The Rise of Chinese Brands in Southeast Asia

Delivery

This report comes in PPT.

Key findings

Southeast Asia as a growth region

Southeast Asia, home to over 650 million people – 63% of whom are under 40 – offers exceptional growth potential. Its youthful demographics, rising middle class, and rapid digital transformation make it a strategic expansion hub for Chinese brands seeking scalable, long-term opportunities beyond saturated and closed-off Western markets.

Southeast Asia as the number one export destination for Chinese goods

In 2024, Southeast Asia became China’s top export destination, receiving USD587 billion in goods – a 12% year-on-year increase. This shift reflects China’s pivot from Western markets to the Global South, leveraging geographic proximity and trade agreements to deepen economic ties and reduce geopolitical risk.

The changing perception of Chinese brands in Southeast Asia

Chinese brands are redefining their image from low-cost producers to leaders in innovation, quality, and cultural relevance. Companies like Haier, BYD, and Xiaomi now represent “affordable premium”, gaining consumer trust and reshaping brand perceptions across sectors like electronics, appliances, and electric vehicles.

Chinese companies are at different growth stages in the region

Chinese firms are at varying stages of maturity across Southeast Asia. While electronics and EVs lead in market share, sectors like beauty, foodservice, and pet care are still scaling. Success depends on localisation, digital agility, and adapting to diverse consumer behaviours and regulatory environments.

Disruption risk for established brands

Chinese brands are rapidly disrupting Southeast Asia’s competitive landscape through aggressive pricing, fast innovation, and digital-first strategies. Incumbent brands must adapt quickly – through localisation, service innovation, and stronger consumer engagement – or risk losing relevance. In global markets, we anticipate varying degrees of disruption to established brands who will need to be agile, facing a similar challenge to established brands in Southeast Asia.