Issue 56

A Thai pioneer reveals the secret to business success in this fast growing ASEAN economy.

Myanmar may be a budding potential market for many foreign investors, but it is a second home for Kich Aungvitulsatit, the managing director of Excellent United International, the exclusive distributor of 14 popular Thai and Japanese consumer product brands in this developing country.

Aungvitulsatit entered the Myanmar market in 1990 by distributing Red Bull energy drink and the canned fish in tomato sauceThree Lady Cooks. Now his company distributes 14 brands in total such as Thai energy drinkSponsor, Singhasoda water, Japanese mosquito repellentARS, and Thai herbal toothpaste and personal care productsTwin Lotus.

“Thai products are popular among Myanmar people because of their high quality at an affordable price,” he says. “However, Thai businesses should not be overconfident because competitors are also improving their product quality, and now some of their products are a similar quality to Thai products.”

Currently, the company has offices in Yangon, Mandalay and Myawaddy with about 150 staff including 12 Thais. The company directly distributes products through supermarkets, convenience stores and shops in Yangon and nearby towns, and it appoints sub-distributors to do likewise in other provinces. Aungvitulsatit targets having 30 sub-distributors and more than 300 supermarkets and convenience stores within his distribution network by 2017.

“Myanmar has a high demand for consumer products, construction materials, machinery for the agricultural sector, fertilisers, insecticides and seeds,” he adds. “Although Myanmar is a land of great opportunities, some factors including the poor logistics infrastructure, costly land and shortage of skilled labour are big challenges for doing business in the country.”

Data from Thailand’s Ministry of Commerce shows that Myanmar is Thailand’s 18th largest trading partner. In 2015, trade between the two countries was registered at US$7.74 billion, of which US$4.17 billion was in exports from Thailand to Myanmar. Major export products include fuel, beverages, machinery, cement, steel and steel products, chemicals, automotives and automotive parts, and consumer products.

To tap this frontier market, Aungvitulsatit advises companies comply with the country’s rules and regulations, and learn the Myanmar culture to understand consumers’ behaviour and lifestyles. “Product demonstration is the best method to create brand awareness in Myanmar. Marketers should focus on below the line marketing activities.” he suggests.

Aungvitulsatit believes that in the next 10 years, Myanmar will have a better business environment, with effective laws and more affordable land, making it the perfect time to enter the market. However, he advises caution for anyone planning to enter the market now.

“You must be determined, patient, work hard and never give up before achieving your goal,” he says. “Moreover, you should help develop the areas where you are doing business. When you have any doubts, seek advice from existing foreign investors in the market.”

For more information, please visit www.euithailand.com

Words by Somhatai Mosika