The recent foreign trade and investment boom following positive developments in Myanmar have assumed an essential role toward better income distribution within the country, leading to higher purchasing power among their people. This in turn has encouraged demand for consumer products like “cosmetics”, where we point out that:
The opening up of the country has led to rising consumer purchasing power. Between 2008-2011, increased demand for imported cosmetics nearly doubled, with over 50 percent of their total imports coming from Thailand.
The lifestyles of young career people in Myanmar have shifted toward greater use of cosmetics that have become fashionable. This is very evident in cities like Yangon where early stage of urbanization is going on. A growing retail industry has also contributed to the cosmetic boom there because it effectively channels such products. Many choices are offered to consumers, especially young careerists – considered the most important target segment – due to their high demand.
Cosmetic business in Myanmar is an up and coming endeavor. Given that Thai cosmetics are liked by local consumers there due to their quality and familiarity, Myanmar should be an ideal opportunity for Thai cosmetic firms to enter the market with offensive strategies.
KResearch expects that the Thai cosmetic export value to Myanmar in 2013 will surge 40.0 percent YoY, hitting USD140 million. Categories of products having the highest potential there include body care items, e.g., as shampoo, soap, toothpaste; and beautifying products such as lotions, sunscreen and make-up (face powder, lipstick, blush-on, etc.). Ancient herbal formulations used in Myanmar continue to see consumer support, so the growth potential for herbal cosmetics there may improve in the future too.
Promising local markets for cosmetics include Yangon, Mandalay, Myawaddy and Naypyidaw, since these cities are populated by middle class, white-collar and government workers, whose demand for cosmetics is higher than in other areas. Cosmetics appear to have gained popularity in tourist destinations like Mawlamyaing, as well – among both tourists and locals.
However, Thai businesses marketing their products in Myanmar should pay extra attention to a couple of points. First, the market is very receptive to new products, so fierce competition can be anticipated. Second, consumer behaviors in each particular area are different. Businesses therefore should study varying consumer behaviors, competitors and trade regulations to be able to launch the right product most suitable to customers in each region. They should also network with local trade counterparts that they could rely on for support in product distribution. Such strategies would be stepping-stones to successful cosmetic business in Myanmar.
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