Idea Foundry - Cambodia Topline Trade Landscape

Cambodia Topline Trade Landscape
November 2020
the idea engineers
Modern & Traditional Trade – November 2020

November 2020
Contents
01 Cambodia Country Profile
02 Consumer and Media Landscape
03 Modern and Traditional Trade Landscape
04 Final Thoughts

November 2020
November 2020
Cambodia Country
Overview

November 2020
Cambodia Country Overview
2017 2018 2019 2020* 2021*
GDP (IMF 2020) 7.5% 7.1% 2.3% 5.7%
CPI (IMF 2020) 2.9% 2.4% 2.4% 1.5% 1.9%
Total Population
(IMF 2019)
16.2
million
16.4
million
16.7
million
16.9
million
*Estimated
41,796 - 204,027
204,026 - 411,759
411,760 - 775,296
775,297 - 1,195,547
1,195,548 - 2,129,371
Population per province
Population by province and sex, 2019
*Please note the last government census
was conducted in 2018
Cambodia’s population as
of 2019 was estimated to be
16.4 million with age groups
below 25 years accounting for
approximately 50% of the total
population.
WomenMen
0
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90-94
5-9
15-19
25-29
35-39
45-49
55-59
65-69
75-79
85-89
95-99
10+
0179 179358 358537 537715 715895
Population i(in thousands) Population i(in thousands)Age Group
2018
895

November 2020
Consumer and Media
Landscape
November 2020

November 2020
Consumer Section –
Macro Level
Consumer and Media Landscape

November 2020
The remainder consists of:
• Cham
• Ethnic Chinese
• Ethnic Vietnamese
Buddhists account for
93%of the population
Followed by Christians
3%of the population
And Muslim 2%
of the population
Consumer Section – Macro Level
90%Ethnicities
in Cambodia
(Khmer)

November 2020
49%
Female
51%
of total
population
Median Age
25y/o
Male
of total population Life expectancy 69years
of the total population
can read and write
Literacy Rate
80.5%

November 2020
of the
total population live in
Urban Cambodia while
Rise of
ubanisation is
estimated to be
2.39%
per year
23.4%
76.7% of the
total population live in
rural Cambodia
ADB’S Investment In Cambodia
Agriculture and
Natural Resources
Water Supply and other
Urban Infrastructure and
Services
Transport &
Communications
Multi sector
Public Sector
Management
Industry
and Trade
Health
Nutrition
and Social
Protection
Finance
Energy
Education
25
10
8
4239
5
20
14

November 2020
Key reasons that Cambodia is experiencing a rapid influx of FDI
A network of Special
Economic Zones (SEZs)
specifically created
to support ease in
manufacturing investment
A growing middle class of
Cambodian nationals with
spending power
Active and significant
improvements to
infrastructure and
logistical networks
Easy, free and open
policies for foreign
businesses
Predominance of US
dollar and unrestricted
capital in-and-outflows
Political stability for over
two decades
Freehold ownership of
property for foreigners
English and Chinese
are the main business
languages
Fully foreign-owned
businesses are accepted
Appealing tax incentives
and import/export duty
exemptions
Affordable labour

November 2020
NUMBER OF MOBILE
CONNECTIONS
(EXCLUDING IOT)
21.24
MILLION
128% 92% 8.0% 69%
MOBILE CONNECTIONS
AS A PERCENTAGE OF
TOTAL POPULATION
PERCENTAGE OF MOBILE
CONNECTIONS THAT ARE
PRE-PAID
POST-PAID
BROADBAND (3G-5G)
Source: GSMA Intelligence (January 2020, based on data for Q4 2019). Note: Percentages vs. Population may exceed 100% due to individual use of multiple connections. Total global connections figure quoted here does not
include IOT cellular connections. Comparability Advisory: Base changes. Some figures may not b directly comparable to data in our previous report.
#

November 2020
OVERALL COUNTRY
INDEX SCORE
47.06
OUT OF MAX. 100
53.03
OUT OF MAX. 100
55.24
OUT OF MAX. 100
56.97
OUT OF MAX. 100
29.40
OUT OF MAX. 100
MOBILE NETWORK
INFRASTRUCTURE
AFFORDABILITY OF
DEVICES & SERVICES
CONSUMER
READINESS
AVAILABILITY OF
RELEVANT CONTENT
& SERVICES
Source: GSMA mobile connectivity index (accessed January 2020). The mobile connectivity index measures the performance of 165 contrites against key enablers of mobile Internet adoption. Contrites are scored within a
range of 0 to 100 across a number of indicators, with a higher score representing stronger performance in delivering mobile Internet connectivity. For more information visit www.mobileconnectiviityindex.com

November 2020

November 2020
Consumer Section –
Micro Level

November 2020
Consumer Section – Micro Level
• 62% of Cambodians live on
household incomes of less than
USD$400 per month
• Addition sources of income
comes from sons and daughters
who work in the garment industry
or construction or working
abroad
• 50 - 75% in this segment sends
money home to their parents still
living in the provinces
• 10% of Cambodian households
have income of more than
USD$800 a month and
this category is willing to
spend money on expensive
smartphones and automobiles
• 27% of Cambodian households
have incomes of USD$400-
800 a month, giving them some
disposable income. income,
leaving little for their own living
• A small percent that is a visible
segment of Cambodians that
has recently accumulated
significant wealth in recent
years
• New Wealth is the first
generation to experience
wealth and it is potential
markets for luxury goods like
cars and expensive jewelry
LOW INCOME
MIDDLE CLASS
HIGH INCOME

November 2020
The above shows the reason why consumer visit modern and traditional trade, when the go out is either to buys something specific or to go out and be
sociable with family or friends.
Source: TNS
Top 10 primary purpose toward market (%) by total
Browse products
Buy speciﬁc products 80 63 96
27
20
51
12
8
2
2
5
36
37
3
1
2
1
6
84 58Dining/snacks (lunch/diner, tea) 70
Windowshopping 37
29
Entertainment(watchingmovies,KTVgames 23
Check a price of products 8
Spend time with family 7
Spend time with friends 5
Makeappointmentwithcolleagues 2
No speciﬁc purpose, just stroll around 2
Super Market Malls Wet Market

November 2020
Source: TNS
Top 10 attractive elements for visiting malls by age (%)
Enjoyable shopping environment
A variety of products
Varied cuisine
The price range is good
Variety choices for family entertainment
Convenient parking/enough parking lots
The price is ﬁxed (no haggling)
Unique merchandise
Variety choices for friends gathering
Fun for kids
16-19 20-26 27-40 41-54
53
51
55 58 52
58 58 51
44 46 45 48
41 45 42 45
40 37 44 44
34 31 37 28
21 27 29 33
56 42 18 8
28 25 29 31
17 19 37 19

November 2020
Source: TNS
Most frequent entertainment - related activities (%)
Workout/ﬁtness center
3D or 4D cinema
Sports (tennis court, basketball, ping pong, etc.)
KTV
Live performances (singing/dance etc.)
Roller skating
Club/dancing
Watch TV
Bowling
Go for a walk at park/riverside
Total 16-19 20-26 27-40 41-54
42
26
26
24
13
10
10
7
6
4 2 5 5 3
13 6 5 2
3 3 8 12
10 17 10 3
25 13 6 4
15 14 13 10
32 38 32 10
36 28 25 18
55 38 22 6
23 37 44 57

November 2020
There is almost an even
split between Modern and
traditional trade when it comes
to purchasing things like
personal hygiene products and
very similar to Myanmar going
out shopping is a novelty but
sometimes it is just easier to
run down to the local traditional
trade store because then I need
to look nice to go out. And
malls are still very much a social
gathering point.
Source: TNS
Top 10 items purchased by shopping venues (%) by total
Personal hygiene products (toothbrush,
toilet paper, shampoo etc.)
58 35 56
59 2Fast food (burgers, pizza etc.) 45
54 71Clothing 37
Non alcoholic beverages (coke) 20 2231
19 17Snacks(candy,chocolates) 30
61Entertainments (movies, games etc.) 28
23 25Cosmetics 28
Super Market Malls Wet Market
16 3928
Household cleaning products (floor
cleaner, detergent etc.)
28
43 63Shoesandbags 27
13 27Processed foods (noodles, canned, foods etc.) 23

November 2020
What do you and your friends MOSTLY do at the mall/shopping center?
*Idea Foundry – Urban Dipstick Study 2018 with sample size of 30 respondents aged between 13 and 23y/o
26%
36%
28%
10%
We walk around / chill with friends
We go eat
We see a movie
We browse or shop for items

November 2020
When you are buying product, what are the 3 main things that help you decide what to buy?
The store/shop
The brand
The internet/social media
The Media (TV, radio, magazines etc.)
My friends
My mood
The price
What celebrities are wearing
Role model/s
My parents
9%
17%
8%
3%
22%
4%
21%
3%
1% 12%

November 2020
When you visit a store, how important are each of the following things to you?
0 5 10 15 20 25 30 35
Cool brands and accessories
Vibey atmosphere
Cheap prices
Not having to wait in a long queue
Staff who understand what I want
Friendly staff
Staff who know what they are talking about
High quality products
Not at all important Sort of important Very important

November 2020
How do you pay for things most of the time?
0 5 25 30 3510 15 20
Public transport
Entertainment
Games (Mobile/On-line)
Clothing
Movie / cinema
Top-up airtime data
Cash Debit Card / ATM Card / Credit Card Mobile phone payments (eg. Wing / True Money) I do not pay for this / I don’t do this

November 2020
Source: World Bank Global Financial Inclusion Data (Latest Date Available in January 2020)/
Note: Percentages are of adults aged 15 and above, not of total population.
0.6%
0.2%
HAS A CREDIT CARD
PERCENTAGE OF MEN
WITH A CREDIT CARD
HAS AN ACCOUNT
WITH A FINANCIAL
INSTITUTION
PERCENTAGE OF
WOMEN WITH A
CREDIT CARD
18%
0.8%
5.7%
4.3%
HAS A MOBILE MONEY
ACCOUNT
PERCENTAGE OF WOMEN
MAKING ONLINE
TRANSACTIONS
3.8%
3.2%
MAKES ONLINE PURCHASE
AND/OR PAYS BILLS
ONLINE
PERCENTAGE OF MEN
MAKING ONLINE
TRANSACTIONS
Cash is still KING in Cambodia even in the Urban cities. ATM and credit POS card machines are increasing in modern trade but not at traditional trade level
yet. However digital payment is gaining popularity with traditional trade as it minuses their cash handling

November 2020
Payment methods
Cambodian people nowadays love to shop, both Online and off-line at retail shops. Over the last few years, e-commerce has grown a lot in Cambodia
and we have seen massive increases in spending power Online like hotels booking, clothes, electronics, cosmetics, and souvenirs. When consumers shop
Online, they usually pay with their credit cards, debit cards, internet banking or via their PayPal account. For Online store owners, it’s important that you
implement the right payment gateway for your e-commerce website with these payment options in mind.
Please bare in mind that cash is still king as Traditional Trade is still the main purchase gateway for daily consumables.

November 2020
Cambodia: Consumer Household Expenditure Phnom Penh: Consumer Household Expenditure
Education 1%
Recreation culture 1% Furnishing, etc 1%
Communication 2%
Alcohol tobacco 2%
Clothing footwear 3%
Health 5%
Transportation 11%
Miscellaneous 11%
Alcohol tobacco 1%
Furnishing. etc 1% Recreation and culture 2%
Communication 2%
Education 2%
Clothing footwear 3%
Health 5%
Miscellaneous 8%
Transportation 10%
Food
Non-alcoholic
drinks
39%
Housing
water
electricity
19%
Food
Non-alcoholic
drinks
44%
Housing
water
electricity
19%

November 2020

November 2020
Media Section

November 2020
Media Section – Communication Channels Overview
Cambodia: Media Consumption
Source: Deloitte’s Myanmar Consumer survey (2019)
Media consumption research in Cambodia across the country covering both urban and rural areas in Cambodia. The data was released in October, 2016.
Media consumption comprises information from 1900 respondents across number of provinces in Cambodia. The media consumption report are included
T.V, radio, magazine and newspapers, internet and an expanded social media and mobile phones section. The data for each media subsection in the report is
shown over time and is split by relevant sub group of interest: Province, gender, age, income, education, urban and rural areas
TukTuk
TV
Poster
Internet
Road Sign
Radio
Outdoor LED
Magazine
Cinema
Newspaper
Indoor Digital
Billboard
Most Often
Occasionally

November 2020
We notice that Facebook is still the main gateway to information in Cambodia.
Source: Deloitte’s Myanmar Consumer survey (2019)
*** Research conducted in 4 urban cities only
69.03%
3.94%
14.79%
0.29%
10.95%
0.28%
Social Media Stats July 2020

November 2020
Popular TV Channels
96% 7
6%
59%
35%
30%
of Cambodians watch TV
(most compared to other media)
Channels out of the 10 most popular
belong to politically affiliated owners
are connected to DigitalTV -
Dish % Take-up
are connected to Analog TV
are connected to Cable TV
Hang meas
HDTV
MY TV
TV5
Bayon TV
CTV8
ETV
SEATV
CNC
CTN
Use TV to access information
Making TV the county’s most
popular media outlet
Comedy shows, concerts and
foreign soap operas are the most
watched TV programs

November 2020
Trade Landscape
MT, TT and E-commerce
November 2020

November 2020
Modern Trade Landscape
Trade Landscape

November 2020
Hypermarket/Wholesale Convenience/Mini-MartSupermarket

November 2020
• Modern trade is mainly dominated by Lucky group (Lucky
Supermarkets)
• Lucky Groups has other retail brands in their portfolio including:
- Guardian Pharmacy
- Lucky Burger
- Lucky Supermarket
- Lucky Ice Cream
• New Convenience/Mini Mart entrant in Cambodia is 7Eleven and
will enter the market in 2021
• Locally owned Chip Mong Group will invest about $252 million
in developing modern retail space with plans to build 330
hypermarket and supermarkets over the next 5 years across
Cambodian cities and towns.

November 2020
• The total value of the Consumer goods market is
estimated to be about $18.8 billion a increase of about
8.35% from 2018.
• 80% of total modern trade is located in Phnom Penh and
the rest is in Siem Reap, and Sihanoukville
• On average the annual retail spend is Riel 39 289 000.00
per family. (USD$9 590.00 p/a)

November 2020
Traditional Trade
Landscape
Trade Landscape

November 2020
Traditional Trade Landscape
• The total value of the Consumer goods market is estimated
to be about $18.8 billion with traditional trade making up
about 70% of total consumer goods market.
• They are mainly family owned and range from large shops like
convenience stores right down to small shops similar to mini
mart and even kiosks next to the road.
• For fresh meat and vegetables, Cambodia households
perceive that wet markets offer a better quality. They
take the form of outdoor markets with limited permanent
structures, where you can purchase many food products
especially fresh meat, chicken, fish, fruits, vegetables,
flowers, spices, and everyday grocery items.

November 2020
Traditional Trade Landscape

November 2020
E-commerce Landscape
Trade Landscape

November 2020
E-commerce Landscape
E-commerce is still very much in it’s infancy stages in Cambodia thus lagging behind markets
like Myanmar and Vietnam who has already seen dominant regional and international
e-commerce brands buying local e-commerce players to expand their footprint.
E-Commerce Logistics
E-commerce, social selling, inventory management systems and delivery services.
Eg. Joonaak | Nham24 | LaRue | Little Fashion
Digital Marketplaces
Digital classifieds and booking platforms.
Eg. BookMeBus | BongPheak | Khmer24 | Reaslestate.com.kh | Last2ticket | Camboticket
Maturity
Market demand validated scaling
refining market fit
Maturity
Adopted growing market
Active #
20
Active #
30

November 2020
Final Thoughts
November 2020

November 2020
Final Thoughts
The same as Myanmar Modern trade is still very small and mainly still concentrated in major cities but growing and expanding
to smaller towns across the country, as logistics and freighting and road infrastructure get better. However Cambodians find
shopping in a supermarket/shopping mall to still be an exciting adventure which they will even dress up for.
Tradition trade shop owners and their staff are powerful brand advocates, they are regularly providing recommendations, so its
best to try win them over.
To be successful, get your products into the large traditional trade and smaller traditional trade will follow. Smaller traditional
trade look to the bigger traditional trade stores to see which products to stock.
Innovation around In-store activation/promotion and POSM is non-existent. POSM production capabilities are still limited, and
the quality is not the best however certain print production companies are starting to update their printers and machinery. If
you looking at producing POSM elements that are very technical, it’s better to order from China, Vietnam, Malaysia or India that
has the production capabilities and QC standards.
Cambodia is a young country, with a noticeably large cohort of Cambodians about to enter their 30s. This group is significantly
more educated than the generation before them - 49% of 20-somethings completed secondary school compared to 18% of
30-somethings – and more connected, with internet penetration now at 38%, in comparison to 13% three years ago.
Young Cambodians are acutely aware of new global and international trends sweeping the world, they are very social people
but also aspirational. They still feel status and position is important in aspect in life, thus brands play an important role in
showcasing their success and status within their peer group.

November 2020
thank you
the idea engineers

Idea Foundry - Cambodia Topline Trade Landscape

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