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Business Times
17-07-2025
- Business
- Business Times
How Chinese consumer brands are muscling into South-east Asia
EVERY tourist arriving in Ho Chi Minh City visits the 110-year-old Ben Thanh Market. Its surrounding streets pulse with local eateries, coffee joints, and souvenir shops. Yet amid these Vietnamese staples stands a branch of Miniso, a lifestyle chain that may appear Japanese but is actually Chinese. Since entering Vietnam in 2016, the brand has grown to 66 locations, taking prime spots in malls and bustling street corners. It's not the only one. Number of outlets of Miniso, PopMart, Cotti, Haidilao as of 30 June 2025; Luckin, Chagee as of 30 March 2025, Mixue as of 30 September 2024. SOURCE: TECH IN ASIA RESEARCH Chinese consumer brands are expanding at breakneck speed across South-east Asia, snapping up flagship corners and turning passers-by into fans. That said, the region is far from being one single market, and brands sticking to a particular homegrown playbook could stumble. Scale advantage Chinese consumer brands are not new to South-east Asia. Haidilao, China's largest hot pot chain, entered Singapore 13 years ago. Meanwhile, Mixue, now the world's biggest F&B player by outlet count, picked Vietnam as the site for its first overseas store in 2018. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up SOURCE: TECH IN ASIA RESEARCH Yet Chinese brands have only started expanding aggressively across the region in the past three years. By the end of 2024, more than 60 Chinese F&B brands were operating over 6,100 outlets in South-east Asia. That's triple the 2022 figure of less than 2,000, according to research firm Momentum Works. With China's consumer market still flat post-pandemic, South-east Asia, with a population of 700 million people, 30 per cent of whom are aged 15 to 34, has become a good target for brands, said Lina Yan, consumer analyst at HSBC Global Investment Research. SOURCE: OVERSEAS COMMUNITY AFFAIRS COUNCIL OF TAIWAN, WORLD BANK Cultural ties play an important part here. Four of South-east Asia's six biggest countries have the world's highest ethnic Chinese population shares. 'Southeast Asian markets are definitely more China-friendly than the US and Western countries,' Jason Yu, managing director at Beijing-based CTR Research, told Tech in Asia. Among Chinese brands, Mixue stands out in scale, with 4,700 outlets across South-east Asia as at September 2024, according to its prospectus. Over 84 per cent of them are in Indonesia and Vietnam. Mixue sells ice cream and cold drinks for under US$1, with all its stores in the region run by franchisees. Most of its revenue comes from selling supplies to them. The company's scale of 40,000 outlets in China gave it a foundation of a low-cost, reliable supply chain that no competitor can match. Its optimisation level is simply in a league of its own. That operational edge lets it keep franchise fees low to scale fast and earn from ingredient sales, according to Jason Ong, master transformation strategist at Axxelerated Transformation, a Singapore-based consulting firm specialising in retail innovation. 'It's intensely competitive in China,' he said. 'Anyone who survives there and expands abroad must already have a strong playbook.' Other Chinese beverage chains such as Luckin and Cotti also ran tens of thousands of stores in China before entering South-east Asia. In contrast, the region's biggest homegrown coffee brands – Thailand's Cafe Amazon and Indonesia's Point Coffee – have around 4,400 and 1,200 outlets, respectively. Beyond sheer numbers, some Chinese brands are making South-east Asia the centrepiece of their global push. For example, Miniso's largest store in the world is not in China but in Indonesia. Opened in August 2024, the flagship spans 3,000 square metres. New approach Miniso began by positioning itself as Japanese-influenced. However, it later ditched Japanese elements in its styling after a backlash in China driven by consumer nationalism. Now it touts itself as a global lifestyle brand. Its makeover has signalled a bigger shift. Chinese consumer brands, long deemed budget copycats of Western or Japanese labels, are winning on their own paths. Leading Chinese brands are reshaping their image by investing heavily in design, R&D, and customer experience, said Mark Greeven, professor of innovation and strategy and dean of Asia at the International Institute for Management Development. While Miniso partners with well-known global intellectual properties such as Disney, Harry Potter, and Sanrio, Pop Mart has sparked a global craze among young consumers with Labubu figures from its exclusive IP. This applies not only to South-east Asia. These brands are 'winning over new generations of consumers worldwide,' Greeven added. Moreover, Chinese brands are not just about low prices anymore. Chagee, which positions itself as a premium milk tea chain, prices its drinks roughly on par with Starbucks coffee in Singapore. Bumps on the road Still, Chinese brands face challenges from South-east Asia's diverse market. SOURCE: IPSOS' RESEARCH (2024) 'The region is deeply nuanced,' said Ryan Wei, founder of Indonesia-based Sino Indo Pacific (SIP) Group and former chief business officer at Indonesian F&B giant Boga Group. 'There's no single playbook – you will not win in Vietnam the same way you do in Indonesia or Thailand. It's not like expanding to another province in China.' For example, Luckin and Chagee have maintained both franchising and direct operations models in the region – different in each country. SOURCE: MOMENTUM WORKS (2025) Finding the right local partners is crucial when entering a new market, said Nathanael Lim, Asia-Pacific insight manager for beverages at data analytics firm Euromonitor International. Some brands do not get it right the first time, however. Chagee, for instance, abruptly exited Singapore in early 2024 after operating for five years through a franchise partnership model. It later returned with direct operations and now runs six stores in the city-state. SOURCE: EUROMONITOR INTERNATIONAL That said, localisation isn't just about business models. It also demands cultural awareness. In April 2025, Chagee planned to open its first Vietnam store along one of Ho Chi Minh City's most premium streets. But it pulled out after a public outcry and boycott calls from locals. The backlash was triggered by a map on the company's app and website showing the nine-dash line – China's disputed territory claim in the South China Sea that overlaps with Vietnam's own. No apology, no update. Chagee's Vietnam entry is likely off the table. Commenting on the incident, CTR Research's Yu said it's not easy for Chinese brands to navigate politically sensitive issues abroad. If a brand removes the nine-dash line to follow local laws, it risks backlash at home if the situation gains traction on Chinese social media. 'They will need to strike a delicate balance to please both Chinese and foreign sentiment when dealing with politically charged topics,' he explained. But while Chinese brands excel in tech and operations, many still lack international finesse, argues SIP Group's Wei. A large number of them have only started expanding overseas in the last five years, while American and Japanese companies have decades of global experience. Missteps are then inevitable. 'But at the end of the day, success belongs to those who keep outgrowing themselves,' Wei added. 'And on that front, I believe Chinese players are learning and evolving faster than most local brands.' TECH IN ASIA
Business Insider
30-06-2025
- Business
- Business Insider
A coconut-water maker's stock soared at its IPO, defying China's consumer spending slump
Stock of a China -focused coconut-water beverage surged on its first day of trade, showing that niche consumer brands can still capture attention and money in a sluggish Chinese economy. On Monday, shares of Thai coconut water maker IFBH leaped as much as 67% on their debut on the Hong Kong Stock Exchange. IFBH's initial public offering was priced at 27.80 Hong Kong dollars a share, or $3.54. The shares surged as much as HK$46.50 minutes shortly the opening bell and closed at HK$39.50. Investor enthusiasm for IFBH was clear even before trading began. The offering was 2,682 times oversubscribed. Cornerstone investors included UBS Asset Management and ICBC Wealth Management. The strong debut comes despite a broader slump in Chinese consumer spending that has hit luxury sales in the country. However, some sectors, like sports and lifestyle, are still raking in the big bucks. IFBH, which makes the IF range of coconut water, has been the top coconut water brand in China for five straight years, according to research firm Baiguan in a post earlier this month. In 2023, IF held a one-third share of the market. Once seen as a niche hydration product for athletes, coconut water is now a fast-growing category. It's being served in mainstream dining venues like restaurants and cafés, Jason Yu, the managing director for Greater China at the UK-based consumer research group Kantar Worldpanel, told Business Insider. "Coconut water is seen to have multiple benefits that are good for consumers and for sports without being sugary," Yu said. "Like yogurt drinks, it's seen as a good alternative to soda and other sweetened beverages when dining. Coconut water also pairs very well with hot and spicy food," he added. Baiguan analyst Nina Chen credited IFBH's success in part to the popularity of Luckin Coffee's coconut latte and brand collaborations, including tie-ups with Labubu-maker Pop Mart and celebrity endorsements. "IF exploited a unique market gap: high Chinese demand for a product (coconut water) the country couldn't easily produce," wrote Chen. Driven by rising demand in China, IFBH revenue hit $157.6 million in 2024, up 80% from the year before, according to its IPO prospectus. The company plans to use the proceeds to invest in product development, marketing, and expansion into new markets, including the Americas and Australia. Despite the intense competition in the sector, Yu said the market for coconut water is likely to continue growing as it's still an emerging market. "Chinese consumers today are more than ever willing to spend on their health and well-being," he said.
The Star
24-06-2025
- Business
- The Star
Women flexing consumption muscle
Consumers check out figures at a Pop Mart store in Wuhan, Hubei province, on May 4, 2025. [Photo/VCG] Chinese women are emerging as an increasingly powerful and independent consumer demographic, with a rising preference for emotional value, self-care and collectible trends such as Pop Mart's Labubu, according to a survey. Among this year's most notable findings, 33.1 percent of women bought collectible dolls or figurines over the past year, including trendy items from brands like Pop Mart and Jellycat, reflecting a growing trend of "cute consumption". Some 5.8 percent of women purchased more than 10 figurines within a year. The "618 Women's Consumption Survey", jointly published by Women of China Magazine, Huakun Women's Life Survey Center and Huakun Women's Consumption Center, offers a close-up look at women's spending habits during the 618 festival and over the past year. Women exhibited rational spending behaviour, with 60 percent comparing prices across multiple platforms before placing orders. The most popular e-commerce platform was Taobao, used by 59.5 percent of respondents, followed by (36.4 percent), Douyin (32.2 percent), Pinduoduo (21.5 percent) and Meituan (10.7 percent). The survey underscores women's growing influence, not just as consumers, but as household financial decision-makers. A staggering 96.7 percent of all women surveyed manage their own finances. Among married respondents, 40.8 percent of women are in charge of overall family finances, 55.1 percent of women manage their own finances separately from their spouses, and only 4.1 percent of families have their spouse or partner taking overall responsibility for financial management. The ratio is higher than the average global level. According to data in 2023 by Euromonitor International, women head more than 42 percent of households in developed countries. Globally, 28.5 percent of households are headed by women. In the survey, children remain the top spending priority, with 50 percent of women citing them as the biggest expenditure category, followed by self-pleasure (43.3 percent), parents and even pets (2.5 percent) — which ranked higher than spending on partners or lovers. "The purchasing power of Chinese women is extraordinary," said Jason Yu, general manager of CTR Market Research. Their shopping habits extend well beyond cosmetics and personal care. They are pivotal in managing their families' purchases, catering to the needs of the elderly and children alike." Yu said women in China are often the ultimate decision-makers in a range of categories, from household goods to travel and entertainment. In the rapidly growing sectors of emotional consumption, such as blind boxes and the guzi economy — derivative products based on intellectual properties in comics, games and novels — women account for the majority of sales revenue, Yu added. On the lack of spending on women's partners shown in the survey, Yu said it could also mean that men make their own decisions on what they are willing to buy. With the rise of single-person households and smaller families, the self-pleasing economy among women is a trend that warrants deeper exploration and understanding. According to this survey, in the past year, 57.9 percent of women invested in self-growth, while 82.5 percent made health-related purchases outside of medical costs. - China Daily/ANN
Time of India
13-05-2025
- Business
- Time of India
Chinese ecommerce giants make expensive bets on fast deliveries
HighlightsChinese e-commerce giants Alibaba Group Holding Limited and Inc. are intensifying competition in the instant retail sector, focusing on delivery speeds of 30 to 60 minutes, while also offering substantial subsidies to attract consumers. As both companies face challenges in finding new growth avenues due to high market penetration and a slowing consumer economy, they are leveraging their existing courier networks to expand into instant retail without the need for costly infrastructure investments. With significant cash reserves—Alibaba holding 400 billion yuan, with 144 billion yuan, and Meituan with 110 billion yuan—these companies are betting that increased app usage for food and beverage deliveries will lead to higher purchases of other products. Chinese ecommerce giants Alibaba and have opened a new front in the ongoing battle for market share, with both expanding aggressively into so-called instant retail centred around delivery speeds of 30 to 60 minutes this year. Investors will be dissecting the strategy when reports its quarterly earnings on Tuesday and Alibaba on Thursday, as finding new avenues for growth has proven challenging for China's largest online retailers. Their market penetration is already high and prices for goods are under pressure due to a consumer slowdown driven by concerns about employment and wages as well as a prolonged property market downturn. The new turf war focused on speed is coming at a high cost in the short term as the ecommerce giants look to entice consumers with hefty discounts. JD Takeaway and Alibaba's food delivery app last month each pledged 10 billion yuan ($1.38 billion) in subsidies. JD Takeaway said it would invest the sum over a year, while did not disclose the timeframe. "The competition is so intense, there's not a lot of incremental growth opportunities, so everybody is moving into everybody else's territories and instant retail is the latest example of that," said Jason Yu, general manager at CTR Market Research. China's food delivery market leader Meituan has moved to grow its business by expanding its instashopping platform, which delivers non-food goods within 30 minutes and announced its entry into food delivery in February. "In the past people would go to to buy a mobile phone and they would deliver to you in the same day, then suddenly they could go to Meituan and have the new Apple iPhone delivered within 30 minutes. That posed a direct threat to and they moved into food delivery in response," Yu said. At the end of April, Alibaba expanded its instant shopping portal on its domestic e-commerce app Taobao. That gave users access to restaurants, coffee shops and bubble tea chains available on Alibaba's - China's second-largest food delivery player behind Meituan - plus many other categories including pet food and apparel. Alibaba, and Meituan did not respond to requests for comment. Subsidised spending on instant retail from Alibaba and is being welcomed by cost-conscious consumers. Users on JD Takeaway currently enjoy discounts of up to 20 yuan, or $2.77, per day for deliveries from restaurants including McDonald's, Haidilao and Burger King. On Taobao's instant shopping portal, consumers can receive a discount of 11 yuan on a bill of at least 15 yuan. Liu Qi, 24, a small business owner in Tianjin, said he was pleased when he recently bought a coconut latte on JD Takeaway for only 5.9 yuan. "I asked the deliveryman and he said he makes 4 yuan per delivery, so essentially, bought me a cup of coffee and delivered it to my door," Liu said. He was even more surprised days later when he bought a coffee on Taobao's instant shopping portal for only 3.9 yuan. "It was 2 yuan cheaper than he said. War chests While subsidising consumer discounts for instant retail is expensive, China's e-commerce giants have significant cash reserves. As of December 31, Alibaba, and Meituan had net cash positions of 400 billion, 144 billion and 110 billion yuan respectively, according to Morningstar analysts. And despite the low margins inherent in the business, a renewed focus on instant retail made sense for and Alibaba in part because both firms have armies of couriers already at their disposal, analysts said. That means there is no need for an expensive build-out of delivery infrastructure as would be required for other potential entrants like Temu-owner PDD Holdings. Beijing-based independent industry analyst Liu Xingliang said Alibaba and were leveraging high-frequency demand for food, coffee and bubble tea to boost lower-frequency demand for clothing, electronics and other higher-margin purchases - betting that if consumers open their apps more often, they might buy more overall. For the expansion into instant retail was particularly important given its traditional e-commerce business appeared to have hit a ceiling, he said. "It must try to gain market share in new business areas."
Time of India
13-05-2025
- Business
- Time of India
Chinese ecommerce giants make expensive bets on fast deliveries
Chinese ecommerce giants Alibaba and have opened a new front in the ongoing battle for market share, with both expanding aggressively into so-called instant retail centred around delivery speeds of 30 to 60 minutes this year. Investors will be dissecting the strategy when reports its quarterly earnings on Tuesday and Alibaba on Thursday, as finding new avenues for growth has proven challenging for China's largest online retailers. Their market penetration is already high and prices for goods are under pressure due to a consumer slowdown driven by concerns about employment and wages as well as a prolonged property market downturn. The new turf war focused on speed is coming at a high cost in the short term as the ecommerce giants look to entice consumers with hefty discounts. JD Takeaway and Alibaba's food delivery app last month each pledged 10 billion yuan ($1.38 billion) in subsidies. JD Takeaway said it would invest the sum over a year, while did not disclose the timeframe. "The competition is so intense, there's not a lot of incremental growth opportunities, so everybody is moving into everybody else's territories and instant retail is the latest example of that," said Jason Yu, general manager at CTR Market Research. China's food delivery market leader Meituan has moved to grow its business by expanding its instashopping platform, which delivers non-food goods within 30 minutes and announced its entry into food delivery in February. "In the past people would go to to buy a mobile phone and they would deliver to you in the same day, then suddenly they could go to Meituan and have the new Apple iPhone delivered within 30 minutes. That posed a direct threat to and they moved into food delivery in response," Yu said. At the end of April, Alibaba expanded its instant shopping portal on its domestic e-commerce app Taobao. That gave users access to restaurants, coffee shops and bubble tea chains available on Alibaba's - China's second-largest food delivery player behind Meituan - plus many other categories including pet food and apparel. Alibaba, and Meituan did not respond to requests for comment. Subsidised spending on instant retail from Alibaba and is being welcomed by cost-conscious consumers. Users on JD Takeaway currently enjoy discounts of up to 20 yuan, or $2.77, per day for deliveries from restaurants including McDonald's, Haidilao and Burger King. On Taobao's instant shopping portal, consumers can receive a discount of 11 yuan on a bill of at least 15 yuan. Liu Qi, 24, a small business owner in Tianjin, said he was pleased when he recently bought a coconut latte on JD Takeaway for only 5.9 yuan. "I asked the deliveryman and he said he makes 4 yuan per delivery, so essentially, bought me a cup of coffee and delivered it to my door," Liu said. He was even more surprised days later when he bought a coffee on Taobao's instant shopping portal for only 3.9 yuan. "It was 2 yuan cheaper than he said. War chests While subsidising consumer discounts for instant retail is expensive, China's e-commerce giants have significant cash reserves. As of December 31, Alibaba, and Meituan had net cash positions of 400 billion, 144 billion and 110 billion yuan respectively, according to Morningstar analysts. And despite the low margins inherent in the business, a renewed focus on instant retail made sense for and Alibaba in part because both firms have armies of couriers already at their disposal, analysts said. That means there is no need for an expensive build-out of delivery infrastructure as would be required for other potential entrants like Temu-owner PDD Holdings. Beijing-based independent industry analyst Liu Xingliang said Alibaba and were leveraging high-frequency demand for food, coffee and bubble tea to boost lower-frequency demand for clothing, electronics and other higher-margin purchases - betting that if consumers open their apps more often, they might buy more overall. For the expansion into instant retail was particularly important given its traditional e-commerce business appeared to have hit a ceiling, he said. "It must try to gain market share in new business areas."
