Cambodia, often overshadowed by its wealthier neighbors, has seen significant economic growth in the last 15 years, driven by government efforts to create a stable investment environment and attract foreign capital. The rise of a young, aspiring population alongside emerging middle and high-income classes presents opportunities for international brands, particularly in urban centers like Phnom Penh. However, brands must adopt tailored marketing strategies recognizing the country’s unique cultural identity and the challenges posed by rural connectivity and low internet penetration.

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Nestled between Vietnam and Thailand
on the Indochina Peninsula, Cambodia is
often overlooked in favour of its wealthier
neighbours. The country’s history has also
cast a shadow over how it is perceived
by the rest of the world, and with good
reason. The genocide led by Pol Pot’s
Khmer Rouge regime in the 1970s
resulted in the deaths of an estimated
25% of the population, including many
of the intellectual elite.
Yet forty years on, there are many reasons for optimism. The last
15 years have seen substantial economic growth, driven by the
government’s efforts to attract foreign capital and build a stable
investment environment. More recently there has also been a
‘southwards shift’ as companies facing challenges in China –
including wage inflation and an ageing population – shift their
focus to South East Asia. Cambodia also has a young, driven
population (over 60% are under 24), determined to rise above
the challenges of the past and rebuild the country’s image.
TNS measures a quarterly business confidence index, which tells
us that companies are seeing steady growth year-on-year. But for
brands just waking up to Cambodia’s potential, the question is
what do local people really care about?
Emerging middle and high income classes are showing strong
purchasing power, creating an opportunity for a wider pool
of high-quality, international brands. The country’s first high-
end shopping centre – AEON – opened in July in Phnom
Penh’s Chamkar Mon district, showing the potential for similar
developments in the future.
From Rolls Royce to Unilever, many multinational companies
have already recognised Cambodia’s potential and established
a presence in places like Phnom Penh, Battambang and
Sihanoukville. Within the urban hubs, coffee and football count
among Cambodia’s favourite pastimes. Phnom Penh’s café culture
is booming, as shown by growth of Costa Coffee and local player
Brown Coffee and Bakery, particularly among young people. From
The dark days are over: it’s time
to meet the new Cambodia

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The dark days are over:
it’s time to meet the new Cambodia
About the author
Eelco Dijkhuizen, General manager of TNS
Cambodia, has over 14 years‘ experience
in market research. Originally from the
Netherlands, he has worked for different
research agencies across Europe and Asia.
Having worked and lived in South East Asia for over 10
years, Eelco has developed expertise on the region. Eelco has
managed TNS Cambodia since it was opened in April 2012.
About TNS
TNS advises clients on specific growth strategies around new
market entry, innovation, brand switching and stakeholder
management, based on long-established expertise and
market-leading solutions. With a presence in over 80
countries, TNS has more conversations with the world’s
consumers than anyone else and understands individual
human behaviours and attitudes across every cultural,
economic and political region of the world.
TNS is part of Kantar, the data investment management
division of WPP and one of the world’s largest insight,
information and consultancy groups.
Please visit www.tnsglobal.com for more information.
If you would like to talk to us about this report,
please get in touch via enquiries@tnsglobal.com
or on Twitter @tns_global
football to Khmer kickboxing, the sports industry is also on the
rise, thanks to growing investment from the private sector.
Cambodia has its own distinct heritage and cultural identity,
meaning companies must be wary of ‘importing’ strategies from
Thailand or Vietnam. Angkor Beer, the market leader, has taken
a successful nationalistic approach with the motto, “My Country,
My Beer”, helping cement its status as people’s first choice.
Relative newcomer Cambodia Beer (with its tagline ‘National
Beer, National Pride!’) is matching Angkor’s success with a
similarly patriotic campaign. The fact is that targeted campaigns
– including using local languages – are few and far between,
presenting a golden opportunity for those who adopt a more
tailored approach. Failing to translate the company’s slogans
from Thai or Vietnamese can damage consumer perceptions
right from the offset.
Yet despite the increasing wealth of the big towns and cities,
brands need to remember that 80% of the population live in
rural areas. Wet rice agriculture is a cornerstone of the economy
– one of the classic ‘postcard pictures’ is of rice paddies scattered
with sugar palms. Within these rural communities access to
digital media is strictly limited, meaning most people are only
reachable through a direct sales approach.
Linked to this is Cambodia’s low internet penetration, with
only about 16% of people able to access information over
the internet. Yet this number is creeping up as smart phone
ownership continues to rise. More than 16% of mobile phone
contracts are now for 3G services, with mobiles accounting
for almost one quarter of all internet activity in Cambodia. As
mobile leapfrogs other means of getting connected, companies
are placing mobile marketing at the heart of their strategy for
engaging new customers.
Far from images of killing fields and land mines, there is a
bright future ahead for Cambodia. Brands looking to expand
their presence in South East Asia would do well to look beyond
Bangkok and Ho Chi Minh, and instead turn their attention to
Cambodia’s forward-looking, aspirational population. From iced
mochas to five-a-side football, this is a nation developing new
tastes as it pushes ahead with its next stage of development.