Malaysian SMEs Need To Adapt To Penetrate China Market

From Siti Fauziah Hasan

NANNING (China), Sept 18 (Bernama) -- Malaysian small and medium enterprises (SMEs) seeking to penetrate the China market need to adapt their products, packaging and marketing strategies to local preferences to improve product acceptance and competitiveness.

China-ASEAN Mercantile Exchange (CAMEX) international marketing director Philip Chong said such adaptation is important to meet the changing needs of Chinese consumers, including their growing preference for healthier products and the culture of purchasing goods as gifts.

“In China, consumers are increasingly health-conscious. Products that are too sweet generally do not receive much acceptance, so we recommend companies reduce the sugar content appropriately. For some products that are too large, we also recommend changing them to smaller sizes for daily use or as gifts,” he told international media at CAMEX here today.

He said packaging is also important as many Chinese consumers purchase goods as gifts; hence the appearance, size and quality of packaging should be tailored to local gift-giving practices.

Chong said adapting products to local market requirements has proven effective, with several Malaysian products successfully entering markets in cities such as Shanghai and recording good sales performance. He noted Malaysian products that have gained acceptance in the China market included biscuits, downstream durian products and chocolate, which have strong potential for further growth.

Malaysia also has a significant advantage in the cocoa industry, with high-quality cocoa raw materials being one of the key attractions for Chinese consumers, while Malaysian coffee products also have potential for further growth in China, he added.

Chong also stressed the importance of storytelling in promoting Malaysian products, particularly those with a strong local cultural background.

He said some products rooted in Malaysian culture might not immediately be understood by Chinese consumers, particularly in terms of the uniqueness and cultural value behind the products.  “Simply selling the product makes it difficult to stand out. SMEs need to clearly explain the production process, traditions and cultural stories behind their products so consumers can understand and appreciate them,” he added.

At the same time, he said packaging materials and product design should, as far as possible, meet the standards and requirements of the Chinese market.

Chong said Malaysian SMEs seeking to enter the Chinese market could also leverage the CAMEX platform, which brings together various resources to help businesses expand their operations. He said the platform is also home to trade and business associations, banks and law firms that provide services including resource matching, foreign-language translation, company registration and AI-based product packaging.

The CAMEX houses 18 pavilions showcasing trade and local cultures, including those of ASEAN countries, while providing a platform for Chinese businesses to explore overseas markets and foreign businesses to enter the China market.

At the Malaysia Pavilion, cultural elements including traditional Malaysian stilt-house architecture and colourful batik are incorporated into the overall pavilion design, showcasing Malaysia’s local identity and character.

-- BERNAMA