Mixue’s Icy Ascent: How a Chinese Ice Cream Brand Conquered Southeast Asia

The ice cream market in Southeast Asia is seeing a shake-up, with a Chinese brand, Mixue, rapidly expanding. This model presents a challenge to established players, offering a low-cost franchise to entrepreneurs and tapping into the region’s youthful demographics.

The Mixue Strategy

In contrast to traditional, exclusive franchise models, mainland Chinese food and beverage companies are pushing a different approach. This strategy prioritizes affordability and accessibility, especially for aspiring entrepreneurs. For example, a Mixue franchise requires under $40,000 in initial capital.

The brand, which Zhang Hongchao established in the late 1990s, first appeared in Southeast Asia in Vietnam in 2018 and Indonesia in 2020. The firm’s growth in Indonesia has been exceptional, opening over 2,000 stores within four years. Roughly 1,000 stores opened in Vietnam within five years.

The Contrast

Franchises in the region commonly involve a more exclusive model. The master franchise holder offers outlets, as seen with PT Mitra Adiperkasa for Starbucks Indonesia. This targets middle and upper-income demographics in urban areas.

Mixue’s success may stem from its ability to reach markets with lower incomes and a larger young population. This has fueled its rapid expansion across Southeast Asia.

Barriers to Entry

Mainland Chinese F&B firms initially faced substantial hurdles when attempting to enter developed countries. These included complicated regulations, stringent food safety standards, and intense competition from well-established brands. These factors hindered their market penetration.

The global ice cream market is projected to reach $94.59 billion by 2028, according to Grand View Research, showing strong demand for affordable treats (Grand View Research).