Saha Group Signs Major Deal with China’s Yuyuan for ASEAN Growth

Thai conglomerate Saha Group and Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. signed a Memorandum of Understanding (MoU), creating a most important business alliance that will reshape consumer markets across Southeast Asia. Both companies finalized their agreement through an official ceremony, setting up a framework for collaboration between two of Asia’s leading retail and manufacturing entities.

Yuyuan Group stands as one of China’s top consumer business groups and brings valuable expertise in retail distribution and product development to the partnership. Both companies will focus on four strategic business categories with strong regional growth potential: cosmetics, fashion, food and beverages, and gold jewelry. This multi-sector strategy shows their commitment to vary their market presence while using their complementary strengths.

“This collaboration is not just a trade deal but a milestone to vary business portfolios and expand Saha Group’s capability to offer international-standard products and services to Thai consumers”, said Mr. Thammarat Chokwatana, Chief Executive Officer and Chairman of I.C.C. International Public Company Limited under the Saha Group umbrella. His words highlight the partnership’s strategic value beyond simple commercial exchange, making it a cornerstone of Saha Group’s regional expansion plans.

The timing of this collaboration carries special meaning as Thailand and China prepare to celebrate 50 years of diplomatic relations in 2025. This milestone adds cultural and geopolitical significance to the business arrangement and shows the growing economic bonds between both nations.

The partnership allows bilateral market access and product exchanges. Saha Group’s BSC Cosmetology brand and selected fashion labels will enter the Chinese market through Yuyuan’s retail networks. Both companies will also participate in cross-border trading to strengthen their market positions at home and abroad.

“Thailand represents one of Southeast Asia’s most promising consumer markets and serves as a strategic platform for regional expansion”, explained Mr. Diego Hu, Focus Global Partner and Vice President of Yuyuan Inc. His assessment confirms Thailand’s role as a consumer hub within ASEAN, with Saha Group acting as the gateway.

The agreement creates opportunities for joint innovation and development. Both companies expect substantial growth through wider market access, operational benefits, and improved capabilities in manufacturing, product design, and innovation processes. These shared efforts aim to increase revenue, market share, and competitive advantage for both organizations.

This partnership follows industry trends toward strategic collaborations that blend local market knowledge with international product innovation. Saha Group and Yuyuan work together to create what Mr. Thammarat called “a new ecosystem linking Thai and Chinese consumer markets”, building connections between two of Asia’s dynamic retail environments.

The agreement helps Saha Group improve its manufacturing and distribution capabilities while accessing innovative products and technologies from its Chinese partner. Yuyuan Group gains a reliable entry point into Thailand’s consumer market and the broader ASEAN region, benefiting from Saha Group’s reliable infrastructure.

Partnership targets beauty, fashion, F&B and jewelry

Saha Group and Yuyuan have joined forces to develop four promising product categories that see strong demand in the ASEAN region. Their mutually beneficial alliance targets beauty, fashion, food and beverage, and gold jewelry segments. These segments offer major growth potential in both Thai and Chinese markets.

Cosmetics and fashion lead original rollout

The partners chose cosmetics and fashion products as their first categories for cross-border exchange. The agreement states that Saha Group selected its BSC Cosmetology brand and specific fashion labels to enter the Chinese market through Yuyuan’s retail networks. This plan combines Saha Group Thailand’s manufacturing expertise with Yuyuan’s retail presence.

Yuyuan will bring state-of-the-art, tech-driven beauty products to Thailand. These eastern-inspired beauty concepts will adapt to Thai consumers’ preferences. Shanghai’s role as a global launch pad for fashion and cosmetic products makes this exchange valuable. The city hosted over 4,500 international and domestic brand debuts from 2018 to 2023, launching 5,840 first stores—averaging 2.8 new openings daily. The city welcomed 450 new “first stores” in early 2024, showing a 55% increase from last year.

Food and beverage to follow with regional flavors

The partnership will expand into food and beverage products after the beauty and fashion launch. Thai culinary products have already found success in China. Chinese consumers at the China-ASEAN Mercantile Exchange in Guangxi particularly enjoy Thai sauces, especially Pad Kaphrao.

Thai products like nasal inhalers in distinctive green bottles have gained worldwide recognition. Athletes and artists now count among their users. The partnership wants to create food and beverage offerings that combine traditional flavors with modern innovations.

Thamarat Chokwatana, President and Executive Chairman of I.C.C. International Public Company Limited, believes this food and beverage collaboration offers a great chance to introduce authentic Thai flavors to Chinese consumers. It will also bring innovative Chinese culinary concepts to Thailand. This exchange plays a significant role in making Thailand the consumer hub of ASEAN.

Gold jewelry to tap into cultural demand

Gold jewelry, the fourth focus area, builds on both markets’ strong cultural connection to precious metals. The timing works well, as Thai and Chinese jewelry sectors look to strengthen their cooperation. The ASEAN Gems and Jewelry Trade Association met with delegates from the Guangxi Zhuang Autonomous Region Gem Association, showing mutual interest in developing trade between both nations.

They talked about global market trends, supply chain development, production technology, and ways to expand trade and investment cooperation. These developments create perfect conditions for the Saha-Yuyuan jewelry collaboration.

Thai jewelry businesses must go digital to reach tech-savvy Chinese consumers. Cross-Border E-Commerce (CBEC) has changed the game by giving Thai jewelry businesses direct access to Chinese consumers with fewer barriers and lower tariffs. The partners will likely use these digital channels to promote their joint gold jewelry products.

This detailed four-category approach should help both companies grow by expanding market access and improving their capabilities in manufacturing, product design, and innovation. Their joint efforts should boost revenue, market share, and competitive edge while strengthening Thailand’s position as a key consumer hub in the ASEAN region.

Saha Group manages Thai operations and retail access

Saha Group will employ its extensive Thai operations to successfully implement business across all categories through this partnership framework. The Thai conglomerate’s strong operational infrastructure gives Yuyuan Group direct access to existing manufacturing, distribution, and retail networks throughout Thailand.

Certified manufacturing and supply chain capabilities

Saha Group brings extensive manufacturing infrastructure and supply chain expertise to this alliance. The group has built a complete business network that includes end-to-end supply chains, from raw materials to manufacturing and finished products. These certified manufacturing facilities give the partnership a crucial advantage by enabling efficient production that meets international standards.

Thamarat Chokwatana, President and Executive Chairman of ICC International Public Company Limited under Saha Group, spoke about this strength during the partnership announcement. He stated that “Saha Group’s certified manufacturing facilities and established supply chains would facilitate Yuyuan’s market entry in Thailand”. This manufacturing capacity will give a consistent product quality while meeting industry regulations and sustainability practices.

The group’s supply chain expertise goes beyond manufacturing. Saha Group showed its dedication to supply chain state-of-the-art through mutually beneficial alliances with logistics providers. The conglomerate worked with Japanese logistics company Seino Holdings to build a distribution network that spans Southeast Asia. These initiatives helped Saha Group develop sophisticated supply chain capabilities that will now benefit the Yuyuan partnership.

Both organizations share dedication to sustainability and long-term value creation. Their shared operational philosophy means manufacturing and supply chain processes will follow environmentally responsible practices, which consumers in Thai and Chinese markets increasingly value.

Nationwide retail network to support distribution

Saha Group’s extensive retail presence across Thailand adds significant value to the partnership. The group maintains a nationwide distribution network through Saha Pathanapibul PLC that handles consumer products throughout the country from a main distribution center in Chonburi province. This infrastructure reaches 72,570 distribution channels nationwide.

This retail network’s reach stands out. The outlets break down as:

• 65,650 are Traditional Trade retailers, which include local stores and small retailers throughout Thailand
• 6,920 are Modern Trade retailers, which include superstores, supermarkets, convenience stores, and other formal sales outlets

Saha Pathanapibul PLC exports products globally with focus on Indochina region and Europe. This international experience will help the partnership expand beyond Thailand into other ASEAN markets.

Saha Group has developed digital commerce capabilities alongside physical retail. The ‘Friday Fair’ e-commerce platform serves the domestic market and lets Thai consumers access over 700,000 quality products at any time. This digital infrastructure adds to traditional retail channels and creates new ways to introduce Yuyuan’s products to Thai consumers.

The partnership framework assigns Saha Group to “oversee supply chain operations, production, distribution and retail access throughout Thailand, ensuring effective market penetration and consumer reach”. This role exploits Saha Group’s complete infrastructure and expertise.

Yuyuan Group gets immediate operational advantages in the Thai market through this arrangement. The Chinese conglomerate can employ Saha Group’s existing systems to quickly introduce its products to Thai consumers instead of building infrastructure from scratch. This approach speeds up market penetration while reducing entry barriers.

Yuyuan introduces Chinese brands and tech to Thailand

Yuyuan Group will bring its innovative Chinese brands and technologies to Thailand’s consumer market as a crucial part of the new alliance. Thai consumers will have direct access to Chinese products through Saha Group Thailand’s retail network. This partnership builds a vital link between Chinese innovation and Southeast Asian consumers.

Technology-driven products to enter Thai market

Yuyuan plans to introduce tech-driven brands to Thailand’s growing consumer base. The Chinese conglomerate will use this partnership to launch products with innovative technology that appeals to local priorities. These products will cover four business areas—cosmetics, fashion, food and beverage, and gold jewelry. Consumers will experience new retail options across multiple segments.

The launch of these technologies comes at a meaningful time. It coincides with the 50th anniversary of Thailand-China diplomatic relations in 2025. This timing adds both symbolic and economic significance to the partnership, making it more than just a business deal between nations.

Diego Hu, Focus Global Partner and Vice President of Yuyuan Inc., highlighted Thailand’s importance in their growth strategy: “Thailand represents one of Southeast Asia’s most promising consumer markets and serves as a strategic platform for regional expansion”. His words show how Yuyuan sees Thailand as a doorway to ASEAN consumers.

The Yuyuan Lantern Festival shows how Chinese technology and culture blend for Thai audiences. Traditional lantern craft meets modern lighting to bring mythical creatures and exotic plants from Chinese literature to life. The festival first appeared in Paris where it drew over 200,000 visitors and got 1.5 billion media impressions worldwide. Now Bangkok continues this “Mythical Beings” story.

Eastern-inspired beauty concepts to be localized

Yuyuan will also bring Eastern beauty concepts adapted for Thai consumers. Modern consumers show growing interest in Asian beauty traditions updated with contemporary formulas.

‘China-Chic’ brands now have a platform to connect with Thai consumers. This cultural trend shows how Chinese heritage evolves through modern takes on traditional arts. It makes age-old esthetic principles relevant today.

To name just one example, Yuyuan’s brands have mixed Chinese elements with modern design. One brand added Hanfu (traditional Chinese clothing) to pet wear during Shanghai Pet Fashion Week. Their oriental collection caught international eyes. They also created Lion Dance-themed pet products for the 2025 Spring Festival that blended Chinese traditions with modern needs.

The partnership with Saha Group gives Yuyuan access to “robust manufacturing expertise and comprehensive distribution network”. Together they will develop products that match regional priorities. Eastern-inspired concepts will keep their cultural essence while appealing to local tastes.

Yuyuan protects cultural heritage and creates new visual styles that appeal worldwide by weaving Eastern esthetics into modern brand design. This partnership shows how culture stays alive by reimagining traditions for today’s markets. The result is products that respect heritage and meet modern consumer needs.

Deal strengthens ASEAN market access and innovation

The landmark agreement between Saha Group and Yuyuan sets both companies up to expand beyond Thailand. They now have a strategic framework to grow across Southeast Asia. Their partnership creates a new ecosystem that connects Thai and Chinese consumer markets.

Joint product development for regional priorities

The partnership goes beyond simple product exchange. It creates a platform where both companies can develop products for Southeast Asian consumers. They will work together to create products that match regional consumer behavior patterns across all four business pillars. This strategy recognizes ASEAN markets’ unique priorities and will give a strong connection with local consumers.

Yuyuan learns about Southeast Asian consumer trends through this deal. While Saha Group Thailand accesses innovative product development methodologies. Both companies can now deliver better products for different ASEAN demographics.

The companies follow broader industry trends toward localization. ASEAN economies have built strong infrastructure in the last decade. They have better regulatory frameworks for “new economy” activities like e-commerce and smart logistics. Consumer expectations have changed. The partnership combines Yuyuan’s state-of-the-art capabilities with Saha Group’s manufacturing excellence.

Operational synergies to boost competitiveness

The alliance creates major efficiencies for both organizations. The partners now have new economies of scale. They achieved this by combining their strengths in supply chain management, manufacturing, distribution, and product innovation.

These synergies create real competitive advantages:

• Better manufacturing capabilities and product design resources
• Streamlined distribution through complementary networks
• Better innovation through knowledge exchange
• Wider market access across Chinese and ASEAN consumers

A cross-border retail ecosystem now supports regional economic growth. Saha Group can deliver international-standard products more effectively. Both companies build stronger domestic and international market presence.

Thailand positioned as ASEAN consumer hub

The agreement makes Thailand the consumer products hub for the ASEAN region. This matches Thailand’s geographical advantages and manufacturing infrastructure.

The timing is perfect as Thailand and China get ready to celebrate their 50-year diplomatic relationship in 2025. This partnership strengthens both commercial and bilateral relations between the nations.

The agreement lays groundwork for digital economy cooperation, which is vital in ASEAN-China relations. It could support the Action Plan on Implementing the ASEAN-China Partnership on Digital Economy Cooperation (2021-2025). This creates new opportunities for technological collaboration.

Diego Hu, Vice President of Yuyuan Inc., highlighted Thailand’s strategic importance: “Thailand is one of the most promising consumer markets in Southeast Asia, and a strategic base for regional expansion”. His assessment shows Thailand’s growing influence in ASEAN economies.

Thai products can now reach the Chinese market through Yuyuan’s networks. Chinese brands enter Thai and ASEAN markets through Saha Group’s retail channels. This two-way flow strengthens market integration between China and ASEAN nations. It supports broader regional economic cooperation goals.