This Generation of Chinese Brands Has Gone to Latin America to "Compete"

Author | Tang Fei

Editor | Li Xiaotian

When the melody of “ni ai wo wo ai ni” echoes in Mexico City and São Paulo, behind it is a collective expedition of Chinese brands.

In February 2026, at the core landmark of Mexico City, Constitution Square, a line stretched outside a red and white milk tea shop. Young people held up their phones to take photos—this is not an Apple product pre-sale nor a local festival promotion, but the grand opening of Mixue Bingcheng’s first store in Mexico. Just a month earlier (January 23), Mixue Bingcheng’s first store in Brazil opened in São Paulo, with a grand opening scene comparable to that in Mexico City.

As the first step of Mixue Bingcheng’s expansion into Latin America, the location of the Mexico City store is highly strategic—Constitution Square, being the heart of Mexico City, is densely populated with a vibrant commercial atmosphere, surrounded by various consumption scenes, making it easy to attract local residents and tourists alike.

Beyond “Snow King,” more Chinese brands are actively expanding into Latin America. Pop Mart’s “LABUBU” series is a hit in Mexico; Miniso’s 1,200㎡ flagship store has become a popular check-in spot in Costa Rica; SHEIN is collaborating with local Brazilian manufacturers, with locally made products now accounting for 25%…

Chinese new consumer brands are staging a “group army operation” in Latin America.

In Mexico City in February, the midday high temperature approached 30°C.

On the south side of Constitution Square, the scorching sun did not dampen consumers’ patience. A long queue stretched out of sight, all just to buy a cone priced at only 8 pesos (about 3 RMB) or a 20-peso (about 8 RMB) chilled lemon water.

In addition, other core products of Mixue Bingcheng are also affordable—medium-sized bubble milk tea costs 30 pesos (about 12 RMB), passion fruit tea and pearl milk tea are 35 pesos (about 14 RMB). This pricing is only a quarter to a fifth of similar local milk tea brands.

Caption: Price of Mixue Bingcheng in Mexico City

This aggressive low-price strategy has already impacted nearby restaurants. A McDonald’s employee just 60 meters from Mixue Bingcheng told local media that since the store opened, the flow of customers at the cold drinks and desserts counters has plummeted. Although some customers who were unwilling to queue have returned, Mixue Bingcheng’s influence still exerts significant pressure.

Caption: Queue at Mixue Bingcheng at 8 p.m.

Local Chinese consumer Lulu revealed she only went to “join the fun” in the second week after the opening. But she found that the queue at the Constitution Square store lasted from morning until sunset. She waited about an hour before buying. Even around 8 p.m., dozens of people still lined up outside Mixue Bingcheng.

From her understanding, local consumers are very enthusiastic about freshly made tea drinks. For less than half the price of a large Starbucks latte, they can enjoy a freshly made pearl milk tea, which is the main reason many are willing to queue. “How to describe it? The price is about the same as a Coke here, so you can say it’s cheap or not,” Lulu said.

Besides the hard-hitting price war, Mixue Bingcheng’s marketing strategy also taps into social media trends. A week before opening, the brand launched the #MixueChallenge on TikTok and Instagram, inviting influencers to create creative videos using “8 pesos lemon water.”

Data shows that in the first week after opening, Mixue Bingcheng-related topics in Mexico reached over 200 million views on TikTok, with 70% of consumers saying they came after seeing friends share the videos.

To better adapt to Mexican consumers’ habits, the menu at the first store features both “familiar” and “new” items. Classic pearl milk tea and ice cream remain the store’s staples, while some products retain Asian flavors but incorporate familiar Latin American fruits like mango, passion fruit, and strawberry, offering eight sweetness levels from “no added sugar” to “200% sugar.”

“Mixue Bingcheng entering Mexico is not just a business move for a single brand; it’s a microcosm of the globalization wave of Chinese new consumer brands. In recent years, with improved supply chain capabilities and accumulated brand operation experience, more Chinese chain brands are turning their eyes overseas. Mexico, as an important Latin American economy with a young population and active urban consumption, serves as a crucial testing ground for new brands going abroad,” commented Mexico Chinese Network.

In fact, if Mixue Bingcheng is the first wave of offline impact this year, brands like Pop Mart, Miniso, and SHEIN have already established deeper roots in Latin America.

In Mexico, Pop Mart has achieved comprehensive online and offline coverage. Its official e-commerce platform features core IP products like LABUBU, Molly, and HIRONO, including soft vinyl plushies, figurines, and collaborations with Disney, Sanrio, and others. The Mexico City store, as the first local outlet, has been a popular check-in spot for LABUBU fans, even sparking midnight queues for purchases.

Caption: TYCOCO wearing a wide-brimmed straw hat (second from right)

Surprisingly, TYCOCO from the LABUBU family, with its skull-shaped image, fits well with Mexico’s major holiday, Día de los Muertos, gaining popularity comparable to LABUBU itself. Pop Mart tailored TYCOCO for local tastes by giving it a Mexican-style Sombrero and shaking maracas.

On the opening day of Pop Mart’s first store in Rio de Janeiro, limited edition figurines sold out in 30 minutes; in Lima, the “Inca Sun God” series, integrating local culture into IP design, resonated with young consumers’ emotional needs.

This deep localization turns Chinese IPs from “imports” into carriers of local culture. According to Q3 2025 financial reports, Pop Mart’s sales in the Americas increased by 1265%-1270% year-over-year, becoming a major driver of the company’s global expansion.

Miniso employs a dual approach of “store + IP.” During the Brazilian Christmas season, IP collaborations accounted for 40%. New stores in Chile focus on “sustainable living” series, and Costa Rica’s largest store (1200㎡) has become a local landmark. The company’s Latin America CEO revealed plans to open 20 more stores in Brazil by 2026, aiming for a total of 55 by year-end.

In 2023, SHEIN was already a “hot favorite” among Brazilian consumers. Its trendy designs, affordable prices, and endorsement by local pop star Anitta rapidly swept the market. A report shows SHEIN’s sales in Brazil grew over 698% from 2021 to 2025, far exceeding the 131% growth in the U.S., its main market.

A notable detail is that Chinese brands like Mixue Bingcheng, Pop Mart, and SHEIN did not initially “open stores” in Latin America but focused first on “logistics support.”

For example, in May last year, Mixue Group signed a Memorandum of Understanding with the Brazil Export and Investment Promotion Agency. The MoU plans to expand the import of Brazilian agricultural products—such as coffee beans and fruit products—into its supply chain, with the agency providing necessary assistance for Mixue Bingcheng’s business and retail expansion in Brazil.

A Mixue Bingcheng representative stated that they plan to invest in sourcing coffee beans and other agricultural products in Brazil over the next 3-5 years, with a total value of no less than 4 billion RMB, creating 25,000 jobs.

朱丹蓬, Vice President of Guangdong Food Safety Promotion Association and China Food Industry Analyst, said that the core of supporting the “going out” and “stabilizing” of new tea drinks lies in the globalized supply chain layout. While products, channels, and marketing strategies can be replicated, and price wars may work short-term, building a supply chain is not an overnight task.

Caption: TYCOCO in Brazilian football team jersey

In January this year, Pop Mart announced that its cooperative manufacturing base in Mexico had begun operations to meet the strong demand for trendy toys.

A spokesperson said that the Mexico factory, along with new factories in Cambodia and Indonesia, will help the Chinese toy maker expand its supply chain beyond China and Vietnam.

By the end of 2023, SHEIN had partnered with 336 factories in Brazil. The same year, SHEIN announced a $150 million investment plan to cooperate with 2,000 local factories by 2026, creating 100,000 apparel manufacturing jobs.

This “supply chain first, store later” strategy signals a shift from Chinese brands’ initial “trial” phase in Latin America toward “deep cultivation.” To cope with high logistics costs, avoid tariffs, and enable rapid response, localized supply chains have become the infrastructure for Chinese brands to root in Latin America.

Wang Jie, founder of Lemon Season, told Xiaguang she plans to expand Lemon Season into Latin America, starting with supply chain development.

“For example, in Mexico, we might focus more on the supply chain—like growing scented lemons locally, and we’re already communicating with the agricultural department there. The same in Brazil. Since about 60% of fruits imported into the U.S. come from Mexico, if we can develop there, we could supply the U.S. in the future. Stores will open, but more on product R&D,” she said.

孙心悦, CEO of Jingwei Consulting and author of “Winning Overseas,” believes that “Latin America is not a fast lane but a test of long-term commitment.”

She pointed out that successful companies follow the “stay put” mantra—using strategic patience to handle cyclical fluctuations, collaborating locally to reduce friction, and operating compliantly to build a solid foundation. Compared to that, Latin America’s market structure is more diverse, with richer industry layers—resource opportunities, manufacturing, consumer markets, fintech, and more. It’s not “fast,” but the space is large; not “hot,” but the window is long. Many failures in the Latin American market stem from shortsighted pursuit of quick profits, neglect of regulations, and cultural misunderstandings.

Latin America is one of the most distant continents from China. Why has it become a hot land for Chinese new consumer brands to go abroad?

First, the demographic dividend. According to the latest UN estimates, in 2024, Latin America and the Caribbean will have over 670 million people, accounting for 8.28% of the world’s total population. It is projected to peak around 2050, with a total population nearing 750 million. The region’s population is younger than in developed areas, with an average age of 31, and about one-third under 20.

GSMA data shows that by the end of 2023, 418 million people (65% of the population) in Latin America used mobile internet, an increase of 75 million over five years. 4G infrastructure has developed rapidly since 2014, with coverage reaching nearly 90% by 2022, and 5G coverage at 12.4%.

This young group has been exposed to the internet since childhood, highly receptive to global trends and cultural influences, with strong social and emotional consumption needs—precisely the core demographic for trendy toys, tea drinks, and fast fashion.

Second, unique consumption habits. Latin Americans prioritize “enjoying the moment.” Due to economic fluctuations, weekly wages, and festival cultures, their work and income are often unstable. After receiving wages, they tend to spend on daily needs first, with less focus on long-term savings. This habit makes them more inclined toward instant consumption.

Wang Jie, after traveling through several Latin American countries, felt that “local demand is huge, but the supply side is almost nonexistent.”

Take the tea drink sector as an example. Wang believes that the milk tea markets in Mexico and Brazil are still in the early stages compared to the U.S. The U.S. is a “developing country in milk tea,” while Mexico is still in the “have and have not” stage. “Are there milk tea shops? Yes, but mostly instant powder-based. Few brands have opened stores in Mexico and Brazil. Mixue just opened one in Brazil, and Mexico is still quite early—Gong Cha has a few stores,” she said.

However, Latin American consumers are not “tea novices.” “Mate tea” culture has a century-long history there, especially in Brazil, Argentina, and Uruguay, where mate is considered a national drink. This beverage, similar in taste to green tea, is usually drunk from a cup with a straw and has become deeply embedded in daily life, providing a natural entry point for milk tea culture.

Caption: Football star Messi drinking mate tea

Finally, Chinese brands’ recognition among Latin American consumers has been preheated.

For example, in the mobile phone market, according to the latest report from Omdia, in Q3 2025, Latin America’s smartphone shipments will reach 35.2 million units, with Chinese brands occupying four of the top five spots, including Xiaomi, Motorola, Honor, and Transsion.

In the automotive sector, data from the China Passenger Car Association shows that in November 2025, among the top 10 countries for Chinese car exports, Latin American countries held two spots, with Mexico leading at 90,000 units exported in that month, and Brazil ranking fourth with 29,000 units. Leading automakers like BYD, Great Wall, and Geely are also rushing to build factories in Brazil, with all plans to start production this year.

In recent years, e-commerce platforms (such as Maccos, Shopee, TikTok Shop) have further boosted Chinese brands’ influence.

Previously, we summarized the globalization paths of Japanese companies like Toyota, Sony, and Uniqlo, highlighting their “global manufacturing and sales,” “small and medium enterprises going abroad together,” and “deep localization” strategies.

Looking at the development of Chinese companies in Latin America over the past few years, it’s largely been about “learning from Japanese experience”—for example, the “local production and local sales” approach of Mixue Bingcheng, Pop Mart, BYD, and Great Wall, which not only reduces costs and improves efficiency but also demonstrates long-term commitment to local markets. By establishing factories, warehouses, and even “planting trees” (investing in raw materials), they transform from “foreign brands” into “local enterprises.”

The second strategy involves large corporations leading the way, with small and medium-sized enterprises banding together. Big projects like Mixue Bingcheng, Pop Mart, and BYD, with investments in the hundreds of millions, pave the way, while more small sellers leverage e-commerce platforms to enter Latin America at lower costs.

According to Maccos data, by 2025, Chinese sellers’ total sales on the platform will have increased by 38% year-over-year. Their goal for the next three years is to grow the platform’s total transaction volume fivefold and the number of Chinese cross-border sellers tenfold.

In 2024, TikTok Shop’s Hot Sale event achieved $1.9 billion in transactions, a 15.3% increase year-over-year, with over half of Mexican internet users participating. In early 2025, TikTok Shop officially opened cross-border self-operation channels (POP) in Mexico for mainland Chinese and Hong Kong enterprises, attracting many Chinese sellers and further opening the local market.

Behind this is the “infrastructure for going abroad” provided by major platforms for small sellers.

The third strategy is deep localization. For example, Mixue Bingcheng’s drinks incorporate mango and passion fruit, Pop Mart’s “Inca Sun God” series integrates local culture, and Amazing Bloks’ general manager Zhuang Xiaoting told Xiaguang she found that Latin Americans prefer darker toys—unlike Western markets, which favor bright roses, Latin Americans prefer darker tones, especially black roses.

So Amazing Bloks started launching “dark-themed” products for Latin America—black roses, zombie themes—selling very well. Later, they even designed a new product specifically for Latin America: a skeleton skull base with black roses inserted, fully tailored to local tastes.

Caption: Amazing Bloks’ black rose product

Goldman Sachs’ report “China Strategy: Going Global” states that “the Chinese companies’ globalization journey is experiencing a profound shift from ‘going out’ to ‘integrating into the sea.’ Going out means expanding business overseas; integrating into the sea means deeply embedding into the global market system, deploying resources worldwide, and building ecosystems.”

It also notes that this transition from “going out” to “integrating into the sea” marks a new stage in Chinese companies’ globalization, which will reshape their competitive landscape and growth paths globally.

The popularity of Mixue Bingcheng’s first store in Mexico essentially signifies that China’s new retail in Latin America is shifting from “tentative selling” to “systematic deep cultivation.” When brands start local manufacturing, local design, and local operation, they are no longer just visitors but become part of the market.

However, Latin America’s market, despite its huge potential, also faces many challenges—policy uncertainties, tariffs, exchange rate fluctuations, compliance requirements, labor disputes, and more.

Take Brazil as an example: according to the World Bank’s “Doing Business 2020” report, Brazil ranks 124th out of over 190 countries in ease of doing business, a middle-lower position.

Moreover, Brazil’s tax system is highly complex, with over 50 types of taxes. Sun Xinyue estimates that, including various taxes, the overall tax rate for Brazilian companies could reach over 40%. “If the gross profit isn’t high enough, profits can be easily eaten up by tax costs,” she said.

Therefore, the true charm of the Latin American market may not lie in short-term consumption dividends but in providing Chinese brands a “second growth” opportunity—here, companies must learn to dialogue with different cultures, build genuine localization capabilities, and shift from “fast” to “deep.”

This will be a patience-testing experiment.