Medicare

Medicare is a modern pharmacy, health and beauty retail franchise chain in Myanmar.

Overview

  • Medicare has established a chain of 14 stores in Yangon with more in the pipeline
  • Medicare is a modern and professional pharmacy, health, beauty and personal care store chain which is a new concept in Myanmar but is proven in other ASEAN markets
  • Consumer spending is expected to triple from US$35 billion to US$100 billion by 2030
  • The joint venture was set up with Medicare Vietnam, an established retail group which runs a leading pharmacy, health and beauty retail chain in Vietnam, and Randy Guttery, an industry veteran with significant experience leading Asian-based retail concepts including Wal-Mart in Korea and India, VinMart in Vietnam and Reliance Markets in India

Invested: US$1.9 million, planning to increase this to US$5 million
Date of initial investment: 4 May 2017
Effective interest held by MIL: 48.1%

Business attraction / Investment thesis

McKinsey has predicted that the middle and affluent classes in Myanmar are set to boom in the coming years, with the segment growing to 19 million people by 2030 and tripling consumer spending from US$35 billion to US$100 billion. Elsewhere in Asia the trend has been that consumer spending on semi-necessity items, especially health related goods, grows sharply with this increase in discretionary spending.

Investment

Having thoroughly investigated the sector in Myanmar, MIL identified a significant gap in the market for a modern and professional pharmacy, health, beauty and personal care retail outlet. MIL, therefore, conducted a regional search for suitable joint venture partners for this start-up business.

In May 2017, MIL set up a joint venture with two partners to introduce this concept, which whilst it is new to Myanmar is already proven in other ASEAN countries such as Thailand and Vietnam:

  • Medicare Vietnam, which is the largest pharmacy, health, beauty and personal care retail group throughout Vietnam, with over 80 outlets. Medicare Vietnam has built up a reputation with customers for genuine, affordable everyday health and beauty necessities. Medicare Vietnam brings a proven franchise-operating model to Medicare with all the supporting marketing skills, inventory and supply chain management, HR development, operating systems, know-how, technical support and training. The well-known “Medicare” brand name gives Medicare a head start, especially when coupled with their own brand and exclusive products; and
  • Randy Guttery, a highly experienced senior executive with many decades’ experience in leadership roles at Asian-based retailers in nine countries including Wal-Mart in Korea and India, VinMart in Vietnam and Reliance Markets in India.

MIL has invested US$1.9 million to-date and holds a 48.1% stake in MIHB and plans to take this investment up to US$5 million over the next few years as the business expands.

MIL value added

As a proactive Myanmar-based investor, MIL has been engaged with the company both operationally and strategically including on the ground support including site selection, making local introductions, staff recruitment and setting up the financial systems and controls.