cancham tns cambodia laos and myanmar presentation mar2013

CaLM - Cambodia | Laos | Myanmar

77 million untapped consumers

http://www.flickr.com/photos/eminte/5729655196/in/pool-blackwhitecolor

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2

83 Countries

300 Offices

Over 25,000 employees

Since 2012 we have offices in Cambodia & Myanmar

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Strategic exploratory research

Usage & attitude / tracking

Product/taste/fragrance tests

Advertising dev’t & evaluation

Positioning & segmentation

Customer satisfaction studies

Trade channel research

Mystery shopping

Pricing research

Shopper research

Demand & market size estimation

Coverage & services

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Agenda

1 Economics

2 Population

3 Wealth

4 Consumerism

5 Attitudes

6 Summary

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TNS Growth Map

5

There are only 4 ways to grow you business and new markets is one

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Economics

6

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Population & GDP

7

90

56

15 6

Vietnam Myanmar Cambodia Laos

123

56

14 8


Population Millions GDP billions

SOURCE :http://www.census.gov

CaLM = 77 Million consumers with a 78 Billion GDP

Huge room for growth

Some sources

at US $17 Billion

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Foreign Direct Investment

8

23,107

322 511 774

18,595

756 622 761

14,696

912 777 1,088

12,000

971 1,285


2009 2010

2011 2012

FDI USD millions 2012 could be up to US $ 20 Billion

Source: data.worldbank.org

Vietnam dwarf’s CaLM in FDI, but this is changing especially for Myanmar

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Export, import, trade deficit - 2012

Sources: National data sources, IMF, and World Bank

115,000

9,135 6,640 2,840

121,000

9,035 8,606 3,324

-6,000

100

-1,966 -484


Exports of goods (millions US$) Imports of goods (millions US$) Trade balance (millions US$)

Imports vs. exports 2012 (estimates only):

Typically developing nations have huge trade deficits, but due to the

economic slow-down and fiscal responsibility the CaLM region is

experiencing a trade balance which will not last long

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43%

20.5%

36.5%

MYANMAR

37.3%

20.2%

42.5%

LAOS

33.4%

21.4%

45.2% Agriculture

Industry

Services

CAMBODIA

GDP By Sector

Industry still lag behind

agriculture & services

Source: IMF data

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Major Exports

11

Myanamr

oil & gas

gemstones

timber

illegal drugs

rice

rubber

Cambodia

clothing

timber

rubber

rice

fish

tobacco

footwear

Oil

Laos

wood products

garments

electricity

coffee

tin

copper

gold

Electric power

Myanmar & Laos are incredibly natural resource rich

Source: Worldbank

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Inflation

12

23 23

25

8 7

8

-1

0

9 8

4

6

19

4 5

8 8

6

4 5


2008 2009

2010 2011

2012

SOURCE : imf.org

Inflation %

With the exception of 2008 and Vietnam the CaLM region has had

containable inflation, but will increase in Myanmar rapidly

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Population

13

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Population

14

90

69

56

15 6

Vietnam Thailand Myanmar Cambodia Laos

With a population of 75 Million and an incredible 40% plus under 20 years of age, a population boom will help drive

consumerism in CaLM

http://www.census.gov

Millions 77 Million &

growing rapidly

Cambodia Life 2012 report

© TNS July 2012 15

Greater Mekong Sub Region - Populated key cities

Vietnam 91,519,289

Ho Chi Minh 7,300,000

Hanoi 6,450,000

Myanmar 54,584,650

Yangon 4,573,000

Mandalay 1,237,000

Naypyidaw 924,600

Cambodia 14,952,665

Phnom Penh 1,519,000

Laos 6,586,266

Vientiane 799,000

7 Key Cities 22,862,000

The seven major cities of the region have a larger population

than Australia = 22,683,600

http://www.census.gov


© TNS July 2012

17

17

20

16

13

9

5

4

22

20

22

13

11

7

4

2

18

19

19

16

13

9

5

3 70+ yrs

60-69 yrs

50-59 yrs

40-49 yrs

30-39 yrs

20-29 yrs

10-19 yrs

0-9 yrs

Population tree

34% 37% 42%

The region is incredibly young boding well for the future

54% 56% 64%

Source: TNS VietCycle / TNS Cambodia Life / TNS Myanmar Life

70% 72% 77%

https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_bm.html

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88

4 4 4

Myanmar

Buddhist Other Christian

Muslim Others

Religions

17

50 40

7 3

Vietnam

Non-demoninational

Buddhist

Roman Catholic

Others

Source: VietCycle 2011; All-in-one; CIA - The World Factbook

96

2 4

Cambodia

Buddhist (official)

Muslim

Others

Buddhism is by far the regions main Philosophy,

but the impact of Buddhism varies greatly in terms of daily life,

Laos = Buddhist 67%, Christian 1.5%, other and unspecified 31.5%

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68

5

5

22

Myanmar

Burmese

Indian

Kayin

Others (i.e. Shan, Rakhine, etc.)

Ethnicity

18

86

14

Vietnam

Kinh (Viet)

Others (i.e. Tay, Thai,Muong, Khmer. Etc.)

90

5 5

Cambodia

Khmer Vietnamese Others

Source: All-in-one; CIA - The World Factbook

This region is incredibly different in terms of ethnicity and very diverse,

especially Laos = Lao 55%, Khmou 11%, Hmong 8%, other (over 100 minor

ethnic groups) 26%

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Wealth

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2012 - GDP

20

318

123

56 14 8

Thailand Vietnam Myanmar Cambodia Laos

Billions USD

Though Vietnam is but a third Thailand’s GDP and CaLM but a 3rd of

Vietnam, this will change as global economic recession continues in Europe

and the US

Source: All-in-one; CIA - The World Factbook

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CaLM GDP & Purchase power

21

1,700

4,600

1,000 930 1,400


3,300

9,700

1,300

2,371 2,000


Thousand Thousand

SOURCE :http:/imf.org; http://www.tradingeconomics.com;

GDP / Capita Purchase power parity

CaLM has a long way to go in terms of developing Purchasing Power,

which highlights the great opportunities available

http://www.tradingeconomics.com/

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38%

5% 12%

6% 5%

5%

5%

8%

3%

13%

Household expenditure

22

40%

11% 9%

8%

6%

6%

5% 4%

11%

32%

15% 10%

9%

8%

5%

5% 4% 4%

8%

Breakdown of monthly urban household expenditure (%):

Groceries are the main spend items followed by Education in CaLM

Groceries

Education Transportation Groceries



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Expenditure vs. Savings

23

78 83 93

22 17 7

Cambodia Vietnam Myanmar

Expenditure Saving

Cambodians and Vietnamese have a higher penchant for savings



© TNS July 2012

Monthly Urban Household Income Comparisons

24

2 12 8

11

30 26

22

11 26 32

25 16

23 11 15

10 11 9

Vietnam Myanmar Cambodia

SEC F (Under USD 125) SEC E (USD 125-225)

SEC D (USD 225-325) SEC C (USD 325-500)

SEC B (USD 500-750) SEC A (USD 750+)

USD 750+

USD 500-750

USD 325-500

Under USD

325

Vietnam is considerably more wealthy than Myanmar and Cambodia


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Consumerism

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60

73

17

81

11

18

19

2

12

%

27

15

84

4

39

11

13

5

18

7

%

Household durables ownership - Urban

26

92

87

61

60

47

41

32

26

17

13

Gas stove

Refrigerator

CRT TV

Washing machine

DVD Player

PC/Deskstop

LCD / Plasma TV

Air conditionier

Karaoke system

Digital camera

Vietnam Cambodia Myanmar

Outside off TV, DVD players CaLM is substantially behind Vietnam


0

91

96

41

77

34

0

0

0

36

%

Laos

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Household technology items ownership - Urban

27

95 98

37

98

17 15 10

34

Vietnam Cambodia Myanmar Laos

Mobile phone Laptop

Myanmar lags far behind on technology


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Consumer’s top 3 items would like to own - Urban

28

Air-conditioner

33% Laptop

33%

Washing machine

32%

Refrigerator

58%

Washing machine

44% Air-conditioner

33%

Washing machine

21%

Refrigerator

15% Laptop

15%

Similarities in terms of desired durable ownership are striking


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Top 3 favourite brands - Urban

29

Vietnam Myanmar Cambodia

Not surprisingly technology and transportation brands rule


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Attitudes

30

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Attitudes towards life – Position & Status

31

73%

49%

42%

Cambodia Myanmar Vietnam

Position and status in society is the most important aspect of my life? (top 2 box score)

Cambodians are in an all out push to catch up to the rest of the world,

while Burmese are still seeped in tradition



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Attitudes towards women

32

69

60

49

34

63

Urban Cambodia 2012 Urban Vietnam 2001 Urban Vietnam 2011

Top-2-box % agreement:

“Women must focus only on their traditional family roles”

“It is completely acceptable for women to earn more than men”

2001

2012

2011

2012 2011

Over the years attitudes towards women in society have liberalized


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Women and traditional roles

49

69

34

Myanmar 2012 Cambodia 2012 Vietnam 2011

“Women must focus on their traditional family roles”


33

Over time Cambodian and Burmese attitudes should become more equal


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Importance of family

34

92

16

95

11

96

19

Cambodia Vietnam Myanmar

“A close family is essential to my happiness”

“I prefer to spend more time with my friends than my family”


Family is still the cornerstone of society


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22

37

Vietnam Cambodia Myanmar

The most admired person in the country - urban

35

Q: Outside of your friends and family, which

person do you admire the most?

Uncle Ho

Somdach Hun Sen

Daw Aung San Su Kyi

Political leaders are most admired – clearly showing huge

opportunity for Idols to take root


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Summary

36

http://www.terragalleria.com/asia/cambodia/angkor/picture.camb2912.html

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Summary

37

77 Million untapped consumers

rich in natural resources

very young population = future

limited competition

willingness of host to do business

poor infrastructure for transport

poor human capital

very young population

varying ethnicities and religions

low incomes

Positives Negatives

Myanmar provides the best opportunity for future investment

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38

TNS Vietnam – March 2013

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39 TNS Cambodia – March 2013 TNS Cambodia – March 2013

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40 TNS Myanmar – March 2013

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Please contact: [email protected] Regional Managing Director TNS Cambodia | Laos | Myanmar | Vietnam

TNS now has full reports on Retail / Trade and Consumerism for Myanmar and Cambodia

mailto:[email protected]

cancham tns cambodia laos and myanmar presentation mar2013

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