From ‘red ocean’ to ‘blue ocean’: Why Singaporean firms are exploring Nanning to enter China’s market

Nanning, the capital of Guangxi province in China, is becoming an increasingly attractive destination for Singaporean businesses looking to exploit opportunities in the world's second-largest economy. This is despite recent arrests of Singaporeans allegedly involved in pyramid schemes, which have shone a spotlight on the city.

Sales director Tracy Low of Kim's Duet, a Singapore-based coffee company, came to Nanning to find a local partner for distributing her brand. She told CNA that it could take between three to six months to secure partnerships within the Chinese market.

The China-ASEAN Expo (CAEXPO), held in Nanning from September 17 to 21, saw more than 50 Singaporean exhibitors, the highest number since 2023. Many were exploring the market for the first time while others had spent years building relationships.

Tan Teck Yong, chairman and CEO of Singapore education company KinderWorld International Group, described Nanning as a "blue ocean" - a less saturated market with greater room for growth. He believes that while major Chinese cities like Beijing and Shanghai are a "red ocean" with high competition, Guangxi is a less crowded region.

KinderWorld first entered China in 2000 and has since expanded into Vietnam. The company's strategy is to "internationalise", with Tan attending the CAEXPO in Nanning three times in the past year. He spent 1.5 years building a long-term strategy before signing agreements with local education institutions.

The Singapore government has also been encouraging more companies to venture abroad, with Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong stating that many growth opportunities lie beyond Singapore's shores. MFA described Guangxi as a "key gateway" linking China with Southeast Asia.

However, for some businesses, unfamiliar markets like Nanning can present steep learning curves. Wayne Eo, director of Singapore building materials company Sixth Harmony Global, compared Nanning to an "up-and-coming second-tier Chinese city", but was surprised by the modern high-rises and shopping malls. He found local cuisine to be an acquired taste, with bamboo shoots being a particular surprise.

Despite the challenges, many Singaporean firms remain undeterred in their pursuit of China's market, seeing Nanning as a valuable entry point.