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.
The Chinese tech giant and owner of “everything app”, WeChat, reported total revenues of 135.3 billion yuan ($20.6 billion) for the first quarter ending March 31, an increase of 25 percent year-on-year. Operating profit was 42.8 billion yuan ($6.5 billion), an increase of 20 percent on the year.
Though gaming remains the most profitable part of Tencent’s business, revenues from online advertising grew more dramatically, up 23 percent to 21.8 billion yuan ($3.39 billion) for the first quarter, compared to the same period last year.
Recognising the boom in video content in China’s social media sphere recently, Tencent’s WeChat has added more video and livestreaming functions over the past year, and said its video accounts are gaining traction with audiences and content creators.
Looking ahead, Tencent also revealed that short-video would be one of three areas in which it’s looking to grow its base of investments over the coming year, alongside gaming and business services.
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.