This case study examines the internationalization journey of Zhejiang Semir Garment Co., Ltd. , a complex process involving dual-brand operations, a combination of direct operation and agency modes, and shifts in organizational management. Semir Garment's two flagship brands, Balabala and Semir, adopted different entry strategies across various overseas markets. Balabala primarily used the agency model to expand into countries such as the Middle East, Vietnam, Nepal, Cambodia, Mongolia, and Russia, while maintaining directly-operated stores in Hong Kong and Singapore. Semir extended its international reach via the agency model, launching stores in countries including Saudi Arabia, Indonesia, Laos, and Nepal.

Semir Garment began its internationalization efforts in 2016. Towards the end of 2022, the company made a bold move by heavily investing in new growth areas and introduced the internationalization slogan: "deepening roots in Asia and expanding into Africa." In 2023, a major leadership transition occurred as founder Guanghe Qiu stepped down and his son, Sam Qiu, took over as chairman. Committed to expanding internationally, Sam established the Overseas Business Unit and selected Vietnam as a direct operation market for the Semir brand. However, the absence of a clearly defined strategy created challenges in executing the international business plans for both brands. For instance, in July 2023, Balabala's partner in Vietnam relinquished its agency rights due to its own strategic direction. Consequently, Vietnam became the first market to operate both brands under a direct operation model.

To drive international expansion more effectively, Sam, as the second-generation leader of the family business, faced several critical questions in early 2024: What would be the potential market share of the dual-brand direct operation model in Vietnam? If successful, could this model be replicated to support further expansion in Southeast Asia? And how should Semir Garment advance its internationalization strategy moving forward?