The 薄利多销 Portfolio: China’s High-Volume, Low-Cost Giants

China is often known for producing cheap goods. In the past, this reputation came from the country’s ability to replicate and mass-produce knock-offs with great efficiency. But today, the story has changed. Chinese companies are no longer just copying — many are creating original products and business models that lead the market.

One key driver behind this transformation is economics. China’s GDP per capita is still relatively low, so products must be priced affordably to generate domestic demand. These low prices stimulate mass consumption, and when exported overseas, they appear even cheaper — giving Chinese brands a competitive edge globally.

There’s a Chinese saying: “薄利多销” — which literally means “small profits, large sales.” It reflects a business philosophy of selling low-priced products at high volume. While the margins per unit may be thin, the sheer scale of operations can make the overall business highly profitable.

Some of China’s most successful companies have fully embraced this model — and thrived. In this post, we highlight 10 China-listed stocks that built market leadership through the 薄利多销 strategy.

#1 Mixue (SEHK:2097)

The newly listed stock has more than doubled within a month of its IPO — and it’s not hard to see why. Mixue has built a dominant position with one of the most aggressive low-price strategies in China’s F&B scene.

Its signature product? A massive soft-serve ice cream for just 2 yuan (less than US$0.30). Most of its menu items are priced under 10 yuan, making it cheaper than nearly every competitor. You won’t find an extensive selection, but you will find unbeatable value.

What’s more impressive is Mixue’s distribution strategy. Over 57% of its stores are located in third-tier cities and below, where purchasing power is weaker. Yet, these stores generate more than half of its total revenue — proof that Mixue’s pricing model resonates with cost-conscious consumers.

By focusing on affordability and scale, Mixue has grown to become the largest F&B chain by store count in China, surpassing even global giants like McDonald’s and Starbucks. Mixue is a textbook example of 薄利多销 done right.