In 2024, the delegation of Foshan Media Center has visited several Foshan enterprises in Southeast Asia and had in-depth discussions with them with respect to their overseas expansion. Here are some insights they have shared.

Ho Chi Minh City（Photo by Gong Yang)

Details determine success or failure

Mr. Ruan, who is the owner of a small-size enterprise in the field of plastic products, shared his story with Yizumi Holding Co., Ltd, a Foshan-based enterprise. Since the purchasing of Yizumi machinery 5 years ago, his factory has seen a 30% decrease in production time and lower defective rate. "Apart from the advantages in price and quality, the after-sale service is something that amazes me. If there is any issue with the machine, technician will arrive at our factory to solve that in just 3 hours," said Mr. Ruan.

Mr. Ruan's factory in Vietnam （Photo by Gong Yang)

Stated by Zhang Wenkeng, the representative of Yizumi Vietnamese Branch, for those companies conducting overseas expansion, market research is essential to identify the customer need apart from the product itself. For instance, customized cooling system is needed to overcome the hot weather in Vietnam and Vietnamese should be included to lower the usage difficulties. "Our goal is to help clients maximize profitability by ensuring our equipment runs smoothly on their production lines," Zhang emphasized.

How to improve brand influence

The delegation has unveiled their founding during the visit to Ho Chi Minh City, Vietnam: although the number of Vietnamese families using home appliance products from Foshan has increased, the overall proportion is still lower than Japanese and Korean ones.

Midea factory in Vietnam (Photo by Gong Yang)

Nowadays, "Made in China" products have the reputation for good quality and competitive prices. However, Japanese and Korean products still have the dominant position in the market. According to the market research expertise, the difference arises from the deficiency of overseas market research. Supported by an example from Midea, one popular rice cooker in China frequently received compliant in the Vietnamese market for its undercooked rice. Once the technician adjusted the cooking program according to the local rice texture and local weather, this product has turned the table.

Specific technology innovation to meet market requirements

Nowadays, Foshan enterprises are introducing a new development pattern "Overseas Factory, GBA R&D". Higold Group is an outstanding example.

Commented by Bi Weifeng, Head of Higold Group Vietnam subsidiary, the market demand for high-quality home appliances in Vietnam is a great opportunity for Foshan enterprises. To seize this opportunity, it is essential to localize the product from China. Higold has taken advantages of its massive distribution network in Vietnam and transferred timely customer feedback to headquarter in China for further adjustment. As a result, Higold has realized rapid growth in sales in just a few years since they launched overseas expansion.

Higold store in Vietnam (Photo by Gong Yang）

Suggested by Zhang Diansheng, Chairman of the Vietnam Branch of China-Asean Trade Development Promotion Association, Foshan could conduct systematic market researches with local institutions in Southeast Asia, in the field of advantageous industries such as home appliances, lighting and sanitary products. Therefore, it will generate professional market information, which is significantly useful for overseas expansion.

Reporter | Eddie

Revisor | Zoey, Lynn

Photo | Foshan News and Media Center, Gong Yang

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