“Margins are higher”: S’porean entrepreneur shares his experience setting up bizs in China

More Singaporeans are setting up shop in China, and it’s not as intimidating as it looks

Singapore has seen an influx of Chinese brands over the years, from Chagee to Xiaomi to Pop Mart. Likewise, several local businesses, including Motherswork and Sheng Shiong, have set up shop in China and established it as a key market.

That said, these are established brands that have decades of experience, and taking on a giant like China can be intimidating for smaller players. Well, that wasn’t the case for JJ Ong, a serial entrepreneur who has started multiple ventures, including The LFG Pod.

He recently launched two brands in Guangxi, China: animal cafe BeWild (宠爱你) and automated-locker service LuoKe (落客). “Frankly, the experience has been better than I expected!” shared JJ.

Vulcan Post spoke with JJ about his experience setting up shop in China and what other Singaporean entrepreneurs need to keep in mind.

He had no intention of starting a business in China

As a serial entrepreneur, JJ has formed friendships with other business owners over the years, including some based in China. Through them, he became interested in the Chinese market and decided to make a few trips to the country.

“I honestly did not have any objectives in mind. I did not go to China with the intention of starting businesses in 2025. All I wanted to do was to see and understand the Chinese economy and business landscape for myself.”

While JJ conducted much of his research via the many articles and explainers available online, he was still determined to experience and interact with locals firsthand.

“Some of the information online is accurate, some of it downright untrue, and some purely the opinions of others. I had to go see for myself, the country whose economy grew so much in the past few decades, how they did it, and if there are any opportunities around.”

The idea for BeWild was introduced to JJ by business partners Steven Lim—who has experience in the global animal and pet industry—and Daniel Phua, who owns a real estate agency in China. JJ shared that they saw an opportunity to create a themed bistro that combined both their expertise and invited him to lead the brand strategy and marketing.

As for LuoKe, it was introduced by another friend, who noticed a growing trend of frequent business travellers in need of practical storage solutions. This led them to create an automated self-storage locker service marketed as a convenient, affordable, and safe solution for those without permanent storage.

What it’s really like setting up a business in China

Launching a business in a foreign market is no small feat, and especially so if it’s in China. According to JJ, many cities impose stricter restrictions on Wholly Foreign-Owned Enterprises (WFOEs). However, specific Special Economic Zones (SEZs)—designated Free Trade Zones (FTZs)—do offer greater flexibility and support for foreign investors.

In the case of BeWild and LuoKe, both businesses were set up in the Guangxi Autonomous Region. As the region serves as the permanent host of the annual China-ASEAN Expo, it has grown into a key economic gateway between China and ASEAN, making it an attractive location for international entrepreneurs seeking to build cross-border ventures.

Another major concern that business owners have is the legality and ease of remitting profits. JJ noted that many entrepreneurs worry about scams, which often make it difficult to transfer earnings out of the country, even if one makes money.

“The biggest personal challenge for me has [also] been navigating the mountain of administrative documents and contracts written entirely in Chinese!” JJ said with a laugh. “I’m so accustomed to speed reading in English that going through lengthy legal documents packed with technical jargon in Chinese can be quite daunting.”

To avoid such occurrences, he sought advice from his friend, who runs a corporate secretarial firm in China, whose team liaises with him, the owners, and the local authorities. They also helped the team navigate the administrative procedures and paperwork, including paying the standard fees, such as the first-year company registration service, as well as bookkeeping and tax filing, which cost about ¥8,800 each.

JJ also ensured that he and his partners avoided any dealings involving cash, cryptocurrency, or unregulated private financial institutions, as these are often linked to ongoing scams. With the assistance he received, he completed the registration process in just one month.

“Fortunately, my personal experience has been positive. I have successfully remitted some of my profits back to Singapore,” added JJ.

Adapting to the Chinese market and its nuances

If setting up is like a sprint, ensuring the business gains traction and can sustain is a marathon. It requires a mindset of constant adaptation and learning, and every city and region in China has its own distinct consumer patterns.

And it doesn’t come easy. JJ pointed out that doom-and-gloom stories of failed ventures also occur, often due to poor partnerships or a lack of understanding of the local market.

“Here’s the kicker: What works in one province may not necessarily resonate in another,” added JJ. “Even expanding into another city within China isn’t as straightforward as replicating a successful model.” To navigate this, he emphasised the importance of working closely with and trusting local staff who have firsthand market insight, including local Chinese agencies.

JJ also highlighted that the startup costs in China were significantly lower, making it an ideal test bed and launchpad for novel ideas like BeWild and LuoKe: risks are minimised if things do not work out, yet it is scalable enough to tap into the market’s potential if they succeed.

“It is true that the net selling price is definitely lower in China than in Singapore, but due to the lower costs, the margins are no doubt much higher.”

JJ provides us with a rough breakdown:

With that said, JJ clarified that costs and experiences vary depending on the type of business, industry, and location, and that they constitute only a small portion of running a business in Singapore. If you’re running a business in China but not residing there, it’s more critical to understand your customers’ behaviour and preferences.

For example, China has its own social media apps, including Xiaohongshu (Little Red Book) and Douyin, which differ in popularity, usage, and target audience. Many of these applications seem to serve similar functions, but are actually different when you get into them.

“It is important to understand what constitutes ‘cheap’ and what is ‘expensive’ and what is ‘value for money,’” added JJ. “Ultimately, my goal is to build a brand that earns loyalty through authentic connections, consistent value, and trust, the same timeless principles that underpin every enduring business, regardless of country or industry.”

JJ is one of the Singaporean entrepreneurs who believe that China is emerging as one of the world’s next major powers, and says that it isn’t a bad idea to position his business to capitalise on the country, whose vast scale and rapid pace of development present tremendous opportunities for foreign investors.

“I’m not saying China is necessarily the ultimate destination, but it’s certainly a market worth exploring, one that offers immense potential for growth, learning, and long-term opportunity.”

• Learn more about JJ’s businesses here: BeWild, LuoKe
• Read more stories we’ve written on Singaporean businesses here.

Also Read: No longer just a heartland brand: Sheng Siong’s Orchard outlet marks its next big ambition

Featured Image Credit: JJ Ong