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When you enter most shopping malls in Singapore, you are likely to find long queues stretching out in front of stores with catchy names and brightly colored brands. Chinese brands such as Chaji, Molly Tea and Mixu are attracting large crowds, not only in Asia, but increasingly in cities from Sydney to London and Los Angeles.
Along with fashion brands, toy stores and sportswear giants, these tea chains are experiencing a new wave, as Chinese companies move from low-cost manufacturing to globally recognized consumer brands.
Thanks to their location in the world’s second largest consumer market, these companies already have enormous business volume and operational strength. But competition is intense in the local market, making expansion abroad an urgent necessity. At the same time, these companies are entering markets where “Made in China” is still often viewed as cheap, low-quality goods.
“China has moved beyond the imitation economy, and its products now meet the aspirations of a new generation of demanding global consumers,” notes Tim Parkinson, of the consultancy Storytellers China.
World factory
China has long been the global workshop, producing goods for Western companies. During this process, suppliers not only gained experience in manufacturing goods, but also learned how to market, distribute and sell them on a large scale.
Companies such as Miniso have benefited from this experience.
This company, which sells toys and movie products from Disney, Marvel and Warner Bros., operates stores in more than half the countries in the world.
“Consumers don’t care much about where the brand comes from, they focus more on the shopping experience – designs, value for money and enjoyment,” says Vincent Huang, general manager of overseas markets at Miniso.
Licensing agreements and the speed at which products get from the factory to store shelves are key elements of its business model.
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In addition to consumer goods, BYD has overtaken Tesla to become the largest manufacturer of electric cars in the world. The company benefited from its early bet on the right technology in the electric car race, in addition to the huge local Chinese market, which helped it expand and improve cost efficiency.
The company is now expanding to include areas other than cars, as it is developing ultra-fast charging systems that add hundreds of kilometers to the range of its cars in minutes, as part of its efforts to build an integrated system around its cars.
Government support has accelerated the growth of China’s electric vehicle sector, through subsidies and incentives that have boosted demand. However, this support has drawn criticism from Europe and the United States, where officials believe that this support gives Chinese companies an unfair advantage. Beijing rejects this view, asserting that growth reflects China’s innovation and industrial strength.
Anta is another example. It now operates about 13,000 stores around the world and has become the third largest sportswear brand in the world after Nike and Adidas.
It is noteworthy that it first broke into the huge Chinese domestic market, while expanding its business scope through global acquisitions of well-established international brands such as Salomon and Wilson, and most recently a 29 percent stake in Puma.
Southeast Asia as a launching pad
Many Chinese companies have taken Southeast Asia as a testing ground, before entering Western markets.
With more than 650 million young and growing consumers, the region offers great scale and diversity, while competition with established Western brands keeps standards high.
The Haidilao restaurant chain opened its first branch outside China in Singapore in 2012. It is currently the largest hotpot restaurant chain in the world, with 1,300 restaurants in 14 countries.
“Haidilao’s success story is not just a restaurant story, but a reflection of 30 years of economic transformation and globalization in China,” says Zhou Zhaocheng, Vice Chairman of Haidilao International.
Zhou adds that the chain’s global reach depends on a strong brand, an integrated business environment, and a loyal customer base. He points out that each foreign market is complex, influenced by different cultures, legal systems and consumer habits, so adapting food, menus and service to the local market is essential.
The chain is now seeking halal certification in Indonesia and Malaysia, a move that would open up Muslim-majority markets across the Middle East.
Other brands are also growing rapidly. Mixo, an ice cream and bubble tea shop, operates more branches internationally than McDonald’s or Starbucks, while Molly Tea has expanded internationally within a few years of its founding.
More than 70 percent of Chinese companies operating in Southeast Asia plan to expand further, according to market research firm Euromonitor International.
The region also has some of the fastest growing smartphone markets, and social media is contributing significantly to the popularity of these products.
For example, Pop Mart’s LaBobo figures have become a global phenomenon with minimal traditional advertising.
In the United States, Pop Mart’s sales have grown by 900 percent since 2024. Although the company’s shares have declined sharply in recent months due to concerns about its ability to continue growth, its combined market value still exceeds the value of the two American toy industry giants (Hasbro and Mattel), and the Japanese company (Sanrio), which owns the Hello Kitty brand.
Price wars
In China, this outward expansion, known as “chuhai,” a term that roughly translates to “sail outward,” has become increasingly driven by internal pressures. The slowdown in the economy, intense competition, and declining birth rates changed spending patterns and put pressure on growth, prompting companies to expand outside the country.
Even foreign brands are beginning to feel this shift, with Starbucks’ Chinese market share more than halving since 2019. As for the local Luckin Coffee chain, it currently has nearly four times the number of stores inside the country than its American competitor. Lockin’s model is mobile-first, keeping costs low and service fast.
In November, Starbucks announced a deal to sell a majority stake in its Chinese operations to Hong Kong-based Boyo Capital.
Despite a major accounting scandal in 2020 that led to its delisting from the Nasdaq stock exchange, Luckin has continued its expansion inside and outside China, including Singapore, Malaysia and New York, and reports indicate that it is planning to return to the US stock market.
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The challenge facing Chinese soft power
Analysts say perceptions of Chinese companies are also changing. Where once the term “Made in China” referred to cheap products, they are increasingly seen as innovative and distinctively designed.
“Brands like BYD combine high quality, compelling stories and adaptation to the local market,” says marketing expert Fu Siu Ting.
However, challenges remain. Tariffs, political scrutiny, and concerns about data security complicate expansion, as seen in cases like Huawei and TikTok.
There are also still questions about the ability of fast-growing brands such as Shein and Timo to maintain their momentum in Western markets.
However, the trend is clear: Chinese companies are no longer defined by low prices, but rather by innovating and keeping pace with consumer trends. They build brands, adapt to local markets, and compete strongly with, and sometimes even outperform, established global companies.
Galtsun Akanat Chumar contributed to the report
