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, which operates super app WeChat, will take on a 6.86 percent stake in media conglomerate Kadokawa for $264 million in a deal that will take place between Nov. 15 and 26, Kr Asia reports.
Kadokawa owns intellectual property across categories like books, films, anime, and video games. It also runs Niconico, a streaming platform that inspired China’s online Gen-Z video hub, Bilibili.
The move, which will see Tencent become Kadokawa’s third largest shareholder, is the former’s attempt to grow its global footprint as Beijing increases its scrutiny over China’s tech and gaming sectors. According to data firm Niko Partners, Tencent closed 51 gaming-related deals as of May 10, 21 of which were with overseas firms.
Learn more:
How Worried Should Fashion Brands Be About China’s Tech Crackdowns?
Experts say that a slew of new regulations spanning livestreaming, anti-trust and data collection could actually be an opportunity for fashion and beauty brands to reduce their reliance on giants like Alibaba.
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.
While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.
Local fashion designers experimenting with puffers and other down clothing have scored collaborations with outerwear companies like Moncler and attracted the attention of prominent international retailers like H.Lorenzo.