Scarlett Supermarket is partnering with Chinese brands seeking overseas growth through Singapore, widely regarded as a gateway to Asia due to its diverse population and strong tourism flows.
Last August, Kang Shi Fu (Master Kong) – known for its instant noodles – opened its first overseas brand pavilion at the supermarket chain’s Suntec City branch. Scarlett described the move as part of Master Kong’s strategy to expand its presence beyond China.
Positioned as a one-stop Chinese supermarket outside mainland China, Scarlett also carries products from major brands such as Yili, Wanglaoji, Nongfu Spring and Genki Forest.
Such partnerships are necessary for Chinese brands entering overseas markets, where incumbents such as Nestlé and Indofood retain strong positions through continuous innovation and established distribution networks, according to Euromonitor’s Asia Pacific Insight Manager for Food Emil Fazira.
“Chinese brands have yet to achieve a strong positive reputation and indisputable trust amongst consumers in the food industry, making local partnerships necessary. Hence, the long-term goal is to improve consumer perception of Chinese-produced food brands,” said Fazira.
“Southeast Asia’s packaged food market requires a strategic blend of localisation and agility. Chinese brands like Mengniu and Yili have gained ground by adapting products – from probiotic beverages to value-positioned ice cream – while leveraging local distribution.”
Scarlett’s growth trajectory indicates strong demand for Chinese goods. Since launching in 2020, Scarlett has expanded to 41 outlets across Singapore, with an additional branch in Malaysia and plans to grow further across the region.
China’s rising appeal
Changing perceptions of Chinese consumer products have also helped food brands gain greater acceptance globally, according to Euromonitor’s Head of Project Delivery in Asia Tim Chuah.
“The rise of smartphones marked a turning point for Chinese brands globally. This exposure to major brands like Xiaomi and Huawei helped shift perceptions of Chinese products from cheap and unreliable to innovative and functional. Meanwhile, platforms like TikTok, increased Chinese tourism and the global popularity of Chinese films and dramas helped reshape cultural views and reduce longstanding scepticism,” said Chuah.
Fazira echoed Chuah’s sentiments: “Chinese packaged food companies have historically struggled to secure a strong position in Southeast Asia due to preference for local brands, and past food safety scandals in China. The dominance of local conglomerates and global multinationals is an added challenge.
“Nevertheless, Chinese companies are growing their presence. Rapidly changing consumer tastes, influenced by greater health awareness and curiosity to try unique flavours, give Chinese players an opportunity to showcase their innovation capabilities,” Fazira said.
“Whilst Japanese and Korean brands set the bar for perceived quality in Asia, Chinese brands play more into the indulgence positioning which bodes well with snacks and dairy products,” added Fazira.
Why Chinese brands are looking to Southeast Asia
Southeast Asia is emerging as a key expansion market for global food companies due to its fast-growing middle class, rising consumption and increasingly internationalised retail landscape.
This is especially so for businesses focused on the Chinese, Japanese and South Korean markets where growth is expected to be slow or stagnant.
Euromonitor data supports this trend. According to its 2025 projections, Southeast Asia is forecast to record the fastest packaged food CAGR in APAC through 2029, ahead of China, Japan and South Korea.
Euromonitor data shows Southeast Asia is the largest and second-fastest-growing export destination for Chinese goods, with imports reaching USD587bn in 2024, up 12% year-on-year.
Chuah added that rising US tariffs on Chinese goods have made Southeast Asia an increasingly critical market for China’s exports.
A 2023 report by the China Council for the Promotion of International Trade (CCPIT) found that more than 70% of Chinese companies operating in ASEAN plan to expand their presence in the region, with most reporting strong business performance.
“Southeast Asia’s large and youthful population – over 650 million people with a median age of 31 years and 63% aged under 40 years – combined with rising average incomes, makes the region an attractive growth market,” said Chuah.
“Geographic proximity to China and deep historical trade ties further strengthen its appeal.”
Chinese brands have already established a growing presence across Southeast Asia’s consumer markets.
“Supported by infrastructure projects under the Belt and Road Initiative, China’s influence continues to grow,” said Chuah.
“As a result, Chinese products are no longer valued just for low prices – they are increasingly sought after for delivering high quality, innovation and value.”
