Chevy banking on brand to expand presence in Myanmar

Following a very successful entry into Laos in 2012 and Cambodia in 2013, American auto company Chevrolet expects a similar success in penetrating the Myanmar market.

The success could be built on the awareness of the Chevrolet brand in the country, thanks to the Chevy C-15 military trucks which have been serving as modified buses over the last 60 years.
“Myanmar is the last frontier in Southeast Asia and an important part of the growth strategy for Chevrolet in the region. With over 60 million people in Myanmar and low automobile penetration, there is great potential for future consumer growth in the country. So far only used cars have been allowed to be imported in Myanmar and more than 90 per cent of the market is populated by cars that are over five years old. This market supplements Chevrolet’s recent initiatives for expansion in SEA, following a very successful entry into markets in both Laos, in 2012, and Cambodia in 2013,” said Akshay Jaising, Chevrolet Sales director for Export and Southeast Asia, Distributor Operations, in an e-mailed interview.
“As the market continues to develop and expand, this is the ideal time to reintroduce the modern Chevrolet brand and provide the people of Myanmar with a fresh and complete portfolio of award winning products, ranging from pickup trucks and SUVs to cars and fashionable people carriers,” he said.
Experiences reaped in Laos serve as the initial blueprint for growth in Myanmar. Currently, Laos is home to Chevrolet’s largest showroom in Southeast Asia and since the launch of the Chevrolet brand in Laos in July 2012, it captured a 10 per cent market share.
“We would like to see a similar pattern in our first full year of operation in Myanmar,” he said.
Chevrolet last year appointed Pacific Alpine Myanmar as its local distributor.
Jaising admitted that the competition is intense with several carmarkers making their presence felt. Kah Wei Chong, general manager of Pacific Alpine Myanmar, added that there are several obstacles to doing business in the newly-opened country.
“But these are all obstacles that will be overcome and dealt with as Myanmar develops. One of the issues that we are facing is the lack of a car loan financial system that allows customers to purchase a car. Historically Myanmar has been primarily a used car market, meaning customers bought cars for cash. To make automobiles accessble to more people, the financial infrastructure that facilitates car loans has to exist. But with the number of automobile manufacturers coming in, it won’t be long before a solution to this is found,” he said.
According to Jaising, in the first year brand building is crucial. The Chevrolet Brand Experience Centre was opened in the heart of Yangon, at the corner of Insein and Hledan roads, where customers can learn more about Chevrolet and its 102-year history.
“Chevrolet’s ‘responsible investment’ in Myanmar includes a multi-level approach – to first establish a brand experience centre to increase awareness about Chevrolet’s 102 years brand heritage and planned growth in the market,” he said.
The current focus is on the rollout of the 3S Centres (Sales, Service and Spares) in major cities in Myanmar starting in Yangon, backed by a comprehensive training programme for employees. The Yangon centre, under construction now for completion later this year, will house the Chevrolet Technical Training Academy, to provide comprehensive two-year technical training to employees whom, upon certification, will be deployed to other 3S centres in other cities.
The three-tier corporate social responsibility (CSR) programme will be initiated. This includes programmes like the global One World Futbol Program, bringing indestructible footballs to children in poverty-stricken areas to build the ‘Power of Play’ to the youth of Myanmar.
“This unique market-entry strategy forms a part of a larger expansion plan that includes intensive training and a comprehensive network of showrooms and dealers,” Jaising said.
He added that Chevrolet is working closely with the distribution partner to understand the market requirements and tailor a portfolio of products to address those needs.
“We need to truly understand what it is that the people of Myanmar expect from their vehicles. We are working jointly on a marketing and CSR plan to build the brand and position Chevrolet for long-term growth … We are committed to offering every Chevrolet buyer an outstanding customer experience. Ranking is not really our concern at this stage,” Jaising concluded.