Current Situation of the Retail Industry in Myanmar

Question: Discuss about theCurrent Situation of the Retail Industry in Myanmar. Answer: Introduction With the recent changes in the overall situation of Myanmar, it has been learnt that the retail industry of the country has been largely affected. Some of the most important factors that have led to considerable amount of changes in the retail sector include political, economic, technological and social. This paper will focus on the effects of these factors on the retail industry and how the effects will shape up the industry from the futuristic perspective. Political, Technological, Social and Economic Environment The Political, Technological and Economic Situation in Myanmar is highly entangled and interrelated. Since the three scenarios are affected by each other, the instability of one part of the environment directly affects the other. The instability of the current situation of the country has led the people face a number of troubled situations. Where other Asian countries are drawing high amount of attention in terms of foreign investment and growing largely, the instability of the political conditions of the country are posing trust factors among investors. In 2015, a number of protests against laws passed by the government had been witnessed that led to police clashes with students, monks and media personnels (Tay and Tan, 2015). Apart from this, the county has illustrated many ethnic issues in the past and the current situation is also unstable. All these factors are leading to an increasing amount of fear with the foreign investors that directly affects the retail industry in the country. Furthermore, it is noted that the laws and policies of the country are not updated enough to comfort foreign investment, retail industry and economic development at the end of the day (Tay and Tan, 2015). An important point to be taken into consideration is the lack of knowledge among the country regarding software issues. It has been noted that the Software industry lacks experts and professionals and demands a large number of investment for it to grow considerably. Since the government does not have adequate amount of resources and policies to facilitate the growth of the sector, it remains largely unchanged, thus affecting the overall performance of the varied industries (Tay and Tan, 2015). Shifting focus to the finance sector, small and medium sized companies are complaining largely on account of absence of loan facilities and financial aid in order to grow their respective businesses. Since the retail industry directly falls under the category of the small sized enterprises, it has become increasingly difficult for individuals or small business owners to set up their business amid political, economic and financial disturbances time and again. The government of Myanmar has only allowed large organizations to gather reserves while putting little focus and importance on the growth of the retail and small scale industries (Tay and Tan, 2015). According to experts, the country needs more steady and focused form in order to grow from the perspective of business. The development needs to be rapidly done in order to ensure that the retail industry grows as quickly as possible (Tay and Tan, 2015). On the positive front, it has been noted that the economy of Myanmar is set to boom in the next few years. It is estimated that the consumer class shall increase to 19 million people by the end of 2030 which poses a great opportunity for foreign investment and retail sector largely. Furthermore, the country has been moving on the path of democracy after years of authoritarianism. Reforms and new policies are already under action for the purpose of an open market and a boom in the varied industries (McKinsey Global Institute, 2013). Lastly, the retail industry is set to put a foot in the development phase with the organization of Retail Expos that showcases the strengths of the retail industry and has been organized in order to give a substantial amount of growth to the sector. Supermarkets, hypermarkets and shopping complexes are on a rise in the country which are indeed giving a new hope to the retail industry of the country a brand new face. From the social perspective as well, peo ple are vouching for a change in lifestyle and increase in the retail industry in order to improve the standard of living and experience the goodness of international products of varied nature. Hence, from the social perspective as well, Myanmar is on the verge of change and exponential growth in the years to come (Myanmar Retail Expo, 2016). Although the statistics have proven that the country has done well in the past in terms of GDP and overall growth in the industrial and retail sector; however, it has also been learnt that the political and economic instability of the country is posing limitations on the growth of the sector. With issues identified in the infrastructure i.e. roads and transportation facilities and electricity provisions, the government needs to put a large focus on the development of all these factors in order to ensure growth in the retail industry of the country in the coming years (Anonymous, 2016). Conclusion From the above analysis, it can be easily concluded that although the recent reports on Myanmar are not available; however, keeping in view the reports published in 2015 and the past clearly suggest that since the Political situation in the country is improving, it is speculated that the other sectors will see vast amount of steady development in the coming years. With the increase in the number of consumers and the promising nature of the market of Myanmar, it is speculated that the country is yearning for a high amount of investment from the Western Countries that will assist the country in growing at a rapid rate. Taking this into consideration, it is important to note that the new reforms in the economic and financial sector are also set to welcome the growth that the retail and industrial sector of the country demand today. Hence, like all its neighbors, Myanmar is attracting development and has proven to be a promising market for investors across the globe leading to a brighter future for the people of the country. References: Anonymous. (2016). The Report: Myanmar 2016. Oxford Business Group. Tay, S. and Tan, C. (2015). The Political and Economic Challenges of Myanmars Future. Myanmar Times. McKinsey Global Institute. (2013). Myanmars Moment: Unique Opportunities, Major Challenges. Mckinsey and Company. Myanmar Retail Expo. (2016). Introducing 1st International Exhibition for Retail Business in Myanmar.