Cambodia is a fast-growing and dynamic market in Southeast Asia, with a population of about 16.5 million and a GDP of about $27.2 billion in 2020. The country has experienced rapid economic development and social transformation in the past decade, thanks to its political stability, open trade policy, foreign investment, and tourism. These factors have also contributed to the emergence and expansion of a new middle class, which is driving the demand for various products and services in the country.
But what are the characteristics, preferences, and behaviors of the Cambodian consumers? What are the opportunities and challenges for businesses that want to enter or grow in this market? Here are some of the latest trends and insights that can help you understand and reach the Cambodian consumer market.
- The Cambodian consumers are young, urban, and tech-savvy.
According to the World Bank, Cambodia has one of the youngest populations in Asia, with a median age of 25.7 years in 2020. About 65% of the population is under 30 years old, and about 35% is under 15 years old. This means that the Cambodian consumers are mostly millennials and Gen Zs, who have different values, aspirations, and lifestyles than their older generations.
The Cambodian consumers are also increasingly urbanized, as more people migrate from rural areas to cities in search of better education, employment, and living conditions. According to the United Nations, the urban population in Cambodia grew from 19.5% in 2000 to 24.4% in 2020, and is projected to reach 30.9% by 2030. The capital city of Phnom Penh alone accounts for about 15% of the total population.
The Cambodian consumers are also becoming more tech-savvy, as they adopt digital devices and platforms for communication, entertainment, education, shopping, and banking. According to a report by We Are Social and Hootsuite, there were about 20.3 million internet users in Cambodia in January 2021, representing a penetration rate of 121.6%. There were also about 22 million social media users, representing a penetration rate of 131.8%. The most popular social media platforms were Facebook, YouTube, Instagram, TikTok, and Twitter.
These demographic and technological trends have significant implications for businesses that want to target the Cambodian consumers. They need to understand the needs, wants, and expectations of the young, urban, and tech-savvy consumers, who are more aware, informed, connected, and empowered than ever before. They also need to leverage digital channels and tools to reach, engage, and retain these consumers, who are more likely to use online sources for information, reviews, recommendations, and purchases.
- The Cambodian consumers are aspirational, optimistic, and brand-conscious.
The Cambodian consumers have experienced remarkable improvements in their income levels, living standards, and quality of life in the past decade. According to the World Bank, Cambodia’s GDP per capita increased from $1,042 in 2010 to $1,643 in 2020. The poverty rate decreased from 17.7% in 2012 to 10% in 2017. The human development index increased from 0.523 in 2010 to 0.594 in 2019.
These economic and social achievements have fostered a sense of aspiration, optimism, and confidence among the Cambodian consumers. They have higher expectations for their future and are willing to spend more on products and services that can enhance their status, identity, and well-being. They are also more interested in exploring new experiences, cultures, and lifestyles.
The Cambodian consumers are also becoming more brand-conscious, as they associate brands with quality, reliability, and prestige.
They are influenced by social media, celebrities, and peers in their brand choices and preferences. They are loyal to brands that can meet their needs and wants and deliver consistent and satisfying customer experiences.
These attitudinal and behavioral trends have significant implications for businesses that want to target the Cambodian consumers.
They need to understand the aspirations, optimism, and brand-consciousness of the Cambodian consumers, who are looking for products and services that can add value to their lives.
They also need to build strong and distinctive brands that can stand out in the competitive and crowded market and create emotional and rational connections with the consumers.
- The Cambodian consumers are diverse, segmented, and dynamic.
The Cambodian consumers are not a homogeneous or static group. They are diverse, segmented, and dynamic, depending on various factors, such as age, gender, income, education, location, culture, religion, and lifestyle.
They have different needs, wants, preferences, and behaviors that change over time and across situations.
For example, according to a report by Kantar Worldpanel, the Cambodian consumers can be segmented into four groups based on their income levels and spending patterns:
- The affluent consumers, who have high income and high spending, and account for 9% of the population. They are mostly urban, educated, and employed, and they spend more on premium and imported products, such as dairy, beverages, personal care, and household care.
- The aspiring consumers, who have high income and low spending, and account for 11% of the population. They are mostly urban, educated, and employed, but they are more cautious and conservative in their spending. They spend more on basic and essential products, such as rice, noodles, cooking oil, and eggs.
- The emerging consumers, who have low income and high spending, and account for 25% of the population. They are mostly rural, less educated, and self-employed, but they are more adventurous and optimistic in their spending. They spend more on discretionary and indulgent products, such as snacks, confectionery, beer, and cigarettes.
- The struggling consumers, who have low income and low spending, and account for 55% of the population. They are mostly rural, less educated, and self-employed, and they are more constrained and pessimistic in their spending. They spend more on basic and essential products, such as rice, noodles, cooking oil, and eggs.
These segmentation and consumption trends have significant implications for businesses that want to target the Cambodian consumers.
They need to understand the diversity, segmentation, and dynamism of the Cambodian consumers, who have different needs, wants, preferences, and behaviors that vary by income levels and spending patterns.
They also need to tailor their products, services, prices, promotions, and distributions to suit the specific segments and segments that they want to target.