Chinese healthcare firms to SEA: xoxo

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Hello reader,

I’ve recently been researching water flossers. For those unaware, water flossers are handy devices that spray water to remove the gunk between your teeth. There’s nothing wrong with good ol’ dental floss, but I’m always open to seeing how technology can make my life easier.

So far, I’ve learned that water flossers can be really expensive. The ones from Colgate, for example, cost around S$90 (about US$67) on Shopee. As for brands like Panasonic and Water Pik, don’t even get me started – we’re talking triple digits here.

However, you can get water flossers from Chinese companies such as Xiaomi (and others I’ve never heard of before), at much more affordable prices. And if the reviews are anything to go by, they’re just as good as the big-brand stuff.

Where am I going with this sharing? All roads lead back to consumers. By offering low-cost products, Chinese manufacturers have an edge when it comes to price-sensitive consumers like me. So it’s no surprise that Chinese firms – specifically those in the healthcare sector – are casting their eyes on Southeast Asia on their growth journeys.

Today we look at:

• Why Chinese healthcare firms are looking to Southeast Asia
• A digital receipt startup that’s raised fresh funds
• Other newsy highlights such as Xiaomi’s plans to make its own chips and the question of TikTok’s fate in the US

Premium summary

From China to Southeast Asia

Image credit: Timmy Loen

In the face of rising geopolitical tensions, China’s healthcare companies are turning to Southeast Asia in search of growth opportunities.

• Stars align: Chinese makers of medical devices and diagnostic products typically have an advantage over international peers in terms of pricing. Consumers in Southeast Asia are typically more price-sensitive, making the region an obvious choice for expansion for these manufacturers. There’s also the opportunity to establish production points in the region, cutting costs further.
• Win-win: China’s healthcare sector is slowing down and requires new growth drivers. Apart from offering more opportunities, Southeast Asia is geographically and culturally closer to China compared with the West.. Southeast Asia would also benefit from such innovative medical technologies and cost-effective products.
• Target found: Companies such as Beijing-based GL Capital Group are seizing the opportunity. The private equity firm will start a fund for Chinese companies setting up operations in Southeast Asia.

Read more: China’s healthcare firms tap SEA to overcome tension, slow growth

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