Vol. 2 2014, May 23, 2014 How the wealthy and semi-wealthy in n Yangon, Myanmar Myanmar, live Over 90% have “the 3 essentials” (TV,, fridge, washing machine) and around 50% have a car. However, utilities like electricity and water are still developing developing. TV is far and away the top among media. media TV scores well in terms of enjoyableness and reliability of information. Over 70% have a smartphone, and accessing access the Internet from a smartphone tops accessing it from a computer. To support marketing communication in the global market place, Hakuhodo has conducted its Global HABIT survey of 1 sei-katsu-sha each year since 2000. Conducted in 35 major cities in Asia, Europe and the United States, the survey polls middle- and high-income income earners. Yangon, Myanmar, a market that is currently in the spotlight, was added to the cities polled from the most recent survey (conducted in 2013). We analyze Global HABIT data from a variety of perspectives ves to present hints about potential opportunities in the global marketplace. This report presents findings on how the wealthy and well off in Yangon live. live Sample for analysis: 275 males and females aged 15–54 15 living in Yangon. Monthly household income of at least 500,000 MMK (approx. 50,000 JPY) + SEC A–B (see page 8) Social class segmentation used: A five-strata strata classification system (classes A–E) based on income level and ownership of durable consumer goods based on standards set by a local research company in Myanmar Myanmar. 1. Ownership of “the 3 essentials” (TV TV,, fridge, washing machine) is over 90%, and ownership of a car around 50% Household ownership of TVs and refrigerators is 100%, while ownership of washing machines is 90.5% 90.5%, and air-conditioners 82.5%. However, ownership of voltage regulators and private power generators is also high, due unstable power supply.. In purchase intentions, LCD TVs rate highly. Household ownership of private passengercars passenger is around 50.5%, with some owning 2 2–3 cars. Over 90% of cars were purchased used. Purchase se intention is 61.5%. 2. Personal ownership of smartphones is over 70%. 7 Lower-priced priced models are the most typical Smartphone ownership is 75.3%. In purchase price, 100–199 USD is 44.9% and 200– –299 USD 18.8%. 3. Japanese products have an image of excellent quality. The top 3 Japanese products in purchase intention are passenger cars,, household appliances/ audio-visual visual devices and digital products. There is a trend toward liking products made in Japan. In the top 3 product groups,, products made in Japan are highly popular, with scores scores over 10 points higher tha than those for products made by Japanese companies, regardless of place of production. Meanwhile, Korean products receive high scores for smart/fashionable image and interesting/enjoyable interesting/enjoyable. 4. In media evaluation (access/watch/read/listen to often, enjoyable medium and has reliable information) TV has far and away the highest scores. TV is the highest scoring medium by far in acces/watch/read/listen to often. TV is followed by journals, a paper medium unique to Myanmar, and outdoor billboards. In enjoyable media, TV is No. 1 and journals No. 2. TV is the No. 1 medium for reliable information, tion, followed by newspapers. The Internet is accessed more from smartphone than from computer. 5. Utilities tilities infrastructure is still developing Although electricity supply y is widespread there are frequent outages, and use of water services in the home is around 70%. 1 Since the 1980s, the centerpiece of Hakuhodo’ss philosophy has been sei-katsu-sha insight. Sei-katsu-sha,, which literally means “living person,” stands in contrast to the word Japanese marketers typically use for consumer, shohisha. “Sei-katsu-sha”” expresses the holistic person person—an individual with a lifestyle, aspirations and dreams. All the branding work we do in partnership with our clients follows from sei-katsu-sha insight. Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 1. Durable consumer goods: Home electronics & home appliances Home electronics: Household ownership & purchase intention Household ownership of one or more from among LCD, CRT (color or B&W) and plasma TVs is 100%. In purchase intention, LCD TVs rate highly. Household ownership of DVD players/recorders, laptop/notebook computers, LCD TVs, CRT color TVs, compact digital cameras, fixed-line phones and radio-cassette players is 50% or higher. In purchase intention, LCD TVs are No. 1. (%) 100.0 Own now 98.9 Intend to purchase 90.0 80.0 70.0 60.0 50.0 72.4 65.8 65.8 61.5 52 50.5 44.7 40.0 30.0 20.0 25.8 10.0 0.0 Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 24.4 19.6 13.1 8.4 7.3 7.3 3.3 3.3 3.3 2.2 1.8 0.7 0.7 0.4 0.4 Home appliances: Household ownership and purchase intention One hundred percent of households have one or more from among 1-door, 2-door and 3-door refrigerators, while 90.5% have one or more from among twin-tub, top-loading and front-loading washing machines. 82.5% of households have one or more from among wall-mounted, window-mounted or floor standing air-conditioners. Rice cookers, electric irons, electric fans, 2-door refrigerators, electric kettles, voltage regulators, juicers, wall-mounted air-conditioners, hair dryers and top-loading washing machines all have household ownership rates of at least 50%. Ownership of voltage regulators and private power generators is high due to unstable power supply. In purchase intention, wall-mounted air-conditioners is No. 1. (%) 100 90 80 70 60 50 40 30 Own now 99 Intend to purchase 98 87 75 74 71 71 68 66 52 44 39 37 30 27 20 10 0 Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 25 24 23 23 23 22 22 22 19 18 18 16 14 12 12 10 7 6 5 5 4 3 2 0 0 1. Durable consumer goods: Passenger cars Household ownership of private passenger cars is 50.5%, with some households owning 2–3 cars. Over 90% of cars are were purchased used. Total ownership of passenger cars by SEC A and B is 50.5%. Ownership among SEC A only is 89.1%. And some own 2–3 cars. Over 90% of cars used most frequently were purchased used, with less than 10% purchased new. Household ownership/Purchase intention: Cars Own now Condition of car when purchased (SEC A+B) Intend to (%) New (0 purchase mileage) (%) 8% SEC A/B (n=275) 50.5 61.5 SEC A (n=55) 89.1 50.9 Used (manu- SEC B (n=220) 40.9 64.1 2006 or factured Used (manufactured earlier) Household car ownership 1 car (%) 2 cars (%) 3 cars (%) 77 18 5 0 SEC A (n=49) 75.5 12.2 12.2 0 SEC B (n=90) 77.8 21.1 1.1 0 SEC A/B (n=139) 2007 or 44% 4 or more later) 48% cars (%) Condition at time of purchase of car used most often 2. Smartphones While personal ownership of smartphones is over 70%, most are lower-priced models Personal ownership of smartphones is high, with the total for SEC A and B 75.3%. In purchase price range, 100–199 USD is 44.9% and 200–299 USD 18.8%. Among SEC A, ownership of high-end models is also high, with scores for 500–599 USD 19.6% and 700 USD or more 8.7%. Personal smartphone/mobile phone ownership Own a smartphone Own a mobile phone Do not own either (%) 100.0 90.0 80.0 Purchase price of most used smartphone 700 USD or more 500-599 USD 300-399 USD 100-199 USD 0% 83.6 75.3 73.2 SEC A/B 70.0 20% 3.4 60.0 3.9 10.1 (n=207) 10.1 40% 600-699 USD 400-499 USD 200-299 USD 70-99 USD 60% 18.8 80% 44.9 100% 6.3 2.4 50.0 40.0 30.0 20.0 10.0 2.2 SEC A (n=46) 15.6 11.6 18.2 8.7 19.6 6.5 6.5 11.2 16.1 28.3 23.9 4.3 15 13.6 3.6 SEC B SEC A/B SEC A SEC B (n=275) (n=55) (n=220) Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 3.1 3.7 7.5 (n=161) 0.0 0.6 50.9 6.8 3. Image of Japanese products / Japanese products would like to purchase Image of Japanese products Japanese products have an image of excellent quality. The top 3 responses in image of Japanese products are excellent quality (87.3%), established reputation (76.7%) and safe/secure (67.3%). These are followed by value for money and leading technology (both around 60%) and smart/fashionable (54.5%). The image of American products is, overall, quite similar to that of Japanese products. Korean products receive high scores for smart/fashionable and interesting/enjoyable. (%) 100.0 90.0 Japanese products American products Korean products 87.3 76.7 80.0 67.3 70.0 60.0 60.7 59.3 54.5 50.0 34.9 40.0 30.9 30.0 26.9 26.2 24.7 21.5 20.0 3.6 10.0 0.0 Japanese products would like to purchase The top 3 Japanese products in purchase intention are passenger cars, household appliances/audio-visual devices and digital products. In these three product groups, products made in Japan are highly popular, with scores over 10 points higher than those for products made by Japanese companies, regardless of place of production. There is little difference in the scores for products made in Japan and products made by Japanese companies, regardless of place of production for products ranked No. 4 and lower. Japanese products made in Japan Products made by Japanese companies, regardless of place of production (%) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 86.9 60 81.8 77.1 60.7 64 38.2 40 28 25.8 25.5 20.7 20.4 Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 28 23.3 21.1 21.1 12.7 14.2 18.2 16.4 10.2 8 6.5 8 6.9 4 3.6 4. Media 5. Media evaluation In media evaluation (access/watch/read/listen to often; often enjoyable medium; and has reliable information) TV gets far and away the highest scores. In access/watch/read/listen ccess/watch/read/listen to often, TV is No. 1. Journals, a paper medium unique to Myanmar, outdoor billboards and newspapers follow in 2nd, 3rd and 4th place. In enjoyable media, TV is No. 1 and journals No. 2. No. 1 in has as reliable information is TV, followed by newspapers. Internet is accessed more from smartphone than from computer. (%) 100.0 90.0 80.0 70.0 60.0 50.0 Access/Watch/Read/Listen to often Enjoyable medium Has reliable information 97.5 70.9 62.5 58.9 48.4 40.0 30.0 20.0 10.0 39.3 38.9 34.9 34.5 16.4 12.7 8.7 0.0 8 3.6 1.5 Myanmar has four main newspapers newspapers. They are all owned by the government, decreasing trust in newspapers a little. Journals are weekly newspapers that are mostly published independently and popular. They are divided in into news, business, sports, entertainment and other genres. There are nearly 200 journals in print. Journals on sale on a street corner . Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 5. Utilities infrastructure Utilities infrastructure is still developing. Electricity supply is widespread, but there are frequent outages. Use of water services at home is 70% Almost all households have electricity. However, around 60% of households experience outages at least once a week. Seventy percent of households have running water. Households that do not, use well water. In toilet type, 70.5% have traditional toilets (without seat) and 47.3% Western toilets (with seat). Energy sources used in the home 0.0 20.0 40.0 60.0 Frequency of power outages in area of residence 80.0 100.0 (%) 3% 12% Electricity Nearly every day 17% 3-4 times a week 99.6 LP gas (cylinders) 43.3 About once a week 18% 28% Once or twice a month Less than once a month 22% No power outages Other (kerosene, coal, firewood, etc.) 19.3 Connection to a water service Toilet type 0.0 (%) 20.0 40.0 60.0 80.0 100.0 My water service provides more than enough water 30% My water service provides Traditional toilet 70.5 (without seat) only a limited supply of 66% 4% water Not connected to a water service Western toilet (with seat) Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved 47.3 Reference: Demographics of survey respondents ●SEC social strata evaluation standards vary between research companies, but the most commonly used standard is monthly household income + ownership of household durables (HDs). In assessing ownership of HDs, both type and number of durables owned are taken into consideration. Score of Household Durables 84+ 50-83 22-49 9-21 HH M onthly Incom e (M yanm ar K yats) The breakdown of Yangon’s SEC population based on these standards is: Class A: approx 8%, Class B: approx 33%, Class C: approx. 34%, Class D: approx. 19%, Class E: approx. 6%. ●This analysis defines those with monthly household incomes of at least 500,000 MMK as SEC A–B (see area bolded and shaded pink in the graph on the right). Although the data was not used in this analysis, Global HABIT contains data from respondents in SEC C and above, who have monthly household incomes of 300,000 MMK or more. 0-8 Above 1,000,000 A A B C D 500,001 - 1,000,000 A B C D D 300,001-500,000 B C D D E 150,001-300,000 C D D E E Under 150,000 D D E E E Monthly household income Over 3,000,000 MMK 2,750,0002,999,999 MMK 2,500,0002,749,999 MMK SEC A/B (n=275) SEC A (n=55) SEC B (n=220) 2,250,0002,499,999 MMK (%) 2,000,0002,249,999 MMK 1,750,0001,999,999 MMK 1,500,0001,749,999 MMK 1,250,0001,499,999 MMK 1,000,0001,249,999 MMK 900,000999,999 MMK 800,000899,999 MMK 700,000799,999 MMK 600,000699,999 MMK 500,000599,999 MMK 2.9 1.8 0.4 0 2.2 1.8 7.3 9.8 49.8 1.8 4.7 5.5 5.1 6.9 10.9 0 0 0 5.5 0 10.9 12.7 60 0 0 0 0 0 0.9 2.3 0.5 0 1.4 2.3 6.4 9.1 47.3 2.3 5.9 6.8 6.4 8.6 Highest level of education attained (%) Post-graduate or higher Technical/ Vocational school University Senior high school (11 Junior high school (9- Elementary school (5years of schooling) 10 years of schooling) 8 years of schooling) Unofficial school/Did not complete elementary school SEC A/B (n=275) 18.9 48.7 1.1 24.4 6.9 0.0 0.0 SEC A (n=55) 20.0 61.8 1.8 12.7 3.6 0.0 0.0 SEC B (n=220) 18.6 45.5 0.9 27.3 7.7 0.0 0.0 Working status (%) Full-time (more than 30 hours/week) Part-time (15-30 hours/ week) Less than 15 hours/week Student Homemaker Retired Unemployed SEC A/B (n=275) 50.2 8.4 1.1 15.3 18.2 1.5 5.5 SEC A (n=55) 54.5 5.5 0.0 16.4 20.0 0.0 3.6 SEC B (n=220) 49.1 9.1 1.4 15.0 17.7 1.8 5.9 Job title/Position (%) Company owner (excl. Small company small companies)/ owner (50 Officer (senior employees or management to board less) member) SEC A/B (n=164) SEC A (n=33) SEC B (n=131) Management level Specialist (medical doctor, teacher, accountant, etc.) White-collar worker (office worker) Blue-collar worker (factory worker, sales clerk) Self-employed Civil servant Other 0.0 0.0 6.7 11.0 8.5 8.5 59.1 0.6 5.5 0.0 0.0 6.1 21.2 9.1 15.2 33.3 0.0 15.2 0.0 0.0 6.9 8.4 8.4 6.9 65.6 0.8 3.1 Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved Global HABIT is a comprehensive Hakuhodo survey and database that has grown to cover 35 major cities worldwide since 2000. Survey data is collected every year, enabling not only comparisons between cities, but also time-series comparison of single cities. Single-source Global HABIT surveys probe individual sei-katsu-sha lifestyles, values, media contact, purchase attitudes and use, and perceptions of brands in many categories. This enables analysis not only of brand users, but of brand supporters at differing levels of perception (would consider purchasing, favor brand, brand fans, etc.). Overview of Global HABIT 2013 survey Cities surveyed: Hong Kong; Seoul; Singapore; Kuala Lumpur (Malaysia); Bangkok (Thailand); Metro Manila (Philippines); Jakarta (Indonesia); Ho Chi Minh City (Vietnam); Yangon (Myanmar); Shanghai, Beijing, Guangzhou (China); Delhi, Mumbai (India); Moscow (Russia) The cities Dalian, Shenyang, Wuhan, Chengdu, Hangzhou, Ningbo, Xian, Fuzhou (China); Sydney (Australia); Frankfurt, Berlin (Germany); Paris (France); Milan (Italy); Madrid (Spain); New York, Los Angeles, Chicago (USA); London (UK) and Sao Paulo (Brazil) were surveyed in 2012 or earlier. Respondents: Either 500 or 800 males and females aged 15-54 per city In Shanghai, Beijing and Guangzhou, an additional 1,800 male and female Chinese Power Sei-katsu-sha aged 25–54 with incomes of at least 15,000 RMB are also surveyed. In Delhi and Mumbai, an additional 1,000 male and female Indian Power Sei-katsu-sha aged 25–54 from SEC A2 or higher with monthly household incomes of at least 40,000 INR are also surveyed. Responses were obtained from persons in the middle/high income bracket of each city (50-95% of the urban population) based on screening by household income. Survey period: May–early August 2013 Survey method: In-home interviews (Asian cities other than Hong Kong, Taipei, Seoul; Moscow) Individual interviews at a central location (Hong Kong, Taipei, Seoul) Main items surveyed (some apply only to China and other Asian countries): Demographics and lifestyle Demographics, lifestyles, environmental awareness, country-of-origin image, media/information contact, shopping, hobbies, sports, durable consumer goods ownership, category perceptions, travel, housing Product & service usage Insurance, credit cards, convenience stores, airlines, passenger cars, motorcycles, AV products, home appliances, mobile phones & smartphones, computers & printers, digital cameras & digital video cameras, copiers, watches, game consoles, alcoholic & non-alcoholic beverages, foodstuffs (instant foods, snack foods), toiletries, cosmetics, personal care products, sanitary products & disposable diapers Contact: Ken Odaka, Corporate Public Relations Div., Hakuhodo Inc. Tel: +81-(0)3-6441-6161 E-mail: KEN.ODAKA@hakuhodo.co.jp Global HABIT Ⓒ 2014 Hakuhodo Inc. All rights reserved