Localization, TikTok Shop Fuel Chinese Brand Growth in SE Asia
Chinese brands are reshaping the consumer landscape with US$587B in imports and hyper-localized playbooks. CMOs must adapt fast to protect market share.
Chinese brands reached a milestone in Southeast Asia last year, with imports from China hitting US$587 billion, up 12% year over year, according to Euromonitor. More than 70% of Chinese firms operating in ASEAN now plan to expand their footprint across the region.
Chinese companies are moving beyond smartphones to establish physical and digital presence across multiple sectors. BYD has opened more than 100 electric vehicle stores in Thailand, while bubble tea chain Chagee operates over 500 outlets across Southeast Asia by tailoring beverages to regional preferences like Thai milk tea.
Anta Sports plans to reach 1,000 stores in Southeast Asia by 2027, following 150% year-over-year overseas revenue growth. "Southeast Asia is central to Anta's global growth plan. We'll replicate our localization model here worldwide," said Will Wang, Vice President of Anta Group, in a recent statement.
Chinese beauty brands Focallure and Skintific achieved 35% quarterly sales growth in recent years by customizing formulations for tropical climates. Mengniu captured 24% of Indonesia's ice cream market through its Singaporean subsidiary Aice, while also introducing ube-flavored products in the Philippines.
TikTok Shop now accounts for 50% of B2C e-commerce gross merchandise value (GMV) in Indonesia and Thailand through live-selling integrations. The platform's influence extends beyond sales channels.
Leighton Cosseboom
MINISO's Bangkok flagship store, featuring global intellectual property partnerships, achieved 200% sales growth compared to standard locations.
Alibaba invested US$500 million in Lazada's logistics infrastructure, reducing delivery times to 2.3 days in Thailand. The moves come as Southeast Asia's e-commerce market is projected to reach US$410 billion in GMV by 2030.
Chinese smartphone brands now hold 60% market share in Southeast Asia, up from approximately 21% in 2014. Haier secured 18% of the ASEAN home appliance market through acquisitions, including GE Appliances and Indonesia's Aqua brand.
Regulatory friction emerges
Not all expansion efforts face smooth paths. Malaysia introduced a 10% digital tax on cross-border goods back in 2024, specifically targeting Chinese e-commerce platforms. Food and beverage categories remain particularly challenging for Chinese entrants due to cultural sensitivities, with success varying significantly by market and product type.
"Successful localization requires understanding retail dynamics, not just flavors," said Emil Fazira, APAC Insight Manager at Euromonitor, noting that progress in culturally sensitive categories remains uneven across the region.
The expansion presents growing challenges for incumbent brands across Southeast Asia. Euromonitor warned that legacy brand equity and traditional distribution models are no longer sufficient to maintain market share against Chinese competitors using aggressive pricing, rapid product iteration, and digital-first strategies.
Chinese brands are winning with rapid iteration, hyper-targeted product tweaks, and aggressive platform partnerships across TikTok Shop, Lazada, and offline retail.
To stay competitive, marketers must double down on market-specific insights and align teams around fast-moving consumer behaviors that Chinese competitors are already capturing at scale.
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