Rising Consumerism

solidiance
The Next Growth Wave:
Rising
Consumerism
in Myanmar
JANUARY 2018
Solidiance has produced this white paper for information purposes only. While every effort has been made to ensure the accuracy of the information and
data contained herein, Solidiance bears no responsibility for any possible errors and omissions. All information, views, and advice are given in good faith but
without any legal responsibility; the information contained should not be regarded as a substitute for legal and/or commercial advice. Copyright restrictions
(including those of third parties) are to be observed.
www.solidiance.com 1
Table of
Contents
03 Executive Summary
04 The first growth wave

04 Myanmar - Generations frozen in time
07 Dawn of a new era
10 Differential impact of reforms
12 The next growth wave

12 Evolving generational attitudes
14 Optimists and Aspirants lead transformation
15 Driven by higher spending power
17 Rising Consumerism in Myanmar

18 Connected generation to drive voracious
consumerism
19 Consumers expected to eat out more
20 Rapid digitization to bridge

regional gap
20 From no phone to smartphones
22 Facebook is THE internet
23 Android dominates due to affordability
24 Optimists and Connected to drive
e-commerce uptake
26 Implications for investors
27 Infographics
2 www.solidiance.com
Executive
Summary
Hailed as the last frontier market in Asia, Myanmar instantly garnered
the interest of not just regional but also global investors looking to
capture untapped opportunities in this burgeoning market.
With the opening up of its economy in 2011, FDI increased from USD
4.6 billion in FY2011-12 to USD 9.5 billion in FY2015-2016. In March
2016, a new democratic government led by the National League
for Democracy (NLD) under State Counselor Aung San Suu Kyi and
President Htin Kyaw was formed, reinforcing faith in Myanmar’s
accelerated growth trajectory and fast pace of economic reforms.
Solidiance has advised Fortune

500 clients and large Asian
FDI in FY2016-2017
conglomerates looking at entering
dropped to USD6.6 billion,
Myanmar since 2011 across the
automotive, energy, construction a sign of normalizing
materials and equipment, investment as the economy
healthcare, FMCG and telecom stabilizes but also
space. We observe a gradual
impacted by uncertainty
transition with clients moving from
and delays in policy
“a foot in the door” approach of
setting up representative offices making as well as lack of
to a more long term “establishing significant infrastructure
a sustainable footprint” approach developments.
through joint ventures, investment
in repackaging, product portfolio
expansion or localization and setting up manufacturing facilities.
Infrastructure and skilled talent remain the key challenges but the
primary aim is to cater to what is truly going to shape the Myanmar
growth story: the Burmese consumers.
Rising FDI and expansion from local conglomerates to stay competitive

has led to higher employment opportunities and hence increased
affordability. In this whitepaper, we draw references to how the
economic and political situations in Myanmar have influenced
behavioral patterns in different generations of Burmese consumers.
Favorable economic reforms, availability of international brands, higher
regional and global connectivity and rapid digitalization have paved
the way for Burmese consumers to rapidly catch up with their regional
counterparts, making it imperative for investors to tailor their offerings
in accordance with local consumption dynamics.
The first
growth wave
Myanmar - Generations
frozen in time
Generational terminology in the West is often

used to segregate and define commonalities
based on key events and “defining moments”
that influence the behavior and attitude of that
generation.
The generation timelines in the West

TRADI- BABY GEN X GEN Y/ GEN Z GEN
TIONALISTS BOOMERS MILLENIALS ALPHA
1925-1945 1946-1964 1965-1979 1980-1994 1995-2009 2010-2025

Post-war economic Hardworking, Idealist, Skeptical, Pragmatic, Opportunistic, Multi-taskers, Realist, Mobile, Exhibitionists,
boom, Value security, Experimental, Self-Sufficient, Work- Optimist, Globally Connected, Not know a world
comfort, Familiarity Question Authority, Life Balance, Personal Entrepreneurial, Tech Flexible, Wearable without social
TV, Telephone Computer, Emails, savvy, Smartphones, devices, Technoholics network, Online
“Digital Immigrants” Social Media, “Digital Screenagers Shoppers, “Google
Natives” Generation”
Now picture a generation growing up under ~50 years This generation had limited access to phones with SIM cards
of debilitating military rule, failed implementation of a costing >USD 2,000, which most people couldn’t afford,
“Burmese way of Socialism” that led to forced isolation of with sporadic access to the internet, primarily restricted to
the country from the rest of the world, the demonitization internet cafes with snail speed forcing aspirants to stay late
of the 50 and 100 kyat notes which were replaced by at night in these cafes just to submit a university application.
currency values divisible by the “auspicious” no. 9 with
limited compensation and a dysfunctional financial system
that led to heavy reliance on cash. And all this was not decades ago,
this was as recent as 2010, in
MYANMAR.
Source: Solidiance Interviews & Analysis
While the West debates characteristics of Gen Alpha,
in Myanmar a much delayed economic transformation
Kachin
and digital revolution was finally initiated in March 2011
with the establishment of the first quasi democratic Sagaing
government. Additionally, various administrative
divisions, states, regions and ethnicities add multiple
layers of complexity to the Myanmar story that is just
beginning.
Chin
14 Myanmar has 14
Shan
administrative divisions Mandalay
Magwe
Rakhine
Kayah
of these administrative divisions
7 are categorized as regions that

are primarily inhabited by the
dominant ethnic Bamar group
Bago
Yangon Kayin
Ayeyarwady
Remaining 7 of these Mon
7 administrative divisions are

categorized as states, primarily
inhabited by ethnic minorities
Source: CSO, Solidiance Interviews & Analysis
There are
>135
The Bamar ethnic majority accounts for ~68% of the
population followed by the ethnic Shan minority (~9%)
and Karen (7%). While the government & military is
predominantly Bamar, the resource rich areas are
ethnicities in
inhabited by the ethnic minorities, leading to mistrust
and armed conflicts that have often disrupted industrial
activities in the regions. The ethnic groups claim that
Myanmar a “Burmanisation” policy is being implemented by the

Military, including discriminatory influence on education
system.
By religion, Buddhists account for

~90%, followed by Christians (6%) and
Muslims (2.3%) as per the 2016 CSO
statistics
However, rise of nationalism is posing a threat to

Myanmar’s young democracy. The impact of rapid
economic changes are yet to trickle down to the
masses leading to economic anxiety.
Source: CSO, Solidiance Interviews & Analysis
Dawn of a new era
A new democratic government led by the National League for However, the implementation of the new Myanmar
Democracy (NLD) under State Counsellor Aung San Suu Kyi and Investment Law in October 2016 as well as the
President Htin Kyaw, was formed in March 2016 after the NLD’s prioritization of investment in 10 areas including
landslide election victory in November 2015, reinforcing hopes of agriculture, export promotion, power and import
a progressive future. substitution is expected to offer a fresh impetus
for Myanmar’s economic expansion 2018 onwards,
While the NLD has been instrumental in the much welcomed especially driven by its young population.
announcements by the US and the EU to lift economic sanctions
imposed for decades, there are still high expectations and
significant concerns related to the NLD’s ability to accelerate the
economic growth achieved under the previous President Thein
Sein.
ASEAN GDP Growth Forecasts (CAGR 2016 - 2022)

7.4% 6.9%
6.9% 6.7%
6.3%
5.3%
3.1% 2.8% 2.5%
258.7 104.2 92.6 69.0 52.3 31.7 15.8 7.2 5.6

INDONESIA PHILIPPINES VIETNAM THAILAND MYANMAR MALAYSIA CAMBODIA LAOS SINGAPORE

Note: CAGR = Compounded Annual Growth Rate based on IMF forecasts Number of population in million (2016)
Myanmar’s promising
young workforce
Myanmar’s trophy population:
Distribution by age and gender (2016)
Male Female
0-4 -9.8% -9.8%
5-9 -10.0% -10.0%
10-14 -10.4% -10.4%
15-19 -9.5% -9.5%
20-24 -8.6% -8.6%
25-29 -8.1% -8.1%
30-34 -7.7% -7.7%
35-39 -7.0% -7.0%
40-44 -6.4% -6.4%
45-49 -5.7% -5.7%
50-54 -5.0% -5.0%
55-59 -4.0% -4.0%
60-64 -3.0% -3.0%
65- + -5.0% -5.0%
A staggering 36% of the population belongs As a result, the age group of 25–29 accounted for the
highest share of the Burmese population migrating to
to the 10-29 age group followed by 27%
more urban areas domestically during the five years prior
which belong to the 30–49 age group to the 2014 Census. Across all age groups, 43.7% cited
employment or search for employment as the key reason
This age group presents not just a young and aspiring for moving between states/regions to more urban areas.
workforce but also a significant untapped consumer base. This population movement has a high correlation with
After years of economic deprivation and exclusion from the economic development in the form of industrial zones and
global ecosystem, the young Myanmar population is chasing special economic zones, which remains geographically
their long delayed dreams, impatient to secure better job concentrated.
opportunities, gain access to global brands, connect to the
digital world, and accelerate their impact on the economy.
Concentration of
opportunities for future
growth
Myanmar’s population density by While population density in Yangon and Mandalay reflect
state/regions impact of higher urbanization rate, in Kachin state, the

urbanization rate of 36% despite a low population density
is primarily driven by the Myitkyina district, which has
benefited from its proximity to China and boasts an urban
population of 59%.
Similarly, while Kayin State and Sagaing Region on a

whole have lower urbanization rates of ~22% and 17%
respectively, Myawaddy District in Kayin and Tamu District
in Sagaing have significantly higher urbanization rates of
55% and 52% due to their proximity to Thailand and India
respectively.
Myanmar‘s urbanization rate by

state/regions
>500 per sq. km

200 < x < 500 per sq. km
100 < x < 200 per sq. km
50 < x < 100 per sq. km
Less than 50 per sq. km
Hence with rising FDI and trade flow

with neighboring countries, employment
opportunities and urbanization tend to
be concentrated in the border towns of
Tier 1 cities like Yangon and Mandalay,
while bulk of the rural population >40%
35% - 40%
continues leading a somewhat similar 31% - 35%
lifestyle pre-2011. 26% - 30%
21% - 25%
10% - 20%
Differential impact of
reforms
Inter-state/regional movements for
better opportunities
The differential impact of reforms and varying Kachin

urbanization rates have triggered domestic
migration across states and regions.
93 Yangon is witnessing the highest

net migration rate of 93 per 1,000
1, 0 0 0
people people Sagaing
Only 32% of the population has access to

electricity in Myanmar. Yangon, which accounts
for 50% of the total electricity consumption in
Myanmar, posts the highest electrification rate
Shan
at 69%.
Mandalay
The government aims to achieve 100%
100%
by 2030 national electrification by 2030
Rakhine Magwe
Ageing transportation infrastructure is a key

barrier for economic growth across the country
with an estimated ~USD 60 billion in investment
60 required from 2016 to 2030 to enable just Bago

basic road access to ~20 million of the Burmese
billion
population.
Ayeyarwady
Yangon
Mon
The city water supply caters to ~60% of
Yangon’s population and ~67% of Mandalay’s
population as of 2016 with plans
> 350,000 recent migrants
60%
for further expansion supported
100,000 > 150,000
by funding and loan support from
60,000 > 80,000
JICA, ADB and AFD.
40,000 > 59,900
20,000 > 39,900
Note:
Recent migrants refers to people
who moved within the five-year
period prior to the Census Source: Department of Population, UNFPA, JICA, Myanmar
Census 2014, Solidiance Interviews & Analysis
The push towards a more industry-based economic output
is imperative to accelerate economic growth, especially
with the highly manual nature of the agriculture sector in
Myanmar.
Additionally, a focus on creating more regionally balanced

industry–based employment opportunities is required for
sustainable development of the whole Myanmar economy.
The current Services and Industry-based

employment as per the latest available
2014 Census is primarily concentrated in
Yangon and Mandalay regions
This has caused urbanization, migration and infrastructure

development to be focused on these regions, which leads
to congestion, overcapacity, rising inflation, widening
Demand-Supply gap and an unsustainable strain on
resources.
It also creates a significant gap in the population behavior,

awareness, preferences and needs across regions
that companies need to take into consideration for
understanding consumer patterns in Myanmar.
Employment share by sector (Census 2014)
Legend
Employment
share (%)
0 - 15
15 - 30
30 - 45
45 - 60
60 - 75
Agriculture Services Industry
Source: International Growth

Centre, Myanmar Census 2014,
Solidiance Interviews & Analysis
The next growth
wave
Evolving generational attitudes drive
consumer spending...
The stark contrast in Myanmar’s turbulent history on one hand and the fast paced
reforms in recent years has had a differential impact on its population in terms of
influencing their current attitudes, beliefs. and values as well as their needs and
preferences as consumers.
British colonial period Japanese Invasion

(1824 – 1948) (1942 – 1945)
Anglo-Vernacular schools established by the British promoted
Thakins * English learning for jobs in public administration, including

4% increased enrollment of women. A decline in popularity of
monastic schools and rising dissent for British colonialism led
Birth Year: 2017 Age: to the emergence of the “Thakin” movement (Burmese for
1925 - 1945 72 - 92 “Master” aiming to redefine their own destiny) led by Aung
Rebels More Fluent in English San. Private schools with nationalistic ideals and Burmese
Risk Takers compared to current language as the mode of instruction were also established
Younger Generations starting 1920. Due to these events being a part of their
Open Minded
Pragmatic formative years, the Thakins today have higher education
level and command of the English language compared to
the youngsters. They are also more critical of the challenges
persistent in the Myanmar economy.
Assassination of Aung British Independence

San (1947) (1948)
Democratic Government established under the deeply *

Buddhist Prime Minister U Nu; Economic recovery marred Contemplative 12%
by political instability, ethnic conflicts; Military Coup
(1962): Constitution abolished, Burmese Way to Socialism Birth Year: 2017 Age:
formulated, Nationalization, Limited objections as move was 1946 - 1964 53 - 71
seen to drive economy away from communism and Western Reminiscent Value Familiarity
ideals towards more Buddhist beliefs, Universities closed
Community Brand Loyal
until 1964. As a result, the Contemplative generation today
Risk Averse Saving Oriented
is conservative, tend to uphold traditional community values
Apprehensive “Followers”
and are apprehensive towards economic developments and
Conservative
foreign investments.
Source: Solidiance Interviews & Analysis;

Note: *Estimated share of total population as of 2017
Optimists *
18% Declining foreign trade as the economy is closed off;
Widespread shortage of basic commodities with redistribution
of land and wealth; Burmese replaces English as the official
Birth Year: 2017 Age:
language; New Constitution Implemented. As a result,
1965 - 1979 38 - 52
some Burmese left in search for better opportunities in the
Embrace Change More tech/social region and the West, or having experienced adverse impact
Accept Diversity media savvy than even
of the military coup within the country are highly open to
younger generation
Investment Oriented liberalization, new technologies and progress.
Question Authority
Severe economic crisis, corruption, dysfunctional policy
Aspirants *
making; Demonetization (1987), Classified as a Least Developed
Country, Student-led Democracy protests (1988), Aung San 23%
Suu Kyi placed under house arrest (1989), 1990 election results
nullified, General Than Shwe appointed as Prime Minister Birth Year: 2017 Age:
in 1992. With a largely Burmese mode of education, the
1980 - 1994 23 - 37
Aspirationalists are challenged by their traditional education Value Conscious Ambitious
background discouraging critical thinking on one hand and Entrepreneurs Experimental
having to adapt through experiential learning with changing Western-Affinity Impatient
times in an increasingly competitive environment on the other Open to New Burmese Mode of
hand. They are impatient to catch up and connect globally. Technology Education
Connected *43% EU and US Investment Sanctions (1996,1997); U Thein Sein

from USDP elected as President (March 2011); Economic and
Birth Year: 2017 Age: political reforms launched with avg. annual GDP growth of 8.2%
1995 - present < 22 during his tenure; FDI increased from USD 1.9 billion in 2011/12
to USD 8.1 billion in 2014/15. NLD led Government elected in
Tech-holics Individualistic
March 2016. Liberalization, especially in telecom has led to
Competitive Ambitious
unprecedented connectivity, increased exposure, access to
Aggressive Voracious Consumers global brands creating a “Connected” generation that is bridging
Opinionated Flexible the gap between their regional and global counterparts.
More Vocal/Sharing Affinity for Foreign
Online Brands
Source: Solidiance Interviews & Analysis;

Note: *Estimated share of total population as of 2017
...with Optimists and
Aspirants leading
transformation
GDP per capita in ASEAN regions (2016, in USD)
INDONESIA 3,604
MALAYSIA 9,360
THAILAND 5,899
MYANMAR 1,269
PHILIPPINES 2,924
VIETNAM 5,899
Myanmar’s GDP per capita forecast The fast paced reforms and incoming foreign
(2016-2022F, in USD) investments have led to better employment
2,211
2,017 opportunities, faster growth and higher spending
1,832 power especially for the Optimists and Aspirationalists
1,662
1,510 who have embraced change and economic
1,375 development. However, GDP per Capita in Myanmar
1,269
continues to be the lowest amongst its other ASEAN
neighbors, leaving much room for growth. GPD per
capita is estimated to reach USD 2,211 in 2022, similar
to current levels in Vietnam indicating rising business
and consumer confidence driven by a burgeoning
middle class primarily comprising a young population.
2016 2017 2018F 2019F 2020F 2021F 2022F
Driven by higher spending
power
Average monthly income
per person as % of Only
24%
Currently, only ~24% of the Myanmar
population in Myanmar population earns >USD120 per month
(2016)
as bulk of the population (>60%)
5% Earns continues to be employed in the
> USD 120 unindustrialized agriculture sector.
per month
19%
41% However, this share is expected to increase to 48% by 2022
driven by rising employment opportunities in the services and
manufacturing sectors as well as with rising incomes driven by foreign
35% investment into higher productivity sectors. In 2011-2012, unskilled

manufacturing sectors such as garments was prioritized for soliciting
foreign investment.
Average monthly income

per person as % of
population in Myanmar
(2022)
11%
23%
37%
29%
The government succeeded in attracting key retailers including Adidas,
Gap and H&M for manufacturing in Myanmar by offering the lowest
wages in Southeast Asia which in turn led to labor rights concerns.
As a result, trade unions were legalized and MMK3,600 (USD 2.64)
< 75 USD < 75-120 USD was established as the minimum daily wage in late 2015. However,
there have been increasing dissent amongst workers facing economic
< 120-250 USD > 250 USD
headwinds of deteriorating working conditions as well as rising
inflation, leading to calls to raise the minimum daily wage to MMK
5,600 (USD 4.2).
Albeit with high inflation
Inflation, average consumer prices forecast
70%
60%
50%
Myanmar
40%
Thailand
Vietnam
30%
20%
10%
0%
2000 2002 2004 2006 2008 2010 2012 2014 2016F 2018F 2020F 2022F
Country 2015 2016F 2017F 2018F 2019F 2020F 2021F 2022F
Myanmar 10.04% 6.77% 6.50% 6.10% 6.50% 6.40% 6.30% 5.70%
Thailand -0.90% 0.19% 0.59% 0.98% 1.60% 2.00% 2.30% 2.50%
Vietnam 0.63% 2.67% 4.37% 4.00% 4.00% 4.00% 4.00% 4.00%
Rising consumerism in
Myanmar
Traditionally an investments and savings-oriented population
Myanmar’s total average

consumer spending (2016)
15%
4%
7%
55% 3%
2%
6%
2%
1%
4% The typical Burmese spends ~45% of the monthly average income
1%
compared to Thailand consumers who spend ~70% of their
income. This can also be attributed to the behavioral patterns
outlined earlier, especially for the 38–52 year old Optimists
Thailand’s total average
who are more investment driven as well as the 23–37 year old
consumer spending (2016)
Aspirationalists who remain value conscious.
19%
Additionally, the average personal income

in Myanmar is approximately one-fifth of
30% 5%
Thailand’s average income, with Myanmar
consumers also saving more given the
13%
significant gap in retail and financial sector
4%
development.
2%
6% The typical Myanmar consumer saves substantial proportion

15%
6% of their monthly income towards investments in gold or in
properties, given the lack of any other financial investment
Food & Beverages Healthcare alternatives available in other countries in the region. Cash is often
Clothing Eating Out accumulated at home for emergencies / contingency plans.
Personal Care & Education
Household Products Moreover, unlike Thailand, healthcare and education are two
Others
additional key expenditures for average Burmese consumers, as
Travel & Entertainment Savings
these are not provided for free by the Myanmar government or
Telecommunications
supported by social schemes like in Thailand.
Transportation, Rent & Utilities
“Connected” generation to
drive voracious consumerism
A key barrier in Myanmar is also the slow financial sector There is also a slow but steady transformation of
development as well as the adoption of credit/debit cards in purchasing processes and decision making, especially
Myanmar is still quite low with ~30% having a bank account. across the urban areas driven by a rise in modern trade
However, with rising development of the financial sector, outlets. While traditional wet markets and road-side
coupled with the “Connected” generation aged above 22 who hawker stalls are the primary and often the only available
are characterized as ‘voracious consumers’ and with higher retail channel for bulk of the rural population, the urban
affinity for foreign brands and products, are expected to population from key states are switching frequently to the
drive consumer spending going forward as they bridge the modern retail channels especially the smaller convenience
gap between their regional counterparts and catch up. stores.
Wet Market Convenience Stores

(Market selling fresh meat & groceries) (small modern retail stores)
Vendor/Hawkers Supermarkets
(Shops opening on the roads) (large self-service stores selling F&B, FMCG, etc.)
CONCESSIONS
Ambitious growth plans by local modern retail operators
such as City Mart, Capital and Gamone Pwint, have increased
presence of 24-hour convenience stores as well as Supermarket
and Hypermarkets not just in Tier 1 cities but also in Tier 2 and
3 cities of Pathein, Taunggyi, Mawlamyine

As consumers are
expected to eat out
more frequently
The rapid growth of foreign food franchises being established
in major cities is also encouraging the Tier 1 urban
population to eat out more frequently.
Key international brands/food franchises in

Myanmar
2011
2012
2013
2014
2015
2016
2017
Rapid digitization to bridge
regional gap
From no phone to smartphones
Myanmar’s mobile phone penetration rate (2011-2016)

In Jan-2017, Viettel was awarded the 4th
2016 93% telecom license
2015 58% Competition heating up with players offering

attractive call rates, social media and data packages
2014 27%
License awarded to foreign players Telenor & Ooredoo,
2013 10% with SIM cards being priced as cheap as USD 1.5 52% of
subscribers
2012 6% SIM card price dropped to ~USD 200-500 are active
data users
Market was monopolized by MPT with a
2011 4% SIM card costing USD 1,500
78% of smartphone penetration as of Jan 2017

was driven not just by the Optimists who remain
most tech savvy, but even the older “Contemplative”
78% generation leading to a surge in app development and

downloads
As of January 2017, 55% of all mobile connections
55%
in Myanmar were broadband i.e. either 3G or 4G
As of January 2017, mobile phones accounted for

70% share of all web pages served to web browsers
while laptops and desktops which account for
70% 28% of web traffic witnessed the highest year-on-year

growth of ~71%, followed by tablets at 2%

Smartphone penetration (rural/urban)
Given the larger size of
17% 22%
25% 25% 33% Myanmar’s rural population,
43%
bulk of smartphone penetration
growth will be driven by
75% 83% 75% 67%
78% increasing adoption in the rural
57%
areas.
2015 2016 2015 2016 2015 2016 While the Optimists generation comprising
Urban 9.3% Rural 29.8% Total 16.4% of 37–51 years age group (as of 2016) has
posted the highest growth, the Contemplative
Smartphones No Smartphones
generation comprising the 52-70 years
old age group (as of 2016) which has been
apprehensive of the changes initially, are also
Smartphone penetration (by age)
now keen to ride the technological growth
93% wave.
84% 84%
73% 76%
62%
57% 55%
51%
44%
15-24 25-34 35-44 45-54 55-64
Source: LIRNEasia-MIDO Survey, Solidiance Interviews & Analysis
Facebook is
THE internet
14 93% 49%
MILLION of Facebook of Facebook Users
Monthly Active Users accessing use Facebook
Facebook Users via mobile everyday
Facebook users by location

(December 2017)
0.7%
Myitkyina
1%
Taunggyi
5%
Monywa
Mandalay
20%
Mandalay
Taunggyi
30.3%
Others
43%
Yangon
Source: Hootsuite Jan 2017, Irie Digital – Facebook

Business Manager December 2017, Solidiance Analysis
Android
dominates due to
affordability
The attractive price levels of Chinese brands and

In Urban areas, however, Facebook and
Samsung handsets have especially driven adoption
of smartphones with Huawei dominating the market
Viber are the primary interfaces used to
followed by Samsung, Xiaomi, Oppo and Vivo who have connect with family and friends, with Viber
started investing aggressively in advertising, encouraged boasting ~18 million subscribers as of
by the rapid adoption rates and the preference for December 2016.
cheaper smartphones by bulk of the population.
Even across generations, bulk of the Thakins,
Majority of the population, especially in rural areas limit Contemplatives, and even some Aspirationalists depict
phone usage to calls and texts, which the key operators similar usage trends restricting social media access to
are aiming to change through promotions on data packs Facebook and Viber for communication, news, following
and social media packages. celebrities and politicians as well as browsing.
Myanmar handset share (Oct 2017) Source: GS.StatCounter, Solidiance Interviews & Analysis
HUAWEI SAMSUNG XIAOMI
22.3% 19.4% 11.3%
OPPO VIVO APPLE OTHERS
7.4% 6.0% 5.7% 27.9%

Optimists and Connected
drive e-commerce uptake
However, the Optimists and the youngest These generation groups will be crucial for driving the next
phase of the digital adoption in Myanmar including cab sharing
generation aptly named Connected
apps such as Grab and Uber which have already witnessed a
are spearheading transformation in favorable start in Yangon, mobile money transfers which have
smartphone usage, downloading apps, seen significant interest albeit with limited actual transactions as
well as e-commerce and mobile banking for which infrastructure
browsing web pages and even ordering
development and targeted customer education remains crucial.
online.
Emergence of e-commerce platforms in Myanmar
Facebook was the sole platform for online shopping in

2013 with seller-specific pages and limited transparency
2013 on orders delivery
Is the most popular platform in Myanmar, with >500,000

site visitors monthly and >20,000 products available
2014 online
Recently gained popularity with ~30,000 monthly visitors,

7x increase since its inception. Sister firm Yangon
2015 Door2Door is also popular online food delivery platform
Consists of key founding members of e-City, a leading

mobile retail chain and it has recently developed its own
2016 shopping application available on Google play
Has gained ~40,000 viewership monthly by offering

promotions on electronic products through partnerships
2017 with e-retailers and ticket sales of popular events
E-commerce volumes by
product category (2016)
15%
Furniture,
baby product
25%
beauty/ 60%
Fashion Electronics
...with rising
E-commerce volumes by
regions (2016)
penetration of
11%
smartphones
Others
Myanmar’s e-commerce industry is at a nascent stage with most
popular sites receiving less than 0.7 million visitors monthly while
22% the number of internet users is ~38 million. Bulk of the transactions
Mandalay
67% remain concentrated in Yangon and continue to rely on cash-on-
Yangon delivery options primarily. However, 85% of the visitors traffic comes
from smart phones, with customers appreciating the convenience of
shopping on the go.
Mobile internet access has only Myanmar e-commerce market is smart phone driven. Hence,
become broadly accessible since optimization on phone and having a responsive website is
late 2014, but the experience extremely important.
for online shoppers in Myanmar
have improved drastically in the MD, Shop.com.mm
short time frame, as more logistic

solutions are emerging to offer
point-to-point delivery and as Building reputation and winning consumers’ heart is
mobile payment options become extremely important. Apart from prompt delivery, we offer
more available. discounts and free gifts to gain consumers’ loyalty.
CEO, Barlolo.com.mm Manager, Shopmyar.com
Implications for
investors with evolving
generational dynamics
Myanmar has undergone rapid transformation in a relatively short time, The Burmese market is
while it took decades for some of its regional neighbors to achieve similar
definitely not an ideal
levels of economic progress. Hence, it is important to understand the
impact of this rapid pace of development on consumers not just on a
destination for investors
regional or urban vs. rural perspective but even through the defining looking for short term wins,
political and economic events that the consumers have been exposed to and will continuously test
across different age groups. sustainability, long term
Identifying the target age group, consumer attitudes and preferences commitment, and perseverance
becomes extremely crucial for both local and multinational companies of the investors and growth
looking to engage Burmese consumers. strategies in multiple ways.
Drivers and key enablers for Myanmar’s

economic growth
Rising
consumerism Technological
to drive local leaps to boost
manufacturing SME innovation
Consumer firms such as Unilever, Henkel and Nestle, With Myanmar leapfrogging straight to smartphones,
automotive firms such as Nissan and Suzuki have all a range of tech start ups have emerged to cater to
established local facilities to better cater to the local basic needs of the people especially in the financial,
demand healthcare and educational sectors
Customer
education is Offline & online
key integration
While customers are impatient to catch up, While social media remains the predominant mode
highlighting the value of your products and services of engagement, effectively integrating online and
remains key with consumers being more value- offline marketing through a “customer oriented”
conscious than price conscious. Targeted customer approach rather than a “product oriented” strategy
engagement strategies will be more impactful in a will be key.
segregated complex market such as Myanmar
The Next Growth Wave:
Rising Consumerism
in Myanmar
Myanmar’s economic and political situations have
influenced behavioral patterns in different generations of
Burmese consumers.
Under military rule for ~50 years that led to forced isolation
of the country from the rest of the world.
MILITARY RULE Myanmar had a dysfunctional financial system that led to

heavy reliance on cash
1988–2011
Citizens had limited access to phones with SIM cards
costing >USD 2,000
In 2015: A new democratic government was formed led by

the National League for Democracy (NLD) under State ECONOMIC
Counsellor Aung San Suu Kyi and President Htin Kyaw LIBERALIZATION
2011-PRESENT
Myanmar embarked on a major policy of reforms
including anti-corruption, currency exchange rate, foreign
investment laws and taxation
Yangon is witnessing the highest net migration rate of 93

ETHNICITY IMMIGRATION
per 1,000 people
68% 90% 7% 16% 32% of the population has access to electricity, with
Bamar Shan Karen Others
Yangon accounting for 50% of the total electricity
ELECTRICITY consumption
RELIGION
90% 6% 2.3% 1.7% Ageing transportation infrastructure remains a key barrier
Bhuddists Christians Muslim Others INFRASTRUCTURE
for economic growth
Caters to ~60% of Yangon’s population and ~67% of

There are >135 ethnicities in Myanmar
>135 Government & military are predominantly Bamar WATER SUPPLY
Mandalay’s population
Evolving Generational Attitudes Drive Consumer Spending
Thakins 4% Contemplative 12% Optimists 18% Aspirants 23% Connected 43%

Birth Year: 2017 Age: Birth Year: 2017 Age: Birth Year: 2017 Age: Birth Year: 2017 Age: Birth Year: 2017 Age:
1925 - 1945 72 - 92 1946 - 1964 53 - 71 1965 - 1979 38 - 52 1980 - 1994 23 - 37 1995 - now < 22
Rebels Reminiscent Embrace Change Value Conscious Tech-holics

Risk Takers Community Accept Diversity Entrepreneurs Competitive
Open Minded Risk Averse Investment Oriented Western-Affinity Aggressive
Pragmatic Apprehensive Question Authority Ambitious Opinionated
More Fluent in Conservative More tech/social Experimental Individualistic
English compared Value Familiarity media savvy than
Impatient Ambitious
to current Younger even younger
Generations Brand Loyal generation Open to New Voracious Consumers
Saving Oriented Technology
Flexible
“Followers” Burmes Mode of
Education More Vocal/Sharing
Online Flexible
Affinity for Foreign
Brands
The Optimists and Aspirants generations are driving the
transformation in Myanmar, driven by higher spending power
Average monthly income per Myanmar’s total average consumer

person as % of population (2016) spending (2016)
5%
15% 5% 4%
19% Food & Beverages Transportation, Education
Rent & Utilities
41%
4% 2% 55%
35% Clothing Healthcare Savings
< 75 USD < 75-120 USD

3% 1% 1%
Travel &
Entertainment Eating Out Others
< 120-250 USD > 250 USD
2% 6%
~24%
of the Myanmar population earns
>USD120 per month Telecommunications Personal Care & Household Products
of the population continues to be

> 60% employed in the unindustrialized The adoption of credit/debit cards in Myanmar is still quite low with ~30% having a
agriculture sector bank account.
Meanwhile, the Optimists and Connected generations are

spearheading the digital era in smartphone usage
From no phone to Facebook is THE internet in Myanmar

smartphones: the rise
of Digital 2.0
fastest growing mobile market in

4th the world
14 93% 49%
MILLION of Facebook of Facebook Users
Monthly Active Users accessing use Facebook
Facebook Users via mobile everyday
78%
of Smartphone penetration as of
January 2017
These generations will be crucial for driving the next phase of the
digital adoption in Myanmar including cab-sharing apps, mobile
of all mobile connections are money transfers, as well as e-commerce and mobile banking
55% broadband (3G/4G)
Smartphones drive Myanmar’s e-commerce market is smartphone

of web traffic come from mobile
e-commerce uptake
70%
driven, although still at a nascent stage
phones, followed by laptops and
desktops at 28% and tablets at 2%
E-commerce volumes by E-commerce volumes by
product category (2016) regions (2016)
Android dominates due to
affordability, with Huawei
dominating the market followed
60% 25% 15% 67% 22% 11%
Electronics Beauty/ Furniture, Yangon Mandalay Others
by Samsung, Xiaomi Fashion Baby Products
Authors
Naithy Cyriac Manager
Naithy is a Manager, leading our Myanmar office since 2014. With over 8 years of consulting
experience across a range of sectors including automotive, FMCG, healthcare and construction,
she has worked extensively with MNCs exploring investment opportunities across ASEAN. Prior
to joining Solidiance, Naithy was a Senior Associate at a leading credit research and analytics
firm, where she led various projects including investment opportunity analysis and due diligence.
Naithy graduated with an MBA from the National University of Singapore and Cornell University
and holds a Bachelors of Science degree from St. Stephen’s College, Delhi University.
Shin Thant Consultant

Shin Thant is a Consultant in our Myanmar office with ~5 years of experiences in SEA across a
range of sectors, including construction, automotive, industrial automation, healthcare and oil
& gas. He mainly specializes in market analysis, strategy formulation and financial modeling.
Prior to joining Solidiance, he worked in one of the largest professional services firm for advisory
and audit services. With an in-depth knowledge in accounting and finance, Shin Thant holds a
Bachelors Degree in Applied Accounting from Oxford Brookes University. He is also the member
of Association of Chartered Certified Accountants (ACCA).
Khine Yi Analyst
Khine Yi is an Analyst based in Solidiance’s Myanmar office. Before joining Solidiance, Khine Yi
has gained 4 years of professional experience during which she worked as a project officer to
serve various residential and commercial clients as well as in-depth knowledge and experience in
trading firms. Khine Yi holds an MBA from the University of Cardiff Metropolitan, UK and holds a
Master’s degree in English from University of Pathein.
About Us
What We Do What We Focus On
Solidiance is a corporate strategy consulting firm with focus Our industry experience is centered on management
on Asia, from Dubai to Shanghai. We advise CEOs on make- consulting services, with some of our strategy work
or-break deals, define new business models and accelerate focused on developing transformation roadmaps across
Asia growth. Through our 12 offices across Asia, we provide a wide-range of industries such as in automotive, energy,
our clients with a better understanding of intrinsic regional construction materials and equipment, healthcare, FMCG
issues. To learn more about how Solidiance has helped and telecom space. Our Asia-wide market entry and growth
many Fortune 500 and Asian Conglomerates to succeed in strategy services provide the required insights and the
Asia, please visit: necessary roadmap to capture a profitable market share
http://www.solidiance.com/clients in the region.
Our Footprint
Solidiance has offices in China, India, Indonesia, Lebanon,
Connect With Us
Malaysia, Myanmar, Philippines, Singapore, Thailand, Solidiance
United Arab Emirates, and Vietnam. We also have a client @solidiance
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The Next Growth Wave:

04 The first growth wave

12 The next growth wave

17 Rising Consumerism in Myanmar

20 Rapid digitization to bridge

26 Implications for investors

Solidiance has advised Fortune

Rising FDI and expansion from local conglomerates to stay competitive

Generational terminology in the West is often

The generation timelines in the West

1925-1945 1946-1964 1965-1979 1980-1994 1995-2009 2010-2025

Source: Solidiance Interviews & Analysis

7 are categorized as regions that

7 administrative divisions are

Myanmar a “Burmanisation” policy is being implemented by the

By religion, Buddhists account for

However, rise of nationalism is posing a threat to

Source: CSO, Solidiance Interviews & Analysis

ASEAN GDP Growth Forecasts (CAGR 2016 - 2022)

3.1% 2.8% 2.5%

258.7 104.2 92.6 69.0 52.3 31.7 15.8 7.2 5.6

Source: Solidiance Interviews & Analysis

0-4 -9.8% -9.8%

5-9 -10.0% -10.0%

10-14 -10.4% -10.4%

15-19 -9.5% -9.5%

20-24 -8.6% -8.6%

25-29 -8.1% -8.1%

30-34 -7.7% -7.7%

35-39 -7.0% -7.0%

40-44 -6.4% -6.4%

45-49 -5.7% -5.7%

50-54 -5.0% -5.0%

55-59 -4.0% -4.0%

60-64 -3.0% -3.0%

65- + -5.0% -5.0%

Source: Solidiance Interviews & Analysis

state/regions impact of higher urbanization rate, in Kachin state, the

Similarly, while Kayin State and Sagaing Region on a

Myanmar‘s urbanization rate by

>500 per sq. km

Hence with rising FDI and trade flow

The differential impact of reforms and varying Kachin

93 Yangon is witnessing the highest

Only 32% of the population has access to

Ageing transportation infrastructure is a key

60 required from 2016 to 2030 to enable just Bago

Additionally, a focus on creating more regionally balanced

The current Services and Industry-based

This has caused urbanization, migration and infrastructure

It also creates a significant gap in the population behavior,

Employment share by sector (Census 2014)

Agriculture Services Industry

Source: International Growth

British colonial period Japanese Invasion

Anglo-Vernacular schools established by the British promoted

Thakins * English learning for jobs in public administration, including

Assassination of Aung British Independence

Democratic Government established under the deeply *

Source: Solidiance Interviews & Analysis;

Severe economic crisis, corruption, dysfunctional policy

Connected *43% EU and US Investment Sanctions (1996,1997); U Thein Sein

Source: Solidiance Interviews & Analysis;