Higher demands open doors wider

At a seminar titled “Doing Business in Myanmar”, panellists noted that consumers in that country now had high demand for many durable and consumer goods thanks to increasing incomes. The government policy to liberalise the market to promote economic growth will also create a brighter future.
Lynn Lynn Tin Htun, secretary-general of the Myanmar Business Executives Association and managing director of Mango Marketing Services, said relatively few people already had durable goods in their households, so demand was sure to grow along with overall spending power.
People are looking to purchase more small and major appliances to upgrade their quality of life, so suppliers of many goods have strong opportunities to access the market. Thai companies have an advantage due to low tariff barriers and close proximity, she said.
The Myanmar Consumer and Media Index (Consumex) shows that spending on durable goods in the country is still low. The study also found that only 2 per cent of the population had air-conditioners, 12 per cent had refrigerators, 25 per cent had rice cookers, 20 per cent had electric fans, 29 per cent had irons, 4 per cent had washing machines, 3 per cent had telephones, 2 per cent owned a personal computer, and only 1 per cent have water purifiers.
About 51 per cent of Myanmar’s 55.4 million people have bicycles, 32 per cent have motorcycles, and fewer than 20 per cent own a car.
Tin Htun said Myanmar was more exposed to different international brands than in the past. Thai enterprises should consider not only selling goods but also ensuring their quality, gradually promoting their brands to consumers via media and word of mouth.
Market experts also advised that Myanmar consumers were price-conscious and would prefer to make frequent purchases of small quantities rather than buy in bulk.
Thida Thant, second secretary of the association, said Thai exporters now had a greater chance to export goods to Myanmar at lower cost as the government had slashed import tax from an average of 10 per cent to zero, excepting only 18 particular items. However, she could not specify the 18 products that are subject to high tariffs. She also said Thai unvestors should not wait until all infrastructure was complete in Myanmar as they would face tougher competition after foreign countries penetrated the market.
Zaw Naing, managing director of Myanmar Credent Technology, said Thai and other businesses would have a greater chance of winning consumer recognition if they based their business on mutual benefit to the community and concentrated on corporate social responsibility and donations.
Cho Cho Myint, MD of Interactive Myanmar, said Thais should consider starting up businesses in the country as many nations were eyeing it.