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China Digital Digest Weekly: Exploring the Chinese Digital Landscape

Hi folks, we are back with another segment of China’s Digital Digest, wherein we would bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.

1. Shein to Set up Physical Shop in Japan

Chinese online fast-fashion retailer Shein will open its first permanent physical store in Tokyo on November 13, Reuters reported. The company also set up temporary pop-up stores in Japan earlier this year.

Located in the Harajuku district, the stores will create a tech-enabled shopping experience, integrating QR codes into the storefront, which lets customers buy items online. The space will also be used for the brand’s events and fashion shows. Founded by Chris Xu in 2008, Shein is reportedly valued at US$100 billion. Though its products are manufactured and sourced from China, it does not operate in the country. Currently, the US is the firm’s most profitable market.

2. Xbox Apparel Taps Into China’s Rising Gorpcore Fashion Trend

Gaming console brand Xbox and Chinese gaming platform Gamecores have banded together to release merchandise made exclusively for Gorpcore-lovers. Named after the colloquial term for trail mix (“Good ol’ Raisins and Peanuts”), Gorpcore is a style reminiscent of hikers that consists of wearing functional outdoors-inspired gear.

Released on Taobao on October 18, the collection features fashionable outerwear from windbreakers to anorak jackets and functional accessories in varying shades of green, black, and white. An ode to the gaming brand, each garment is emblazoned with Xbox’s iconic logo and symbols found on its gaming consoles.

3. Huawei Sues Amazon Over Alleged Infringement of Patent Rights

On October 26, Huawei filed a court case against Amazon for the alleged infringement of invention patent rights. The trial will begin in Suzhou on December 8 against the American e-commerce company and two of its subsidiaries, as well as Taiwan-based computer manufacturer Compal Electronics and three of its subsidiaries.

At present, industry insiders are speculating that Huawei’s patent court case may be related to the e-ink display found on Amazon’s Kindle Scribe. In March, Huawei launched its MatePad Paper, an e-note tablet with stylus support, which delivered more than 110,000 units in the three months following its launch. Soon after that, Amazon launched the Kindle Scribe, which also happens to be an e-note tablet (the company’s first), pitching itself in direct competition with the Chinese firm.

4. Douyin to Compensate Tencent $4.38M Due to Video Infringement

On October 26, the decision in regard to Tencent’s lawsuit against Douyin for video infringement was announced. Douyin needs to take effective measures to delete, filter, and intercept related video clips on the platform about the soap opera named “The Worm Valley” immediately, and compensate Tencent for economic losses and reasonable expenses of more than 32.4 million yuan ($4.38 million).

“The Worm Valley” involved in this case is a suspense adventure drama with 16 episodes. Tencent, the plaintiff, found that after the show was broadcast on Tencent Video on August 30, 2021, there were a large number of clips of the play uploaded by users on Douyin, so on September 22, 2021, it filed a lawsuit, demanding that Douyin immediately delete, filter and intercept relevant videos, and compensate the company to the value of 10 million yuan.

5. Huobi Denies Mass Layoffs and Departure of Executives

Huobi Global says it has no plans to conduct “large-scale layoffs” and has refuted reports that two of its top executives have resigned amid a takeover of the Seychelles-based crypto exchange.

Reports that the company’s CEO Leon Li and chief financial officer Chris Lee have resigned appeared to have originated from an Oct. 29 Twitter post from Chinese crypto blogger Colin Wu, citing “people familiar” with Huobi. The Twitter post also suggested there could be mass layoffs planned for its 1,600 employees due to “too many people” working at the company.

However, a spokesperson from Huobi Global told Cointelegraph that rumors there could be mass layoffs are “untrue” and that its senior management continues to perform their duties “as per normal

6. Alibaba, Jd.Com Chase Loyal Big Spenders as Survey Shows a Third Of Singles’ Day Shoppers Plan to Spend Less

Chinese e-commerce giants, from Alibaba Group Holding to, are struggling to connect with high-quality consumers after an independent survey found that more than a third of Singles’ Day shoppers plan to cut spending this year.

Sales during the world’s largest shopping festival have lost momentum in recent years as China’s broad consumer spending has weakened. However, the period leading up to the official November 11 shopping date is still regarded as a key battleground among traditional players and newcomers like Douyin, the Chinese version of TikTok owned by Beijing-based ByteDance.

7. China Fails to Reach World’s Biggest Esports Tournament Finals for First Time Since 2018, Disappointing Fans at Home

China has failed to reach the finals of the League of Legends World Championship, the esports industry’s biggest tournament, for the first time since 2018, triggering an outpouring of disappointment online among Chinese video gaming fans.

The JD Gaming (JDG) team, backed by Chinese e-commerce giant, on Saturday lost 1-3 against South Korea’s T1 team in their 2022 League Worlds best-of-five semi-final match held in the United States, at State Farm Arena in Atlanta, Georgia. T1 advanced to the finals that will be held on November 5 in San Francisco, where the winning team will get to hoist the coveted Summoner’s Cup trophy and a pool prize money of US$2.225 million.

8. Foxconn Quadruples Daily Cash Bonus for Assembly Line Personnel in World’s Largest iPhone Factory After Exodus of Workers

Apple supplier Foxconn Technology Group raised the daily attendance bonus for assembly line personnel at the world’s largest iPhone factory to 400 yuan (US$55) from this month, up from the previous 100 yuan, days after thousands of panicked workers fled the Taiwanese firm’s Covid-19-hit compound in Zhengzhou, capital of central Henan province.

Workers under Foxconn’s integrated Digital Product Business Group, the division responsible for iPhone assembly, can also receive up to 5,000 yuan in additional incentives, based on the total number of days in a month that they show up at the Zhengzhou plant, according to the company’s statement posted on its official WeChat account on Tuesday. It said a worker can earn more than 15,000 yuan in extra pay for a full month’s attendance.

Wrapping Up

The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.

To delve deeper into the findings of the October report, click here.


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