How Sichuan Enterprises Are Expanding into the ASEAN Market Through Customization and Trade Shows

Deep News
09/19

A Sichuan-made new energy vehicle, a bottle of mineral water from Guang'an, and a custom tissue paper tailored for the Indonesian market recently crossed paths in Nanning, Guangxi. From September 17 to 21, the 23rd China-ASEAN Expo was held in Nanning, where Sichuan organized a delegation of more than 30 representative enterprises from 15 cities and prefectures. A wide range of "Sichuan-branded" products were showcased, spanning new energy vehicles, intelligent equipment, IoT hardware, Shu embroidery, food, and beverages.

Guang'an Fairy Mountain Mineral Water Co., Ltd. reached a product agency cooperation intention with a Vietnamese counterpart, while Yibin Paper Industry signed a letter of intent for customized food packaging paper procurement with Indonesia's DGpackaging company. These on-site agreements reflect the increasingly close economic and trade ties between Sichuan and ASEAN. From January to August this year, Sichuan's imports and exports with ASEAN reached 160.63 billion yuan, a year-on-year increase of 7.7%, with ASEAN continuing to hold its position as Sichuan's largest trading partner. How are Sichuan enterprises leveraging a single exhibition booth to expand into the ASEAN market?

Entering ASEAN: First, Answer What the Market Needs

Walking into the Sichuan Pavilion, the E04 model brought by Caiyi Automobile attracted concentrated agency cooperation negotiations from business delegations from Malaysia, Vietnam, Cambodia, Nepal, and other countries. During the expo, Caiyi primarily promoted the E04 pure electric model, which offers a comprehensive range of 390 kilometers, making it suitable for daily commuting and intercity travel in Southeast Asia. More importantly, the vehicle can also be "customized."

"In response to the three major regional characteristics of ASEAN countries—high temperatures and heavy rainfall, mountainous slopes, and right-hand traffic—Caiyi can customize right-hand drive versions, optimize air conditioning cooling, climbing power, and braking systems according to each country's access regulations, achieving 100% localized adaptation," said Li Jixiang, Overseas Channel Manager of Yibin Caiyi International Trade Co., Ltd. Addressing the long-term operational support that overseas clients are concerned about, Caiyi has already implemented KD (knock-down) assembly projects in five Southeast Asian countries, possessing mature localized production capabilities. It can provide agents with services such as compliant retrofitting, complete vehicle supply, and technical training, significantly reducing agent operating costs and market entry risks.

The "customization on demand" feature is not unique to Caiyi within the Sichuan Pavilion. Sichuan Ruoyu Tianfu Industrial Group Co., Ltd., also at the expo seeking market opportunities, primarily produces facial tissues, toilet paper, handkerchief paper, kitchen towels, and wet wipes. In the past two years, the company has begun expanding overseas business, selling products abroad through platforms like TikTok.

Tan Yu, Overseas Business Manager of Sichuan Ruoyu Tianfu Industrial Group Co., Ltd., explained that based on actual sales data, Southeast Asian consumers have a relatively strong demand for facial tissues. Currently, facial tissues account for approximately 70% of the company's sales in the Southeast Asian market, with the remainder consisting of functional products such as wet wipes and kitchen paper. "In addition to selling finished products, we also provide customization services for some Southeast Asian clients. The paper products are produced according to corresponding standards, while packaging, brand logos, and specifications are adjusted based on local clients' channels and consumer needs," Tan Yu noted. This kind of customization may seem like just a packaging change, but it actually requires consideration of user habits. The information and visuals presented on the packaging can ultimately impact sales.

A Trade Show: A Window for Supply and Demand to Connect

For large manufacturing enterprises, entering overseas markets often requires establishing complex channels and service systems. For more small and medium-sized enterprises (SMEs), trade shows provide a direct window to connect with buyers and distributors.

Li Yongjian, founder of Guang'an Fairy Mountain Mineral Water Co., Ltd., said that the main goal at this expo was to make initial contact with distributors. The company will subsequently send samples and continue discussions on specific issues such as pricing, transportation, and sales channels. "Cooperation is not completed in one meeting at the booth."

Water beverages are heavy and sensitive to transportation costs, while consumer habits, sales terminals, and distribution channels vary across different markets. "Therefore, for SMEs like us, finding a partner familiar with the local market is often directly linked to whether our products can truly enter local supermarkets and consumer endpoints," Li Yongjian said. In his view, one of the functions of a trade show is to bring supply and demand sides, separated by thousands of kilometers, together at the same table, establishing the initial connection for future cooperation.

Also on display at the expo were Sichuan foods such as Jule Food, Liupo Chili Powder, and Hongyuan Yak Milk Powder. "Based on feedback we have received from enterprises, all of them have reached some cooperation intentions on-site. We will subsequently help improve channel advantages," said a representative of the Sichuan Provincial Department of Commerce. During this year's expo, the national major project Pinglu Canal officially opened to navigation, unlocking a key hub for river-sea intermodal transport in the southwest region and significantly shortening the shipping route from the southwest to ASEAN. Sichuan has already completed its first trial shipment to Vietnam via the Pinglu Canal, saving approximately 1,000 yuan in transportation costs per 20-foot standard container. This has opened up a new rail-river-sea intermodal route for price-sensitive foreign trade enterprises, further strengthening the logistics foundation for stable and smooth supply chains between Sichuan and ASEAN.

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