Chinese Economical Beverage Brand MXBC Enters Singapore and Malaysia
MXBC, a chain brand dedicated to creating fresh ice cream and tea drinks in China, has officially entered Singapore and Malaysia, two Southeast Asian countries, on February 26, LatePost reported on Thursday.
In these two countries, MXBC is still focusing on its strategy of “cheap and affordable”. The menu LatePost got hold of shows that in Singapore stores, an ice cream costs 1 Singapore dollar ($0.74). In Malaysian stores, the price of an ice cream is 1.6 ringgit ($0.38), but it has been reduced to 1 ringgit during an initial promotion. Most products are priced around RMB 15 ($2.37).
Both Malaysia and Singapore have higher per capita GDP than China. In the International Monetary Fund’s forecast of per capita GDP of all countries in the world in 2021, the figures of Singapore and Malaysia are about 5.42 times and 1.5 times that of China respectively.
Internationalization is one of the long-term strategies determined by MXBC. Since opening its first overseas store in Vietnam in 2018, MXBC has entered five Southeast Asian countries – Vietnam, Indonesia, Singapore, Philippines and Malaysia.
The Southeast Asian market is the focus of MXBC’s overseas expansion, because the beverage brand believes that “consumers in tropical areas need more ice cream and tea”, and “the local social layout and economic situation are similar to those in China.”
Southeast Asia is also one of the important raw material suppliers of MXBC. The company imports many tropical fruits such as passion fruit, mango and coconut from the region. Part of the reason why MXBC set up a factory in Hainan is that it hopes to process imported raw materials nearby its Hainan factory.
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According to its business model in China, MXBC will build cold chain transportation systems in various countries with high probability, and may open local factories in some important markets such as Indonesia to localize procurement.