Will a Franchise in Myanmar Work?

Franchises are supposed to be businesses in a box that can work anywhere right? Not really. A lot of factors go into bringing a franchise to a new country.

Here are some things to think about:

1. Does my franchise meet a need in the new market?
2. Who is my customer?
3. How many of those customers exist in the country?
4. How many of those customers that exist will buy my product?
5. Does the franchise fit the tastes of the locals?
6. Can the local population afford the product that my franchise offer?
7. How many franchise locations can the market handle?

In regard to Myanmar, it is an economy with a growing middle class. It is poised to grow again by 7% in 2020. The population is young and is hungry for new experiences as well as brands from the outside world. They know about Asian clothing and food brands as it’s already easy to travel within ASEAN as well as their obsession with Korean culture. There is a lot of potential for the right franchises. Franchises from the U.S., Singapore, and Korea have found success in Myanmar in a very short time. It is still early to get into the market.

There are things however that can make it difficult for a franchise to survive in Myanmar.

Here are a few:

1. Large young population eager for opportunities also can seem to have little direction as they seek to learn through different working experiences. If they learn something well enough at a job they can often jump to another business for another experience or they can branch off to start their own business. For low income people especially there still can be a gap in their understanding of their role in a company and the need for them to be dependable. They can often not show up for work without giving a reason or quit without notice.
2. Import rules and regulations have been fluctuating a lot over the past few years. Some things can be found some months but not other months. The master franchiser will need to solve the problem of having a consistent source of product in the stores.
3. People can be price sensitive depending on what they are spending money on. People can splurge on going out to eat and on a number of things but they may not spend top dollar for things that they don’t really need.
4. Finding strong enough companies to grow the franchise. We actually can help with this. There are now a lot of business owners looking for franchises. We can connect you to the right people.

To conclude, there are many franchises that have entered the market in the last 3 years. Many of the franchises are focused on food and beverage. There is room for all kinds of franchises in Myanmar that are focused on different sectors. Let us know how we can help you find a franchise and partners.

Written By- Charles Ryan Russell (CEO of Myanmar Business Answers)