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We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.
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Vietnam and UK Agree to Free Trade Agreement 🤝
On September 29-30, British Foreign Secretary Dominic Raab visited the Vietnamese capital of Hanoi. After the meeting, the UK and Vietnam announced their intention to finalise a free trade agreement between the two countries. Bilateral trade between the UK and Vietnam totalled $6.7 Billion last year, and Vietnam is the second largest Southeast Asian exporter to the UK after Thailand. This agreement is one part of a complicated chess game the UK is playing. Earlier this year, the UK also finalised terms for a free trade agreement with Japan.
The UK is wallowing in the messy hangover of Brexit and struggling to cope with the coronavirus, all the while trying to recalibrate its economic future. Brexit will at the very least decrease the strength of the UK’s trade with the EU. And the UK’s harder line stance against China means that the UK will need to build stronger bonds with their other Asian allies. The UK has been increasing its investment in Asia, outside of China, both in terms of political ties and economic trade. It’s probably the right strategic move.
Chinese Livestreaming Through the Lens of Viya 🤳
How big is Livestreaming in China? One way to answer that question is by looking through the lens of Viya, China’s largest livestreaming star. Viya sells products online through hours-long livestreams she usually hosts on Taobao Live, the e-commerce shopping platform owned by Alibaba. Last year, Viya sold $6 Billion worth of products through her livestreams, which is about the same as the annual China revenue of supermarket chain Carrefour.
Brands partner with Viya to reach her audience of millions and provide consumers with new perspectives on their products. Viya’s livestreams help customers learn more and develop a sense of trust before buying certain products, which range from food to cosmetics to rocket-launching services and more. Not every livestreamer has the talent and audience of Viya, but the scale and growth of livestreaming has inspired most of the the country. One third of China’s internet population has participated in livestreaming in 2020.
The Growth and Popularity of Shein 👗
Shein is a Chinese fast fashion retailer that has been getting really popular in the West. A recent survey of Gen-Z Americans found that Shein was the second most popular online retail brand, behind Amazon but ahead of Nike, Lululemon, Pacsun, and Urban Outfitters. The company was founded in Nanjing in 2008 and generated $2.8 Billion in revenue last year, with customers all over the world.
Shein is a fast fashion e-commerce site like Fashion Nova or Boohoo, operating entirely online without any physical retail stores. The company sells primarily fashion items at low prices, usually lower than $20. Shein actually doesn’t target Chinese customers at all. Right now, Shein was one of the hundreds of Chinese apps banned in India. Their popularity seems to be increasing in America and given the political climate towards Chinese companies, they would probably benefit from keeping a low profile.
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