Skip to main content

Advertisement

Advertisement

For this S’pore company, South-east Asia proved to be a lucrative market for the humble soya bean curd

SINGAPORE — In just five years, soya bean curd brand Xiao Ban Soya Singapore has opened a dozen shops in three different countries or territories — two of which are the Republic's South-east Asian neighbours.

Max Yeow of Xiao Ban poses for a photo on Sept 11, 2018.

Max Yeow of Xiao Ban poses for a photo on Sept 11, 2018.

Follow TODAY on WhatsApp

SINGAPORE — In just five years, soya bean curd brand Xiao Ban Soya Singapore has opened a dozen shops in three different countries or territories — two of which are the Republic's South-east Asian neighbours.

The company now has seven outlets in Vietnam's Ho Chi Minh City and Hanoi, three in Cambodia, and two in Taiwan, adding to their three stores in western Singapore.

Another outlet will be popping up in Bangkok, Thailand, sometime this year.

Xiao Ban is the second-generation offshoot of local favourite Lao Ban Soya Beancurd. It was founded in 2013 by four young entrepreneurs, including the eldest son of the Lao Ban founders, Mr Ken Li.

Mr Max Yeow, who was Mr Li's army buddy before they became business partners, explained that they decided to expand to other South-east Asian countries as their food culture is generally similar to Singapore's and their markets are "much younger".

The founders had envisioned Xiao Ban as a way to reach younger consumers, through introducing a series of soybean-related products such as matcha soya bean curd, soya-based waffles, and gelato, for example.

They figured that opening more outlets in the region would help them in terms of long-term development – already, the overseas market is contributing to about 10 per cent of the company's turnover. Manpower restrictions and rising rental prices in Singapore had also begun to worry them.

"So far, expansion in these markets has been rewarding for us because it creates a diversified market for us instead of depending 100 per cent in Singapore," Mr Yeow noted.

Going overseas has allowed Xiao Ban to benefit from untapped raw materials such as organic ingredients. Vietnamese coffee beans, for example, deliver more flavour than Arabica beans but are not as commonly used. Mr Yeow said that he is "trying to bring them over" to Singapore.

When he first heard of the cafe culture in Vietnam, he decided it would be a good market for Xiao Ban to enter. The once-reclusive country had just opened its doors for trade opportunities there, too.

The founders were also lucky enough to secure an invitation to the Singapore consulate in Ho Chi Minh City, where they could test their bean curd with the people there.

They started getting queries on whether they had an outlet there, which sealed the deal for them. After expanding into Vietnam and building the brand's image, they then spent a year or so deciding which markets to expand into.

The founders also had to grapple with some unforeseen challenges.

"There are different cultures and taste palettes in markets. You've got to be careful when entering new markets… we had to do tests to fine-tune our menu," Mr Yeow explained.

He noted that traditionally, people had always thought that the median income of other South-east Asian countries was low, but now young people "have the willingness to spend". He pointed to how gym memberships are surprisingly popular among young Cambodians in Phnom Penh, as their lifestyles demand more "Instagram-worthy" experiences.

For Thailand, Mr Yeow said it had been a challenge to get proper retail space, and they had to navigate the politically-charged landscape there.

Something they did not predict was that Thailand was more "product-specific". "They ask for vegan products. Different countries' requirements are very different," he added.

For companies like theirs, he said that the Regional Comprehensive Economic Partnership — a proposed free trade agreement between the Association of South-east Asian Nations and six Asia-Pacific states — will greatly help them move forward as well.

Looking ahead, Xiao Ban wants to focus on growing its brand in Singapore for the next two years. The founders are looking at opening outlets in more touristy areas, such as Changi Airport and the HarbourFront area, in order to target foreigners.

The company is also looking at the Indonesian and Malaysian markets.

Mr Yeow has some advice for companies planning to expand overseas. "They must be a bit more open-minded, and you can diversify your business in other areas… These markets are huge.

"Young entrepreneurs or businesses who have this idea of going overseas: look beyond the (places) you had in mind," he said.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.