Southeast Asia, an emerging market with over 600 million people and rapidly growing e-commerce, is attracting increasing attention from Chinese brands. Companies like Perfect Diary, Xiaomi, Hisense, and Roborock are expanding into the region, seeking new growth opportunities. However, establishing a foothold in this culturally diverse market with varied consumer habits remains a significant challenge.
Perfect Diary's Initial Foray into Southeast Asia
In 2020, when Perfect Diary decided to enter overseas markets and assigned Wang Jing to oversee its Shopee operations, even this experienced domestic market manager felt uncertain. To accelerate progress, Wang visited successful Chinese overseas brands like Anker and Midea, but found limited applicable insights due to industry differences. "There wasn't much experience to reference or peers to exchange with," Wang recalled. "It was challenging but the right move."
Starting from scratch with product registration and platform onboarding, Perfect Diary eventually became a category leader across multiple Southeast Asian markets. This journey reflects the common early-stage challenges faced by Chinese brands going abroad.
Step One: Establishing Online Presence Through E-Commerce Platforms
For Chinese brands, the first step into Southeast Asia typically begins online. Xiaomi's overseas expansion started in Southeast Asia, where it became a top-three smartphone brand by 2021. Hisense, after focusing on Western markets, turned its attention to Southeast Asia, while Roborock prioritized the region alongside Western expansion.
Perfect Diary chose Southeast Asia as its first overseas market due to cultural proximity and product adaptability. Like many digitally-native Chinese brands, it relied heavily on Shopee as its primary channel. Different companies entered at various stages of Southeast Asia's e-commerce development:
Xiaomi entered in 2014 during the region's e-commerce infancy. "E-commerce is Xiaomi's traditional strength," said Liang Jiawen, General Manager of Xiaomi's Southeast Asia International Business Department. "We grew alongside Shopee." The platform became crucial for product launches and promotions, with sales regularly peaking during major campaigns.
Roborock joined Shopee in 2019 after focusing on direct channels. "Shopee's understanding of Southeast Asian consumers and rapid growth made it an ideal partner," explained Hu Haijiao, Roborock's APAC Sales Director. The company benefited from pandemic-driven online shopping surges, with e-commerce accounting for a significant revenue portion during lockdowns.
However, post-pandemic offline recovery has prompted brands to balance both channels. Xiaomi and Roborock are now expanding physical retail while optimizing online operations through Shopee's fulfillment services and improved customer experiences.
Localization: The Key to Overseas Success
"After all, we're doing business in foreign markets," noted Perfect Diary's Wang Jing, highlighting the importance of localization. Simply replicating domestic strategies doesn't work in Southeast Asia's diverse markets.
Roborock established local teams in each Southeast Asian country to gather consumer insights. These led to product adaptations like multilingual voice packs, significantly improving user experience and sales. Perfect Diary adjusted its product development based on regional factors including younger demographics, purchasing power, skin types, and climate.
A notable example was Perfect Diary's extension of its Sanrio-themed loose powder series for Southeast Asia. Recognizing stronger IP appeal among younger users, Wang secured separate licensing for the region. The product became Shopee Vietnam's top-selling loose powder.
Hisense adapted to Thai consumers' preference for phone communication by implementing post-purchase callback services. "This requires more staff but builds lasting consumer trust," said Liu Guanxun, Hisense Asia Pacific BU Deputy Director.
Xiaomi cultivated local fan communities ("Mi Fans") that influenced product development, particularly camera features favored by Thai photography enthusiasts. Some fans even joined Xiaomi's regional teams. "Building a glocal team—both global and local—is crucial for our Southeast Asia strategy," emphasized Liang Jiawen.
Marketing Innovations: Leveraging Content Ecosystems
Perfect Diary's domestic marketing success proved harder to replicate abroad. Southeast Asia's content ecosystem resembled China's early stages, requiring education of local influencers on video production and product presentation. The limited pool of beauty-focused creators added challenges.
The team adapted to regional preferences like YouTube's long-form content versus China's fast-paced shorts. "We had to learn how to gradually introduce product benefits through conversation," Wang noted. While off-platform marketing showed limited impact, Shopee collaborations proved valuable.
A Taiwan livestream event with Shopee delivered surprising results—brief 5-10 minute sessions generated sales equivalent to top Chinese influencer promotions. "This revealed Shopee livestreaming's potential," Wang observed. "Livestreaming is definitely a major trend."
For most Chinese brands, overseas marketing's biggest challenge is measuring ROI. Hisense's Asia Pacific Marketing GM Liu Fabo explained: "In China, we try every visible channel. Overseas, we're more cautious about pure brand investments."
However, e-commerce growth offers opportunities for integrated brand-and-sales campaigns. Liu cited potential World Cup promotions combining Hisense's sponsorship with Shopee activations: "Such synergies benefit all Chinese brands in Southeast Asia."