Myanmar: business opportunity

The biggest business opportunity in the world

Gearóid ‘Ged’ Carroll

Burma | Republic of The Union of Myanmar or as the locals prefer to say: ပည#eထ&င#စu သမ,တ မန#မ&/iuင#င1eတ&

What about China?

Good question… •  Over three decades of development with more due –  250+ million more to come out of rural poverty

•  Phenomenal development in technology, manfacturing, construction, retailing, e-tailing and luxury sectors

•  Acquisitive local companies expanding globally •  Large mobile population •  Fast-growing infrastructure

But… •  Slowing growth rate •  Top end of the market crimped by Premier Xi’s

measures against corruption & excess •  Strategic sectors fenced off from foreign participation •  Saturated FMCG marketplace •  Uncertain climate for foreign brands •  Aging population •  Capital flight by local business people and

government officials

I still have a lot of love for China; but Burma’s opportunity is huge

Burma by numbers

GDP estimate, decline likely due to financiel crisis and external sanctions

White line YoY Grey line year compared to 2006

$10 a day

$10 a day Average income of a Burmese person

51,419,420

51,419,420 Myanmar population 2014 survey

59

59 Years under military rule, isolated from participation in global economy

70 07

70 07 Percentage of the population who work in industry

Percentage of the population who work in agriculture

119.8

119.8 million tons of copper available to mine

50 million

50 million proven barrels of oil, due to economic sanctions, there is likely to be more found

283 billion

283 billion proven cubic metres of natural gas, due to economic sanctions, there is likely to be more found

49%

49% of population have access to electricity

The Ugly

Tobacco in Myanmar •  At least four

international tobacco companies have entered the market

•  1/3 to 1/2 of Burmese population smoke

•  Less than 5% smoke filtered cigarettes

The only other comparable untapped market…

Which is not likely to open up soon…

Difficulties in Burma

Market challenges •  No way of registering a

trademark –  Brands are putting warning

notices in national news media

–  Government working on IP legislation

•  Distribution networks / channel partners –  Brands like Telenor are

encouraging Burmese with money to become entrepreneurs

•  Media penetration –  Marketers have to go back

to basics •  Infrastructure

–  Regular electricity –  Quality of roads

More information about this presentation

You can find out more about me at renaissancechambara.jp/about I currently work at racepointglobal.com You can get in touch via renaissancechambara.jp/getting-in-touch

Further reading •  Fast-moving consumer goods

market saturated in China | Xinhua via Want China Times

•  Global Tobacco Brands Set Foot In Myanmar | Media Matters

•  Meet the new rich… in Myanmar | WSJ

•  Ooredoo goes live with 3G in Myanmar | TelecomAsia

•  Burma | US Energy Administration

•  The motivations for spending and saving in Myanmar (and how tech is changing that) | GigaOM

•  Census shows Myanmar's population is nine million fewer than estimated | South China Morning Post

•  Minerals, militants and Myanmar peace | Asia Times

•  Drilling in the dark | The Economist

Where all those images came from •  Dragon •  Lantern •  Shwedagon Pagoda,

Yangon •  Cigarette •  Kim Il Sung •  Team America

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