Chinese companies are rapidly gaining ground in the region, particularly in categories where they hold clear competitive advantages, such as electric vehicles, consumer electronics and home appliances.
More recently, Chinese consumer goods brands have expanded their footprint, reflecting a broader push into lifestyle and daily-use categories; however, their success is not uniform. In industries with strong regional preferences, such as food and beverages, Chinese players continue to face challenges.
This wave of expansion is intensifying competition. Established companies must move swiftly to match Chinese brands’ strengths in digital innovation, aggressive pricing and robust supply chains, or risk losing share in this dynamic, high-growth market.
Why are Chinese companies focusing on Southeast Asia?
Southeast Asia is the largest and second-fastest growing export destination for Chinese goods, with imports hitting USD587 billion in 2024 – a 12% year-on-year increase. As US tariffs on Chinese goods rise, the region has become a critical market for China’s exports.
A 2023 China Council for the Promotion of International Trade (CCPIT) report found that over 70% of Chinese companies present in ASEAN plan market expansion, with most reporting strong performances.
Southeast Asia’s large and youthful population – over 650 million people with a median age of 31 years and 63% aged under 40 years – combined with rising average incomes, makes the region an attractive growth market, benefiting from favourable demographics, geographic proximity to China and deep historical trade ties.
The growing acceptance of Chinese brands in Southeast Asia
For decades, “Made in China” was synonymous with mass-produced goods with little brand equity – seen as cheap, mass-produced and unreliable. “Made in Japan”, on the other hand, was a mark of quality and durability in Southeast Asia, often commanding premium prices. With limited consumer trust, Chinese brands typically competed on price, and lacked a premium positioning.
This has, however, changed. The rise of smartphones marked a turning point for Chinese brands in the region. As mobile devices became essential, consumers embraced affordable and dependable phones from Chinese brands like Xiaomi, Huawei, Oppo and Vivo. This exposure helped shift perceptions of Chinese products from cheap and unreliable to innovative and functional. Meanwhile, platforms like TikTok, increased Chinese tourism and the global popularity of Chinese films and dramas helped reshape cultural views and reduce longstanding scepticism.
Today, Chinese brands have established a strong presence across Southeast Asia. Companies like BYD and Wuling lead in electric vehicles, Huawei and Alibaba dominate in 5G and e-commerce, and Chinese entertainment shapes popular culture. Supported by infrastructure projects under the Belt and Road Initiative, China’s influence continues to grow.
As a result, Chinese products are no longer valued just for low prices – they are increasingly sought after for delivering high quality, innovation and value across sectors like electronics, appliances, EVs, fashion and fast-moving consumer goods.
Challenges and growth opportunities in the region
Chinese brands have long dominated low-localisation sectors like electronics, appliances and EVs – growing their smartphone volume share in Southeast Asia from 21% in 2014 to over 60% in 2024. Now, they are expanding into culturally sensitive categories, such as tea-based beverages, beauty and foodservice, driven by product innovation, digital marketing and aggressive pricing. Brands like Focallure and Skintific in beauty and personal care have succeeded through strategic localisation, establishing local subsidiaries and tailoring offerings to regional tastes.
While hardware sectors remain strongholds, growth in other industries is uneven, shaped by investment focus and local dynamics.
This whitepaper zeroes in on high growth potential consumer markets, such as appliances, beauty, foodservice, pet care, packaged food and digital wallets, where Chinese brands are not only scaling fast but also disrupting established players.
These industries represent not only opportunities for Chinese brands but also looming disruption for established competitors. The trajectory is clear: Chinese brands are evolving from hardware specialists to multifaceted contenders capable of winning over Southeast Asia’s most discerning consumers.
For established multinationals and regional incumbents, the ascent of Chinese brands signals a turning point. Legacy advantages such as brand equity and distribution reach are no longer sufficient. Southeast Asian consumers today are more digitally connected, more value-conscious and more discerning than ever.
To remain competitive, established players must accelerate localisation, rethink pricing strategies and align more closely with shifting lifestyles and digital habits.
Don’t miss the strategies fuelling Chinese brands growing regional dominance – read the full whitepaper.