Burma 'showing market potential'
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The recent visit to Burma by US Secretary of State Hillary Rodham Clinton emphasises the fact that its market potential and fast growth cannot be ignored any more, according to a study by the Hypertrade in-store research agency.
Gross domestic product per capita in Burma has increased significantly from US$150 in 2000 to $1,010 (Bt32,000), according to the World Bank and the International Monetary Fund. With a population estimated at 58 million, Burmese shoppers are becoming more affluent.
Traditional trade still represents 90 per cent of the retail activity there. Modern trade is very present in the former capital Rangoon, with four key players running more than 30 stores over three formats. Modern-trade stores offer up to 40,000 stock-keeping units.
The average Burmese shopper visits neighbourhood traditional stores 18.5 times per month, and visits an average of 2.7 stores per month.
The main consideration for Burma shoppers when selecting a store, after proximity, is choice. This will not come as a surprise in a market where products’ availability and imports are still a challenge.
Most retailers show an aggressive annual growth rate of more than 15 per cent.
Despite the fact that countries such as the United States have not yet lifted sanctions and that there are still numerous challenges to expansion of the retail industry, the dynamism of Burma is bound to become a key component in any regional retail strategy.
