The Myanmar Consumer Survey - Poised for take-off January 2020 - Deloitte
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The Myanmar Consumer Survey Poised for take-off January 2020
Foreword 03 Poised for take-off 04 The Myanmar Consumer Survey 09 1. Overall consumer sentiment 11 2. Spending patterns 14 3. Buying behaviour and brand preferences 20 4. Communication channels 26 5. Buying channels 28 6. Payment 32 Looking ahead 35 Contact us 37
Foreword
Characterised by their growing sophistication and penchant for new experiences, the Myanmar consumer is
dynamic – and fast-evolving. Over four editions of the Myanmar Consumer Survey, we have observed how the
Myanmar consumer has grown in sophistication and discernment, while remaining grounded with a healthy dose
of prudent optimism.
In this fourth edition of the consumer survey conducted in Yangon, Mandalay, and Mawlamyine in 2019, we
continue to witness a decreasing price sensitivity, and greater demand for discretionary spending. Beyond these
constants, however, the survey also revealed a number of new insights that just might change the game for
consumer companies.
For a start, the Myanmar consumer continues to demonstrate an openness to new products and services, even
as they remain value-conscious in their purchasing decisions. Although this represents the opportunity for
companies to introduce new value propositions to the market, the flip side is that investments will need to be
made to secure long-term brand loyalty and ensure recall by the consumer: this edition of the survey revealed
that several new brands are appearing to gain a foothold in consumer recall, surpassing its competitors with
widespread and innovative marketing and promotional campaigns.
Later in this report, we also explore how the Myanmar consumer is increasingly prioritising discretionary spending,
and placing an increasing value on connectivity. Specifically, they allocate a significant amount of their expenditure
to utilities that will enable them to remain constantly connected, whether it is the mobility of moving from one
physical location to another, or staying digitally connected to the Internet.
Finally, we discuss an impending revolution in the digital payments sector that could spark the rapid takeoff of
Myanmar’s e-commerce market. Within the span of only a few years, Myanmar’s digital payment services sector
has experienced phenomenal growth, and the potential for digital payments to leapfrog card payments in
Myanmar’s payments sector is now steadily increasing even as we speak.
We hope that this report will provide you with some insights into the fascinating Myanmar consumer, and the
considerations that you will need to make to capture the opportunities as they become ripe for take-off in this
dynamic market.
Pua Wee Meng
Consumer Industry Leader
Deloitte Southeast Asia
03
The Myanmar Consumer Survey |
Poised for take-off
Poised for take-off
Myanmar’s economy is at a turning point: in 2018, economic
expansion appears to have stagnated following years of
rapid growth. Looking ahead to the medium term, however,
Myanmar’s prospects remain promising.
Economic overview
Since the 2010 General Elections, Myanmar’s Gross Domestic Product (GDP) has been growing at rapid year-on-
year rates of about 5-8% (see Figure 1). Overall, GDP per capita reached USD 1,298 in 2017, and the poverty rate
dropped from 48% in 2005 to 32% in 20151.
In 2018, however, Myanmar’s economy appeared to have hit a stumbling block. With the ongoing humanitarian
crisis in Rakhine state and issues with the restructuring of the banking sector, Myanmar’s short-term growth
appears to have stagnated, and its full potential continues to be a moving target2.
Nevertheless, when compared to its regional and global counterparts, Myanmar’s growth prospects appear
promising in the medium term (see Figure 2). Heavy investments in infrastructure projects are expected to lift
domestic consumption, and drive GDP expansion3. Furthermore, the liberalisation of its financial services sector is
expected to increase the presence of foreign players in the retail banking and insurance landscape, and stimulate
investment and growth in nascent industries, such as retail and digital commerce.
1 “Overview”. The World Bank. April 2019. http://www.worldbank.org/en/country/myanmar/overview
2 “2018 Article IV Consultation – Press release”. International Monetary Fund. April 2019. https://www.imf.org/~/media/Files/Publications/
CR/2019/1MMREA2019002.ashx
3 “Economic growth”. The Economist Intelligence Unit. 7 August 2019. http://country.eiu.com/article.aspx?articleid=808348464&Country=
Myanmar&topic=Economy&subtopic=Forecast&subsubtopic=Economic+growth&aid=1&oid=898348473
04
The Myanmar Consumer Survey | Poised for take-off
Figure 1: Myanmar’s GDP growth rate (2011-2020)
8.0%
7.5%
7.3%
7.0%
6.8% 6.8% 6.8%
6.6%
5.9% 5.9%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
forecast forecast
Source: Asian Development Bank
Figure 2: GDP growth rates for selected regional economies (2018)
Bangladesh 7.86%
Cambodia 7.50%
Vietnam 7.08%
India 6.81%
Myanmar 6.80%
China 6.59%
Lao PDR 6.30%
Philippines 6.20%
Pakistan 5.53%
Indonesia 5.17%
Malaysia 4.72%
Thailand 4.13%
Sri Lanka 3.22%
Singapore 3.14%
Hong Kong 3.02%
Republic of Korea 2.67%
Taiwan 2.63%
Papua New Guinea -0.60%
Source: Asian Development Bank
05
The Myanmar Consumer Survey |
Poised for take-off
A wave of policy reforms
Now in the third of its five-year term, the government, led by the National League for Democracy, is intensifying its
push for policy reforms ahead of the 2020 election in a bid to drive greater integration between Myanmar and its
regional peers in the ASEAN Economic Community. These transformations are expected to enable Myanmar to
better attract foreign capital, and improve its overall business environment: currently, Myanmar ranks 171 out of
190 in terms of the ease of doing business (see Figure 3).
Figure 3: Ease of doing business in Myanmar and selected regional economies (2019)
0 Ease of doing business score 100
80.60 Malaysia (rank: 15)
67.96 Indonesia (rank: 73)
67.23 India (rank: 77)
63.41 Regional average
51.26 Lao PDR (rank: 154)
44.72 Myanmar (rank: 171)
The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators
across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to
100, where 0 represents the lowest and 100 represents the best performance.
Source: The World Bank
Several key policy reforms can be observed in the following areas:
• Infrastructure: Myanmar’s infrastructure is in dire need of investment, with estimates suggesting that it
could require as much as USD 120 billion until 20304. To that end, the government has developed the Myanmar
Sustainable Development Plan (MSDP), which lays out its vision to bridge the infrastructure gap. In line with
this, it has also introduced a project bank, a centralised and publicly accessible database that will enable the
government to coordinate ministries and departments, and prioritise proposals which are in line with the MSDP5.
• Digital payments: With the objective of introducing and promoting digital payments in Myanmar, the Central
Bank of Myanmar is currently working on a standard, codenamed “MMQR”, for QR code payments. When
implemented, it is expected that this standard will enable payments to be made through QR codes at local banks
and businesses, which will enable Myanmar to take a huge stride towards becoming a cashless society, given that
cash remains its most dominant payment method.
• Intellectual property: To strengthen its protection of intellectual property rights for a more conducive
business environment, the Myanmar government recently introduced four draft bills covering its trademark,
industrial design, patent, and copyright laws6, which are expected to provide a more favourable environment for
technology companies, manufacturing firms, and retail businesses, amongst others.
4 “Private capital needed to fund required infrastructure”. Myanmar Times. 28 March 2019. https://www.mmtimes.com/news/private-capital-
needed-fund-required-infrastructure.html
5 “Govt announces ‘project bank’ to get Myanmar building”. Myanmar Times. 31 January 2019. https://www.mmtimes.com/news/govt-
announces-project-bank-get-myanmar-building.html
6 “Myanmar passed legislation to protect intellectual property”. The Irrawaddy. 20 February 2019. http://www.mondaq.com/x/782500/
Trademark/Myanmar+Passed+Legislation+To+Protect+Intellectual+Property
06The Myanmar Consumer Survey | Poised for take-off
• Electricity tariffs: In July 2019, the government announced significant increases in electricity tariffs in a bid to
reduce the high losses it was incurring every year: in Financial Year 2018-2019, this amounted to approximately
USD 400 million. This long-awaited move has been welcomed by both local and international investment
communities, as the previous tariff rates – the lowest amongst Southeast Asian economies – had been deemed
to be financially unsustainable7. By removing a significant amount of subsidies, the government has paved the
way for investors to scale up their investments in power generation and distribution, and enable Myanmar to
provide a more stable electricity supply to businesses and consumers.
• Insurance sector: Following the introduction of a new policy in early 2019, foreign life and non-life insurers can
now form joint ventures with local life and non-life insurers, respectively. As of August 2019, six joint ventures
between local firms and foreign firms from Japan and Thailand have been approved for life and general insurance
services. In addition, five licenses have been granted to foreign life insurers to operate as wholly-owned
subsidiaries8. Such developments are expected not only to promote the growth of the insurance sector in
Myanmar, but also attract foreign capital and contribute to job creation.
Improving logistics and connectivity
The overall low efficiency of Myanmar’s logistics infrastructure not only increases the cost of product
distribution, which in turn leads to higher retail prices for the consumer, but also creates an economic
imbalance across different regions of the country.
In 2018, Myanmar was ranked 137 out of 160 economies on the World Bank’s logistics performance index, in
contrast to its neighbours Thailand and Vietnam, which were ranked 32 and 39 respectively 9.
To improve Myanmar’s infrastructure and logistics connectivity, the government is collaborating with
several investors on infrastructure improvement projects under Build-Operate-Transfer and Public Private
Partnership agreements (see Figure 4).
Figure 4: A list of selected ongoing infrastructure improvement projects in Myanmar
Project Myawaddy- Yangon- Yangon-Dala Yangon- Yangon Yangon
Mae Sot Thanlyin Bridge Mandalay Circular Elevated
Bridge Bridge Rail Railway Expressway
Funding Government Japan South Korea’s Government Japan 10 local
organisation of Thailand International Economic of Japan International and foreign
Cooperation Development Cooperation companies
Agency Cooperation Agency
Cost USD 126 USD 278 USD 188 USD 3 billion USD 250 Not available
million million million million
Timeline for Completed 2021 2022 2023 2023 Not available
completion
Source: Deloitte analysis
7 “Myanmar electricity rates to soar next month”. Myanmar Times. 25 June 2019. https://www.mmtimes.com/news/myanmar-electricity-rates-
soar-next-month.html
8 “Japanese firms to push growth in Myanmar insurance market”. The Irrawaddy. 8 August 2019. https://www.irrawaddy.com/news/burma/
japanese-firms-push-growth-myanmar-insurance-market.html
9 “Domestic LPI, Performance: Myanmar 2018”. World Bank. Accessed on 20 August 2019. https://lpi.worldbank.org/domestic/
performance/2018/C/MMR
07The Myanmar Consumer Survey |
Poised for take-off
The rise of the digital economy
Although Myanmar’s digital economy remains nascent, its penetration rates for Internet, mobile, and social media
have been steadily increasing, and moving closer towards the overall average for Southeast Asian economies (see
Figure 5). Currently, Myanmar’s e-commerce market is estimated to be worth about USD 6 million , and is expected
to show promising growth on the back of a young and increasingly tech-savvy population, development of more
comprehensive logistics networks, and rapid uptake of digital payment solutions.
Figure 5: Myanmar’s Internet, mobile, and social media penetration rates relative to the regional
average
129%
105%
63% 61%
39% 39%
Internet penetration rate Mobile penetration rate Social media penetration rate
Myanmar Southeast Asia
Source: ASEAN Studies Centre
10 “Social media in Southeast Asia”. ASEAN Studies Centre. October 2018. https://www.iseas.edu.sg/images/pdf/ASEANFocus%20Oct%20
2018.pdf
11 “e-Commerce in Myanmar: A rising tide”. Kasikornbank. Accessed on 20 August 2019. https://www.kasikornbank.com/international-
business/en/AEC/Intelligence/Pages/201811_Myanmar_Ecommerce_Trend.aspx
08The Myanmar Consumer Survey |
Poised for take-off The Myanmar Consumer Survey | Poised for take-off
The Myanmar Consumer Survey
In the fourth edition of the Myanmar Consumer Survey, we
Product category Examples of sub-categories
explore some of the consumer behaviour patterns revealed
by the recent consumer survey conducted by Deloitte in Beverages (Alcoholic) • Beer
Yangon, Mandalay, and Mawlamyine in 2019. We examine • Whisky
the overall consumer sentiment and spending patterns, • Wine
before delving into specific buying behaviours and brand Beverages (Non- • Fruit or Vegetable Juices
preferences. Later in the report, we also take a look at alcoholic) • Ready to Drink Coffee
the Myanmar consumer’s preferred communication and • Ready to Drink Tea
purchasing channels, and explore the potential of digital • Soft Drinks
payments in this promising market. Confectionery • Biscuits
• Bread
Methodology • Chocolates
The survey was conducted in the second quarter of 2019 • Pastries
across 600 households through face-to-face interviews Packaged Foods • Breakfast Cereals
in three major cities: Yangon, Mandalay, and Mawlamyine. • Canned Sardines
Yangon and Mandalay were selected for this survey as • Instant Noodles
they are two of the most populated cities and account
Personal Hygiene • Bath and Shower • Mouthwash
for a significant proportion of Myanmar’s GDP, while
Products Products • Toothbrushes
Mawlamyine was selected for its proximity to Thailand
• Haircare Products • Toothpaste
and the accompanying high volume of cross-border trade,
• Laundry Products
which has resulted in consumption patterns that differ
Household • Air-conditioners
significantly from the other two cities.
Appliances (Major) • Refrigerators
• TV Sets
The respondent sample was constructed to be
• Washing Machines
representative of Myanmar’s overall population in terms of
age, gender, monthly household income, education level, Household • Clothes • Hair Dryers
and decision-making role. Respondents were surveyed Appliances (Small) • Irons • Toasters
on their spending patterns, buying behaviours, brand • Fans • Vacuum Cleaners
preferences, communication channels, buying channels, Tobacco • Cigarettes
e-commerce activities, and geographic differences across • Cigars
eight product categories.
09The Myanmar Consumer Survey |
Poised for take-off
Demographics of survey respondents
Geographical distribution Gender distribution
Mawlamyine
17%
50% Yangon
33%
Mandalay
50% 50%
Age distribution
Age group, years
15-24 30%
25-34 30%
35-49 25%
50-64 15%
Source: Deloitte's Myanmar Consumer Survey (2019)
Monthly household income distribution
Monthly household
income, MMK million
Less than 0.2 15%
0.2-0.5 34%
0.5-1 21%
1-1.5 14%
1.5-3 10%
More than 3 6%
Source: Deloitte's Myanmar Consumer Survey (2019)
10The Myanmar Consumer Survey | Poised for take-off
1. Overall consumer sentiment
Across all income segments, the Myanmar consumer
expects to spend more in the year ahead, revealing
an optimism for the future driven by expectations of
an economic recovery.
An uplift on the horizon
Myanmar’s economic growth rate experienced some stagnation at 6.8% in 2018, and this is expected to fall to
6.6% in 2019, falling short of the World Bank’s estimates of 7-8%12. This dip is reflected in the decrease in the
percentage of survey respondents expressing an optimistic sentiment, which fell from 66% in 2018 to 57% in 2019.
Nevertheless, with expectations that the economy will make a recovery following a series of regulatory reforms
and investment liberalisation initiatives, the consumer’s future outlook remains upbeat: the percentage of
survey respondents expressing an intention to increase their expenditure nearly doubled from last year’s survey,
increasing from 8% to 15%. Similarly, the percentage of survey respondents expressing an intention to decrease
their expenditure reduced from 33% to 30% (see Figure 6).
Figure 6: Overall consumer sentiment and plan for future expenditure
Question: Do you feel confident that Myanmar’s Question: Do you intend to spend more, spend
economy will improve in the next year? less, or the same in the next year?
8%
15%
34%
49% 53%
66% 50%
47%
20%
27% 61%
18% 33%
30%
31%
20%
16%
1% 4% 9% 8%
2017 2018 2019 2017 2018 2019
Agree Neutral Disagree Increase No change Decrease Unsure
Source: Deloitte's Myanmar Consumer Survey (2019) Source: Deloitte's Myanmar Consumer Survey (2019)
12 “After 3 years, Suu Kyi running out of time to energize Myanmar economy”. Asian Nikkei Review. 30 March 2019. https://asia.nikkei.com/
Politics/After-3-years-Suu-Kyi-running-out-of-time-to-energize-Myanmar-economy
11The Myanmar Consumer Survey |
Poised for take-off
Maintaining momentum
Myanmar needs to tackle a multitude of socioeconomic and political issues to achieve and maintain its
near-term growth momentum. Currently, the economy is struggling with trade and fiscal deficits, as well as
high inflation rates due to volatility in fuel and food prices13. The lack of infrastructure also continues to pose
operational risks for potential investors, in addition to the mounting international pressure stemming from
the ongoing border conflict14.
Still, the prospects are promising: the government’s recent efforts to restructure its economy with the launch
of the MSDP and monetary policy reforms ahead signal a strategic shift towards a more intensified focus on
attracting foreign investment and stimulating economic growth.
For instance, the Myanmar Companies Law enabled foreign investors to acquire a stake of up to 35% in local
companies, as well as 100% ownership in retail and wholesale companies15. Given these developments, the
retail and wholesale segment is expected to drive GDP growth within the services sector, which contributed to
42% of GDP in 2018, and is expected to grow at a rate of 8.3% in 201916.
Myanmar also seems poised to become a regional, low-cost production powerhouse, with a growing
manufacturing sector that is now worth USD 11 billion, second only to its oil and gas and power sectors, which
accounted for the majority of permitted foreign investment at 53.9%17.
13 “The World Bank's latest report on Myanmar: 5 Takeaways on growth and risks”. The Irrawaddy. 17 October 2019. https://www.irrawaddy.
com/news/burma/world-banks-latest-report-myanmar-5-takeaways-growth-risks.html
14 “U.N. investigator reports possible fresh war crimes in Myanmar”. Reuters. 3 July 2019. https://www.reuters.com/article/us-myanmar-rights-
un/u-n-investigator-reports-possible-fresh-war-crimes-in-myanmar-idUSKCN1TX2JV
15 “Myanmar opens up for foreign retailers and wholesalers”. Myanmar Times. 14 May 2018. https://www.mmtimes.com/news/myanmar-
opens-foreign-retailers-and-wholesalers.html
16 “Myanmar Economic Monitor June 2019”. The World Bank. 17 June 2019.
17 “Foreign investment by sector”. Directorate of Investment and Company Registration. 30 June 2019. https://www.dica.gov.mm/sites/dica.
gov.mm/files/document-files/fdisector.pdf
12The Myanmar Consumer Survey | Poised for take-off
A growing middle income segment
In comparison to the results of the 2018 survey, monthly household expenditure in low and middle income
segments have increased signficantly. Of these two groups, the middle income segment appears to hold the most
real growth potential: although survey respondents in the low income segment spend an increased proportion
of their monthly household income, this is likely due to the impact of the hike in basic commodity prices on daily
essentials, rather than a real increase in consumption. In contrast, the high income segment has opted to save
more, with about 90% of survey respondents in this segment spending only half of their monthly household
income (see Figure 7).
Overall, however, survey respondents across all income segments expect to spend more in the year ahead (see
Figure 8). This represents a marked turnaround in sentiment from the previous edition of the survey, where most
survey respondents indicated plans to either maintain or spend less in the year ahead. Looking forward, the
middle income and high income segments are likely to remain the main drivers of retail spending, and the target
market for the influx of new and diverse products and services in Myanmar’s consumer industry.
Figure 7: Monthly household expenditure by monthly household income level
Question: Which of the following best represents your total monthly household expenditure?
2% 2% 5%
10% 11% 8%
25%
29% 24%
37%
69%
69%
52% 39%
57%
50%
29% 29%
21% 21%
2% 9%
Less than 0.2 0.2-0.5 0.5-1.0 1.0-1.5 1.5-3.0 More than 3.0
Low income Middle income High income
Monthly household income, MMK million
Less than MMK 0.06- MMK 0.15- MMK 0.3- MMK 0.5- More than
MMK 0.06 million 0.15 million 0.3 million 0.5 million 1.0 million MMK 1.0 million
Source: Deloitte's Myanmar Consumer Survey (2019)
Figure 8: Plan to vary the current level of spending by monthly household income level
Question: Which of the following best represents your total monthly household expenditure?
17% 21%
23%
32% 31%
37%
55%
55%
56%
50% 36% 48%
16%
11% 23%
10% 18% 24%
8% 11% 10% 2% 5%
Less than 0.2 0.2-0.5 0.5-1.0 1.0-1.5 1.5-3.0 More than 3.0
Low income Middle income High income
Monthly household income, MMK million
Decrease No change Increase Unsure
Source: Deloitte's Myanmar Consumer Survey (2019)
13The Myanmar Consumer Survey |
Poised for take-off
2. Spending patterns
The Myanmar consumer is prioritising discretionary spending
on non-essential goods, and placing an emphasis on services
that will enable them to remain constantly connected.
Demand soars for discretionary spending
There appears to be a general trend towards greater discretionary spending, as the burgeoning young and middle income consumers
increase their demand for non-essential goods, such as brand-name clothing and organic foods18. As a result, there has been a slight dip
in the overall allocation of monthly household expenditure to essential items in product categories such as Confectionery and Packaged
Foods, as well as, to a lesser extent, Alcoholic Beverages and Tobacco.
There are, however, slight nuances to this. For instance, survey respondents in the low income segment have increased their expenditure
on Confectionery, Packaged Goods, and Personal Hygiene Products, while respondents in the middle and high income segments have
increased their expenditure on Alcoholic Beverages, with up to 10% of them allocating MMK 100,001-150,000 to this product category (see
Figure 9).
Figure 9: Household spending by monthly household income level and product category (2018-2019)
Question: How much did you spend in previous month for the following categories?
2019
Monthly household Beverages Beverages Confectionery Packaged Foods Personal Hygiene Tobacco
income, MMK million (Alcoholic) (Non-alcoholic) Products
4% 5% 2% 2% 3% 1%
77% 14% 4% 14% 69% 12% 18% 66% 14% 16% 71% 11% 3% 78% 15% 80% 15%
Less than 0.2 4%
2% 6%
8% 5% 20% 18%
81% 8% 64% 7% 13% 52% 24% 1% 14% 64% 4% 62% 28% 84% 12%
0.2-0.5 4% 9% 3% 3%
1% 1% 2% 1% 2%
13% 4% 17% 2% 2%
73% 8% 49% 28% 14% 10% 45% 22% 10% 63% 6% 41% 35% 16% 81% 12%
0.5-1 4% 5% 20% 7% 5%
2% 1% 1% 1%
5% 7%
65% 8% 8% 8% 7% 7% 52% 27% 12% 4% 44% 35% 61% 4% 45% 38% 12% 65% 19% 12% 4%
1-1.5 12% 5% 23% 5%
2% 3% 2%
5%
1.5-3 67% 7% 9% 7% 9% 43% 36% 16% 12% 34% 29% 12% 47% 29% 10% 31% 34% 26% 7% 76% 7% 16% 2%
19%
2% 3% 3% 2%
55% 3% 16% 3% 8% 21% 24% 3% 24% 5%
More than 3 5%
18% 34% 45%
11% 11%
37% 11% 32% 47% 8% 13% 47%
8%
79% 13% 8%
5%
3%
2018
Monthly household Beverages Beverages Confectionery Packaged Foods Personal Hygiene Tobacco
income, MMK million (Alcoholic) (Non-alcoholic) Products
2% 2% 1% 2% 9% 1%
Less than 0.2 67% 16% 12% 87% 12% 79% 12% 14% 84% 2% 5% 86% 64% 35%
2% 7% 0% 1%
3% 5%
0.2-0.5 64% 10% 13% 10% 75% 8% 64% 23% 14% 76% 71% 24% 59% 39% 2%
21% 9% 4%
2% 2%
5% 2%
0.5-1 56% 11% 14% 14% 58% 31% 10% 8% 41% 36% 13% 11% 62%
24%
4% 50% 40% 6% 43% 46%
10%
1% 1% 2% 2% 2%
1% 2%
1-1.5 55% 7% 19% 49% 42% 10% 4% 44% 37% 13% 7% 63% 44% 43% 10% 52% 37%
17% 27% 8%
2% 3% 2% 1% 3% 2%
1.5-3 57% 5% 16% 14% 9% 36% 52% 9% 31% 48% 17% 3% 57% 36% 2% 28% 41% 28% 59% 36%
3%
3% 2% 3%
5% 8%
More than 3 50% 11% 18% 13% 18% 63% 16%
21%
47% 26% 5% 34% 47% 21% 55% 63% 16%
3%
5% 3% 8% 16% 18%
3%
None Less than MMK 10,000 MMK 10,000-20,000 MMK 20,001-50,000 MMK 50,001-100,000 MMK 100,001-150,000
Source: Deloitte's Myanmar Consumer Survey (2019)
18 “Growth of incomes and Myanmar’s young population drive demand for nonessential goods”. Oxford Business Group. 2019. https://oxfordbusinessgroup.com/
overview/buyers%E2%80%99-market-expanding-young-population-and-rising-incomes-drive-demand-non-essential-goods
14The Myanmar Consumer Survey | Poised for take-off
Connectivity is key
Whether offline or online, survey respondents prioritise the allocation of their expenditure on utilties that will
enable them to remain connected. For instance, they spend between half to three-quarters of their expenditure
on Transportation, and Internet Services (see Figure 10).
Transportation services, in particular, have witnessed substantial growth with the introduction of ride-hailing
mobile applications. For instance, the Grab mobile application has been downloaded over 2 million times, and
its daily bookings have risen by 30% since last June. Grab continues to provide other auxiliary services within its
mobile application, including long-distance travel services, hotel booking services, and payment services19. With
major national infrastructure projects on the way, the focus on transportation services is likely to continue to grow.
In terms of Internet Services, Facebook appears to be dominant channel in Myanmar, with many businesses
choosing to promote their presences solely on Facebook – eschewing other traditional online storefronts, such as
websites. On YouTube, the most popular channels in Myanmar are DVB, Eleven, and 7 Days, with combined total
views of more than 450 million20.
Another important observation is also the fact that monthly household expenditure on Leisure & Entertainment
are nearly on par with Healthcare and Education. This is not surprising, given the proliferation of a range of
different entertainment services competing for their attention, from modern cinema facilities to subscription
services such as Netflix. Interesting, however, expenditure on Fitness/Wellness remains low, highlighting an
untapped potential in the health conscious movement.
Figure 10: Monthly household expenditure by service category
Question: How much did you spend in previous month for the following categories?
Monthly
household Leisure & Payment Internet Fitness/
income, Transportation Delivery Healthcare Education
Entertainment Solutions Services Wellness
MMK million 2% 1% 1% 1% 1%
9% 2% 6% 6% 2% 24% 4% 6% 2% 4% 10%
Less than 0.2 45% 39%
8%
98% 83%
4%
94%
1%
62%
9%
98% 2% 60% 18%
6% 4%
82%
4%
1% 1% 1% 1% 1%
11% 3% 6%2% 2% 3% 1% 9% 1%
1% 5% 1% 10%2%
0.2-0.5 53% 24%
12%
92%
1%
3% 76%
10% 5%
84%
5% 3%
42% 28%
20%
97%
1%1%
66% 11%
10% 3%
76%
3% 5%
1% 1% 2% 1% 1% 1% 1% 2% 2% 2%
11% 7% 4% 3% 6% 2% 27% 18% 1% 8% 6%2% 2% 15% 2%
0.5-1 48% 22% 91% 2% 3% 2% 62%
81% 4% 2%
39%
17%
93% 4% 7%
19% 10% 15% 2% 61% 10% 2% 62% 5% 10%
1% 1% 1% 1% 2% 1% 1% 1% 1% 1% 1% 1%
4% 1% 5% 17% 4% 27% 12% 4% 7% 1% 4% 4%
1-1.5 42% 24% 24% 6% 4% 65% 77% 10% 6% 4% 43% 93% 2% 76% 8% 73%
7% 88% 6% 2% 14% 1% 5% 10% 6%
1%
2% 3% 2% 2%
19% 7% 7% 3% 2% 3% 5% 17% 90% 3% 3% 3%3% 55% 12% 5% 3%
1.5-3 24% 95% 2% 3% 60% 14% 84% 38% 31% 5% 74%
38% 12% 9% 7% 2% 2% 10% 2% 3% 7% 3% 5% 12% 5%
3% 5% 3% 3%
13% 5% 3% 58% 11% 5% 3% 21% 5% 3% 11% 5%3%
More than 3 66% 3% 8% 18% 74% 8% 8% 8% 47% 21% 87% 8% 3% 3% 16% 50% 18%
8% 8% 87% 3% 3% 5% 68% 3% 5% 5%
3%
None MMK 10,000-20,000 MMK 50,001-100,000 MMK 100,001-300,000 MMK 500,001-1,000,000
Less than MMK 10,000 MMK 20,001-50,000 MMK 100,001-150,000 MMK 300,001-500,000
Source: Deloitte's Myanmar Consumer Survey (2019)
19 “Grab sees higher growth with more services in Myanmar”. Eleven Myanmar. 16 June 2019. https://elevenmyanmar.com/news/grab-sees-
higher-growth-with-more-services-in-myanmar-asianewsnetwork
20 “Myanmar’s digital game changers”. Myanmar Times. 6 March 2019. https://www.mmtimes.com/news/myanmars-digital-game-changers.html
15The Myanmar Consumer Survey |
Poised for take-off
Openness to new products and services
Survey respondents continue to demonstrate an openness to new products, particularly in the product categories
of Non-Alcoholic Beverages, Packaged Foods, and Personal Hygiene Products. Of note is also the fact that they
seem to be more curious about new products than new services. They do, however, appear to be more willing
to try out new services in the service categories of Leisure & Entertainment, Payment Solutions, and Internet
Services.
One contributing factor for this could be the increasing number of options in the market: Myanmar consumers
can now choose between service packages offered by four telecommunications operators and over 140 licenced
Internet Service Providers21. At the same time, although card payments currently account for only 5% of total retail
industry revenue22, a number of different banks, payment service providers, and telecommunications players are
introducing alternative forms of digital payment services. Currently, the market leader appears to be Wave Money,
which is leading the market with a remittance volume of USD 1.3 billion, or about 2% of Myanmar’s GDP23.
Ultimately, however, consumers are still very value-conscious, and prioritise factors such as lower prices, better
taste or flavour, and word-of-mouth reputation in their decision to try new products and services. In a similar vein,
higher prices and the lack of quality assurances were ranked as particularly undesirable factors, illustrating the
high price elasticity of demand for basic consumer goods (see Figure 11).
Figure 11: Number of survey respondents who tried new products and services
Question: In the last year, did you purchase any of the following new products and services?
Personal Household Household
Beverages Beverages
Confectionery Packaged Foods Hygiene Appliances Appliances Tobacco
(Alcoholic) (Non-alcoholic)
Products (Major) (Small)
Products
91 292 273 297 290 55 88 55
509 308 327 303 310 545 512 545
Leisure and Payment Internet Fitness/
Transportation Delivery Healthcare Education
Entertainment Solutions Services Wellness
Services
93 17 109 127 156 11 90 58
507 583 491 473 444 589 510 542
Yes No
Question: What are the reasons to try/not try new products and services?
Top reasons to try Top reasons to not try
1. Better taste/flavour (n=356) 1. Higher price (n=295)
2. Lower price (n=338) 2. Poor quality assurance (n=276)
3. Recommendation from friends/family (n=247) 3. Unaware of new products/services (n=272)
Source: Deloitte's Myanmar Consumer Survey (2019)
21 “Growth of mobile and internet usage make Myanmar ICT more competitive”. Oxford Business Group. 2019. https://oxfordbusinessgroup.
com/overview/tech-transformation-mobile-and-internet-usage-rise-sector-set-expand-and-become-more-competitive
22 “Daw Win Win Tint, CEO and Founder, City Mart Holding: Interview”. Oxford Business Group. 2019. https://oxfordbusinessgroup.com/
interview/convenient-consumption-daw-win-win-tint-ceo-and-founder-city-mart-holding-investment-opportunities
23 ‘Wave Money sees higher demand for its mobile money services.” Myanmar Times. 1 March 2019. https://www.mmtimes.com/news/wave-
money-sees-higher-demand-its-mobile-money-services.html
16The Myanmar Consumer Survey | Poised for take-off
In this edition of the survey, we also found that survey respondents from Mawlamyine seem to be more open to
new products and services than their counterparts in Yangon and Mandalay, except in the Leisure & Entertainment
category where Mandalay respondents have topped the charts for two consecutive years. In terms of demographics,
Millennials and Generation Z survey respondents appear to be the most adventurous, especially in categories
such as Non-Alcoholic Beverages, Packaged Foods, Personal Hygiene Products, Internet Services, and Leisure &
Entertainment (see Figure 12).
Figure 12: Breakdown of survey respondents who have tried new products and services in the past year
Products/ Total monthly
Gender Location Age group
Services household income
Less than 0.2: 45%
Yangon: 38% 15-24: 59%
Male: 47% 0.2-0.5: 50%
0.5-1: 50% 25-34: 47%
Mandalay: 57%
1-1.5: 55%
35-49: 46%
Beverages Female: 50% 1.5-3: 43%
(Non-alcoholic) Mawlamyine: 65%
50-64: 36%
More than 3: 42%
(n=292)
Less than 0.2: 42% 15-24: 52%
Yangon: 45%
Male: 45% 0.2-0.5: 52%
25-34: 52%
0.5-1: 52%
Mandalay: 52%
1-1.5: 51% 35-49: 49%
Packaged Foods Female: 54% 1.5-3: 48%
(n=297) Mawlamyine: 58%
50-64: 40%
More than 3: 47%
Less than 0.2: 41%
Yangon: 43% 15-24: 51%
Male: 44% 0.2-0.5: 49%
0.5-1: 48% 25-34: 48%
Mandalay: 50%
Personal 1-1.5: 54%
35-49: 48%
Hygiene Products Female: 53% 1.5-3: 47%
Mawlamyine: 61%
(n=290) More than 3: 55% 50-64: 44%
Less than 0.2: 9% 15-24: 23%
Yangon: 11%
Male: 18% 0.2-0.5: 14%
25-34: 20%
0.5-1: 20%
Mandalay: 28%
1-1.5: 30% 35-49: 13%
Leisure &
Female: 19% 1.5-3: 21%
Entertainment Mawlamyine: 20% 50-64: 12%
(n=109) More than 3: 26%
Less than 0.2: 11% 15-24: 17%
Yangon: 25%
Male: 21% 0.2-0.5: 18%
25-34: 27%
0.5-1: 25%
Mandalay: 11%
1-1.5: 29% 35-49: 21%
Payment Solutions Female: 22% 1.5-3: 22%
Mawlamyine: 31%
(n=127) More than 3: 34%
50-64: 18%
Less than 0.2: 20% 15-24: 32%
Yangon: 20%
Male: 27% 0.2-0.5: 22%
25-34: 30%
0.5-1: 27%
Mandalay: 31%
1-1.5: 27% 35-49: 21%
Internet Services Female: 25% 1.5-3: 40%
Mawlamyine: 31%
(n=156) More than 3: 37%
50-64: 14%
Source: Deloitte's Myanmar Consumer Survey (2019)
17The Myanmar Consumer Survey |
Poised for take-off
New traditions
Watching TV/movies, shopping, surfing the Internet, and reading are the top holiday activities for survey
respondents (see Figure 13). Myanmar’s film and cinema industry, in particular, is experiencing impressive
growth: the number of moviegoers jumped from about 300,000-600,000 in 2017 to a whopping 1.3 million
in 201824. With the rise of modern retail complexes and new city projects, Myanmar is set to witness the
introduction of a whole new range of retail facilities that combine modern shopping experiences with
innovative entertainment amenities.
These activities are likely to be the most appealing for higher income consumers, who tend to possess more
disposable income for such activities. In terms of demographics, Millennial survey respondents also tend to
spend more time and money on the Internet, where they watch TV/movies, engage in online shopping, and
read articles, while older survey respondents tend to prefer more traditional shopping activities (see Figure
14).
Figure 13: Top holiday activities cited by survey respondents
Question: On your days off, which of the following activities do you engage in?
Watching TV/movies 96%
Shopping 87%
Surfing the Internet 82%
Reading 79%
Visiting friends and family 29%
Going to the cinema 23%
Visiting markets 22%
Eating out 21%
Visiting parks 14%
Travelling domestically 12%
Playing sports 12%
Doing art 7%
Attending concerts/gigs 3%
Visiting amusement parks 2%
Going for a spa 1%
Participating in learning activities 1%
Travelling internationally 1%
Source: Deloitte's Myanmar Consumer Survey (2019)
24 “Growing moviegoers: A stimuli to retailtainment”. Colliers International. 29 April 2019. https://www.colliers.com/-/media/files/
marketresearch/apac/myanmar/colliers_myanmar_retail_q1_2019.pdf?la=en-gb
18The Myanmar Consumer Survey | Poised for take-off
Figure 14: Breakdown of survey respondents for the top four holiday activities
Products/ Total monthly
Gender Location Age group
Services household income
Less than 0.2: 96%
Yangon: 94% 15-24: 98%
Male: 96% 0.2-0.5: 94%
0.5-1: 97% 25-34: 99%
Mandalay: 96%
Watching TV/ 1-1.5: 94%
35-49: 93%
movies Female: 96% 1.5-3: 100%
(n=574) Mawlamyine: 99%
50-64: 90%
More than 3: 100%
Less than 0.2: 80%
15-24: 86%
Yangon: 86%
Male: 79% 0.2-0.5: 88%
0.5-1: 91% 25-34: 86%
Mandalay: 85%
1-1.5: 82%
35-49: 87%
Shopping
Female: 95% 1.5-3: 88%
(n=521) Mawlamyine: 94%
More than 3: 95% 50-64: 90%
Less than 0.2: 73%
15-24: 91%
Yangon: 83%
Male: 87% 0.2-0.5: 76%
0.5-1: 83% 25-34: 91%
Mandalay: 83%
Surfing the 1-1.5: 89%
35-49: 75%
Internet Female: 76% 1.5-3: 88%
(n=156) Mawlamyine: 75%
More than 3: 97% 50-64: 54%
Source: Deloitte's Myanmar Consumer Survey (2019)
19The Myanmar Consumer Survey |
Poised for take-off
3. Buying behaviour and brand
preferences
The Myanmar consumer is exhibiting decreasing levels of price
sensitivity, a dynamic and shifting brand loyalty, and increasing
levels of health consciousness in their consumption patterns.
Decreasing price sensitivity
Several important shifts could be observed from this year’s survey results. Across all product categories, the importance of Price has
decreased in importance by approximately 4%, while Taste has increased in importance. Overall, survey respondents appear to have
become less price sensitive, prioritising Taste and Quality as the most important factors in their purchasing decisions.
This trend can be observed even in Tobacco, where survey respondents are prioritising Taste and Smell over factors such as Access and
Price, a marked shift from last year’s results, where Price was the most important consideration. Similar, but subtler, trends can also be
observed in the Household Appliances categories, where Durability and Technology factors are accorded more importance than Price (see
Figure 15).
One contributing factor for this decreasing price sensitivity could be the increase in foreign investments and rapid growth of foreign
brand franchises in Myanmar’s consumer market25. These developments have in turn led to higher employment rates in services and
manufacturing sectors, especially in urban areas, resulting in higher consumer spending power and reduced price sensitivity.
Figure 15: Top three purchasing consideration factors across product categories
Question: What are the top three influencing factors when you choose a certain product/brand?
2019 2018
Taste 23% Taste 22%
Beverages
(Alcoholic) Quality 16% Price 19%
Price 15% Quality 17%
Beverages Taste 28% Taste 25%
(Non- Price 15% Price 19%
alcoholic) 15% Quality 15%
Smell
Quality 20% Taste 28%
Confectionery Smell 20% Price 19%
Price 17% Smell 15%
Taste 26% Taste 25%
Packaged
Foods Price 16% Price 19%
Smell 15% Smell 16%
Taste 18% Price 19%
Tobacco Price 17% Quality 18%
Smell 17% Availability 13%
Personal Quality 20% Quality 20%
Hygiene Smell 20% Smell 20%
Products Price 17% Price 20%
Household Durability 27% Durability 29%
Appliances Technology 16% Technology 15%
(Major) 14% 15%
Price Price
Household Durability 27% Durability 28%
Appliances Technology 16% Price 15%
(Small) Price 15% Technology 15%
Source: Deloitte's Myanmar Consumer Survey (2019)
25 “FPI jumps 77pc to US$ 2.3 billion in first half of 2019”. Consult Myanmar. 7 August 2019. https://consult-myanmar.com/2019/08/07/fdi-
jumps-77pc-to-us2-3-billion-in-first-half-of-2019/
20The Myanmar Consumer Survey | Poised for take-off
Shifting brand loyalty
Brands in several product categories, such as Beverages, Household Appliances, and Tobacco, continue to enjoy
strong brand loyalty from survey respondents. This loyalty, however, can be quite dynamic: while brand loyalty
decreased slightly in product categories such as Alcoholic Beverages since the previous edition of the survey, it
also showed significant increases in Household Appliances and Tobacco.
Three brands dominate recall: Myanmar Beer, Yum Yum, and Red Ruby continue to hold top positions in the
product categories of Alcoholic Beverages, Packaged Foods, and Tobacco respectively. The percentage of survey
respondents citing these brands have also increased across the board by 19% for Myanmar Beer, 5% for Yum
Yum, and 12% for Red Ruby. This year, however, two brands appear to be gaining a foothold: Speed energy drink,
having invested in widespread local marketing and promotional campaigns, emerged as the top brand in the Non-
Alcoholic Beverages category, and Family Care clinched the top spot in the Personal Hygiene Products category
(see Figure 15)
Figure 16: Top brands by product category
Question: Please list up to three brand names that you purchase.
Beverages Beverages Confectionery Packaged Personal Household Household Tobacco
(Alcoholic) (Non- Foods Hygiene Appliances Appliances
Alcoholic) Products (Major) (Small)
First Myanmar Speed Pucci Yum Yum Family Care Samsung National Red Ruby
Second Tiger Max Plus Shwe Kyee MAMA Lux Toshiba Panasonic Mevius
Grand Royal LG
Third Shark Good Morning Shin Shin Pond's Philips Ngwe Nagar
Andaman Gold Sony
13% 13% 11%
21%
22%
9% 9%
12%
44% 42% 8%
8% 10% 11%
9%
6%
55%
18%
First 7% 14%
Second
12% 8%
66% 16%
Third
70% 72%
Others 61%
51% 9%
36% 37%
20%
Source: Deloitte's Myanmar Consumer Survey (2019)
21The Myanmar Consumer Survey |
Poised for take-off
Survey respondents generally prefer Foreign brands in the Personal Hygiene Products and Household Appliances
categories if they can afford them. This could be due to the fact that Myanmar imports the majority of products
in these categories from neighbouring countries such as China, India, Malaysia, Singapore, and Thailand26. When
it comes to Beverages, Confectionery, Packaged Foods, and Tobacco, however, survey respondents continue to
prefer Local brands (see Figure 17).
Overall, there has been a marked increase in the preference for Foreign brands since the previous edition of the
survey. This is an observation that is not surprising, given the continuous influx of Foreign brands into Myanmar’s
consumer market27. This trend is especially pronounced in more urban regions, such as Yangon and Mandalay,
than in more rural areas like Mawlamyine (see Figure 18).
Figure 17: Preferences for Local and Foreign brands by monthly household income level
Question: Which type of brands do you prefer?
Household Household
Monthly household Beverages Beverages Packaged Personal Hygiene
Confectionery Appliances Appliances Tobacco
income, MMK million (Alcoholic) (Non-alcoholic) Foods Products
(Major) (Small)
Overall 70% 30% 74% 26% 87% 13% 69% 31% 49% 51% 8% 92% 11% 89% 73% 27%
Less than 0.2 79% 21% 86% 14% 94% 6% 84% 16% 68% 32% 11% 89% 17% 83% 70% 30%
0.2-0.5 69% 31% 74% 26% 85% 15% 65% 35% 45% 55% 9% 91% 11% 89% 82% 18%
0.5-1 71% 29% 72% 28% 85% 15% 72% 28% 44% 56% 6% 94% 10% 90% 80% 20%
1-1.5 60% 40% 71% 29% 89% 11% 67% 33% 52% 48% 10% 90% 11% 89% 65% 35%
1.5-3 70% 30% 72% 28% 81% 19% 62% 38% 43% 57% 7% 93% 10% 90% 79% 21%
More than 3 72% 28% 66% 34% 89% 11% 66% 34% 42% 58% 100% 100% 50% 50%
Local Foreign
Source: Deloitte's Myanmar Consumer Survey (2019)
Figure 18: Foreign and Local brand preferences by city
Question: Which type of brands do you prefer?
Household Household
Beverages Beverages Packaged Personal Hygiene
Confectionery Appliances Appliances Tobacco
(Alcoholic) (Non-alcoholic) Foods Products
(Major) (Small)
Overall 70% 30% 74% 26% 87% 13% 69% 31% 49% 51% 8% 92% 11% 89% 73% 27%
Yangon 63% 37% 70% 30% 83% 17% 63% 37% 42% 58% 6% 94% 9% 91% 64% 36%
Mandalay 78% 22% 83% 17% 91% 10% 81% 19% 54% 46% 12% 89% 14% 87% 79% 21%
Mawlamyine 77% 23% 71% 29% 93% 7% 63% 37% 60% 40% 6% 94% 12% 88% 91% 9%
Local Foreign
Source: Deloitte's Myanmar Consumer Survey (2019)
26 “Burma - Consumer Goods”. Export.gov. 29 November 2018. https://www.export.gov/article?id=Burma-Consumer-Goods
27 “Burma - Franchising”. Export.gov. 29 November 2018. https://www.export.gov/article?id=Burma-prospects-franchising
22The Myanmar Consumer Survey | Poised for take-off
In terms of Foreign brands, survey respondents appear to prefer Japanese, Korean, and Thai brands. Korean brands, in
particular, are quickly gaining popularity in the Beverages and Confectionery product categories (see Figure 19 and 20).
One reason for this could be the proliferation of Korean franchises in Myanmar, such as the opening of Pizza Maru and
Tom N Toms Coffee outlets, as well as the influence of Korean celebrities and pop culture from the media as on-demand
streaming apps featuring Korean dramas, such as VIU, gain popularity across Myanmar28.
Figure 19: Breakdown of Foreign brand preferences by monthly household income level
Question: Which Foreign brands do you find the most appealing?
Household Household
Monthly household Beverages Beverages Packaged Personal Hygiene
Confectionery Appliances Appliances Tobacco
income, MMK million (Alcoholic) (Non-alcoholic) Foods Products
(Major) (Small)
7% 17% 19% 8% 23% 13% 12% 19% 12% 10% 22% 10% 9% 22% 11% 8% 30% 13% 10% 30% 12% 12% 23% 23%
Overall 19% 15% 23% 26% 20% 10% 26% 18% 12% 27% 22% 9% 28% 21% 8% 26% 15% 7% 27% 15% 6% 15% 10% 17%
7% 27% 10% 23% 13% 28% 17% 6% 31% 18% 2% 12% 19% 13% 10% 31% 13% 12% 11% 11%
31% 10% 11%
Less than 0.2 20% 13%
27%
18% 13% 6%
28%
17% 11% 8%
33%
23% 24% 13% 24% 23% 27% 14% 6% 27% 14% 5% 11% 22%
7%
10% 17% 12% 8% 21% 15% 17% 14% 13% 13% 21% 7% 9% 21% 12% 7% 30% 14% 9% 29% 11% 17%
0.2-0.5 29% 17% 28% 22%
21% 17% 24% 28% 18% 9% 19% 8% 28% 25% 7% 29% 22% 7% 27% 16% 5% 28% 16% 6% 6%
11%
1% 2%
0.5-1 17% 20% 8% 24% 11% 6% 22% 7% 8% 20% 13% 8% 23% 11% 8% 30% 14% 10% 30% 13% 7% 13% 20%
30% 33%
13% 20% 24% 24% 9% 28% 22% 13% 26% 21% 12% 28% 21% 9% 24% 18% 6% 25% 17% 5% 13% 13%
1-1.5 6% 20% 11% 13% 24% 10% 4% 26% 11% 8% 25% 7% 10% 26% 8% 11% 29% 11% 10% 29% 11% 12% 27% 15%
23% 17% 23% 22% 21% 11% 26% 19% 15% 26% 24% 10% 28% 18% 11% 27% 11% 28% 14% 8% 24% 9% 12%
2%
1.5-3 11% 17% 8% 27% 10% 15% 21% 18% 11% 24% 9% 9% 19% 12% 7% 28% 16% 8% 31% 13% 11% 22% 22%
28% 22%
11% 11% 27% 17% 10% 18% 9% 18% 24% 20% 11% 27% 23% 9% 25% 17% 7% 25% 17% 6% 22% 11% 11%
More than 3 13% 13% 20% 3% 21% 18% 17% 8% 25% 3% 23% 15% 8% 27% 11% 9% 27% 15% 11% 27% 13% 17% 8%
33% 33%
27% 13% 13% 28% 21% 10% 25% 8% 17% 26% 18% 15% 27% 18% 9% 26% 14% 9% 25% 14% 10% 8%
Thai Chinese Korean Japanese European American Others
Source: Deloitte's Myanmar Consumer Survey (2019)
Figure 20: Breakdown of Foreign brand preferences by city
Question: Which Foreign brands do you find the most appealing?
Household Household
Beverages Beverages Packaged Personal Hygiene
Confectionery Appliances Appliances Tobacco
(Alcoholic) (Non-alcoholic) Foods Products
(Major) (Small)
7% 17% 19% 8% 23% 13% 12% 19% 12% 10% 22% 10% 9% 22% 11% 8% 30% 13% 10% 30% 12% 12% 23% 23%
Overall
19% 15% 23% 26% 20% 10% 26% 18% 12% 27% 22% 9% 28% 21% 8% 26% 15% 7% 27% 15% 6% 15% 10% 17%
19% 14% 24% 9% 23% 14% 10% 19% 12% 9% 22% 10% 10% 20% 11% 23% 16% 12% 25% 16% 9% 10% 22% 24%
Yangon 21% 30% 30%
5% 17% 23% 20% 11% 26% 18% 15% 25% 24% 10% 27% 21% 11% 10% 9% 11% 9% 15% 11% 18%
1%
16% 19% 13% 10% 22% 12% 14% 18% 14% 27% 25% 6% 9% 25% 10% 8% 29% 13% 9% 29% 13% 19% 22% 22%
Mandalay 13% 19% 22% 25% 22% 10% 28% 18% 9% 15% 19% 8%
29%
22% 5% 28% 16% 5% 28% 16% 4% 15% 4% 19%
1%
6% 17% 17% 6% 25% 11% 14% 24% 14% 7% 26% 11% 3% 25% 15% 5% 30% 19% 6% 29% 18% 17% 33% 17%
Mawlamyine 33%
11% 17%
33%
17% 7% 29% 14% 5%
32%
15% 8% 31% 20% 6% 31% 11% 4% 31% 13% 3% 17% 17% 0%
Thai Chinese Korean Japanese European American Others
Source: Deloitte's Myanmar Consumer Survey (2019)
28 “Realising digital Myanmar”. Telenor Report. 6 February 2018. https://www.telenor.com/wp-content/uploads/2018/02/Telenor-Realising-
Digital-Myanmar-Report-06-February.pdf
23The Myanmar Consumer Survey |
Poised for take-off
Growing health consciousness
With greater access to health information through social network and mobile applications29, Myanmar consumers
appear to be making more informed decisions when purchasing products and services. For instance, survey
respondents showed an increased health consciousness, with 86% of them indicating that they would prefer to
drink water, instead of sugary drinks, when they are perspiring (see Figure 21). This is a significant increase from
last year’s survey, where this figure was 67%.
Health consciousness also appears to be more prevalent amongst survey respondents between the age of 50-64
years and those with a monthly household income level of more than MMK 3 million (see Figure 22). In terms of the
awareness and consideration of health information, however, survey respondents tend to focus on expiry dates,
prioritising this over other information such as calorie content and sugar content (see Figure 23).
Figure 21: Health consciousness in food, beverage, and leisure choices
1 For my daily meals 2 I am perspiring, so 3 I have only two hours of free
time after work, so
400 n = 515 515 304
446 305
I try to avoid oily and I will consume water, 403 403 I will swim, work
salty food unsweetened tea, or out, run, or walk
isotonic drinks
200 85 296
154 197 295
I am not too conscious I will consume 197 I will go for drinks,
about eating oily food carbonated drinks, or dine out with
2019 energy drinks, or other 2019 my friends 2019
2018 sweetened drinks 2018 2018
Source: Deloitte's Myanmar Consumer Survey (2019)
Figure 22: Breakdown of demographics for survey respondents choosing healthy options
Total monthly household
Gender Location Age group
income
Less than 0.2: 62% 15-24: 54%
Yangon: 62%
Male: 66% 0.2-0.5: 67%
0.5-1: 73% 25-34: 66%
I will try to avoid Mandalay: 70%
1-1.5: 64% 35-49: 77%
oily and salty food
Female: 67% 1.5-3: 57%
Mawlamyine: 74%
(n=400) More than 3: 74% 50-64: 78%
Less than 0.2: 85%
Yangon: 83% 15-24: 78%
Male: 87% 0.2-0.5: 86%
0.5-1: 85% 25-34: 86%
I will consume water, Mandalay: 90%
unsweetened tea, or 1-1.5: 86%
35-49: 91%
isotonic drinks Female: 85% 1.5-3: 83%
Mawlamyine: 85%
(n=515) More than 3: 92% 50-64: 93%
Less than 0.2: 51% 15-24: 34%
Yangon: 44%
Male: 51% 0.2-0.5: 53%
0.5-1: 51% 25-34: 46%
Mandalay: 51%
I will swim, work 1-1.5: 45% 35-49: 61%
out, run, or walk Female: 50% 1.5-3: 52%
Mawlamyine: 70% 50-64: 76%
(n=304) More than 3: 47%
Source: Deloitte's Myanmar Consumer Survey (2019)
24The Myanmar Consumer Survey | Poised for take-off
Figure 23: Awareness and consideration of health information
I seriously consider the I am aware of the information I am not aware of
information before purchasing. but do not consider it seriously. the information.
524 58 18
Expiry date
571 20 0
289 236 75
Product content
266 283 51
238 240 122
Nutritional values
204 330 66
202 273 125
Sugar content
163 349 88
154 287 159
Calorie content
136 372 92
2019 2018
Source: Deloitte's Myanmar Consumer Survey (2019)
Digital product discovery yet to take off
Overall, survey respondents conduct more research before purchasing products than services. For
the purchase of both products and services, however, offline channels remain the dominant source of
information. Even when survey respondents conduct online research, they tend to rely predominantly on
company websites, rather than social media channels (see Figure 24).
This behaviour suggests that consumer companies may need to adopt a more holistic approach in building
credible online presences beyond social media, especially in view of the Digital Economy Association’s
upcoming move to regulate unlicensed online shops, typically with storefronts on social media channels such
as Facebook 30.
Figure 24: Sources of information for the purchase of products and services
Question: Do you look up information Question: Which sources do you use to look up information on products? (n=344)
prior to purchasing a product?
Online Offline
Company websites 32% Friends/Relatives 73%
Company social Store visits 67%
No 22%
media accounts
256 Yes Print media 13%
344 Influencers 16%
Product catalogues 6%
Customer reviews 12% Customer hotlines 2%
Question: Do you look up information Question: Which sources do you use to look up information on services? (n=232)
prior to purchasing a service?
Online Offline
Company websites 30% Friends/Relatives 72%
Yes 44%
Company social Store visits
232 19%
No media accounts
368 Print media 16%
Influencers 19%
Product catalogues 6%
Customer reviews 12% Customer hotlines 3%
Source: Deloitte's Myanmar Consumer Survey (2019)
30 “Digital Economy Association to license online shops”. Myanmar Business Today. 19 June 2019. https://www.mmbiztoday.com/articles/digital-economy-association-
license-online-shops
25The Myanmar Consumer Survey |
Poised for take-off
4. Communication channels
The impact of traditional mass communication channels
appears to have declined, as Myanmar consumers increasingly
become drawn to the appeal of targeted marketing.
Targeted marketing gains traction
Across all age groups, conventional word-of-mouth recommendation from Friends & Relatives continues to be the dominant channel
influencing consumers’ purchasing decisions, followed by TV and Billboards (see Figure 25).
While traditional above-the-line, mass communication channels remain important, their apparent impact appears to have declined
over the past three years, as survey respondents increasingly look towards alternative sources of information (see Figure 26). TV, for
instance, experienced a decrease of 7% in this edition of the survey, with Radio and Print Media also suffering persistent declines. The only
exception here appears to be Billboards, which saw a small uptick of 3%.
On the other hand, targeted marketing channels such as Events and In-Store Promotions appear to be gaining traction, especially amongst
Millennial and Generation Z survey respondents. With almost universal access to the Internet in major Myanmar cities31, Social Media
channels are also increasing in popularity. This takeoff is expected to continue in the near future with the advent of 5G32, and increasing
Internet and mobile penetration rates.
Figure 25: Preferred sources of information by age group
3% 1%
Overall 27% 21% 21% 13% 7% 5%
2%
4% 1%
15-24 27% 21% 20% 13% 8% 5%
1%
4% 1%
25-34 26% 20% 21% 14% 8% 5%
1%
5% 2% 1%
35-49 29% 20% 22% 14% 5%
2%
3%
50-64 29% 25% 22% 10% 3% 5%
1% 2%
Friends & Relatives Billboards Social Media Websites Radio
TV In-Store Promotions Events Print Media
Source: Deloitte's Myanmar Consumer Survey (2019)
Figure 26: Overall preferred sources of information (2017-2019)
1%
2019 27% 21% 21% 13% 7% 5% 3% 2%
1%
2%
2018 32% 24% 18% 14% 3%
3% 3%
1% 1%
2017 43% 27% 18% 5% 2% 3%
Friends & Relatives Billboards Social Media Websites Radio
TV In-Store Promotions Events Print Media
Source: Deloitte's Myanmar Consumer Survey (2019)
31 “Myanmar’s digital game changers”. Myanmar Times. 6 March 2019. https://www.mmtimes.com/news/myanmars-digital-game-changers.html
32 “MyTel anticipating 5G rollout next year if granted licence”. Myanmar Times. 21 August 2019. https://www.mmtimes.com/news/mytel-
anticipating-5g-rollout-next-year-if-granted-licence.html
26The Myanmar Consumer Survey | Poised for take-off
Different channels for different products
Although the trend of moving away from traditional mass marketing channels is apparent across all product
categories over three editions of the consumer survey, the most marked shift can be seen in the Alcoholic Beverages
and Tobacco product categories. For product categories such as Household Appliances, communication channels
such as In-Store Promotions, Social Media, and Events are also taking on greater importance (see Figure 27).
For basic necessities, such as Packaged Foods and Confectionery, traditional channels, such as TV and Billboards,
remain influential. Even for product categories that tend to be highly regulated, such as Alcoholic Beverages and
Tobacco, there has been an uptick in the use of Billboards, In-Store Promotions, and Social Media channels. One
possible reason for this could be the innovative approach that these companies have adopted in their marketing
efforts. For example, alcohol and tobacco companies increasingly advertise only their logo, and not their products,
in street advertisements, sometimes combining these advertisements with events, or advertisements of non-
restricted products under the same brand name.
Figure 27: Preferred sources of information by product category
Question: Which sources of information have influenced you in your purchase of a product/brand? Select up to three channels.
1%
Beverages
(Alcoholic) 29% 15% 18% 18% 6% 8% 3% 2%
1%
Beverages 2%
27% 24% 23% 12% 6% 4%
(Non-Alcoholic) 1%
1%
2%
Confectionery 28% 24% 23% 10% 6% 4%
2%
1%
Packaged Foods 3%
27% 25% 23% 11% 6% 2%
2%
1%
Personal Hygiene 3%
Products 26% 24% 21% 13% 7% 4%
1%
1%
Household 4%
Appliances (Major) 25% 21% 19% 14% 9% 5%
2%
1%
Household 4%
2%
26% 21% 19% 14% 8% 5% 2%
Appliances (Small)
1%
2%
Tobacco 29% 14% 23% 17% 6% 7%
1%
Friends & Relatives Billboards Social Media Websites Radio
TV In-Store Promotions Events Print Media
Source: Deloitte's Myanmar Consumer Survey (2019)
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