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Myanmar is notoriously difficult to enter with substantial infrastructure challenges, a nascent retail environment and cash-only trading environment. It takes time to build brands in this country which is twice the size of Vietnam. But Beiersdorf, a leading personal care company, found in DKSH a partner that could unleash the opportunities of the market by growing the sales of new and existing products across their entire product portfolio.
DKSH and Beiersdorf started collaborating in 1997; two years after DKSH entered the country as the first Market Expansion Services provider in Myanmar. Instead of only focusing on the easier to reach city of Yangon – where one third of business potential lies – DKSH quickly realized that a significant potential for Beiersdorf lies in the more remote areas of Myanmar. It therefore began building up an unrivalled distribution network to reach over 28,000 mom-and-pop stores, drug stores, hospitals, clinics and supermarkets nationwide. Today, DKSH still serves a vast majority of these customers directly, which reduces out-of-stock situations and increases transparency for its clients.
To further grow sales for Beiersdorf, DKSH helps turn shoppers into buyers via in-store marketing and sales activities for the NIVEA brand. DKSH manages more than 200 brand ambassadors who help educate consumers at the point of purchase through various activities. Beiersdorf meanwhile leads the role of creating demand and penetration among Myanmar’s consumers. The DKSH teams are supported by modern technology. Sales staff works with DKSH’s proprietary sales force automation tool since 2006.
Beiersdorf’s brands today have an exceptionally strong position in Myanmar. NIVEA has grown into the largest skin care brand in the country with more than half of the skin care market share and enviable brand recognition. Hansaplast is nearly synonymous for “plaster” in Myanmar.
The relationship between Beiersdorf and DKSH in Myanmar has continued to evolve with market changes. Many multinationals are now attracted by the recent opening of the economy and rising purchasing power of Myanmar’s consumers. Despite this increased competition, DKSH and Beiersdorf have managed to maintain and, in some cases, even increase market share for Beiersdorf’s products.
Market Expansion Services at work: maximizing growth in new and existing market
DKSH uses its in-depth knowledge of the local market, capillary network of unique scope and depth, and marketing and sales capabilities for Beiersdorf in Myanmar. We operate as a team with our clients to expand the market and bring continuous success in new and existing markets.