Making It in Myanmar Webinar - Final

MAKING IT IN
MYANMAR
WITH CONSUMER FORESIGHT, MOBILE INSIGHTS
4 December 2014
Copyright 2013 The Nielsen Company. Confidential and proprietary.
YOUR PRESENTERS TODAY
Thurein Nyein
Sagar Phadke
General Manager
Nielsen MMRD
thurein.nyein.mmrd@nielsen.com
Executive Director
Smartphone Analytics Solution
Nielsen Southeast Asia, North Asia and Pacific
sagar.phadke@nielsen.com
TIMELY JOINT VENTURE TO HELP YOU WIN

NEW MARKETS, NEW CONSUMERS
Global brand of
information and insights

into what consumers
watch and buy
In-depth understanding
Pioneer
in research
services in Myanmar
of the Myanmar
marketplace and
consumer behaviour
90 YEARS
20 YEARS
OF INNOVATION
IN THE MARKET
UNLIMITED
OPPORTUNITIES
OUR AGENDA
DISCOVER
EXPLORE
GAIN
the growth and

opportunities in
Myanmar.
consumer attitudes that

drive decisions on what
they watch and buy.
key insights into how to

connect and communicate
with target consumers.
WHERE ARE THE

OPPORTUNITIES?
MYANMAR ON THE RISE

Since 2009, import volume up 230% & FDI inflows up 30%
9,136
8,000
6,000
8,861
6,402
4,000
6,779
4,543
9,035
9,372
9,056
40,000
4,181
2,000 3,353
-
Following the 2010 general election, a nominally civilian government takes

the lead after 5 decades of military rule and begins implementing political
and economic reforms that are met with an easing of trade and other
economic sanctions by the international community.
Source: Ministry of Commerce; Directorate of Investment and Company Administration (DICA)
20,000
46,226
800
700
684
600
500
30,000
7,587
6,413
42,119
50,000
34,535
11,204
12,000
10,000
NO. OF FDIS
13,760
14,000
40,699
IMPORT (US $ MILLION)
VAULE (US $ MILLION)
36,055
EXPORT (US $ MILLION)
16,000
FDI Trend in Myanmar
35,725
TOP 3 IMPORTS
1. Diesel
2. Automobiles
3. Iron & Steel
34,740
Volume of Foreign Trade
TOP 3 INVESTORS
(by approved amount)
1. China
2. Hong Kong
3. Singapore
WHERE IS IT GOING?
Oil & Gas + Power
434
442
447
454
467
561
400
300
200
10,000
100
Continued reforms and a new

investment law make Myanmar
an FDI magnet.
MARKET ENVIRONMENT
Ad spend (USD Millions)

Digital
TV/Radio
Retail sales (USD Millions)
MT
TT
MNCs
Local
GDP (MMK Billion)
Inflation
CCI
2010
2011
2012
2013
2014 F
2015 F
57.0
77.7
118.2
151.7
210.8
294.6
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
61%
58%
63%
64%
66%
67%
8,537
9,575
11,030
13,200
15,246
17,612
8.8%
9.5%
9.9%
10.0%
10.4%
10.8%
91.2%
90.5%
90.1%
90.0%
89.6%
89.2%
31.5%
32.6%
33.2%
35.0%
38.1%
39.7%
68.5%
67.4%
66.8%
65.0%
61.9%
60.3%
39,847
44,279
45,779
49,853
53,742
57,933
8.2%
4.2%
5.8%
5.5%
6.6%
6.9%
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Source: Local Government statistics / ADB/ MRA/ Nielsen MMRD
Ad budgets continue to grow and TV dominates ad spends

Modern Trade expected to continue growing Key to long
term relevance of Retail Index measurement
Steady growth in MNC product sales
7
DOING BUSINESS IN MYANMAR

Heres how..
MARKET ENTRY: 3 WAYS
DIRECTORATE OF
INVESTMENT
AND COMPANY
ADMINISTRATION
(DICA)
MYANMAR
INVESTMENT
COMMISSION
(MIC)
SPECIAL
ECONOMIC ZONE
MANAGEMENT
COMMITTEE
(SEZ MC)
REGISTRATION/PERMIT
PERMIT
PERMIT
START
START
START
NO INCENTIVE
INCENTIVES
INCENTIVES
POPULATION IS URBANISING
But Rural households still outnumber Metro 6 to 1
Hilly
Metropolitan
Urban
Rural
Stratum
12.8%
18.6%
68.6%
Dry
Population
Metro
6.60
Urban
9.55
Rural
35.27
Coastal
Plain
Region
11.3%
14.5%
Delta
Two-third of the
population live in
one-third of land
area
12.8%
24.9%
14.5%
Coastal
Source: Nielsen MMRD Consumer Media View (CMV) 2014
22.0%
Metropolitan
Plain
Hilly
Delta
Dry
Coastal
Population
Metro
6.60
Hilly
12.79
Dry
11.31
Plain
7.43
Delta
7.45
Coastal
5.83
MYANMAR POPULATION
By state and region
STATE &AND REGION

YANGON
7.36
AYEYAWADY
6.18
MANDALAY
6.15
SHAN
5.82
SHAN (N)
SHAN (S)
SHAN(E)
POPULATION (Million)
2.37
2.62
0.83
SAGAING
5.32
BAGO
BAGO (E)
BAGO(W)
MAGWAY
4.86
2.89
1.97
3.91
RAKHINE
3.19
KACHIN
1.69
KAYIN
1.57
TANINTHARYI
1.41
NAY PYI TAW
1.16
CHIN
0.48
KAYAH
0.29
Grand Total
51.42
10
A YOUNG POPULATION POISED FOR GROWTH

YOUNG DEPENDENTS
(019)
38%
INDEPENDENTS WITHOUT DEPENDENTS

(2029)
17%
YOUNG INDEPENDENTS WITH DEPENDENTS

(3049)
28%
OLDER INDEPENDENTS WITHOUT DEPENDENTS

(5059)
9%
OLDER DEPENDENTS
(6065+)
8%
11
NEW PURCHASING POWER AND

RISING DISPOSABLE INCOMES
Consumers are earning 90% more, spending 60% more than they were 6 years ago
Average Monthly Household Income & Expenditure (2008-2014)

Avg HH Income
Avg HH Expenditure
300,000
250,000
WHERE IS
THE MONEY
GOING?
200,000
150,000
100,000
50,000
0
2008
2010
2012
2014
Sources: MMRD Consumer & Media Index 2008, 2010 2012 & 2013; Nielsen MMRD Consumer Media View (CMV) 2014
12
WHO IS THE CONSUMER

IN MYANMAR?
FMCG ACCOUNT FOR NEARLY HALF OF

MONTHLY HOUSEHOLD EXPENDITURE
Average FMCG spend per month ~ 90, 000 MMK
WHAT MYANMAR CONSUMERS SPEND ON
House Rent
2%
Entertainment
3%
Transportation
Eating
out
6%
3%
Utility bills
6%
Personal Care
Products
6%
AVG SPEND PER MONTH BY CATEGORY (MMK)
Loan
installments
1%
65,000
Food &
grocery
33%
Education
7%
Mobile phone
8%
Household
Products
8%
Base: All respondents n=1400

Source: Nielsen EMI Survey 2014
15,000
Food & Grocery

Health Care
9%
New Clothes
8%
Household Products
12,000
Personal Care
Products
14
EMERGING TRENDS BEYOND FMCG
MOBILE
Base: All respondents n=1400

NEW CLOTHES
HEALTHCARE
15
HOUSEHOLD MOBILE PENETRATION

INCREASED BY TWO-THIRDS IN 2014
Yet much of the market for durables still to be realized
TELEVISIONS
MOBILE PHONES
2014: 44%
2014: 60%
2013: 25%
2013: 56%
MOTORCYCLES
REFRIGERATORS
2014: 49%
+19%
+6%
2014: 17%
+4%
+3%
2013: 43%
2013: 14%
WASHING MACHINES
AIR CONDITIONERS
2014: 4%
2014: 4%
2013: 4%
2013: 4%
Base: 11.4M Households (2014); 11.2M Household (2013)

Source: Nielsen MMRD Consumer & Media Index 2013 & 2014
16
CAR OWNERSHIP IS SKYROCKETING

Caveat: Not new cars
NO. OF CARS (MYANMAR CUSTOMS DATA)
140,000
127,568
120,000
of Myanmar consumers
are car owners
100,000
80,000
60,000
40,000
32,504
20,000
3%
1,585
3,621
1,742
0
2008-20092009-20102010-20112011-20122012-2013
2010: Easier to get foreign cars into Myanmar.

2013: Consumers can buy new foreign cars.
Source: Nielsen MMRD Consumer Media View (CMV) 2014 & Myanmar Customs data
69% drive Toyota

Honda
Mitsubishi
Suzuki
Mazda
Nissan
Others
17
MAJORITY OF MYANMAR POPULATION UNBANKED

A result of longstanding lack of infrastructure, access and awareness
1 in 10
48%
use banking services
MONEY TRANSFERS
CONVENIENCE
is key
Due to the lack of familiarity with

banking services,
33% Savings accounts

5% Credit accounts
4% ATM/MPU/Debit cards
Base: 10+ Population & Bank Users n=4570

CONVENIENCE OF SERVICE is
the most influential factor for
consumers selecting a banking
service or financial product
18
MEET THE MYANMAR METRO CONSUMER

Percentage of male and female respondents that agree with the given statements:
TECH ASPIRANTS
RECREATIONAL SHOPPERS
60%
78%
of men keep up
with developments
in technology
(Female: 45%)
GROOMING CONSCIOUS
39%
of men think it is
important to be
attractive to the
(Female: 24%) opposite sex
Base: All respondents (n=1400)

of women enjoy
the fun of shopping
(Male: 32%)
ON-THE-BALL BUDGETERS
54%
of women are good

money managers
(Male: 33%)
19
RURAL & URBAN CONSUMERS READY TO SPEND

23% say they have room for luxury
TOTAL
STRATUM
Urban
Rural
GENDER
M
F
1,400
500
600
300
644
756
Able to spend freely
23
18
29
19
24
22
Live comfortably and buy

some things just because I
wanted to
35
43
34
24
35
35
42
39
37
57
42
42
Only enough money for

shelter, food & essentials
Metro
TOP 3 ITEMS FOR SPARE CASH:

(Across the board (age, gender, SEC, urbanisation)
NEW
CLOTHES
Base: Respondents who report some degree of luxury spending/disposable income n=813; All figures in %
Source: EMI Survey 2014; Q3A When you have spare cash on hand, what do you spend it on (Top 3)?
TECH PRODUCTS
HOLIDAYS
20
WHO IS THE MYANMAR SHOPPER FOR

HOUSEHOLD PRODUCTS?
Percentage of Household Shoppers that agree with the given statements
CONVENIENCE DRIVEN
I always prefer to shop in a
well-organised store (73%)

and near my home (62%)
LEISURE MINDED
I really enjoy doing the
household grocery shopping
(82%)
I like to
take my time and browse
PLANNERS, BUT
SUSCEPTIBLE TO IMPULSE
I usually
plan what I want to buy
all parts of the store or market I am

shopping in (55%)
QUALITY CONSCIOUS
before I shop for groceries

(77%)
I care about quality

and am willing to pay more for
quality products (59%)
Although I plan I usually
I do
end up buying additional

grocery items (56%)
not buy
brand imitation products
to save money (64%)
Source: Emerging Market Insights Consumer Survey,2011
Household shopper respondents: n=633

21
PROMOTIONS DONT WEIGH HEAVILY

ON DECISION MAKING
Affordability, familiarity and availability reign supreme
Single most important factor when purchasing respective categories
FOOD/BEV/DAIRY
28%
25%
23%
17%
HOUSEHOLD CARE PRODUCTS

25%
PERSONAL CARE PRODUCTS
17%
11%
27%
Affordability Always buy the

same brand
11%
9%
I've tried it
before
14%
12%
10%
7%
Recommended
by friends and
family
5%
It is easily
available
1% 2% 1%
1%
0.1% 1%
0.1%
1%
0.4%
Recommended It is a new
It is offering
by trade/shop brand/product promotions and
keeper/sales
to me
deals
promoter
LEAST IMPORTANT
Base: Users of respective categories (n=1,400)

22
NEWSPAPERS
13%
RADIO
43%
MAGAZINES
6%
10%
20%
30%
40%
50%
60% 70%
TV
51%
JOURNAL
26%
80% 90% 100%
% of Total Myanmar
Population Media Exposure
In Past Month
VIDEO
62%
CINEMA
2%
OOH
40%
Base: 44,530,467
Source: Nielsen MMRD Consumer Media View (CMV) 2014)
Weighted by: Population
23
WHATS YOUR MOBILE

STRATEGY?
MOBILE PENETRATION REACHING CRITICAL

MASS IN MYANMAR
Smartphone ownership among mobile users in line with Southeast Asia
SMARTPHONE OWNERSHIP
MOBILE PHONE OWNERSHIP

Mobile Phone Ownership
58%
42%
100%
Myanmar Malaysia
Non Owner
Smartphone
Non-Smartphone
3%
12%
14%
22%
38%
10%
48%
51%
85%
77%
97%
88%
86%
78%
62%
90%
52%
49%
34%
23%
Thailand Indonesia Vietnam Philippines
Source: Nielsen Smartphone Insights 2013, 2014
Myanmar Malaysia
Vietnam
Thailand Philippines Indonesia

25
YOUNGER CONSUMERS ARE DRIVING ADOPTION

IN MYANMAR
SMARTPHONE PENETRATION AMONG MOBILE USERS
62%
Myanmar
90%
52%
Malaysia
Vietnam
49%
Thailand
34%
23%
Philippines
Indonesia
16-24yo
16-34yo
ADOPTION DRIVEN BY
16-24yo
16-34yo
25-34yo
16-34yo
26
10
UNCOMMON
INSIGHTS
1
WOM IMPACTS MOBILE DEVICE SELECTION
Critical for brand marketers to invest in building emotional connection with consumers
MALAYSIA
VIETNAM
MYANMAR
1FRIENDS/COLLEAGUES/
RELATIVES
2STORE
1
FRIENDS/COLLEAGUES/
RELATIVES
2 STORE
1 FRIENDS/
COLLEAGUES/
RELATIVES
2 REVIEW AND BLOG
ONLINE
THAILAND
INDONESIA
1
FRIENDS/COLLEAGUES/
RELATIVES
2 ADVERTISEMENTS /
MAGAZINES
/PAPERS
1 FRIENDS/COLLEAGUES/
RELATIVES
2 PHONE SALESPERSON
PHILIPPINES
1 FRIENDS/COLLEAGUES/
RELATIVES
2 STORE
28
2
MYANMAR CONSUMERS MORE VALUE CONSCIOUS
Top device selection criteria
MYANMAR
INDONESIA
MALAYSIA
VALUE FOR MONEY
OPERATING SYSTEM
DESIGN/STYLE
PHILIPPINES
THAILAND
VIETNAM
Wi-Fi CAPABILITY
EASE OF USE
DESIGN/STYLE
29
3
EVERYONE WANTS TO OWN THE LATEST
Myanmar consumers share the same desire as their counterparts in Southeast Asia
MYANMAR
TO OWN THE LATEST

PHONE
MALAYSIA
TO OWN THE LATEST
PHONE
INDONESIA
TO OWN THE LATEST
PHONE
THAILAND
TO OWN THE LATEST
PHONE
VIETNAM
PHILIPPINES
WANT TO TRY
DIFFERENT OS
TO OWN THE LATEST

PHONE
30
4
1 IN 5 CONSUMERS RECEIVE MOBILE PHONES
AS GIFTS
Opportunity to promote mobile handset for special occasions targeting young, senior and
female consumers
20%
MYANMAR
PHILIPPINES
MALAYSIA
40%
20%
INDONESIA
15%
VIETNAM
15%
THAILAND
10%
31
5
SMS IS POPULAR, BUT CHAT AND SOCIAL
NETWORKING CATCHING UP
70%
64%
28%
SOCIAL NETWORK
49%
CHAT APPS
61%
52%
33%
MALAYSIA
69%
VIETNAM
24%
INDONESIA
24%
91%
THAILAND
81%
PHILIPPINES
MYANMAR
INCIDENCE IN LAST 30 DAYS
73%
81%
94%
99%
79%
81%
SHORT MESSAGING SERVICE

32
6
ANDROID RULES
Android Penetration
PHILIPPINES 80%
MYANMAR
MALAYSIA 69%
ANDROID
VIETNAM 47%
95%
THAILAND 44%
33
7
CONSUMERS ARE DATA HUNGRY
Huge opportunity to drive data in and out of home
Wi-Fi
Cellular Data
Wi-Fi
Cellular Data
23%
24%
36%
42%
45%
49%
80%
83%
72%
60%
66%
92%
77%
76%
51%
8%
64%
58%
55%
20%
17%
AT HOME
28%
34%
40%
OUT OF HOME
34
8
MULTIMEDIA ACTIVITIES ARE RESTRICTED TO
FM RADIO
66%
Increasing access to data and content likely to change the habits

39%
38%
34%
29%
19%
10%
9%
8%
FM RADIO
VIETNAM
12%
6%
12%
ONLINE MUSIC STREAMING
THAILAND
PHILIPPINES
MALAYSIA
INDONESIA
MYANMAR
57%
36%
7%
12%
26%
16%
PICTURES DOWNLOADS
38%
32%
16%
7%
4%
12%
VIDEO/MOBILE TV
35
9
FACEBOOK DOMINATES BUT CONSUMERS
ARE NEWS HUNGRY
TOP 5 WEBSITES
1. FACEBOOK
2. THITHTOOLWIN
3. GOOGLE
4. MYANMARNEWS
5. G-TALK
MYANMAR
1. FACEBOOK
2. YOUTUBE
3. GOOGLE
4. GOOGLE PLAY
5. YAHOO
PHILIPPINES
1. FACEBOOK
2. GOOGLE
3. TWITTER
4. YAHOO
5. YOUTUBE
INDONESIA
1. YOUTUBE
2. GOOGLE
3. FACEBOOK
4. TWITTER
5. THAITV3
THAILAND
1. GOOGLE
2. FACEBOOK
3. YOUTUBE
4. YAHOO
5. MUDAH
MALAYSIA
1. GOOGLE
2. YOUTUBE
3. 24H.COM.VN
4. VNEXPRESS
5. TUOITRE
VIETNAM
36
10
MOBILE ADVERTISING IS IN NASCENT STAGE
Once received, consumers are receptive just like in other Southeast Asia countries
RECEIVED
Myanmar
Indonesia
19%
45%
Malaysia
CLICKED
81%
Myanmar
56%
Indonesia
56%
Malaysia
Philippines
44%
Philippines
Thailand
47%
Thailand
Vietnam
Source: Nielsen Smartphone Insights 2012/2013

Click frequency includes sometimes and always click
89%
Vietnam
84%
48%
53%
81%
37
10
FREE CONTENT IS KEY TO MOBILE ADVERTISING
I am ok with advertising if
it means that I can access
content for free
Myanmar
Indonesia
Malaysia
75%
Myanmar
Indonesia
40%
57%
Philippines
I am more likely to click on

an ad that does not take me
outside of the application
to another website
67%
53%
26%
Malaysia
51%
Philippines
51%
Thailand
37%
Thailand
31%
Vietnam
36%
Vietnam
29%
38
WINNING STRATEGIES
KNOW IT.
BROADEN THE
MARKET INTELLIGENCE
UNDERSTAND
CONSUMER ACTIVITIES
ON MOBILE
INVEST IN IT.
EVALUATE PLATFORMS TO
INVEST IN
GAMES, MUSIC, VIDEO,
CHAT?
BE READY TO
CHANGE IT.
PLAN FOR IT.
CONSIDER VARIOUS
SCENARIOS AND OUTCOMES.
BUILD FLEXIBILITY AND
ADAPTABILITY.
CONTINGENCY FOR TALENT

ADOPT BEST PRACTICE.
BUILD CAPABILITY
THROUGH RELATIONSHIPS.
39

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MAKING IT IN

Copyright 2013 The Nielsen Company. Confidential and proprietary.

YOUR PRESENTERS TODAY

TIMELY JOINT VENTURE TO HELP YOU WIN

Copyright 2014 The Nielsen Company. Confidential and proprietary.

information and insights

Copyright 2013 The Nielsen Company. Confidential and proprietary.

the growth and

consumer attitudes that

key insights into how to

Copyright 2014 The Nielsen Company. Confidential and proprietary.

WHERE ARE THE

MYANMAR ON THE RISE

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Following the 2010 general election, a nominally civilian government takes

IMPORT (US $ MILLION)

VAULE (US $ MILLION)

EXPORT (US $ MILLION)

FDI Trend in Myanmar

Volume of Foreign Trade

Continued reforms and a new

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Ad spend (USD Millions)

Source: Local Government statistics / ADB/ MRA/ Nielsen MMRD

Ad budgets continue to grow and TV dominates ad spends

DOING BUSINESS IN MYANMAR

Copyright 2014 The Nielsen Company. Confidential and proprietary.

MARKET ENTRY: 3 WAYS

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Source: Nielsen MMRD Consumer Media View (CMV) 2014

STATE &AND REGION

Copyright 2014 The Nielsen Company. Confidential and proprietary.

NAY PYI TAW

Copyright 2014 The Nielsen Company. Confidential and proprietary.

A YOUNG POPULATION POISED FOR GROWTH

INDEPENDENTS WITHOUT DEPENDENTS

YOUNG INDEPENDENTS WITH DEPENDENTS

OLDER INDEPENDENTS WITHOUT DEPENDENTS

Source: Nielsen MMRD Consumer Media View (CMV) 2014

NEW PURCHASING POWER AND

Average Monthly Household Income & Expenditure (2008-2014)

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Copyright 2014 The Nielsen Company. Confidential and proprietary.

WHO IS THE CONSUMER

FMCG ACCOUNT FOR NEARLY HALF OF

Copyright 2014 The Nielsen Company. Confidential and proprietary.

AVG SPEND PER MONTH BY CATEGORY (MMK)

Base: All respondents n=1400

Food & Grocery

EMERGING TRENDS BEYOND FMCG

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Base: All respondents n=1400

HOUSEHOLD MOBILE PENETRATION

Base: 11.4M Households (2014); 11.2M Household (2013)

CAR OWNERSHIP IS SKYROCKETING

Copyright 2014 The Nielsen Company. Confidential and proprietary.

2010: Easier to get foreign cars into Myanmar.

69% drive Toyota

MAJORITY OF MYANMAR POPULATION UNBANKED

use banking services

Copyright 2014 The Nielsen Company. Confidential and proprietary.

Due to the lack of familiarity with

33% Savings accounts