Myanmar consumers go on spending spree

Myanmar consumers are buying more and more flat-screen TVs, refrigerators and washing machines each month as the country’s economy strengthens following its liberalisation.

In a study in the Mandalay and Yangon regions, commissioned by market information company GFK Asia, nearly 152,000 TVs were bought in the first quarter of 2016, generating sales totalling more than US$36 million.

While 49 per cent of market demand was skewed toward 32” LED TV models in the quarter, the 40-43” segment grew from 12 per cent in January to 20 per cent of total sales in March. The trend was similar for the full-HD and UHD segments, in a market largely made up of HD ready-only models (55 per cent).

GFK Southeast Asia MD Stanley Kee says there was “robust” buying in the months leading up to the Burmese new year last month. “This is an important period for retailers as aggressive efforts to drive sales are in full force.”

While 38 per cent of TV units sold were in the $200-300 price range, GFK found a consecutive monthly incremental demand for TVs priced $400 and above, with the volume share nearly tripling from 5 per cent in January to 15 per cent in March. In value terms, the segment accounted for 36 per cent of entire TV sales that month alone. Overall, smart TVs made up less than 7 per cent of TV sets sold.

In the refrigerator market, the number sold in March more than doubled the combined total sales in January and February, netting $6.9 million within a single month. One-door fridges dominated (65 per cent of sales volume), while 34 per cent were two-door, freezer-top models. Consumers spent $21.5 million on nearly 116,000 units in the quarter.

Meanwhile, more than 59,000 washing machines worth nearly $10.5 million were bought in the period – 70 per cent single-tub washers and the rest double-tub models.