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Malay Mail
21-07-2025
- Automotive
- Malay Mail
Consumers rejoice but Malaysian, Indonesian entrepreneurs sound alarm as Chinese chains flood region
KUALA LUMPUR, July 21 — Chinese brands are enjoying growing success in Southeast Asia, but some local players and observers remain wary about their rapid rise and potential impact on domestic businesses. In a CNA report, a Malaysian food and beverage entrepreneur said anonymously that he is under pressure from Chinese chains such as Mixue, which offer bubble tea at RM5 and ice cream at RM2, asking, 'It will remain to be seen how long they will be here.' 'I do hope locals will support local brands and restaurants,' he added, underscoring the concerns of small operators facing fierce price competition. Experts say that while Chinese companies are gaining market share through affordability and innovation, the pace of their expansion has raised questions over long-term sustainability and market fairness. Andry Satrio Nugroho from the Institute for Development of Economics and Finance predicted that low-price strategies may not last as production shifts to other countries, saying aome Chinese goods are now produced in Vietnam to keep costs down. He also noted that a continued perception gap with Chinese brands, saying they were often still seen as a second-tier choice to Western competitors. Gaikindo co-chairman Jongkie Sugiarto said that Japanese brands remain dominant in Indonesia due to a strong reputation for reliability, and Chinese players 'need to work on' building that same level of trust. Habib Dzakwan from Jakarta's CSIS think tank cautioned that unchecked expansion may provoke nationalist sentiment, stating, 'If not addressed, it's easy to trigger anti-Chinese sentiment.' A BYD Dolphin Surf electric vehicle is displayed on stage during a presentation by BYD carmaker in Berlin, Germany May 21, 2025. — Reuters pic Lee Pei May of the International Islamic University Malaysia noted that local businesses are already raising concerns over the invasion, saying, 'This is due to the fact that Chinese firms are highly competitive.' Despite these concerns, analysts agree that China's mix of scale, technology and strategy means its brands will continue to grow in the region's markets. Consumers also reported growing affinity for some Chinese brands, rejecting the view that they were less than alternatives from other countries. Entrepreneur Aditya Adri Saleh said after using a Chinese EV for nearly a year, 'I would not second guess Chinese products until I test them out myself.' 'While others see it as an influx of inferior products that wouldn't last long, I can attest from personal experience,' he added. Habib believes the trend will persist as long as purchasing power remains unchanged, saying, 'Consuming Chinese brands is a pragmatic yet rational choice.'
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
South China Morning Post
12-07-2025
- Business
- South China Morning Post
How Chinese brands serve Southeast Asia with soft power influence
A few years ago, Mixue, a Chinese chain selling incredibly affordable ice cream and sweetened drinks, exploded across Southeast Asia . Today, Mixue has surpassed even global giants like Starbucks and McDonald's in the sheer number of outlets worldwide. Malaysia , Mixue is not the first Chinese chain to make its mark in Southeast Asia. Over the past five years, major markets – in particular Indonesia Thailand and Vietnam – have witnessed marked growth in Chinese supermarkets and food stores. The share of food imported from China into Southeast Asia rose from 8.5 per cent of the region's total food imports in 2010 to 10.9 per cent by 2020. The most significant gains in Chinese import share between 2010 and 2022 occurred in the Philippines (a 4 percentage point increase), Thailand (5.1 points) and Singapore (1.8 points). The increase in trade could be partly attributed to preferential rates for Chinese products and services, including agricultural products, negotiated under the Asean -China Free Trade Area in 2002 and subsequently in the Regional Comprehensive Economic Partnership . Chinese businesses leveraged these agreements and targeted these large markets. In the Philippines, for example, Chinese products and social media trends have gained popularity among the youth, despite bilateral tensions. Diners at Chinese hotpot restaurant Xiao Long Kan in Singapore. There are concerns that the city state's small market may be oversaturated. Photo: Facebook/Xiao Long Kan Hotpot 小龙坎老火锅 Chinese branding has also become more visible through packaging labels and the presence of Chinese food and beverage (F&B) chains. According to a 2025 report by Momentum Works, Southeast Asia is now home to at least 6,100 Chinese F&B outlets across more than 60 brands. This expansion reflects the intense competition within China's F&B sector, which drives many chains to seek opportunities abroad. Chinese chains reportedly account for 54 of the top 100 global F&B chains ranked by number of stores, and among those, many have branches in Southeast Asia.
Reuters
07-07-2025
- Business
- Reuters
Bubble tea giant embodies Starbucks' China dilemma
HONG KONG, July 7 (Reuters Breakingviews) - Fast-food provider Mixue's ( opens new tab success is adding a bitter taste to Starbucks' (SBUX.O), opens new tab attempts to sell a stake in its business in the People's Republic. The Chinese company has grown into the world's biggest food and beverage chain by selling sub-$1 drinks and adapting quickly as domestic consumers spend less. That's hard for the $107 billion premium-brand U.S. coffee icon to compete with. Both Mixue and Starbucks opened their first stores in China in 1999. For the latter the challenge was to introduce coffee culture to a nation obsessed with tea. This turned out to be a smooth blend. Chinese consumers have become more picky and cost-conscious of late, though, and the Seattle-based heavyweight's market share has dropped to 14% from 34% in 2019, per market data provider Euromonitor. Starbucks is trying to fight back. It announced its first-ever price cut in China last month, although its offerings are still far more expensive than those from Mixue and other rivals like Luckin Coffee. But Starbucks cannot compete on pricing alone. Its problems run deeper than that. Amid all the talks about China's weak consumer demand, some of the best-performing stocks in the past year have been the so-called new consumption, opens new tab plays, which include trendy toy maker Pop Mart International ( opens new tab and handcraft jewellery retailer Laopu Gold ( opens new tab. These are brands that resonate deeply with the shifting spending preferences of young Chinese to focus on intangibles such as convenience, experience or personalization. Mixue's robust supply chain, for instance, allows it to reduce costs and introduce new beverages – or even new interior designs – to its more than 45,000 outlets within weeks. The same process may take much longer for Starbucks' 7,800 stores in China. And a similar strategy caused problems at its U.S. stores in the past. Boss Brian Niccol even told shareholders in March that Starbucks can learn from "several lessons" in its China supply chain and improve its North American business. Shareholders have rewarded Mixue's strategy: its market value has soared almost 80% to some $25 billion since its Hong Kong listing in March. Starbucks China, meanwhile, may be worth several billion dollars, Bloomberg reported in May, citing sources. Its same-store sales have at least levelled off recently, halting the earlier slump. And Niccol has emphasised the need to find ways to grow, opens new tab. That would seem to require having a local partner - and buyer - with a Mixue-style understanding of how to take advantage of China's new consumer logic.
The Age
05-07-2025
- Business
- The Age
Melbourne locals miss property bargains as offshore and interstate investors step up
However, the vendors, a family who had owned the shop at 423-425 Elizabeth Street since 1981, held their ground and reaped $9.1 million in post-auction negotiations. The deal delivered the highest building rate – $32,155 a sq m – achieved in the city in the past five years and the tightest yield – 3.66 per cent – of the past two years. Cushman & Wakefield's Ma, along with Anthony Kirwan, Hay and Wolman, handled the negotiations. The 283 sq m shop is on a 184 sq m piece of land at the Queen Vic Market end of Elizabeth Street and is leased to giant Chinese retailer Mixue. The price is a sure guide to where the market is heading: income. Mixue pays an estimated $428,490 a year. It proved quite the contrast with Thursday's auction at 105 Elizabeth Street, between Collins and Little Collins streets. The 870 sq m five-storey building sold under the hammer for just $6 million (equalling the final vendor bid) after bidding from two parties – an investor from Singapore and a representative from Advise Transact. It was a tight price but a good 30 per cent lower than what the building could have achieved in 2021. Records show investor Bin Ma paid $7.55 million in February 2024. The property returns $283,798 a year, most of which is derived from the ground floor Coleman's Music shop, giving the deal a sharp yield of 4.72 per cent The office floors above are empty. Levels two to four were last occupied by US credit card giant American Express until the mid-1990s when it left for Hothlyn House, a building owned by former prime minister Bob Hawke. The buyer will need deep pockets to fund a major renovation, but the payoff could be substantial. Fully leased it could rake in close to $600,000 a year. Cushman & Wakefield's Kirwan, Wolman and George Davies handled the auction, which attracted about 50 people and just 11 bids in more than 30 minutes. Skyloft carpark Another little piece of the CBD is up for grabs, but buyers won't have to dig too deep for the car park in the basement of 601 Little Collins Street. The 53-bay car park is for sale at about $3.5 million, which equates to $66,000 per car park, or $3100 per sq m. Colliers agent Christian Hatzis, who is handling the listing with Nick Garoni and Yvonne Zhou, suggests the car park could be converted into a different use, such as a gym or novelty escape room. The 1118 sq m property is under the Skylofts 601 apartment building and has access from Francis Street. It last changed hands in 2006 for $2.64 million. It's one of a clutch of car parks and self-storage facilities owned by the Fry family. Loading In 2016, James Fry used the roof of another car park, on the corner of Market Street and Flinders Lane, to set up a short stay caravan business. Greville shops An interstate investor has splashed out close to $11 million for a Greville Street holding belonging to rich-lister Patricia Ilhan. Ilhan, who made her fortune with the late John Ilhan in the early 2000s selling the Crazy John's mobile phone business, bought the properties in 2011 for almost $8 million. The three shops at 136-144 Greville Street are leased by swanky French restaurant Entrecote and its neighbours, Kookai and Acai Brothers. The properties are on three titles, covering 909 sq m, on the funky Prahran shopping strip. The tenants pay $479,370 a year in rent. Vinci Carbone's Frank Vinci and Joseph Carbone handled the expressions-of-interest campaign. Vinci told Capital Gain there had been interest from offshore investors, but an interstate family secured the investment. Union sells The Australian Services Union is selling its long held office building in Carlton, on the city-fringe. The building at 116 Queensberry Street, on the corner of Cardigan Street, has been ASU headquarters since 1989. The 2250 sq m three-storey office is on a 1026 sq m parcel of land. CBRE agents Nick Peden and Jamus Campbell are handling the expressions-of-interest campaign. They're expecting about $13 million. No word yet on where the ASU will land next. On the other side of the city, an office at 29-33 Palmerston Crescent, South Melbourne, is back on the market for the third time in recent years. The five-storey building was previously the long-time headquarters of the National Tax and Accountants Association and last changed hands in 2005 for $4.6 million. It's a short walk to St Kilda Road and the new Anzac railway station at the Domain Interchange. Cushman & Wakefield's Kirwan, Davies and Raphael Favas have the listing and expect it will fetch more than $10 million. Industrial shed Perth-based investor Westbridge Funds Management has splashed out $13.25 million on a logistics property at 62 Northgate Drive, Thomastown. Loading The 4970 sq m property is on a 7600 sq m piece of land next to the Ring Road and is leased to logistics company NPFulfilment. Colliers agents Daniel Telling, Billy Kanakis and Nick O'Brien handled the transaction. The acquisition marks the completion of Westbridge's $77 million Total Return Fund. 'The Thomastown property strengthens the fund's logistics exposure in a location with proven occupier demand and constrained supply,' Westbridge head of capital transactions Simon Worth said.
