Transcript Market Information

Myanmar
Opportunities and Challenges
in FMCG & Pharmaceutical Space
Girish Wadhwa, Managing Director, Mega Lifesciences Ltd., Myanmar
Myanmar Demographics and Economy
Some facts
Young Population
50% of the population under
age 25 #
Low Labor cost
Minimum wage for factory
workers approx 65$ per
month
Food Surplus
Myanmar to export 1.5
million tons of rice
High Literacy
About 90% basic literacy rate
# ADB report 2012– Myanmar in Transition
#
Some facts
Abundant Water
Renewable supply 24,345 cu.mt. per
inhabitant per year. Utilization 5% #
Abundant land
50% of land under forest cover. < 1/5th of
the land used for agriculture. #
Strategic location
China’s only viable access to Indian Ocean.
Gateway to Indo China on the Indian
Ocean
Energy resources
Proven reserves :
7.8 trillion cu. ft. of natural gas
2.1 billion barrels of oil #
# ADB report 2012– Myanmar in Transition
Some facts
Current Per capita GDP at USD 856 p.a.
Growth expected at around 6% for 2012
GDP
#
Population
Approx. 60 million people #
Male 46% : Female 54% #
Urban 33% : Rural 67% #
Growth rate 1.30%
Urbanization 2.9% *
Unemployment 4% @
Talent Pool
Middle and Senior Management
talent is limited
# ADB report 2012– Myanmar in Transition
* CIA Factbook
@ IMF
Some facts
Communication
Mobile penetration about 3% but
growing fast
Internet penetration < 1%
Banking
Basic but developing. Foreign
banks expected to be allowed
entry in next year.
Electricity
Access to 26% of population.
Power outages.
Expatriates COL going up
Yangon today is 35th on the
Mercer’s list 2012
Myanmar Distribution Landscape
Myanmar Distribution Landscape
Import routes: Sea/ Air/ Road
ASEAN Northern and East West Corridors to
create access
Transportation takes time
Multiple warehouses across country required for
proximity to market
Myanmar Distribution Landscape
Myitkyina (4 days)
Lashio (4 days)
Mandalay (2 days)
Taungyyi (3 days)
Sittwe (5 days)
NayPyiTaw (2 days)
Magway (2 days)
Mawlamyaing (1 day)
Yangon
Kawthaung (9 days)
Myanmar Distribution Landscape
ASEAN transportation connectivity
will help alleviate logistic difficulties &
fasten route-to-market development
Free flows of Goods
1) ASEAN Single Window Implementation (Y2015)
2) Cross-Border Paperless Trading (Y2013-2015)
Free flows of Services
1) Open free trade in ‘services’ section (Y2013)
(Incl. logistics & transport services)
Infrastructure Development
(Y2015)
1) Singapore-Kunming Rail Link (SKRL)
2) GMS Cross-Border Transport Agreement*
Market Information
Outlet Census
Yangon City Universe outlet
Included all outlet type (Census data > 18900)
Supermarket
Mini Mart
General Stores
Convenience stores
Grocery Stores
Hospital (Private)
Clinic & Poly Clinic
Pharmacy
Teashop
Restaurants
Bakery
Coffee shop
Internet cafe
Baby care unit
Baby accessories shop
Beauty saloon
Fitness center
Car equipments & Oil
Hotel & Gust House
Hardware & Tools / Paints
Tuition & Training center
Pharmacy Outlets Yangon
•
•
•
HOSPITAL – 41
CLINIC – 1540
PHARMACY - 2013
TOTAL > 3594
FMCG Outlets Yangon
•
•
•
•
•
MINI MART - 71
GENERAL STORE – 38
CONVENIENCE Store – 7044
Grocery Shop –1759
SUPER MARKET – 40
•TOTAL > 8952
Myanmar FMCG Market
Market Information
Health Food Drinks Market
Health food Drink (HFD) Category
Estimated Market and Volume
Myanmar
Thailand
USD
31mn
USD
200mn
HFD market penetration
Consumer outlets –
35,000
HFD Penetration – 18,900 outlets
Myanmar Pharmaceuticals Market
Pharmaceutical Market
Myanmar
Thailand
5% Gth
20% Gth
Value in USD mn
Value in USD mn
Per Capita USD spent of Pharma:
Thailand = 58$
Vietnam = 22$
Myanmar = 7$
Market Information
Diabetes Market
Diabetes Prevalence
The prevalence of diabetes in Myanmar is about 12.14 per cent, according to a
WHO- Myanmar Country co-operation strategy report for 2008-2011.
The Myanmar Health Department and the World Health Organization (WHO)
jointly conducted a health survey in Yangon and suburban Hlegu Township involving
interviews with 5,000 respondents.
The survey designated Yangon as an urban area and Hlegu as a rural area.
The findings showed 14.42 per cent of people in the urban area and 7.4 per cent of
people in the rural area had diabetes.
However if we accept the findings by International Diabetes Federation as published
in the Diabetes Atlas 2010, the prevalence of diabetes in Myanmar could be only
2.8%.
Diabetes Market
Myanmar
Diabetes market 2011 – USD 11 mn
High market growth
expected as diagnosis and
treatment access improves
Opportunities and Challenges
In FMCG & Pharmaceutical sectors
Opportunities
Challenges
•Untapped consumer
potential. Consumerism on
the rise.
•Country will “catch up” –
growth will be high next 5-7
years.
•As a developing country the
fundamentals are strong.
• The changes are real and
irreversible.
•Current market size is small
•Local talent pool for
executive positions is limited
•Lack of complete market
information.
•Infrastructure needs to be
upgraded.
•Legal framework still
developing.
•Market is not virgin. Many
players.
THANK YOU