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.
ByteDance-owned short video app, Douyin, the Mainland Chinese version of TikTok, has filed a complaint with a Beijing court accusing WeChat parent company, Tencent, for monopolistic behaviour. It has asked for 90 million yuan (almost $14 million) in compensation.
Both Douyin and WeChat have become vital tools for global fashion and beauty giants, from Gucci to H&M and Estée Lauder, to market to China’s digitally native youth and, increasingly, sell products via increasingly sophisticated e-commerce operations.
The complaint is based on the restrictions Tencent places on users sharing content from Douyin on its apps, including WeChat and QQ. The action comes as China ramps up a broader crackdown on tech giants for anti-competitive practices.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.