Chinese Firms Venturing Into Southeast Asia Warned Against Price Wars
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Chinese companies eyeing Southeast Asia should avoid waging price wars and instead focus on localization, understanding local needs, and sharing profits to achieve sustainable success, industry experts said at a forum on Saturday.
Southeast Asia, with its geographic and cultural proximity, is often the first stop for Chinese businesses going global. This focus has intensified amid a growing emphasis on cooperation among nations in the Global South.
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- Chinese firms entering Southeast Asia should avoid price wars, prioritize localization, and collaborate with local partners for sustainable growth.
- The region, comprising 10 ASEAN nations with nearly 700 million people and a $4 trillion GDP, offers vast potential but demands adaptation to local conditions.
- Experts stress the need for on-the-ground presence, localized supply chains, and unique value creation over low pricing.
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Who’s Who
- Caixin Weekly
- This article does not contain information about "财新周刊" or "Caixin Weekly". It focuses on advice for Chinese companies expanding into Southeast Asia.
- ATM Capital
- ATM Capital is a venture capital firm with a focus on the Southeast Asian region. Its founder, Tony Qu, emphasizes the importance of localization for Chinese companies expanding into this market. He advises establishing a strong, on-the-ground presence and localizing the supply chain early to avoid bottlenecks and achieve sustainable growth.
- WOOK
- WOOK is a Southeast Asian B2B platform. Its founder and CEO, Xu Longhua, believes that Southeast Asia's weak manufacturing and technical talent shortages present opportunities for Chinese companies. He also noted the region's young population and openness to new internet business models, contributing to a "golden decade" for consumption upgrades. Xu advises Chinese companies against price wars, emphasizing unique value creation and resource integration for sustainable success.
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