AEON ORANGE CO, a joint venture between Aeon Co and Creation Myanmar Group of Companies, has acquired assets including 14 supermarkets operated by Hypermart Asia Co, an affiliate of CMGC, and started operating in Myanmar on Monday.
Aeon Orange Co was established in April. It is preparing to open its first supermarket in Myanmar this year.
With the economic liberalisation following the transition to civilian government, the modernisation of Myanmar’s retail industry has proceeded, while the middle-class population has been on the increase, the company says.
With a population of 53 million, the real economic growth rate in the country is 8.3 per cent, exceeding the average growth rate among five developed nations in Asean, while further growth is expected to accompany the country’s integration within the region. Myanmar continues to grow quickly.
CMGC operates 14 supermarkets, mainly in Yangon, the largest city in the country, and it has licences to sell more than 20 foreign brands including Adidas and Mango, operating about 130 speciality stores and real-estate businesses as well.
In the supermarket business, focusing on community-based management, CMGC has strengths such as merchandise procurement capability inside and outside the country, according to a press release by the company. It says it meets the needs of the region for processed and non-food products as well as know-how in developing stores of various sizes depending on the regional characteristics, from central city to suburb.
Aeon promotes a group-wide growth strategy under the shift to Asian markets in Asean and China.
In Myanmar, Aeon Microfinance (Myanmar) Co, established in 2012, began developing a consumer-finance business in 2013 as the first Japanese company to do so. In 2014, Aeon established a representative office in Myanmar, and has conducted research on developing retail business in the country.
To develop business in a speedy manner in this fast-growing market, Aeon says it believes that cooperation with CMGC is indispensable, as it has the retail-business infrastructure in the country and is also familiar with customer needs that differ from region to region.