The rise of mobile in myanmar

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Share this Intelligence Applied SIM cards used to be a luxury item, costing as much as $2,000 in 2009 and $250 in 2013, but now there are in excess of 25 million cards worth just $1.50, making them readily available for the mass market. What’s more, almost half (46%) of those SIM cards are data- activated, giving many people in Myanmar their own personal connection to the internet for the first time. Walking through the tier one cites in Myanmar, you will see people glued to their screens on public transport and browsing on their phones throughout the day, a huge shift from just a few years ago. These rapid developments in connectivity have created a country of two halves – the older generation who are still very much invested in the traditional way of life, and the younger adults under the age of 25 who are striking out to find their own identity. It’s easy to spot the slow but sure march of change. Fashion is a key indicator – while the older generation still favour the customary longyi attire, the younger generation are adopting western clothes. Hemlines are rising gradually, signifying a more relaxed and less conservative frame of mind. The rise of mobile in Myanmar Foreign businesses began their journey in Myanmar in 2011 when the country opened up to the outside world. Since then, the landscape has presented an unpredictable but exciting opportunity for marketers. As the people of Myanmar begin to have greater interaction with the rest of the world through increased tourism and access to media and technology, attitudes and aspirations are starting to change. However, there are many essential elements that still make it a very distinct market. In this very traditional society, the impact of two new telecoms providers, Telenor and Ooredoo, who joined a largely disconnected market 12 months ago, has been momentous. Intelligence Applied Asia Pacific 2 new telecoms in 2014 25 million SIM cards worth $1.50 46% SIM cards data-activated

Transcript of The rise of mobile in myanmar

Page 1: The rise of mobile in myanmar

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SIM cards used to be a luxury item, costing as much as $2,000 in 2009 and $250 in 2013, but now there are in excess of 25 million cards worth just $1.50, making them readily available for the mass market.

What’s more, almost half (46%) of those SIM cards are data-activated, giving many people in Myanmar their own personal connection to the internet for the first time. Walking through the tier one cites in Myanmar, you will see people glued to their screens on public transport and browsing on their phones throughout the day, a huge shift from just a few years ago.

These rapid developments in connectivity have created a country

of two halves – the older generation who are still very much

invested in the traditional way of life, and the younger adults

under the age of 25 who are striking out to find their own identity.

It’s easy to spot the slow but sure march of change. Fashion

is a key indicator – while the older generation still favour the

customary longyi attire, the younger generation are adopting

western clothes. Hemlines are rising gradually, signifying a more

relaxed and less conservative frame of mind.

The rise of mobile in Myanmar

Foreign businesses began their journey in Myanmar in 2011 when the country opened up to the outside world. Since then, the landscape has presented an unpredictable but exciting opportunity for marketers.

As the people of Myanmar begin to have greater interaction with the rest of the world through increased tourism and access to media and technology, attitudes and aspirations are starting to change. However, there are many essential elements that still

make it a very distinct market.

In this very traditional society, the impact of two new telecoms providers, Telenor and Ooredoo, who joined a largely

disconnected market 12 months ago, has been momentous.

Intelligence AppliedAsia Pacific

2 new telecoms in 2014

25 million SIM cards worth $1.50

46%SIM cardsdata-activated

Page 2: The rise of mobile in myanmar

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Brands are not ubiquitous in Myanmar – Coca-Cola has only been manufactured in the country since 2013 – and much advertising has been focused on attracting those based in cities. However, this rapid mobile adoption, particularly amongst this cohort of young adults, gives brands a way to connect directly with consumers in Myanmar.

As a result, many are now looking beyond the metropolitan centres of Yangon and Mandalay to more rural areas. Big global players such as Unilever and Coca-Cola have already been using mobile marketing and social media channels to target less affluent consumers and ensure a broader reach across the country.

Yet before brands consider trying to attract the nation’s large population of young people using tried-and-tested Western methods there are cultural and social considerations to keep in mind. Successful brands will need to ingrain their products into the way of life and tailor their marketing strategies according to the evolving identity of Myanmar.

Like their parent’s generation, young people in Myanmar still have a strong moral compass. Despite the desire to create a visually different identity, they are still very engaged in the deep-rooted and longstanding traditions. Communities are tightly-knit, and tea

shops and markets are still the heart of the neighbourhood.

Financial stability is front of mind, and now considered more important than personal health. Finding a prestigious job is a key motivation for young consumers, who will go out of their way to connect with brands that help them develop their experience.

As a country with higher literacy levels than some of its neighbours, education is held in high regard. It is a growing priority for families with over a tenth of income being spent on it. This means that brands linking their products to education and aspiration will be appealing to the fledgling population.

It also provides brands with a wealth of home-grown talent.

Companies can now look to the schoolhouse for budding future

employees, digital natives who are able to not only bring new

expertise to the workforce, but also ensure that the business

strategy is harmoniously aligned with the culture of Myanmar.

Thanks to the rise of mobile, the next few years are set to be an

exhilarating time for brands in Myanmar. But in such a fast-paced

frontier market, brands must not ignore the sensitivities that make

the country unique if their path to market is to be a smooth one.

About the authorJason Copland is managing director of TNS in Myanmar; he has over 18 years consumer insight experience - including 10 years in Myanmar. Jason joined TNS in October 2012 and has established a full service team - client service, fieldwork, operations and qualitative - based in Yangon and helping diverse clients to understand people across the country.

About TNSTNS advises clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups.

Please visit www.tnsglobal.com for more information.

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The rise of mobile in Myanmar

10%

56% under the age of 29

of income spent on education