Chinese consumer brands look to crack the global market with Singapore as a

Chinese consumer brands are using Singapore as a cultural testbed in their quest to expand globally, thanks to the city-state’s unique blend of Asian and Western cultures.

In August alone, Chinese tea brand Chagee opened three stores in Singapore. Pop Mart, a Beijing-based retailer of collectible toys, wrapped up its second annual toy show on the island late last month with over 50 artists.

While Chinese companies have long toyed with global ambitions, their latest strategy involves a concerted effort to reach Southeast Asia via Singapore.

“Singapore is a place we call it like where east meets west, right? So for Chinese companies, if they want to go overseas, I think Singapore is a nice middle ground,” said Xiaofeng Wang, principal analyst at global market research company Forrester.

Pop Mart’s executives are considering establishing an international headquarters in Singapore, Jeremy Lee, Go-to-Market Director of Southeast Asia at Pop Mart International, told CNBC on the sidelines of the Pop Toy show in late August.

“If there is anything they [Pop Mart’s executives] want to launch in Southeast Asia, anything they want to start looking at or whether it works, [Singapore] is a good testbed to start … to quickly look at whether the idea works or not, and then kind of fine tune from there,” said Lee.

Pop Mart sells its products in 30 countries via online or physical stores, according to its website. Its overseas first-half sales grew by 260% year on year to 1.35 billion yuan ($189.90 million). That helped boost overall sales growth by more than 60%, despite China’s slowing economy.

After decades of just manufacturing Western products, Chinese companies are increasingly launching their own brands.

The new generation of Chinese brands are different — they’re not trying to hide their “China identity,” said Forrester’s Wang.

Instead, the new brands are embracing their cultural identity, using homegrown characters and designs to enter overseas markets where they then stand out from the competition, she said. That “gives them a unique advantage.”

One of tea brand Chagee’s signature looks is a cup and take-away bag design that evokes elegance similar to a popular Christian Dior tote. But the company’s name and products in Chinese draw on a traditional Chinese opera. Chagee is also a shorthand version of its original name in Mandarin Chinese, pronounced “bawang chaji.”

The new directly owned Chagee stores are part of the tea brand’s revamped effort to tackle Singapore — as a “launchpad” for tapping the massive potential of the Southeast Asia region, and eventually the rest of the world, said Lu Mian, Chagee’s managing director and head of global markets operation.

“In the next 5 years, Chagee will be focusing its expansion efforts across eight countries,…