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36Kr (EN)

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Fintech

… Shein can outpace competitors with low prices and rapid product launches, advantages that are harder to replicate with brick-and-mortar stores."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Retail/China-s-Zara-challenger-Urban-Revivo-ramps-up-global-growth-plans" 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's Zara challenger Urban Revivo ramps up global growth plans

Fashion

Creative

Retail

Consumer Services

China

To redefine how information is shared online, OpenAI has unveiled SearchGPT, a prototype featuring new search features currently under development.
Announced on July 25, OpenAI said it has opened a waitlist for limited testing. In an interview with <a href="https://www.theverge.com/2024/7/25/24205701/openai-searchgpt-ai-search-engine-google-perplexity-rival">The Verge</a>, OpenAI spokesperson Kayla Wood said that SearchGPT’s capabilities are powered by GPT-4, the company’s multimodal large language model (LLM).
SearchGPT’s main interface is reminiscent of existing artificial intelligence search and conversational products like Perplexity. Users are greeted with a prominent input box to enter questions in natural language, receiving structured, summarized answers in return. Unlike most AI chatbots, SearchGPT is particularly suited for keyword-based prompts. Users can input fragmented keywords without concern for grammar or capitalization and still receive relevant answers.
<figure id="attachment_149315" aria-describedby="caption-attachment-149315" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149315 size-full" src="https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Search.gif" alt="GIF demonstrating SearchGPT’s AI search capabilities." width="480" height="270" /><figcaption id="caption-attachment-149315" class="wp-caption-text">GIF demonstrating SearchGPT’s AI search capabilities. Graphic source: <a href="https://openai.com/index/searchgpt-prototype/">OpenAI</a>.</figcaption></figure>
The premise of SearchGPT is to make online searches faster and easier by enhancing AI models' conversational capabilities with real-time web information. It not only responds to questions with up-to-date web information—a feature already present in newer versions of OpenAI's GPT models—but also provides clear links to relevant sources. In SearchGPT, related links are consolidated in a list accessible via a button on the left sidebar and included in the search results. Another button on the sidebar is intended for “visual answers,” although details about this feature remain undisclosed.
<figure id="attachment_149317" aria-describedby="caption-attachment-149317" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-149317 size-large" src="https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-1024x576.jpg" alt="Image showing how links related to user searches are consolidated. Users can access these links via one of the left sidebar buttons in SearchGPT's interface." width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-300x169.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Publishers-V2.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-149317" class="wp-caption-text">Image showing how links related to user searches are consolidated. Users can access these links via one of the left sidebar buttons in SearchGPT's interface. Image source: <a href="https://openai.com/index/searchgpt-prototype/">OpenAI</a>.</figcaption></figure>
<figure id="attachment_149318" aria-describedby="caption-attachment-149318" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149318 size-full" src="https://console.kr-asia.com/wp-content/uploads/2024/07/SearchGPT-Sources.gif" alt="GIF illustrating how related links are integrated into SearchGPT search results." width="480" height="480" /><figcaption id="caption-attachment-149318" class="wp-caption-text">GIF illustrating how related links are integrated into SearchGPT search results. Graphic source: <a href="https://openai.com/index/searchgpt-prototype/">OpenAI</a>.</figcaption></figure>
Leveraging contextual memory, users can ask follow-up questions as if in a conversation. Wood told The Verge that the company is collaborating with third-party partners, directly using their content to construct search results. The goal is to integrate the best features of SearchGPT directly into ChatGPT.
She added that approximately 10,000 testing slots will be available initially, with registration for the waitlist already underway.
From the official demo, it’s clear that OpenAI is partnering not with search engines or browsers, but with news organizations, publishers, and content creators. This positions OpenAI’s search product to compete directly with search giants like Google as well as newcomers like Perplexity.
But Google isn’t sitting still while OpenAI makes its advances. Anticipating the integration of generative AI with search early on, Google started rolling out <a href="https://blog.google/products/search/generative-ai-google-search-may-2024/">“AI Overviews”</a> in May this year, which uses AI to summarize search results into short paragraphs. Public reception has been mixed, with the feature sometimes delivering bizarre responses.

OpenAI launches SearchGPT, Google’s latest search rival

OpenAI

Artificial Intelligence

Deep Tech

Chinese tech company Kuaishou, also known internationally as Kwai, has expanded the reach of its generative artificial intelligence platform, Kling AI, to a global audience. The beta version of Kling AI is now <a href="https://klingai.com/">accessible worldwide</a>, requiring only an email address for registration.
Upon signing up, users receive 66 free credits daily for image and video generation. Kling AI supports both text-to-video and image-plus-text-to-video generation, positioning it as a competitor to OpenAI’s Sora, which is still limited to a select group of users.
The efficiency of Kling AI’s generation capabilities is notable. Each 5-second video clip takes approximately 5 minutes to generate, equating to 1 minute per second of video, or half a second per frame. Image generation is almost instantaneous, taking a matter of seconds per image.
The platform currently offers three video resolution options: a 960x960 square format, or 720p in landscape or portrait mode. It also features camera control, allowing users to select between static, horizontal, vertical, pan, tilt, or rolling movements.
Users can fine-tune their creations by adjusting the balance between creativity and relevance. Favoring relevance ensures the output closely adheres to the prompt, while emphasizing creativity yields more imaginative results. Kling AI also accepts negative prompts to enhance accuracy.
The platform supports multilingual prompts, delivering comparable results to identical prompts written in both English and Mandarin.
<div style="width: 640px;" class="wp-video">
<video class="wp-video-shortcode" id="video-149321-1" width="640" height="360" loop="1" autoplay="1" preload="metadata" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Kitten-Lunch.mp4?_=1" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Kitten-Lunch.mp4">https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Kitten-Lunch.mp4</a></video></div>
Video generated by Kling AI in response to a prompt requesting a “cute kitten eating lunch like a human."
<div style="width: 640px;" class="wp-video"><video class="wp-video-shortcode" id="video-149321-2" width="640" height="360" loop="1" autoplay="1" preload="metadata" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-Chinese-Kitten-Lunch.mp4?_=2" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-Chinese-Kitten-Lunch.mp4">https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-Chinese-Kitten-Lunch.mp4</a></video></div>
Video generated by Kling AI in response to a prompt written in Chinese, also requesting a "cute kitten eating lunch like a human." The result did not significantly differ from the version generated in response to the English prompt.
Based on a brief round of testing by KrASIA, Kling AI demonstrated the ability to generate realistic video content with most prompt components present. However, the majority of videos produced in the sample lacked coherence, highlighting the ongoing challenge of achieving smooth temporal dynamics in video generation—a challenge that affects Kling AI as well.
For instance, in response to a prompt requesting a “realistic puppy driving a car,” Kling AI generated a video snippet showing a dog at the wheel from the driver’s perspective. However, the dog was positioned on the wrong side of the wheel, and there were inconsistencies in the rearview mirror within the video.
<div style="width: 640px;" class="wp-video"><video class="wp-video-shortcode" id="video-149321-3" width="640" height="360" loop="1" autoplay="1" preload="metadata" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Puppy-Driver.mp4?_=3" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Puppy-Driver.mp4">https://console.kr-asia.com/wp-content/uploads/2024/07/KlingAI-16x9-English-Puppy-Driver.mp4</a></video></div>
Video generated by Kling AI in response to a prompt requesting for a “realistic puppy driving a car.”
Currently, video generation is limited to 5-second clips, but Kuaishou plans to introduce long-form generations in a future update. Kuaishou has segmented Kling AI into two platforms, with a new web portal for international users and a separate domain for the original Chinese version. This strategy mirrors those of other major Chinese tech companies, such as ByteDance with TikTok (known as Douyin in China) and Tencent with WeChat (domestically known as Weixin).
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Kuaishou’s Kling AI video generator launches globally to challenge OpenAI’s Sora

China Tech

Video

Content

36Kr has learned exclusively that Douyin E-commerce’s gross merchandise value (GMV) for the second quarter of 2024 ranged between RMB 760–770 billion (USD 104.7–106.1 billion). For the first half of this year, the total reached approximately RMB 1.4 trillion (USD 193 billion).
An insider revealed that Douyin E-commerce’s target for the first half of the year was RMB 1.5 trillion (USD 206.7 billion), indicating that the current results have not met Douyin's initial expectations.
Although the gap to reach the target might seem minor, growth has always been Douyin’s driving force. In 2023, Douyin E-commerce maintained a robust monthly GMV growth rate between 50–70%. However, according to <a href="https://mp.weixin.qq.com/s/o3wFZ3I4SwfdPITpHV4Flw">LatePost</a>, Douyin E-commerce saw a year-on-year growth rate decline for the first time in March this year, dipping below 40%. By the end of the second quarter, the growth rate further slid below 30%.
A Goldman Sachs report corroborated this trend, detailing data for the 618 shopping festival from May 20 to June 18: Taobao's GMV growth rate was between 10–15%, JD.com saw single-digit growth, Pinduoduo grew by 15–20%, and Douyin posted over 20% growth. Although Douyin’s growth rate remained the highest, it was no longer as dominant.
The decline in Douyin E-commerce's GMV growth rate may be linked to its low-price policy. A source close to Douyin E-commerce told 36Kr that, in 2023, the average transaction value for Douyin E-commerce's mall and search features hit RMB 100–120 (USD 13.8–16.5), but it has now dropped to around RMB 80 (USD 11), a decline of 30–40%.
At the start of this year, Douyin E-commerce prioritized price competitiveness for 2024, relegating GMV to the back seat. However, the unexpected rapid decline in GMV growth during the first half of the year prompted a strategic pivot, placing GMV back at the forefront.
Douyin is not alone in this approach. In the first half of the year, low-price strategies were prevalent among Pinduoduo, JD.com, and Taotian Group (Taobao and Tmall). But as 36Kr recently reported, Taotian has already shifted away from its absolute low-price strategy, reverting to distributing search weight based on GMV.
whereRelatedArticle
Many merchants have voiced their frustration, claiming that Douyin's price comparison system forces them to sacrifice profits for traffic support. This strategy has hampered their advertising efforts.
The low-price policy has affected merchants' retention rates and marketing budgets, subsequently impacting Douyin’s advertising growth. A source close to Douyin E-commerce told 36Kr that, in the second quarter, the retention rate of active selling merchants fell from 81% at the beginning of the year to about 59% by the end of the second quarter. Currently, fewer than 2 million merchants are actively selling each month, out of approximately 4 million total merchants.
Merchants advertising on Douyin account for about 25% of active sellers, currently around 400,000–500,000. Douyin initially planned to increase this number to 900,000 by year-end, but this goal now seems challenging.
When Douyin introduced its low-price strategy, it attracted a significant number of white-label merchants. Although the platform no longer emphasizes low prices, it still aims to expand its variety of white-label products to boost monetization. According to an unnamed source, in the first quarter, white-label products accounted for nearly 40% of Douyin E-commerce's GMV, with a target to increase this to 44–46% by year-end.
"In the coming years, the proportion of white-label products is expected to continue rising but won’t exceed 60%. In the short to medium term, it will likely remain around 50%," the source said.
36Kr sought confirmation from Douyin regarding the above information, but the company stated it is untrue.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2875871698227589">article</a> was written by Wang Yuchan for 36Kr.

Douyin E-commerce misses first-half GMV target amid growth slowdown

Douyin

E-commerce

Consumer Economy

… million shares. The company was valued at USD 5.5 billion during its last equity round in October 2023, but could seek a valuation of USD 4.2–4.4 billion in the upcoming IPO. —Entrackr</li>
<li aria-level="1"><a href="https://www.atherenergy.com/">Ather Energy</a>, another electric two-wheeler manufacturer, has received INR 600 million (USD 7.1 million) in debt funding from Stride Ventures through its trustee Vistra ITCL. This is the company’s second debt infusion in two months. —Entrackr</li>
<li aria-level="1">Neo Wealth, a non-banking financial company (NBFC), has raised INR 320 million (USD 3.8 million) in private placements. Morde Foods invested INR 200 million (USD 2.3 million), while SN Damani Developers and Bridgemonte Advisors contributed INR 100 million (USD 1.1 million) and INR 20 million (USD 238,895) respectively. The funds will be used for growth and business operations. —Entrackr</li>
<li aria-level="1"><a href="https://unimechaerospace.com/">Unimech Aerospace</a>, a Bengaluru-based aerospace manufacturing company, has raised INR 2.5 billion (USD 29.8 million) from Steadview Capital Mauritius, VQ Scale Fund (ValueQuest), and Evolvence India Fund IV. —Entrackr</li>
</ul>
whereRelatedArticle
<h3>Earth VC, Grab, Revir Therapeutics, and more led last Friday’s headlines:</h3>
<ul>
<li aria-level="1">Earth Venture Capital (Earth VC), a climate tech venture capital firm based in Vietnam, participated in a USD 3.2 million funding round for <a href="https://sparxell.com/">Sparxell</a>, a UK-based developer of high-performance, sustainable, plant-based pigments. This round, which includes seed investments, grants, and awards, was led by the Circular Innovation Fund, jointly managed by Demeter and Cycle Capital with L’Oreal as an anchor investor. Other notable investors included Future Communities Capital, PDS Ventures, Katapult, Joyance Partners, and Snocap VC.</li>
<li aria-level="1">Grab, Singapore’s ride-hailing and food delivery giant, withdrew its plan to acquire Singapore-based taxi operator Trans-cab.</li>
<li aria-level="1"><a href="https://revirtx.com/home">Revir Therapeutics</a>, a company tapping artificial intelligence technology to develop targeted RNA small molecule drugs, secured USD 30 million in a Series A funding round led by Lapam Capital. Existing investors CDH Investments, 5Y Capital, and Yael Capital, along with new investors XtalPi and CMT Research Foundation, also participated.</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: Hive Health raises USD 6.5 million, AgFunder VC closes fourth early-stage fund, ten China and India deals, and more

India

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Philippines

Southeast Asia

The new Swee Lee music store in Singapore's Clarke Quay entertainment district is popular with young people and families on weekends. In addition to selling musical instruments and equipment plus fashion items, it also offers a cafe space where customers can enjoy coffee while playing guitar or listening to vinyl records of their choice.
"Swee Lee Clarke Quay represents our vision to transform customer experience at our brick-and-mortar stores, cultivating a dynamic, community-centric retail space, thoughtfully designed to go beyond just buying and selling," Kuok Meng Ru, the CEO and founder of the Caldecott Music Group, the startup that owns the Swee Lee chain, said in a news release in April when it opened the store, its third in Singapore.
"The space is a dynamic hub for programming, networking, education, fostering connections, unleashing creativity, and so much more."
Swee Lee has been in business since 1946 and previously focused on wholesaling musical instruments. Kuok acquired Swee Lee in 2012, which was the beginning of his venture into the music business.
The 36-year-old Kuok is the son of Kuok Khoon Hong, the founder and chairman of Wilmar International, a Singapore-listed major palm oil plantation company. He revamped the Swee Lee brand for today's youth and began developing retail stores alongside online sales. The music store has expanded into Malaysia, Indonesia and Vietnam, totaling 11 across Southeast Asia.
Caldecott, which also owns the popular music composition app BandLab, has expanded through acquisitions, building a business ecosystem that connects music fans both online and in the real world. Its approach is to acquire prominent companies and trademarks that are no longer viable in the music industry and "bring brands back to life," as Kuok put it.
In 2016, Caldecott acquired a 49% stake in the company that publishes the US music magazine Rolling Stone (but then sold it in 2019). It also bought Harmony, a Michigan guitar manufacturer that ceased production in 1975, and reopened its factory. Moreover, Caldecott last year acquired the trademark of Dawsons, a British music store founded at the end of the 19th century that had gone bankrupt, and is operating online and brick-and-mortar Dawsons stores.
Meanwhile, Caldecott's core business, BandLab, has grown steadily. The app, which allows users to compose and arrange music with a single smartphone, had more than 100 million users worldwide by March, with users growing during the pandemic as more people enjoyed music at home. The app also functions to connect music fans worldwide through sound-source sharing and collaborative production.
About 30% of BandLab's users are from the US, and some musicians have climbed the charts with songs composed and recorded using the app. The number of users is also increasing in the Philippines, India and other Asian countries where smartphones are more popular than laptops.
Investors are paying attention to the group. BandLab Technologies, which oversees Caldecott's digital division, raised a total of USD 90 million in funding from venture capital firms and other investors in 2022 and 2023. The company also has acquired Cakewalk, a professional music composition software, and ReverbNation, an artist services platform.
In a recent movement, the company launched SongStarter, a songwriting feature using generative artificial intelligence, in 2022.
"We are extremely proactive in AI both in terms of where we believe AI can empower people, empower humans," Kuok told Nikkei Asia last year on the sidelines of a business forum, adding that one has to be very considerate and ethical about how they use it. "AI for good is really important."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Startups/Singapore-startup-s-stores-and-apps-connect-world-s-music-fans" 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>.

Singapore startup's stores and apps connect world's music fans

Music

Singapore

… p{font-size:20px;line-height:32px}.entry-content h3{font-size:24px;line-height:32px}}</style>

Deals in brief: Earth VC backs UK-based Sparxell, Grab’s acquisition of Trans-cab falls through, five China deals, and more

Vietnam

Europe

… software had to be redone, and the testing was also expensive. Each car itself costs millions, and one test is RMB 300,000. Three cars add up to over RMB 1.5 million (USD 207,695).
We also added side airbags for the second-row seats. Previously, there were only curtains, which could only protect the upper body. We are likely the first company in China to add side airbags for all second-row seats, regardless of model or trim.
I was scolded by Li Xiang several times before. Once, he jokingly said that, when faced with the choice of whether to do the co-pilot test, the industry standard was only to test the driver's seat. My idea was not to do the co-pilot test. Then Li Xiang jokingly said, "Do you have a bad relationship with your wife because the co-pilot is usually the wife?" This gave me great inspiration. All safety features that can be done should be done. Starting from April this year, the CIRI Auto Technology Institute has made the co-pilot test an industry standard.
<h3>36Kr: The Aito M9 is a competitor to the Li L9. How do you view the current competition?</h3>
TJ: The refrigerator, television, and spacious sofa are our competitive advantages. However, everyone's home is different. There are RMB 1,000 refrigerators and RMB 10,000 refrigerators, and the user experiences differ. The L9 and M9 each have their unique strengths. For instance, the L9 boasts dual-chamber air suspension, while the M9 features the Turing chassis. The M9's HUD is large, but the L9's HUD is exceptionally clear in many aspects. As a family car, the L9 is absolutely top-notch.
Where is the winning point? In my understanding, in terms of intelligent driving, we and Huawei are likely to be in a "Southern Murong, Northern Qiaofeng" situation, advancing side by side.
Our disadvantage is that our brand is very young. I want to persuade Li Xiang to invest in the product line and in conveying user value. Li Xiang's approach is to gradually guide users through our products.
<h3>36Kr: You are mainly responsible for Li Auto's flagship product line. What directions will future flagship models take? Can we expect more technological advancements?</h3>
TJ: I come from an R&amp;D background, and my understanding of technology is that when a need arises, whether from users or from Li Xiang, I first assume the need is reasonable, even if it seems unbelievable. By approaching problems with a positive mindset, we can achieve 80% of 100 needs. With effort, we can achieve 90%, and with even more effort, we can reach 96%. This mindset allows us to lead the industry with flagship models.
For example, before the L9, extended-range vehicles all had large air intakes, while pure EVs did not. The Li One also had a large air inlet, but for the L9, we designed an electric air inlet, folding it under the ring light—something no one in the industry had done before. One day, Li Xiang pointed out that the electric air inlet was allowing sand and leaves to enter, causing issues, and asked if we could remove it and keep only the air inlet under the license plate.
The R&amp;D team's first reaction was that it couldn't be done because no one in the industry had attempted it. But I told the team to first assume Li Xiang's demand was reasonable and figure out how to achieve it. We brought together experts in thermal management, interior, exterior, styling, collision, noise, vibration, and harshness (NVH), and we were the first in the industry to solve this problem.
Li Xiang himself made a significant contribution. First, he proposed a demand that seemed unbelievable at the time. Second, it was crucial to move the millimeter-wave radar under the license plate. Bosch initially disagreed, but Li Xiang personally negotiated with them, which was rare but critical. Challenging industry norms is essential for creating flagship products.
Innovation in flagship products also requires a deep understanding of technology. The final competition may not be about individual pieces of technology but about user value. Users want safer, more comfortable, more convenient, and more refined products, not just those with impressive technical parameters.
Current communication often falls into parameter competition. Parameters are the easiest to choose but also the easiest to surpass. Competing on parameters offers no real advantage. The ultimate core competitiveness lies in the user experience.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2853217098992261">article</a> was written by Li Anqi for 36Kr.

Is Li Auto’s commitment to maximizing user value its moat?

Electric Vehicles

Mobility

… said.
Some owners straddle the line of full-fledged gambling, allowing players to win money by using a claw to roll dice. This is a legal gray area as claw machines do not require a gambling license.
Machine suppliers are clear winners.
Andy Chan, owner of claw machine supplier Cool Bear Amusement based in Guangzhou, said he is shipping 500 machines to Hong Kong per month, versus about 200 a month in 2022.
"This is the best time for this business," said Chan, who is in his mid-30s. Amid the economic doldrums, "it is easier for people to invest in the business due to the relatively lower capital on equipment and rents," he said, adding that he believes there is still room for growth.
But some expect Hong Kong's claw machine boom to be short-lived, not necessarily because they expect the property market to recover, but because the influx of newcomers to the business could lead to overcrowding.
Choi said he is already looking to use the money he has made from his claw machines to go into business on the mainland or overseas. Opening unstaffed billiards halls is an option, Choi said.
"Hong Kong is facing too many internal and external challenges," Choi said. He predicts a wipeout for catering and retail businesses that will drive shop rents "even lower in the upcoming five years."
"It's a cycle," he said. "Many things in Hong Kong are going backward. It's not hard to see there will be more downtrends."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Business-Spotlight/Hong-Kong-s-rise-of-the-claw-machines-reflects-property-fall" 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>.

Hong Kong's rise of the claw machines reflects property fall