Chinese Brands Gain Ground in Indonesia and Malaysia as Consumer Perceptions Shift

August 11, 2025 by
Asean Voice

Jakarta — Once dismissed as mass-produced and low in quality, Chinese consumer brands are now steadily gaining popularity across Southeast Asia, particularly in Indonesia and Malaysia, as they shed their “world’s factory” image and emerge as technology-driven innovators.

Two decades ago, Indonesian entrepreneur Dwi Soejatmoko purchased a television from a Chinese brand he had never heard of — Changhong. Expecting little beyond basic functionality, he was surprised when the set continued working flawlessly for over twenty years. Today, his home is filled with Chinese electronics, from smartphones to a Wuling electric vehicle, reflecting a growing trust in the quality and innovation of such products.

Across the region, household names like Xiaomi, Oppo, and Vivo dominate smartphone markets, while newcomers in the automotive sector, such as BYD and Chery, are chipping away at Japanese dominance. In the food and beverage sector, brands like Mixue and Chagee have opened thousands of outlets, particularly in Malaysia, where Chagee operates more than 150 stores and plans further expansion.

Experts note that the transformation is driven by competitive pricing, rapid product innovation, and an evolving global perception of China as a technology leader rather than a mere manufacturing hub. Lee Pei May, a political science lecturer at the International Islamic University of Malaysia, said, “Consumers now see China as a technology powerhouse, which boosts confidence in its brands.”

Market data supports this trend. In the first quarter of 2025, Chinese smartphone makers occupied the top three positions in Indonesia’s market share rankings, with Xiaomi leading at 19.5 per cent. In Malaysia, Xiaomi also topped shipments in 2024, ahead of Samsung and other rivals. The automotive sector is following suit: in Indonesia, BYD broke into the top six car brands within a decade of negligible sales, while in Malaysia, Chery and BYD entered the top ten in 2024.

The affordability of these products plays a major role. In Indonesia, most consumers seek cars under 300 million rupiah (around US$18,400), a range where Chinese automakers are highly competitive. Malaysian consumers, meanwhile, are turning to Chinese electric vehicles priced just above RM100,000 (about US$21,600), often with specifications surpassing costlier European models.

Despite lingering brand prestige gaps compared to Korean, Japanese, or Western counterparts, industry observers believe Chinese companies’ adaptability and focus on regional preferences will help sustain their momentum. As consumer perceptions continue to shift, the ASEAN market may see an even deeper integration of Chinese brands into everyday life, from homes to roads and beyond.

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