The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
HANGZHOU, China — Chinese internet giant Alibaba Group Holding Ltd. has agreed to invest in augmented-reality start-up Perfect Corp. in its biggest bet so far in Taiwan, people with knowledge of the matter said.
Alibaba is leading a new round of funding for Perfect Corp., according to the people, who asked not to be identified because the information is private. Chinese venture capital firm CCV, led by former KPCB China Managing Partner Zhou Wei, and Taiwan’s Cyberlink Corp. are also participating in the round, the people said.
Perfect Corp. announced Thursday it’s forming a strategic partnership with Alibaba to bring its augmented reality technology to the Chinese company’s online platforms. It didn’t mention any financial terms of the tie-up.
Alibaba will use Perfect Corp.’s YouCam virtual try-on technology, which allows users to see what makeup would look like on their faces before buying, when selling products like lipstick and eyeliner on its Taobao and Tmall online shopping platforms. The partnership will help Perfect Corp. form relationships with global brands and access the beauty market in China, founder Alice Chang said in the statement.
ADVERTISEMENT
“This is a classic win-win strategic partnership,” said Jeremy Choy, head of Asia technology mergers and acquisitions at HSBC Holdings Plc, who helped work on the tie-up. “Perfect strengthens its business and network in the important Chinese market and customers gain a better shopping experience.”
Representatives for Alibaba and CCV declined to comment, while representatives for Perfect Corp. and Cyberlink didn’t immediately answer phone calls and emails seeking comment.
By Manuel Baigorri, Lulu Yilun Chen; editors: Fion Li, Peter Elstrom, Ben Scent, Edwin Chan.
The algorithms TikTok relies on for its operations are deemed core to ByteDance overall operations, which would make a sale of the app with algorithms highly unlikely.
The app, owned by TikTok parent company ByteDance, has been promising to help emerging US labels get started selling in China at the same time that TikTok stares down a ban by the US for its ties to China.
Zero10 offers digital solutions through AR mirrors, leveraged in-store and in window displays, to brands like Tommy Hilfiger and Coach. Co-founder and CEO George Yashin discusses the latest advancements in AR and how fashion companies can leverage the technology to boost consumer experiences via retail touchpoints and brand experiences.
Four years ago, when the Trump administration threatened to ban TikTok in the US, its Chinese parent company ByteDance Ltd. worked out a preliminary deal to sell the short video app’s business. Not this time.