|By Marketwired .||
|December 18, 2013 04:00 AM EST||
HO CHI MINH CITY, VIETNAM -- (Marketwired) -- 12/18/13 -- The middle and affluent class will double in size in Vietnam and Myanmar between now and 2020, according to a publication by The Boston Consulting Group (BCG).
Consumers in these two Southeast Asian countries are also among the most optimistic in the world -- more optimistic than even their counterparts in China, India, Indonesia, and other fast-growing emerging markets.
More than 90 percent of all consumers in Vietnam and Myanmar, for example, believe that their children will have a better life than they themselves. By comparison, the share of consumers who share that belief is more than 20 percentage points lower in China, India, and Indonesia.
By 2020, there will be more than 30 million middle and affluent consumers in Vietnam and about 10 million in Myanmar. "Companies that invest in Vietnam and Myanmar now have an opportunity to build businesses, brands, and momentum early in the development of these formerly closed economies -- but only if they have a solid understanding of these markets' consumers and how to satisfy them," said Douglas Jackson, a BCG partner based in Ho Chi Minh City and co-author of Vietnam and Myanmar: Southeast Asia's New Growth Frontiers.
Vietnam has been on the upswing for 20 years, and that trajectory has steepened since 2007, when the country joined the World Trade Organization. Few Vietnamese consumers, however use banking products other than a savings account. Only 5 percent own a credit card, for example. Rich, poor, or in between, Vietnamese enjoy the hunt for deals, discounts, and promotions, more so than consumers in Thailand or Myanmar.
Myanmar's emergence from economic isolation is more recent and provides a rare opening for companies to reach a small, undeveloped, but rapidly growing market. Only about one-quarter of consumers go on vacation and fewer than four out of ten frequent restaurants.
Consumers in Myanmar frequently buy entertainment products, however, especially VCRs, before they buy consumer durables. The uncertainty of electrical service discourages the use of expensive appliances, and the lack of movie theaters and other entertainment venues encourages at-home options. For example, 53 percent of urban consumers own a mobile phone but only 18 percent own a washing machine.
"If Vietnam is a here-and-now opportunity, Myanmar is a more long-term play. The market is still developing, so there is time to learn and be focused in your strategy," said Tuomas Rinne, a BCG partner and co-author of Vietnam and Myanmar: Southeast Asia' New Growth Frontiers.
The report grew out of a desire to understand middle and affluent consumers in Vietnam and Myanmar and help companies win them over. BCG's Center for Consumer and Customer Insight (CCCI) conducted primary research in both countries. In order to project the growth of consumers and their spending in, the CCCI analyzed population and income trends in nearly 1,400 districts in Vietnam and nearly 75 provinces in Myanmar. It also surveyed 2,000 urban consumers in Vietnam and 1,000 urban consumers in Myanmar about their purchases in 20 categories of consumer goods.
A copy of the report can be downloaded at www.bcgperspectives.com.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or email@example.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 78 offices in 43 countries. For more information, please visit bcg.com.
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.
About BCG's Center for Consumer and Customer Insight
The Boston Consulting Group's Center for Consumer and Customer Insight (CCCI) applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. The center works closely with BCG's various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. In the course of its work, the center has amassed a rich set of proprietary data on consumers from around the world, in both emerging and developed markets. The CCCI is sponsored by BCG's Marketing & Sales and Global Advantage practices. For more information, please visit http://www.bcg.com/expertise_impact/capabilities/center_consumer_customer_insight/
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