Situating between Asia Giants like China and India, Myanmar has many opportunities since 2010. Infrastructure, mining, service, manufacturing and IT are all good sectors to invest for foreign investors. Under the supervision of new government, the country has many changes in various sectors. In this article, we would draw out one remarkable change in Myanmar business environment.
What happened in the past?
Last ten years ago, there were few people who eat lunch at restaurant whether small or big. Myanmar consumers bring their own lunch boxes to the office or to the school. At that time, there were some famous snacks and restaurants businesses but it was difficult for start-ups. Low consumer consumption was major factor that made start-ups difficult.
Now, average household consumption of Yangon people increases more than 30% this year according to some surveys conducted by Efectivee. This may be due to increased inflation rate. However, inflation actually can affect only 10% of household consumptions because consumption for fine dining restaurants and bars also increase. If increased household consumptions depend mostly on inflation rate, you can’t see so many consumers at top floor of Myanmar Plaza.
Consumer consumption is the most remarkable change in 2018. Every weekend, you can see lots of people at supermarkets, retail stores and restaurants. Especially, increased demand of gathering facility encourage local business owners to open at least one restaurant.
Increased Consumer Consumption drives the business!
So, household consumptions actually increase because of increased income of mid-level consumers. MNCs and local firms hunt a lot of talents during 3 years. That makes HR market competitive and firms increase salary to get right talents. That makes local talents get more income and then household consumptions increase. We also expect domestic consumption will increase in the future. So, there are many rooms to invest for consumer market!
Restaurants include local tea shops & coffee shops, local Chinese restaurants, international franchise like Lotteria and Boat Noodle, and also hotel restaurants. On 4th floor of Myanmar Plaza which is one of the most crowded shopping centers in Yangon, there are variety of foods and beverages. You can eat local food at Shwe Palin and YKKO, Korea food at Yoongane and fried chicken at KFC. There are also small café shops that can still compete large and prestigious restaurants. Whatever food or whatever taste, food and beverage sector still grow with increasing rate.
To take advantage of consumer consumption, investors should interest food and beverage or restaurant sector. Since Myanmar consumers can accept different taste, you don’t need to worry about the menu. You just need to set up one restaurant and do some Facebook marketing to get sustainable profit.
Night-outing is not a slang, it becomes a habit for young consumers in Yangon. Most bars and restaurants target between 17 to 40 aged consumers. We call them as happy consumers because they use 80% their income to enjoy life.
Since the right market segmentation decides the future of a business, every investor should do survey and need advices from local consultants before investing in food and beverages sector.
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