Transformation Myanmar retail industry grew rapidly over the past several years thanks to the country’s economic reform. This transformation changes consumer dynamics and also the opportunities for foreign investment.
The retail sector in Myanmar is going to keep evolving. Also, this retail industry is going to offer a better potential for foreign investment in the upcoming years.
Every Detail About Transformation Retail Industry in Myanmar
Multinational wholesale and retail companies and foreign investors have more decent opportunities to enter the retail sector and grow in Myanmar. Below are some available possibilities.
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Possibilities from Transformation Myanmar Retail Industry
Myanmar’s economic growth results in the middle-class citizens growing number. Middle-class citizens lead a new lifestyle since the economic reformation started. They also tend to shop in malls, buy foreign brands, and also visit restaurants. They are also willing to spend money on some non-essential goods.
In Mandalay, New market potential is opened by urbanization. The people there have specific purchase characteristics and habits that are attracting modern retailers so they want to expand to the city and also discover the market potential that is untapped.
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Transformation Myanmar Retail Industry and Higher Earnings
Higher earnings in the country allow people to afford many non-essential goods, especially those who live in some big cities. Those people can afford entertainment, leisure, electronics, and cosmetics. Ten years ago, this wasn’t happening in the country.
People with higher earnings are also willing to dine in international restaurants, shop for many foreign brands, and enjoy a movie at the cinema. This new trend is supported by mixed retailers and everyday groceries in increasing numbers.
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Before the Transformation Myanmar Retail Industry
Before the country experienced economic liberalization, many traditional retailers like small kiosks, wet markets, and mom-and-pop stores dominated the retail landscape of Myanmar. Those traditional retailers are still dominating the retail industry of the country today.
But many local groceries and retailers are now having a much better opportunity to grow bigger thanks to joint ventures with many foreign investors. Modern retail channels are now increasing and account for 10% of the retail segment. And its revenue growth reached 32.8% between 2013 and 2018.
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Factors That Affect The Transformation
Some factors that affect the retail industry transformation in Myanmar include higher disposable income, social media dominance, and access to the internet. They result in fundamental lifestyle changes. People started adopting new practices like dining out and visiting movie theatres and malls.
The Transformation Myanmar retail industry allows new opportunities for all foreign investors. People now have a much better lifestyle and are ready to spend more.
Source: https://ycpsolidiance.com/white-paper/the-transformation-of-myanmars-retail-industry