Retail
From The Report: Myanmar 2020
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As recently as 2011, before economic liberalisation began to gain speed, Myanmar had no access to international brands. In strong contrast, in 2019 Yangon’s Junction City Mall had a 100% occupancy rate, hosting a number of popular restaurants, shopping and entertainment venues. The growth of such complexes is striking. Considering the government’s current reform-minded trajectory and the lack of tough international sanctions, Myanmar’s retail industry is unlikely to be diverted from its current path of strong and steady growth. More foreign companies are expected to enter the market as infrastructure continues to improve, with e-commerce exhibiting breakout growth if the government can strike the right legislative balance. This chapter contains an interview with Jens Michel, CEO, METRO Wholesale Myanmar.

Articles from this Chapter

Overview

High impact: Economic liberalisation, a proliferation of joint ventures and a long-awaited trademark law drive sector growth
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As recently as 2011, before economic liberalisation began to gain speed, Myanmar had no access to international brands. In strong contrast, in 2019 Yangon’s Junction City Mall had a 100% occupancy rate, hosting a number of popular restaurants, shopping and entertainment venues. The growth of such complexes is striking, as is the potential for further growth in the country’s rapidly burgeoning retail sector. Regulation & Oversight The Myanmar Investment Commission (MIC) dictates…

Analysis

Diverse offerings: Physical retailers trial multiple models to compete for a piece of the burgeoning retail market
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As Myanmar’s economy continues to expand, with GDP growth forecast at over 6% in 2019 and 2020, the country’s young urban population benefits from increasing opportunities to sample new food, beverage and entertainment options, particularly as incomes and leisure times rise. Furthermore, the government’s move to open wholesale and retail markets to 100% foreign ownership is expected to accelerate the entrance of overseas brands, and promote consolidation in the country’s highly fragmented…

Interview

Positive trends: Jens Michel, CEO, METRO Wholesale Myanmar, on the potential of the wholesale sector and changing demographics
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Interview:Jens Michel Where are the core areas of growth within the hotel, restaurant and catering sector? JENS MICHEL: The sector is already sizeable in Myanmar, and one in which growth hinges heavily on tourism and the development of the middle class. Before entering Myanmar we conducted a thorough market study and found the hotel, restaurant and catering market in Yangon to be worth about $1bn. Since only a small number of businesses currently provide wholesale services, we envision considerable…

Overview

E-commerce evolution: Online shopping is set to expand in emerging markets around the world despite logistical and payment challenges
OBG
plus

While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost segment activity and several notable regional players are emerging, in some cases backed by large international e-commerce firms that recognise the potential of growth markets. Rising Popularity In advanced economies e-commerce has quickly become…

Overview

E-commerce evolution: Online shopping is set to expand in emerging markets around the world despite logistical and payment challenges
OBG
plus

While e-commerce has become well established in more developed markets, the segment has been slower to take off in emerging economies. Online purchasing has been held down in these markets by financing, purchasing and logistics challenges. Nevertheless, online sales are growing rapidly in many developing countries in spite of these obstacles. Some governments are changing frameworks to boost segment activity and several notable regional players are emerging, in some cases backed by large international e-commerce firms that recognise the potential of growth markets. Rising Popularity In advanced economies e-commerce has quickly become…