Chinese consumer brands are making inroads into South America’s biggest economy, encouraged by warming ties between Beijing and Brasilia.
Mixue Group, an ice cream and tea chain operator known for low prices and an expansive menu, has set its sights on Brazil as it grows beyond Asia. The chain has 47,500 locations worldwide, more than McDonald’s.
In May, Mixue signed a memorandum of understanding with the Brazilian Trade and Investment Promotion Agency—also known as ApexBrasil—on buying Brazilian agricultural products. Mixue looks to invest BRL 3.2 billion (USD 599.7 million) in the country by 2030 and hire around 25,000 people for its expansion.
The first Mixue location in Brazil is slated to open in a shopping mall in downtown Sao Paulo this year.
Keeta, the international brand of food delivery company Meituan, has launched its service in the Sao Paulo area, with plans to invest BRL 5.6 billion (USD 1 billion) over the next five years.
Ride-hailing company Didi Chuxing is also rapidly expanding its Brazilian food delivery business. It is set to invest BRL 2 billion (USD 374.8 million) by next year, double what it initially planned. It is rushing to bring restaurants on board with steps such as temporarily lowering its fees.
Brazil’s population of over 200 million people, a growing middle class and young consumers who are eager to spend make it an attractive market for Chinese brands. The country is also a leader in its embrace of digital technology, including fintech, laying the groundwork for growth.
Meanwhile, the deepening political ties between China and Brazil provide a stable environment for investment.
Consumer views of Chinese brands have changed for the better. An August survey by a Brazilian research firm found that over 60% of respondents like Chinese smartphones or personal computers, more than the roughly 30% who favor US devices. Favorability toward China is particularly high among young people. Around 70% see China as more innovative than the US.
Electric vehicle maker BYD already has a following among Brazilian car buyers. EV sales in Brazil jumped 70% on the year in September, with BYD accounting for around 70% of sales.
“Chinese technology is now the best in the world,” said a ride-hailing driver who uses a BYD car. “It’s like Japan used to be.”
A lawyer charging his BYD vehicle at a shopping mall said he bought it for its “design and advanced technology.”
The growing perception that Chinese companies offer high performance at affordable prices is encouraging more brands to venture into the market.
The focus on consumers marks a departure from the earlier economic relationship between China and Brazil, which has mainly involved Brazil exporting primary products such as iron ore and soybeans while importing manufactured goods.
Some in Brazil have voiced concern about increasing competitive pressure on local companies.
When cross-border e-commerce platforms such as Temu and Shein entered the country, Brazilian businesses called on the government to act to protect local companies. Brazil imposed a levy on small parcels worth less than USD 50, which were previously exempt from tariffs.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.