www.ChinaSourcingReports.com

Myanmar supplier profi lesDetailed profi les of 19 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 168 top-selling export products ranging from shirtdresses to ski jackets

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

December 2013US$150

GarmentsEssential sourcing intelligence

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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GARMENTSSupplier capability in Myanmar

Although confronted by several challenges stemming from infrastructural and technological limitations, the garments industry in Myanmar is facing bright prospects over the coming year.

The sector is undergoing a transformation as it benefits from political and economic reforms being implemented by a newly democratic government. Because of these developments, the country is seen to restore and expand trade with large economies in the West, specifically the US and the EU. In addition, prominent apparel brands have shown interest in sourcing from domestic suppliers.

Despite the barriers it is encountering, the industry has a number of strengths. The labor cost in Myanmar is one of the lowest in Asia, making it a cost-effective alternative sourcing hub. Attractive investment schemes are also being established to pull in foreign capital.

Objective, methodology & scope

1. Due to the industry’s limitations, Myanmar suppliers generally adopt cutting, making and packing, or CMP manufacturing. This method uses only the most essential steps to assemble garments and excludes other processes regarded as standard in other locations, such as designing and QC.

2. Companies featured in this report largely expect prices to rise over the next six months as a result of increasing production expenditure. Adjustments are forecast to be small so as not to compromise competitiveness.

3. Growth in overseas revenue is generally seen to be driven by orders from the Asia-Pacific region. Enterprises anticipate, however, that shipments to the EU will expand considerably as Myanmar widens its

Key findings

Executive Summary

In this report

• 19 in-depth company profi les• 168 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

This Myanmar Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Myanmar in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different classifications of garments available in Myanmar, including casual wear, baby and children’s apparel, sportswear and formal clothing. Each product category has its own price guide that describes features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Myanmar.

The Products & Prices section details the features and price ranges of garments. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured.

doors to members of the association. Exports to the US are projected to climb only slightly in 2014, although it is estimated to surge significantly over the next few years.

4. The most critical challenge facing the industry is the low availability of workers skilled in various production processes. Since the supplier base grows constantly as domestic companies are increasingly being established, Myanmar’s labor pool, which is small to begin with, is reduced even more.

5. Yangon is the principal manufacturing center in the country because of its developed transportation system. Industrial areas in the regions of Bago and Ayeyarwady also host numerous factories, especially foreign-invested ones.al.

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4 Myanmar Sourcing Reports

CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-8245-03-1

Contents

EXECUTIVE SUMMARY 3 Key fi ndings Objective, methodology & scope

INDUSTRY OVERVIEW 9 Country facts Exports

Products & prices 11 Production & export statistics Typical parts & components Price guides

Supplier survey 18 Export prices Export sales Export markets Major challenges R&D focus

SUPPLIER PROFILES 21 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 19 verifi ed suppliers

PRODUCT GALLERY 67 Casual wear Baby & children’s wear Underwear & sleepwear Sportswear Formal wear

CONTACT DETAILS 99

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19 verifi ed suppliersuppliers

ODUCT GALLERY DUCT GALLERYe peCasual wearwearBaby & children’s wearBaby & children’s wUnderwear & sleepwUnderwear &SportswearSportsweFormal weFormal w

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www.ChinaSourcingReports.com 9

Country facts

Capital YangonArea 676,578sqkm (40th)

Population 55.2 mn (24th)Median age 27.2 years

Government Unitary presidential constitutional republicAdministrative divisions 7 regions and 7 states

Labor force 33 mnUnemployment rate 5.4% GDP $89.2 bn (77th)GDP per capita $1,400 (205th)GDP growth 6.2%Infl ation rate 3.1%

Total exports $8.5 bnKey export industries Natural gas, wood products, pulses, beans, fi sh, rice, garments and gems

Figures in italics denote rank in world. All figures as of 2012 unless otherwise specifiedSources: CIA The World Factbook, The World Bank & Asian Development Bank

Myanmar

Industry Overview

Industry Overview

Garment exports from Myanmar are gradually gaining momentum as overseas demand soars steadily.

Statistics from the Ministry of Commerce show that outbound shipments in fiscal year 2012-13 surged 12 percent to roughly $648 million. This was after the line posted a 53 percent improvement from the previous period. Robust sales from East Asia, particularly China, Japan and South Korea, contributed mainly to the growth. Stronger demand in the EU also boosted income.

Suppliers anticipate more orders abroad in 2013-14 amid the series of economic and political reforms undertaken by the national government. The developments are expected to have a significant impact on the sector, which was plagued by sagging revenue during the junta rule. Due to trade sanctions imposed by the US on Myanmar from 2003 to 2012, earnings of garment makers plummeted resulting in the closure of many enterprises.

As Myanmar widens its doors to international trade, shipments are predicted to reach at least $1 billion in 2014-15. The upbeat outlook comes as the EU in April lifted all embargoes, except for arms and ammunitions. Myanmar was readmitted to the bloc’s Generalized System of Preferences in September, allowing the industry to benefit from lower export duties. The EU accounts for nearly 20 percent of the country’s apparel sales, with Germany, the UK, Spain and France as the top markets.

The US has also announced the gradual easing of economic restrictions after Myanmar shifted to a civilian democracy. Major brands such as Gap, Nike and adidas have already expressed interest in sourcing from domestic suppliers. Currently, a third

party is required as an intermediary for shipments to the US because local companies only engage in cutting, making and packing, or what is commonly known as the CMP system.

Competitive advantagesInexpensive labor cost is the industry’s primary strength. Workers in Myanmar receive a monthly pay of at least $32, which is the lowest rate in the Asia-Pacific region. Employees in Bangladesh get $37 per month. Salaries in Sri Lanka, Cambodia and Vietnam start at $85, $90 and $97, respectively.

Favorable investment programs are also helping draw in overseas capital to the country. As part of its economic reforms, the government implemented the Foreign Investment Law in November 2012. The directive allows companies based abroad to fully own ventures, and offers tax incentives and land leases. It also permits business cooperation with state-owned and

private enterprises.

The line also benefits from the strong support given by trade organizations. The National Export Council in Myanmar and the Myanmar Garment Manufacturers Association or MGMA have been strengthening efforts to promote domestically made garments to more overseas buyers. Their projects include holding exhibitions and fashion shows aimed at showcasing the latest apparel releases.

Another advantage possessed by the industry is acceptance of small orders. Most enterprises allow an MOQ of 500 pieces or pairs, depending on the product type. In contrast, the minimum order requirement in other sourcing centers in Asia is at least 1,000 pieces.

ChallengesThe sector is confronted by a number of roadblocks that hinder its steady progress. Chief of these is the shortage

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22 Myanmar Sourcing Reports

Supplier Profiles

SUPPLIER MATRIX

Company Year established

Head office location

Factory location(s)

Ownership Full-time employees

Part-time employees

Best Industrial 1994 Yangon (Yangon)

Yangon (Yangon)

Foreign-invested

435

Bravo 2011 Yangon (Yangon)

Yangon (Yangon)

Locally owned

368

Famoso 2002 Nagoya (Japan)

Yangon (Yangon)

Foreign-invested

1,100

Hallmark 2011 Yangon (Yangon)

Yangon (Yangon)

Locally owned

890

Hercules 2000 Yangon (Yangon)

Yangon (Yangon)

Locally owned

1,100

Maple 1996 Yangon (Yangon)

Yangon (Yangon)

Locally owned

800 100

Morning Sun 2000 Yangon (Yangon)

Yangon (Yangon)

Locally owned

700

Myanmar Mindun 1996 Yangon (Yangon)

Yangon (Yangon)

Locally owned

500

Myanmar SMC 2000 Yangon (Yangon)

Yangon (Yangon)

Foreign-invested

473

New Green Land 2007 Yangon (Yangon)

Yangon (Yangon)

Locally owned

1,500

Opal 1996 Yangon (Yangon)

Yangon (Yangon)

Locally owned

2,000

Rising White Tiger 2013 Yangon (Yangon)

Yangon (Yangon)

Locally owned

265

Shwe Zarmani 2002 Yangon (Yangon)

Yangon (Yangon)

Locally owned

150

Success Creator 1995 Yangon (Yangon)

Yangon (Yangon)

Locally owned

800

Super Garment 1999 Yangon (Yangon)

Yangon (Yangon)

Foreign-invested

450

Tek Nay Wunn Ni 2011 Yangon (Yangon)

Yangon (Yangon)

Locally owned

240

UMH 1996 Yangon (Yangon)

Yangon (Yangon), Hpa-an (Kayin)

Locally owned

2,400

World Full’s 2001 Yangon (Yangon)

Yangon (Yangon)

Locally owned

150

YJ 2010 Yangon (Yangon)

Yangon (Yangon)

Locally owned

700

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26 Myanmar Sourcing Reports

Supplier ProfileSupplier Profiles

Capability

Contact details

Best Industrial Co. Ltd

Annual sales $300,000 Share of total sales 100% Annual export sales $300,000 Total monthly capacity 35,000 pieces Average monthly output 35,000 pieces Capacity utilized 100% Average monthly exports 35,000 pieces Export ratio 100% Major export customers Asahi Kasei (Japan) El Corte Ingles (Spain)

Company facts

Year established 1994 Head offi ce location Yangon (Yangon) Factory location(s) Yangon (Yangon) Ownership Foreign-invested Full-time employees 435 Total annual sales (all products) $300,000

Sales & output: Garments

Materials used Cotton ✓

Polyester ✓

Nylon ✓

Wool ✗

Spandex ✓

Other ✗

Exports by product Casual wear 95%Baby & children’s wear 5%Underwear & sleepwear –Sportswear –Formal wear –

Exports by market North America –EU 20%Europe (non-EU) –Asia-Pacific 80%Middle East –Other –

Best Industrial was established in 1994. It is a joint venture with a South Korea enterprise, which owns 66 percent of shares. Total annual revenue reaches $300,000.

The main market is Japan, accounting for 80 percent of shipments. Products go to customers in Tokyo and Osaka. The rest is absorbed by Spain.

The low end and midrange are emphasized. Rainwear and pants are the best-sellers. Prices start at $1.50 and reach $6.

Cotton, polyester, polar fleece and nylon are the materials used. Raw inputs are mostly from buyers, who also provide the designs.

Best Industrial has a 2,132sqm factory in the Shwe Pyi Thar town of Yangon. All manufacturing processes are done in-house. The plant is equipped with cutting and sewing machines from

Japan, China and South Korea. The total monthly output is 35,000 pieces.

The supplier has 435 full-time staff members, including a 12-person QC team and 14 workers maintaining the machinery.

Inspectors check all textiles prior to cutting. Five personnel monitor the sewing lines. Garments are then subjected to the final stage of QC.

Polybags and cartons are the main types of packaging used. The minimum order requirement is 3,000 pieces or pairs. Delivery is usually within 30 days, depending on shipment volume.

Best Industrial is a member of the Myanmar Garment Manufacturers Association, Union of Myanmar Federation of Chambers of Commerce and Industry and Myanmar Industries Association. Upcoming releases will feature improved fit and performance.

Business contact MYAT Yadanar

Phone (95-1) 664-804

Fax (95-1) 663-550

E-mail yadanarmyat01@gmail.com bestind@mptmail.net.mm

URLwww.globalsources.com/bestind. co

Address 107, Room A/42, Kha Yae Street, Industrial Zone 1, Shwe Pyi Thar, Yangon, Yangon, Myanmar

INQUIRE NOW

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www.ChinaSourcingReports.com 27

Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model: Boy Padding JacketMOQ: 5,000 piecesPackaging: Polybag, cartonDelivery: 75 daysPrice: $1.50 to $6Description: Winter jacket; cotton shell and polyester lining; in various colors and sizes

Model: Lady Polar Fleece JacketMOQ: 3,000 piecesPackaging: Polybag, cartonDelivery: 45 daysPrice: $1.50 to $6Description: Winter jacket; polar fleece shell and cotton lining; zipper closure; in various colors and sizes

Model: Girl Padding Jacket 2MOQ: 5,000 piecesPackaging: Polybag, cartonDelivery: 45 daysPrice: $1.50 to $6Description: Winter jacket; cotton shell and polyester lining; in various colors and sizes

Model: Boy Woven Pants 6MOQ: 10,000 pairsPackaging: Polybag, cartonDelivery: 45 daysPrice: $1.50 to $6Description: Shorts; cotton; in various colors and sizes

Model: Baby Padding JacketMOQ: 5,000 piecesPackaging: Polybag, cartonDelivery: 45 daysPrice: $1.50 to $6Description: Winter jacket; nylon shell and polyester microfleece lining; zipper closure; in various colors and sizes

Model: Baby Woven Parka MOQ: 10,000 piecesPackaging: Polybag, cartonDelivery: 45 daysPrice: $1.50 to $6Description: Cropped coat; cotton; in various colors and sizes

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For other inquiries E-mail: service@globalsources.comTelephone Hotline: (65) 6547-2800

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