Author: Mei Ling Tan

  • Geely Recalls 93,000 Vehicles in China over Defective LiDAR Chips

    Geely Recalls 93,000 Vehicles in China over Defective LiDAR Chips

    Geely Auto is recalling 92,915 vehicles in China across its Galaxy and Lynk & Co lines after discovering faulty LiDAR power chips that can disable driver-assistance systems.

    Filings submitted to China’s State Administration for Market Regulation take effect on August 24, requiring free hardware replacements across five vehicle models.

    A manufacturing process variation at a component supplier damaged the power integrated circuits inside the sensors. The fault compromises key automated driving safeguards.

    On 18,878 Geely Galaxy M9 plug-in hybrid SUVs built between July and October 2025, the glitch forces assisted driving features to shut down or fail to activate. Across 74,037 Lynk & Co 900, 10 EM-P, 07 and 08 models assembled throughout 2025, the defect leaves systems unable to detect and warn drivers about road obstacles.

    Faulty sensors and supplier defects

    Service teams will use cloud diagnostics to flag at-risk vehicles remotely before inviting drivers into workshops for replacement parts. Drivers had already reported dashboard alerts warning of front sensor failures and capped cruise speeds in mid-August.

    Pressure is mounting on Lynk & Co, which now operates under the Zeekr Group umbrella. Deliveries plunged 40 per cent year on year in July to 16,382 units, the fourth straight month of double-digit contraction. Across the first seven months of 2026, the brand delivered 160,597 cars, tracking at under 40 per cent of its 400,000-unit annual target.

    Wider scrutiny on driver assistance

    Regulators logged the sensor campaign during a single-day cascade of filings covering more than seven million vehicles across China. Geely also recalled 92,658 Zeekr 007 and Zeekr X units over emergency mechanical door releases on the same date, alongside notices from Tesla, Xiaomi, Leapmotor and Xpeng.

    Dealership workshops begin replacing the damaged sensors on August 24, with Lynk & Co still needing 239,403 deliveries over five months to meet its yearly plan.

  • Australia CBD Retail Vacancy Rises to 10.8% on Melbourne Supply Wave

    Australia CBD Retail Vacancy Rises to 10.8% on Melbourne Supply Wave

    Australia’s central business district retail vacancy rate rose 40 basis points to 10.8 per cent in the first half of 2026 as fresh retail completions in Melbourne added new space.

    A survey of 5,669 retail tenancies across five state capitals by real estate services firm CBRE showed that shop vacancies declined in four of the five cities, leaving Melbourne as the lone driver of the national increase. Melbourne’s CBD vacancy rate climbed 160 basis points to 8.1 per cent following the launch of two retail centres. Sydney held the tightest retail core in the country, with vacancy standing at 5.3 per cent.

    State Capital Breakdown

    Adelaide posted the sharpest improvement among metropolitan centres, where retail vacancy dropped 130 basis points to 10.4 per cent. Brisbane recorded an 80-basis-point decline to 16.7 per cent, while Perth edged down 10 basis points to 18.5 per cent.

    Physical retail space in Australian city centres remains structurally tight over the long term. CBD retail stock accounted for just 4.2 per cent of total new retail supply built across the country over the past decade, limiting the risk of prolonged oversupply even as consumer budgets tighten.

    Luxury and Experiential Demand

    Foot traffic gains from returning office workers, inbound tourists, and major events have kept cash registers moving in primary shopping strips. Luxury brands and premium apparel retailers continue to take prime floor space in Sydney and Melbourne, competing directly against dining and wellness concepts that landlords rely on to anchor footfall.

    For retail property operators across the Asia-Pacific region, Australia’s low single-digit prime core vacancies mirror similar supply squeezes in Tokyo and Singapore. Landlords in secondary locations, however, face longer leasing cycles as retail groups focus their capital expenditure almost exclusively on high-traffic street corners and flagship malls.

    Leasing agents now turn their attention to absorption rates in Melbourne’s two newest downtown complexes over the second half of 2026, which will determine whether the city’s vacancy rate stabilizes before next year’s development pipeline delivers.

  • Maxim’s Overhauls Brand Strategy to Win Younger Asian Consumers

    Maxim’s Overhauls Brand Strategy to Win Younger Asian Consumers

    Maxim’s Food Group is overhauling its branded product strategy across Hong Kong and regional markets to target Gen Z consumers over the next 15 years. The initiative focuses on core festival sales periods, including Mid-Autumn Festival, Chinese New Year and the Dragon Boat Festival, where younger shoppers show shifting buying habits.

    Carmen Chiu, director of branded products at the Hong Kong-headquartered food and restaurant group, is leading the transformation. Chiu previously directed brand expansion for Godiva across Asia between 2012 and 2019, scaling the chocolatier from 30 stores to an opening rate of roughly one new shop per week across Mainland China and the wider region.

    The 80-20 Localization Rule

    Chiu runs brand adaptation on an explicit ratio: 80 percent global brand consistency in look, packaging and tone, with 20 percent dedicated to local market adjustments. At Godiva, low per-capita chocolate consumption across Asia forced a pivot from boxed gift sales into in-store cafes and soft-serve ice cream to build direct trial.

    A similar playbook governed Chiu’s regional rollout at British retailer Fortnum & Mason. The 315-year-old grocer adjusted tea storytelling and fine-tuned product recipes, altering sweetness and saltiness levels to match local palates while keeping core British store aesthetics intact.

    Preserving Festival Demand for Gen Z

    Heritage food brands across East Asia face an aging buyer base as legacy gifting habits weaken among younger demographics. Maxim’s relies heavily on seasonal bakery and gift box lines, where older cohorts remain loyal but younger consumers demand digital engagement and faster product iteration.

    Maxim’s is now testing new product segmentation, alternate distribution channels, and social media touchpoints integrated with artificial intelligence tools. The next phase will measure how these packaging and channel changes perform across Hong Kong retail shelves during upcoming seasonal festival cycles.

  • KPMG Australia Cuts Almost 400 Jobs as Consulting Revenue Plunges 17 per Cent

    KPMG Australia Cuts Almost 400 Jobs as Consulting Revenue Plunges 17 per Cent

    KPMG Australia is eliminating 387 jobs across its consulting and business operations following steep declines in advisory demand and an ethics scandal. The reduction removes 360 employees and 27 partners, representing roughly 5 per cent of the firm’s national headcount.

    Annual revenue at the partnership fell 1 per cent in the twelve months through June, dragged down by a 17 per cent drop in consulting income. The retrenchments reflect both broader corporate spending pullbacks and internal turmoil surrounding allegations that staff misused confidential client information to win commercial contracts.

    Advisory Slowdown and Restructuring

    The firm confirmed on August 24 that it reviewed workforce requirements against persistent economic weakness and the fallout from conduct and whistleblower investigations. Management plans to consolidate several operational units to align local practices with KPMG’s global advisory structure.

    Demand for corporate advisory across Australia has cooled sharply over the past year as private enterprises and government departments curb discretionary spending. For major accounting partnerships, that pullback has exposed high overhead costs built during the post-pandemic consulting boom.

    Tighter Oversight for Big Four Firms

    Corporate clients across the region have tightened governance audits on external advisors following repeated conduct disclosures across the sector. Macquarie Group recently sought formal guarantees from KPMG that confidential banking data had not been compromised during tender processes.

    Canberra is drafting legislation to expand statutory oversight across the consulting sector, introducing steeper fines and enhanced investigatory powers. Australian lawmakers will review the proposed regulatory framework in upcoming parliamentary sessions.

  • India Quick Commerce Discounts Ease to 20% as Rivals Add Dark Stores

    India Quick Commerce Discounts Ease to 20% as Rivals Add Dark Stores

    Average discounts across India’s quick-commerce platforms have dropped to between 19 and 20 per cent, cooling from early-year peaks as operators focus on unit economics. The pull-back comes even as larger e-commerce rivals prepare to roll out up to 1,500 new dark stores over the next 12 to 18 months, according to research by UBS.

    Price discounting reached its height in early 2026 when Amazon Now raised discount rates from 26 per cent in November 2025 to 57 per cent two months later. Competitors responded in kind. Flipkart Minutes and incumbent platforms increased promotional discounts by 200 to 300 basis points across key retail categories before the pricing war settled over the past four months.

    Dark Store Land Grab

    The total addressable market for quick commerce across India is projected to reach $59 billion by FY30, upgraded by UBS from an earlier forecast of $34 billion. Quick-commerce networks now operate across more than 100 towns and are expected to capture roughly half of all incremental growth in online retail across the country.

    Network footprints are widening beyond standard grocery lines. Dark stores increasingly handle consumer electronics, personal care, and apparel, directly competing with traditional parcel delivery networks. To contest this volume, conventional e-commerce groups are setting up 400 to 600 micro-warehouses each, with plans to scale their combined networks to between 1,200 and 1,500 facilities.

    Unit Economics and Margins

    Incumbents enter this new round of competition with substantial cash reserves. Blinkit and Swiggy’s Instamart hold roughly Rs 18,000 crore each on their balance sheets, while Zepto holds about Rs 7,000 crore. Blinkit posted positive adjusted EBITDA margins in the first quarter alongside rapid net order value growth. Instamart reached contribution-margin break-even in May, lifting its sequential quarterly margin by 160 basis points to negative 0.2 per cent. Zepto cut promotional pricing and removed more than four million unprofitable customer accounts before restarting growth spending in July.

    Across Asia’s instant-delivery markets, platforms in South Korea and Southeast Asia experienced a similar shift once order density matured: headline subsidies gave way to monetisation through merchant advertising, platform fees, and branded marketing tie-ups. In India, UBS reduced its steady-state operating margin forecast for the sector by 250 to 300 basis points, reflecting the lower margins found in non-grocery merchandise and higher fulfilment costs outside top-tier metros.

    Attention now shifts to food-delivery user activation, where platforms report that more than 70 per cent of accounts transact less than once a month. Zomato and Swiggy are rolling out smaller basket sizes, tighter delivery radiuses, and reduced restaurant commissions to draw those dormant accounts into regular ordering cycles.

  • 12 Entertainment Options That Are Perfect for Long Weekends

    12 Entertainment Options That Are Perfect for Long Weekends

    No alarm set, no notifications buzzing before seven, just tricycles outside and coffee brewing slower than usual. That first stretch of a long weekend always feels like pure possibility, right up until you remember you did nothing with the last one either; the days blurred into errands, half-finished shows, and naps you didn’t plan on taking.

    A little variety changes that, and here are twelve activities to liven up a long weekend:

    1) Try a Cold Plunge or Ice Bath Session

    Three minutes in ice water is not really comfortable, and that is the entire point. Cold plunge studios have been popping up next to regular gyms, offering a different kind of reset than a hot shower ever could. Most people step out sharper and more awake than any coffee could manage.

    2) Try Digital and Online Gaming

    A few hours disappear fast with the right game queued up, whether that’s a mobile puzzle, a console title, or a multiplayer match. Online casino games offer a similar pull for some, with the table games, slots, and live dealer rooms that used to only exist inside a physical casino. Before you play casino online games, remember that a budget set before you start keeps things fun and stress-free.

    3) Visit a Themed Café or Quirky Local Spot

    Ever notice how the regular coffee run stops being interesting after a while? Plenty of cities now have cafés built around one specific idea: cats wandering between tables, shelves of board games, and décor stuck in a decade that isn’t this one. Suddenly, a craving will have turned into an outing.

    4) Try a Bookbinding or Journal-Making Workshop

    Fold, stitch, glue, repeat. By the end of the day, you’ve made something that you can actually use. Bookbinding classes have become one of the more satisfying slow crafts precisely because the result is immediate and tangible, something you’d genuinely pay for at a stationery shop.

    5) Try a Scent-Blending or Candle-Making Workshop

    There’s a difference between buying a candle and making one from scratch, testing scent after scent until one finally smells perfect. DIY perfume bars and candle studios ask for more attention than most weekend activities, but the finished product sticks around for months.

    6) Join a Plant Swap or Build a Terrarium
    Local plant swaps run on a simple trade: bring a cutting, leave with something new. They’ve become one of the better low-cost weekend outings, part social, part scavenger hunt for whatever rare leaf someone else is willing to trade away. For anyone who’d rather skip the trading, terrarium-building sessions offer the same slow, hands-on result.

    7) Try a Sound Bath or Float Therapy SessionThe bowls do most of the work; all that’s left is to lie down and let the sound, or the silence, take over. Sound baths and float tanks have become a go-to for deep rest without the pressure of a full spa day, no small talk required, no schedule to keep. Most people lose track of time before the hour’s up.

    8) Go on a Thrift or Ukay-Ukay Treasure Hunt

    What’s actually in the next rack? Nobody knows until they dig, and that uncertainty is half the appeal of a ukay-ukay run. Patience gets rewarded here in a way it rarely does at the mall, a few pesos and some digging turning up something better than retail ever would.

    9) Try Urban Sketching or a Photo Walk

    Ten small things, a stray cat mid-stretch, an odd doorway, late-afternoon light on a wall, are usually enough material for an hour of sketching or shooting. There’s no grading involved. It’s about noticing, not producing something polished.

    10) Host a Mahjong or Board Game Café Night

    Dinner and small talk only stretch so far. Board game cafés and mahjong nights give people something to focus on together instead, tiles clicking, strategy replacing awkward pauses, no dead air to fill. Three hours pass before anyone notices.

    11) Attempt a Paint-Your-Own Pottery Kit

    Here’s the entire setup: a pre-glazed mug or bowl, a few hours, and a set of colors to choose from, no wheel or kiln required. These studios have found an audience among people who want a hands-on result without learning an actual craft. What’s left at the end is an object, not a memory that fades by Tuesday.

    12) Try Analog Photography or Film Development

    No screen to check after each shot, just a loaded roll and a several-day wait to see what actually turned out. Digital cameras never demanded this kind of patience. The film gets developed by hand, and that one step turns the whole thing into something closer to a ritual than a hobby.

    Long weekends carry a strange kind of pressure to make them count, as if rest itself needs to be earned through activity. It doesn’t. The version of Monday you wake up to says more about how you spent the days off than any list ever could, whether that means a full itinerary or none at all.

     

  • Chinese Robot Makers Unveil 150 Humanoids for Warehouse and Factory Work

    Chinese Robot Makers Unveil 150 Humanoids for Warehouse and Factory Work

    Chinese robotics developers demonstrated humanoid machines sorting logistics parcels and assembling mobile handsets in Beijing this month, pushing to convert promotional technology into commercial factory installations. More than 300 mostly domestic companies participated in the World Robot Conference, presenting over 2,000 exhibits and launching upwards of 150 products.

    The presentations focused on physical industrial utility rather than scripted stage routines. Machines showed off fine motor tasks that included packing consumer electronics and sorting freight for delivery networks, alongside domestic maintenance functions.

    Deployment targets supply chains

    Warehouse operators and electronics manufacturers across East Asia face tightening labor availability and rising wage floors. Humanoid form factors aim to slot directly into facilities designed for human staff, avoiding the expensive structural retooling required by fixed automation systems.

    Retail supply chains in China handle hundreds of millions of parcels daily. Deploying dexterous bipedal and wheeled units into sorting hubs allows logistics operators to scale throughput during promotional peaks without adding headcount.

    Hardware shifts toward commercial scale

    Investor capital across the region has shifted heavily toward general-purpose robotics ventures. Chinese manufacturers rely on dense domestic component supply chains for actuators, sensors and gearboxes to lower unit production costs below Western competitors.

    Commercial viability now hinges on software reliability and battery runtime during continuous multi-hour warehouse shifts. Factory pilots scheduled across domestic consumer electronics assembly plants through the end of the year will test whether unit economics beat dedicated automated guided vehicles.

  • Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwanese consumer confidence has fallen, with sentiment regarding the economic outlook and spending weakening this month, despite official predictions of the strongest economic growth in decades. A recent survey by Cathay Financial Holding Co. Revealed that inflation concerns and volatility in financial markets are contributing to this cautious mood among consumers.

    The survey highlighted a drop in consumer optimism toward the local stock market and overall risk appetite following recent equity swings. Factors such as heightened tensions between the US and Iran, rising oil prices, and expectations for higher US interest rates have made investors more conservative. Frequent stock trading halts in South Korea and renewed questions about the sustainability of the artificial intelligence (AI) boom have fueled market volatility.

    Divergence in Economic Views

    Consumers now anticipate inflation to average 2.3 percent this year, surpassing the government’s estimate of 2.07 percent and the central bank’s 2 percent target. Their economic growth expectations also fall short of official projections, with consumers anticipating an 8.94 percent expansion this year on average, significantly lower than the government’s forecast of 11.05 percent, which would mark the fastest pace in nearly four decades. Only about one-quarter of respondents expect growth to exceed 10 percent.

    This divergence between official forecasts and household expectations suggests that the benefits of Taiwan’s AI-led economic expansion have not yet translated into stronger consumer confidence. Higher energy costs, inflation risks, and financial market swings are adding to uncertainty, which in turn has led to a weakened willingness among consumers to make major purchases. The index for durable-goods spending has consequently moved into negative territory.

    Investment Sentiment

    Despite the cautious consumer sentiment, Taiwanese equities remain the most preferred investment target for the next six months, selected by 57 percent of respondents. In comparison, 24 percent favored US stocks. For those planning to increase investments, confidence in Taiwanese companies’ ability to sustain earnings was the most frequently cited reason, followed by optimism regarding the economy’s overall strength.

    RetailNews Asia observes that similar patterns of economic growth failing to fully translate into consumer confidence have been seen across other Asian markets, particularly where global economic headwinds and local inflationary pressures create a disconnect between macro-indicators and household spending power. This trend often prompts retailers to adapt strategies to cater to more value-conscious consumers or focus on essential goods over discretionary purchases.

    The survey, conducted from August 1 to August 7, gathered 12,580 responses from customers and members of Cathay Life Insurance Co. And Cathay United Bank Co.

  • China’s Proya Cosmetics Enters US Market with Ulta Partnership

    China’s Proya Cosmetics Enters US Market with Ulta Partnership

    China’s largest cosmetics firm, Proya Cosmetics, is preparing to enter the United States market through a partnership with Ulta Beauty. The collaboration will see two of Proya’s product lines distributed across 400 Ulta retail locations and its online platform, marking a significant step in the company’s international expansion strategy.

    This initiative comes as Proya faces intense competition within its domestic Chinese market, prompting the company to seek growth opportunities abroad. While Chinese beauty brands rarely achieve mass distribution in Western markets, this partnership with Ulta represents a notable effort to penetrate a major retail channel.

    Strategic International Expansion

    The move into the US follows Proya’s successful test of a similar business model in Southeast Asia. In April, the Hangzhou-based company signed an agreement with Guardian, Malaysia’s leading beauty and personal care chain. This deal has made Proya’s flagship products gradually available in more than 200 Guardian brick-and-mortar stores across Malaysia, demonstrating a phased approach to international market entry.

    Proya’s focus on international and multi-brand expansion is evident in its recent acquisitions, including a 51% majority stake in the popular brand Flower Knows for approximately €45 million. Despite these strategic moves, Proya Cosmetics reported operating revenue of 10,597 million yuan (about $1.5 billion) in fiscal year 2025, a slight year-over-year decline of 1.68%. This dip highlights the pressures within China’s beauty sector and the need for new growth avenues.

    Implications for Asian Beauty Brands

    The partnership between Proya and Ulta is unusual. Historically, Chinese beauty brands like Florasis and Flower Knows have found success in Western e-commerce channels but have struggled to secure significant market share against established players such as L’Oréal or Estée Lauder in physical retail. Proya’s direct entry into mass distribution via Ulta could set a new precedent for how Asian beauty brands approach Western markets.

    For Asian retailers and investors, this development signals the increasing maturity and ambition of Chinese consumer brands. It also underscores a broader trend where companies from the Asia-Pacific region are actively pursuing global expansion to diversify revenue streams and build brand recognition beyond their home territories. Such collaborations demonstrate a growing receptiveness in Western retail to products and brands originating from Asia, potentially paving the way for more partnerships of this nature.

  • Asian Markets Mixed Amid US Economic Worries, Retail Sales Dip

    Asian Markets Mixed Amid US Economic Worries, Retail Sales Dip

    Asian stock markets exhibited mixed performance on Monday following a downturn on Wall Street. Investors are currently weighing new economic data that suggests a potential weakening in the world’s leading economy, thereby tempering expectations for an immediate US interest rate hike.

    Last week, anticipation that the Federal Reserve might not increase policy rates next month had bolstered equities, with the S&P 500 and Nasdaq reaching record highs. This sentiment was driven by reports indicating a softening labor market and easing inflation, despite it remaining above target levels. However, recent figures have raised questions about the economy’s underlying health, prompting market observers to advise caution.

    US Economic Concerns Shift Market Focus

    Retail sales in the US declined by 0.6 percent month-on-month in July, marking the poorest performance in over a year. Concurrently, consumer sentiment plummeted as households, grappling with the economic impact of President Donald Trump’s Iran conflict, curtailed spending and anticipated higher inflation. According to Fawad Razaqzada at Forex.com, payroll data earlier in the month, coupled with inflation figures, softer retail sales, and weaker consumer sentiment, collectively suggest a loss of momentum in the US economy. This reinforces expectations that the Federal Reserve might maintain current rates in September, with traders now assigning a one-in-four probability of a hike, down from 50:50 last week.

    This week, market attention will turn to the release of earnings reports from prominent retail companies such as Walmart, Home Depot, and Target. These results are expected to provide clearer insights into the prevailing consumer sentiment, which is critical for understanding future retail trends. For companies operating across Asia, tracking these shifts in consumer behavior and market confidence is essential for strategic planning and investment. RetailNews Asia has been monitoring how similar pressures on discretionary spending, whether from geopolitical events or inflationary environments, often ripple through regional markets, influencing consumer brand strategies and investment in the retail sector.

    Asian Tech Sector Resilient Amid Regional Swings

    Despite mounting worries about the US economy, investors in Asia are currently maintaining a more optimistic outlook, particularly with technology firms showing signs of recovery after July’s sell-off. Hong Kong saw gains driven by tech giants including Alibaba, Tencent, and JD.com, while Shanghai and Taipei also recorded increases. Tokyo’s market remained largely flat, though chipmaker Kioxia gained over five percent, and SoftBank, Advantest, and Tokyo Electron added between 1.3 and two percent. Japan’s economic growth falling short of forecasts in the second quarter appeared to have minimal immediate market reaction.

    Conversely, markets in Sydney, Singapore, Wellington, and Manila experienced slight declines. The US dollar continued to weaken against other currencies, extending losses from Friday, which were a direct consequence of the latest economic data. Meanwhile, oil prices extended their one-percent gains from Friday, fueled by ongoing tensions between the US and Iran over the Strait of Hormuz. The prolonged standoff suggests that elevated oil prices, potentially contributing to inflationary pressures, could persist.

  • C-Beauty Brands Accelerate Global Expansion with State Support, as K-Beauty Shifts Focus

    C-Beauty Brands Accelerate Global Expansion with State Support, as K-Beauty Shifts Focus

    Chinese cosmetics companies are significantly accelerating their global expansion, backed by a thriving domestic market and increasing institutional support from Beijing. This surge sees major C-beauty players establishing a strong presence in international markets, shifting the competitive market for beauty brands in Asia and beyond. This aggressive push comes as South Korean beauty brands, or K-beauty, are experiencing a decline in their long-standing dominance within the Chinese market, prompting them to explore new growth regions.

    Chinese Beauty’s Global Offensive

    Proya, China’s largest cosmetics firm, is making a significant move into the US brick-and-mortar retail sector. Following its initial online sales success, Proya is partnering with Ulta Beauty to introduce two of its skincare lines across approximately 400 stores and Ulta’s online platform starting in November. This expansion is part of Proya’s ambitious “Double-Ten” plan, aiming to become one of the world’s top ten cosmetics companies within the next decade. The company has also bolstered its offline network in Southeast Asia, including a major campaign with Guardian in Kuala Lumpur, and acquired a 51% stake in color cosmetics brand Flower Knows, which already operates in markets such as the US, Japan, South Korea, and Southeast Asia.

    Other Chinese brands are also aggressively pursuing international growth. Florasis is using traditional Chinese aesthetics to enter premium markets in Japan and Europe, initially through online channels like Amazon, Shopee, and Lazada, before moving into upscale physical retail. Judydoll built its international customer base via Shopee and TikTok Shop, then accelerated its offline presence, including entry into about 12,000 FamilyMart stores in Japan, becoming the first Chinese color cosmetics brand in that country’s convenience-store channel. Perfect Diary, under Yatsen Holding, quickly became a leading online cosmetics brand across Southeast Asia via Shopee and has expanded its global platform through acquisitions of European brands Galénic and Eve Lom, with plans for further supply-chain integration and overseas market expansion.

    Domestic Strength and Government Backing

    The robust performance of the Chinese domestic cosmetics market is a key enabler for this international expansion. Chinese companies have developed economies of scale, brand recognition, and product expertise at home, providing a strong foundation for global ventures. Despite a broader economic slowdown, China’s cosmetics retail market showed significant growth, with sales reaching approximately $4.20 billion in July, a 6.8% year-on-year increase. Cumulative sales from January to July rose 6.3% to about $40.16 billion, significantly outpacing overall retail sales growth. This strong momentum has been highlighted by the Ministry of Commerce and the China National Commercial Information Center, classifying cosmetics as a consumption-upgrade product with strong demand.

    The Chinese government is actively supporting the domestic cosmetics industry. The National Medical Products Administration (NMPA) recently issued new regulations aimed at promoting innovation and high-quality development. These changes simplify licensing and registration processes for new products, including exemptions from certain toxicity tests and reduced requirements for submitting product documentation. Companies can now reuse existing test data when shifting production locations and choose their own efficacy assessment methods for certain claims, reducing regulatory hurdles and fostering a more agile environment for product development and market entry.

    K-Beauty’s Strategic Re-evaluation

    As Chinese beauty brands gain momentum, the long-standing influence of K-beauty in China is diminishing. South Korean cosmetics giants like Amorepacific (Sulwhasoo, Laneige, Innisfree) and LG Household & Health Care (The History of Whoo) once thrived on the Korean Wave and demand from Chinese tourists and daigou resellers, with China accounting for 53% of South Korea’s cosmetics exports in 2021. However, boycotts, reduced exposure to Korean pop culture, and the impact of the COVID-19 pandemic on duty-free sales have significantly weakened K-beauty’s position. Chinese domestic brands, bolstered by social media marketing and patriotic consumption, have effectively filled this void.

    This shift has prompted a strategic recalibration for South Korean firms. Amorepacific’s sales in Greater China fell 27% year-on-year in 2024, with its Americas sales surpassing China for the first time. Similarly, LG Household & Health Care’s North American sales surged 47.3% to approximately $147 million in the second quarter, exceeding its China revenue of about $126 million. Both companies are now focusing on profitability in their Chinese operations while diversifying their growth strategies across markets like the United States, Europe, and Japan. RetailNews Asia has observed similar moves by other regional players, as companies seek to de-risk their reliance on single markets and build more resilient global portfolios.

  • Human Trust Remains Key Driver for Southeast Asia E-Commerce Amid Rising AI Adoption

    Human Trust Remains Key Driver for Southeast Asia E-Commerce Amid Rising AI Adoption

    Human trust continues to be a primary factor in consumer purchasing decisions across Southeast Asia, even as generative artificial intelligence (AI) tools gain traction in product discovery. A new report by impact.com, Cube, and Dentsu reveals that while AI is emerging as a significant channel, established human connections still hold sway over shoppers in the region’s burgeoning e-commerce market.

    The “E-commerce Influencer and Affiliate Marketing in Southeast Asia 2026” study indicates that recommendations from family and friends are the most influential factor, scoring 2.42 out of four. This outranks online reviews (2.36) and even creators (1.98). However, the report also highlighted the direct impact of creators, with two-thirds (67%) of consumers making a purchase specifically due to a creator’s recommendation. This trend underscores the enduring power of trusted individuals in guiding consumer choices.

    AI’s Growing Role in Discovery and Research

    Generative AI tools such as ChatGPT, Gemini, and Claude are increasingly being used by Southeast Asian consumers for shopping, particularly in product discovery and research. Approximately 24% of consumers in the region currently use these AI tools for initial product discovery, a figure that rises to 28% during the product research phase. Vietnam leads the adoption curve for AI in product discovery at 34%, followed by Indonesia at 31%, while Singapore recorded the lowest usage at 14%.

    Despite AI’s ascent, influencers retain their importance as a research channel, cited by 51% of consumers. YouTube garners the highest engagement for influencer content at 23%, with TikTok at 17% and Facebook at 15%. The report suggests that AI complements the existing commerce ecosystem, rather than replacing it. Consumers frequently navigate between AI assistants, marketplaces, creators, publishers, retail media, and brand-owned channels throughout their purchasing journey. RetailNews Asia has observed similar patterns in other markets, where technology enhances rather than entirely supplants traditional trusted channels, prompting brands to integrate diverse strategies.

    E-Commerce Growth and Influencer Impact

    Southeast Asia’s e-commerce sector is experiencing robust growth, with sales forecast to increase by nearly 15% year-on-year to $219 billion in 2026. This trajectory is expected to almost double to approximately $410 billion by 2031. Indonesia and Thailand collectively dominate the regional market, accounting for 58% of all e-commerce sales, with marketplaces holding an average 72% share. Influencer and affiliate marketing combined are linked to an estimated 32% of the region’s e-commerce sales, translating to about $70 billion in 2026.

    The study, which surveyed 2,400 consumers, also details conversion methods. For purchases made via influencer or creator channels, in-video product tags were the most common conversion route at 56%. This was followed by links in descriptions or comments (43%) and stories (41%). Consumer engagement with various purchasing incentives varies by market. Singapore shows high adoption of cashback and deal sites at 69%, contrasting with Vietnam (28%) and Indonesia (25%) where usage is considerably lower.

  • Alibaba and ByteDance Divest from Gaming and Retail to Fuel AI Ambitions

    Alibaba and ByteDance Divest from Gaming and Retail to Fuel AI Ambitions

    Alibaba Group Holding and ByteDance are restructuring their business portfolios, selling off non-core assets in gaming and retail to private equity firms. This strategic shift aims to re-focus substantial resources and investment into the burgeoning field of artificial intelligence, as competition in the AI sector intensifies across Asia.

    Strategic Divestment For AI Focus

    The move sees Alibaba Group Holding in the process of selling Lingxi Games, its video game unit, to a private equity fund. This divestment reflects a broader trend among leading Chinese technology firms to streamline operations and concentrate capital on high-growth, strategic areas like AI. The decision comes as these companies face mounting pressure to innovate and secure a leading position in the global AI race.

    For retailers and consumer brands in Asia, this reorientation by tech giants like Alibaba has significant implications. Alibaba’s strong presence in e-commerce means that resources diverted to AI are likely to enhance capabilities in areas such as personalised recommendations, supply chain optimisation, and customer service automation. Similarly, ByteDance’s TikTok, a major platform for consumer engagement, could see advanced AI integration impacting everything from content delivery to advertising effectiveness.

    Implications For Asia’s Retail And Tech Sectors

    The decision by Alibaba and ByteDance signals a clear prioritisation of AI development over other business segments, including those with direct ties to consumer spending like gaming and certain retail operations. While the full scope of ByteDance’s retail divestments is not detailed, Alibaba’s move with Lingxi Games indicates a willingness to shed assets to fund core strategic initiatives. This aligns with broader market trends where technology companies are doubling down on AI infrastructure and research, viewing it as the next frontier for competitive advantage.

    This redirection of investment could lead to more sophisticated AI tools and platforms becoming available for businesses, potentially driving efficiency and innovation within the retail and consumer sectors. RetailNews Asia has observed similar strategic realignments across the region, where companies are either investing heavily in AI or partnering with AI specialists to stay competitive in an increasingly tech-driven market.

  • Asian Tech Giants Taiwan and South Korea Form AI Hardware Alliance Amid Surging Demand

    Asian Tech Giants Taiwan and South Korea Form AI Hardware Alliance Amid Surging Demand

    Long-standing technological competitors Taiwan and South Korea are joining forces to address the booming global demand for AI accelerators, the specialized hardware critical for training generative AI models. This alliance marks a significant shift from decades of intense rivalry to a necessary partnership in the digital age.

    The insatiable demand from tech giants for computing power has strained the capacity of key accelerator suppliers like Nvidia and AMD. Their products rely on an increasingly interconnected supply chain linking Taiwan and South Korea, making cooperation essential to meet the massive market need.

    Nvidia CEO Jensen Huang highlighted the urgency at Computex 2026 in Taipei, personally requesting more memory wafers from South Korean firm SK Hynix. This collaboration underscores that no single country can satisfy the current scale of AI infrastructure expansion alone.

    From Intense Competition to Interdependence

    For decades, South Korea and Taiwan fiercely competed for supremacy in technologies ranging from televisions and smartphones to memory chips. Both nations, former Japanese colonies, built their economies on exports, initially focusing on labor-intensive goods before advancing to electronics. This rivalry saw Taiwanese brands like Acer and Asus compete against South Korean giants Samsung and LG.

    South Korea often pulled ahead due to the integrated structure of its conglomerates, such as Samsung, which controlled multiple stages of the supply chain. A notable example involved Samsung reportedly aiming to dominate industries where Taiwanese firms competed, though Samsung denied such a specific ‘Kill Taiwan’ strategy.

    Taiwan’s strength, however, lay in its highly specialized contract manufacturing ecosystem. Unlike South Korea’s vertically integrated companies, Taiwan developed a dense network of firms each focusing on a narrow part of the manufacturing process. This specialization allowed for greater flexibility and adaptability, enabling enduring partnerships with global tech firms like Apple, which eventually made Taiwan Semiconductor Manufacturing Company (TSMC) its primary chip supplier over Samsung.

    Taiwan’s AI Hardware Dominance and Future Outlook

    In the current AI era, Taiwan’s multifaceted ecosystem has proven highly advantageous. Taiwanese companies now hold dominant positions in crucial niches, from power supplies to chip packaging and advanced cooling systems. This allows global customers to select and combine suppliers, maintaining production flexibility. Nomura’s May report ranked Taiwan first globally in AI hardware production, with its AI-related exports contributing to a 15-year high economic growth of 8.7% last year.

    This economic divergence saw Taiwan surpass South Korea in GDP per capita in 2025 for the first time in over two decades. However, this has not deepened the rivalry; instead, the AI boom has fostered greater interdependence. South Korea excels in High Bandwidth Memory (HBM), with SK Hynix and Samsung together accounting for approximately 80% of global HBM production. These critical memory components are then integrated with computing chips from Taiwan’s TSMC using advanced packaging techniques, a final step in creating AI accelerators.

    This dynamic has resulted in South Korea achieving a record trade surplus with Taiwan last year. The relationship is best described as a ‘frenemy’ dynamic, driven by the sheer scale of AI demand. Despite lingering competitive sentiments, the complementary strengths of Taiwan’s contract chipmaking dominance and South Korea’s memory market stronghold make them indispensable partners in powering the next wave of artificial intelligence.

  • Perion Network Boosts AI Platform for Retail Media, CTV Growth

    Perion Network Boosts AI Platform for Retail Media, CTV Growth

    Digital advertising firm Perion Network is intensifying its focus on artificial intelligence (AI) to optimize ad campaigns for retailers and brands. The company is using its Perion One platform, which includes an AI-driven engine called Outmax and a client interface called Ask Perion, to navigate the fragmented digital advertising ecosystem.

    Perion’s strategy addresses the challenge advertisers face in gaining clear insights and managing performance across various platforms, formats, and audience segments. The AI layer analyzes campaign data, identifies inefficiencies, and provides recommendations to improve media investment returns.

    This move reflects a broader industry trend where technology providers are enhancing their offerings to support sophisticated retail media strategies. As retailers in Asia increasingly invest in both online and in-store advertising channels, platforms like Perion One become crucial for unified campaign management and performance measurement.

    Accelerated Growth in Key Ad Channels

    Perion Network reported substantial growth in spending across its newer advertising channels during the second quarter. Retail media spend increased by 60% year-over-year, while connected TV (CTV) rose by 56%, and digital out-of-home (DOOH) grew by 45%. Perion One’s overall spending saw a 15% increase, with its AI-driven optimization technology, Outmax, experiencing over 130% adoption growth.

    Outmax evaluates campaign performance across channels, creative assets, and key performance indicators, then suggests changes such as budget reallocation or creative adjustments. The company also introduced Ask Perion, an interface allowing clients to interact with the platform, submit campaigns, and review results. Perion aims to integrate Outmax with platforms like ChatGPT and Google Shopping, and plans to add more channels.

    Expanding Reach and Agency Partnerships

    Perion has secured new agency agreements expected to contribute significantly by late in the third quarter, following extensive testing. These partnerships demonstrate the platform’s ability to perform across diverse campaigns and channels, creating a competitive barrier for others. The company plans to replicate this model with additional clients.

    Digital out-of-home remains Perion’s largest channel, with the company operating technology for in-store inventory at retailers like Best Buy Canada. Perion views in-store media as a significant growth opportunity, allowing advertisers to engage consumers near the point of purchase. The company’s network connects to over 1.6 million screens in more than 40 countries, and it aims to further expand this global access for advertisers. Also, CTV is a fast-growing product for Perion, supporting activity across major streaming services and platforms with its cross-channel approach.