Chinese brands expand aggressively in Southeast Asian markets

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Chinese products, which used to be considered low quality and imitations, are now more recognized in Southeast Asia, with brands such as Xiaomi, Vivo, Oppo, BYD, Chery, Mixue, and Chagee widely known.An Indonesian consumer owns a variety of Chinese products and believes that they are competitively priced, easily accessible, and highly technological, with little difference in functionality from non-Chinese brands; another Indonesian consumer is influenced by a relative to buy a Xiaomi phone, and is satisfied with its battery and heat dissipation; a Malaysian consumer likes Chagee's variety of products and comfortable environment, and believes that product quality is important, independent of the country; and there is also a Malaysian consumer who buys a Xiaopeng G6 electric car, driving more than 20,000 kilometers without major problems, the price has an advantage over Korean brands. 2025 the first quarter of the Indonesian cell phone market, Xiaomi, Transsion, Oppo occupy the top three; 2024 Malaysian cell phone market, Xiaomi leading, Samsung followed by many Chinese brands to occupy a certain share. Chinese car brands are becoming popular in Indonesia and Malaysia, 2025 January-June Indonesia car sales BYD ranked sixth, while in 2016 Chinese cars in the Indonesian market is almost zero; in the Malaysian market Chery and BYD into the top ten. By the end of 2024, 60 Chinese brands opened more than 6,100 stores in Southeast Asia, and Malaysia is Chagee's largest market overseas, with more than 150 stores and plans to open another 300 in the next three years.

Reasons for the expansion of Chinese brands in Southeast Asia include China's growing manufacturing capacity and the ecosystem's support for exports to developing countries; Southeast Asian consumers' price sensitivity, which makes Chinese brands attractive and well-publicized; Chinese companies' emphasis on research and development, and government incentives that allow them to sell mass-produced products at a low price; China's "Going Global" strategy; and Chinese companies' quick action and investment in publicity. Chinese companies have acted quickly and invested a lot of money in publicity. However, there are also challenges, such as the difficulty of sustaining the low price strategy, with some Chinese goods being produced in Vietnam to reduce costs; the fact that some consumers still perceive the quality of Chinese brands to be lower than that of European brands; the need to balance the development of Chinese brands with the relationship with local brands in order to avoid triggering anti-Chinese sentiments; and the fact that some Malaysian firms are experiencing a decline in profits due to the high level of competitiveness of Chinese firms, and that food and beverage operators have questions about the low-pricing strategy of Chinese brands.

# Chinese Capital Express