MEIMEI CHUA Building Business in Myanmar 27 October 2014 1
Presenta8on Overview Introduc+on Myanmar market overview Iden+fying Opportuni+es Guiding Principle to overcome pi=alls
C Execu8ve Director Beauty Palace Co. Ltd Leading FMCG co in Personal Care Leading na+onwide distribu+on company Class of 2007 Managing Director The Keier Group First Serviced Office in Myanmar Co- Founder
Beauty Palace Co., Ltd More than 46,000 POS outlets covered nationwide Founded in 2001, manufactures, distributes, markets and sells branded local products across Myanmar Previously a distribution partner with Unilever Portfolio consists of skin care, oral care and hair care products with significant market share positions The most extensive distribution network coverage nationwide Staff strength of more than 650 employees in Myanmar www.beautypalacemyanmar.com 4
BP s Regional Branches Headquarter Yangon Main Branches 1. Mandalay 2. Taunggyi 3. Mawlamyine 4. Lashio 5. Magway 6. Naypyidaw 7. Pyay 8. Hinthada 5
BP s distribu8on reach Total Reach > 45,000 Outlets o 25,000 directly covered o 20,000 via Wholesale Reach via nationwide sales routes: o 2 metropolitan cities o 74 urban towns o 384 rural towns / villages Includes remote and inaccessible areas, in some instances via water ways Employs around 260 sales personnel 6
Beauty Palace Co., Ltd
THE KEIER GROUP www.keiergroup.com 8
Keier Serviced Office First serviced offices provider in Myanmar Co-founded with 2 Singaporean partners in May 2012 Providing fully furnished, well-equipped serviced offices in downtown CBD Yangon for start-up companies in Myanmar One stop shop business services providers to our clients with 24/7 conceige service Clients includes Singtel, L Oreal, Bell Pottinger & more 9
MYANMAR MARKET AT A GLANCE 10
Overview on Myanmar Popula+on: 51.4 Million Young popula+on (34% under age 17 and 46% under age 24) Future consumers & workforce are ripening at the right +me in Myanmar s economic development Expect popula+on increase Fragmented with over 100+ ethnic groups Expected yearly GDP growth 7% - 8% Current per capita income = $ Expected to raise its per capita income to $2,000 - $3,000 by 2030 Rising spending power 11
Overview on Myanmar Tourism Influx Tourist arrivals in Myanmar double from 1.06 million to 2 million in 2013 (Thailand has 26 million, Vietnam has 7.5 million) By 2020, arrivals are expected to increase to 7.5 million Comparison to Vietnam Market (2000) and Thailand (1990) Household data are rela+vely similar Household expenditure is approximately 66% of HH income
SWOT Strength Rich natural resources (oil & gas, +mber, jade & minerals, rice) Strategic geographical loca+on 51.4 millions popula+on Weakness Lack of Infrastructure (regula+on, financial ins+tu+on, buildings, roads) Lack of skilled labour Lack of transparency in informa+on Lack of clear & updated regula+on Tough Terrain Opportuni8es Untapped Market Large labour force Hungry and eager to learn people Last fron+er market Threat Unstable poli+cal situa+on Changing laws and regula+ons Civil War Ethnic unrest
IDENTIFY OPPORTUNITIES DEVELOPMENT IN MYANMAR 14
Development in Myanmar Major Industralisa+on Dawei Special Economic Zone (SEZ) Thilawa SEZ MMID Myotha Industrial Park & Seikkhon River Port Kyaukpyu SEZ In demand Logis+cal and transporta+on system Roads, Railways, waterway 15
Development in Myanmar Construc+on No shortage of poten+al local partners, professional architects and engineers Current lack of clear planning parameters (zoning, plot ra+o/ density control) Highly cash driven economy In demand Serviced Residence, Condominium Hotels and Commercial Buildings Building materials HR training center Financial Ins+tu+ons 16
Development in Myanmar Telecommunica+ons Sim cards to be made affordable to all (formerly US$200 per card) Currently 7.8 million has assess to 3G network Aims to increase the coverage to 50 percent of the popula+on by March 2015 and 80 percent by March 2016. Ooredoo has sold 1 million sim cards in 1 month In demand Sim cards & Phones Mobile wallet Social Media mgmt Public Rela+on Consultancy 17
Development in Myanmar Growth in Retail Market Growth in modern retail market Lack of interna+onal retailers, brands, modern retailing techniques, technology, scan data, credit cards, more secure banking, ATMs will revolu+onize the retail landscape Daily shopping at small Mum & Pop shops will s+ll be strong especially upcountry (>90% market share in tradi+onal retail format), these will gradually give way to more weekly shopping at major suburban shopping complexes in the larger urban centers 18
Development in Myanmar Increase in expat popula+on and visitors Target travellers to increase to 5 million by 2015 via e- visa Visits to increase to heritage sites In demand Tours and transporta+on services Entertainment & night life F & B outlets 19