a Series C funding round from Everest and Quzhou Lushi Fund. The funding will be utilized for market expansion, regulatory clinical trials, and capacity building. Tongee specializes in developing medical devices for metabolic diseases such as obesity, diabetes, and fatty liver disease. —<a href="https://36kr.com/p/3153353327467016">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Ampotech, Nibertex, Yuwell, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.ampotech.com/">Ampotech</a>, a Singapore-based energy management solutions provider, has secured an undisclosed investment from Clime Capital’s Southeast Asia Clean Energy Fund II (SEACEF II).</li>
<li aria-level="1"><a href="https://nibertex.com/">Nibertex</a>, a deep tech startup specializing in waterproof breathable membranes, has closed its pre-Series A funding round with backing from Foxmont Capital Partners, ADB Ventures, and regional family offices.</li>
<li aria-level="1">Yuwell Medical, a China-based manufacturer of home-use medical devices, has announced a USD 27.2 million investment in Inogen through its Hong Kong subsidiary. Yuwell will acquire a 9.9% stake in Inogen’s common stock as part of the deal.</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: Syfe bids for ASX-listed Selfwealth, Malaysia’s KMP backs Swift Bridge, SoftBank in talks to acquire chipmaker Ampere, and more

SoftBank

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Malaysia

Australia

India

Europe

Middle East

Oceania

Electric vehicle registrations are rising rapidly in Myanmar due partly to "parallel imports" brought in by unauthorized dealers, but a lack of repair and maintenance support could put the reputation of major brands at risk.
The country's growing EV market is readily apparent in the commercial capital of Yangon. In addition to Chinese-made EVs, one can see <a href="/company/toyota">Toyota Motor's</a> bZ4X—even though the Japanese automaker does not import the model, which is built through a joint venture in China.
Myanmar had 6,166 passenger EVs registered as of December 2024, more than triple the number a year earlier, according to the country's Road Transport Administration Department. The military regime has promoted EV imports by waiving tariffs in a bid to reduce fuel consumption.
The regime has largely banned imports of gasoline-fueled vehicles, and domestic production of such cars has stalled since the 2021 military takeover. Prices of used cars have soared, making EVs appear less expensive by comparison. A compact EV from Chinese automaker <a href="/company/byd">BYD</a> costs around MMK 150 million (USD 72,200), on par with a preowned upmarket gas vehicle.
Around 80 local companies have imported more than 50 models of EVs over the past two years, according to a state-run newspaper, which noted that brands like Toyota, BYD, and <a href="/company/saic-motor">SAIC Motor</a>-owned MG are especially popular. This has raised concerns that inadequate repair and maintenance services could damage these brands.
Several authorized Toyota dealerships all provided the same answer when contacted about purchasing the bZ4X—they do not import or repair the EV. When asked about after-sales services at a local showroom selling the bZ4X, a representative referred customers to the vehicle's importer.
In some cases, dealerships of Dongfeng Motor Group are selling the bZ4X or another Toyota EV, the bZ3, even though the Chinese automaker has no relation to the models.
"The time has come for companies to seriously consider providing after-sales services for the EVs flowing into the market," said an executive at a Japanese automaker.
Chinese companies have already begun taking action. BYD has partnered with three local companies deemed to have the proper import licenses and sufficient repair capabilities, and encourages prospective buyers to go through its official channels. <a href="/company/gac">GAC</a> has opened official dealerships for its Aion brand of EVs in Yangon and elsewhere.
Japanese, US, and European automakers are hesitant to engage in Myanmar's EV market, worried about investor perception. The family of Min Aung Hlaing, the head of the military regime, is said to run an import business, and this keeps Japanese and other companies from jumping on the country's EV bandwagon.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Myanmar-Crisis/Myanmar-EV-registrations-triple-but-brands-face-parallel-import-risks" 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>.

Myanmar EV registrations triple, but brands face "parallel import" risks

Toyota

SAIC Motor

Myanmar

… stating that the brand remains firmly focused on casual apparel.
But within these constraints, Uniqlo’s innovations are starting to fall short.
In 2023, Uniqlo once again partnered with Toray Industries to develop "Pufftech," hoping to replicate the success of Ultra Light Down. Pufftech, made from ultra fine hollow fibers, was initially priced at RMB 499 (USD 69.9)—matching the cost of Uniqlo’s lightweight down series.
However, sales of Pufftech jackets have been underwhelming. According to data from third-party analytics firm Zhiyi Tech, during the 2024 Singles’ Day shopping festival, Uniqlo’s bestselling winter items did not include Pufftech. Additionally, Uniqlo’s Chinese website made no prominent mention of the new line in its warm clothing category.
Uniqlo had posted a detailed nine-step washing guide for Pufftech jackets on its official Xiaohongshu page, covering everything from reading the care label to ensuring the padding “returns to its original shape” after drying. The extensive instructions drew criticism in the comments: “It’s 2024—why is fast fashion still making clothes that can’t be machine-washed?”
Between September and November 2024, Uniqlo’s revenue in China totaled JPY 178.6 billion (USD 1.2 billion), remaining flat year-on-year, while operating profit declined by approximately 10%. In multiple financial reports, Uniqlo’s parent company attributed weak performance in Greater China to unseasonal weather and insufficient regional product differentiation. Third-party reports indicated that, for the first time, Uniqlo has closed more stores than it has opened in Greater China.
Bound by its fast fashion DNA and a focus on essential casual wear, Uniqlo has long relied on technology as a key selling point. But from the start, perhaps Yanai had set up an impossible challenge: convincing the market that a fast fashion brand could win with innovation alone.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3133443722681088">article</a> was written by He Zhexin for 36Kr.

Is Uniqlo still an innovator? The fast fashion giant faces a new tech reset

Retail

Consumer Services