How the wealthy and semi-wealthy in Yangon

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