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

The strategy of Singaporean companies exploring Nanning reflects a shift away from established, highly competitive Chinese Tier 1 cities. Companies like Kim's Duet and KinderWorld International Group consider regions such as Guangxi a "blue ocean" – a business term for less saturated markets with growth potential, contrasting with the "red ocean" of Beijing or Shanghai. This suggests that for some, the slower, more deliberate process of market entry in less familiar regions is viewed as a viable path for sustained expansion.

Breaking into the Chinese market, particularly in these less developed regions, is characterized as a lengthy process. Businesses report that identifying suitable partners, testing relationships, and converting discussions into concrete deals can take months or even years. For example, KinderWorld's chairman spent 18 months in discussions before formalizing agreements in Guangxi, highlighting the patience and sustained engagement required to establish a presence.

This focus on Nanning aligns with broader Singaporean government efforts to encourage firms to internationalize, given the country's small domestic economy. Senior officials have visited Guangxi to understand its role in ASEAN-China connectivity, positioning it as a key gateway. This governmental emphasis, coupled with the perceived market opportunities, contributes to the sustained interest in Nanning, even as the Singapore Business Federation noted that recent arrests over pyramid schemes have not deterred companies from asking about market access.