Fast-moving consumer goods like brand soaps, imported soda, luxury goods, clothing, fast food and beauty products were almost unheard of 10 years ago here. But a fast-growing economy and a young population have shifted the store-shelf scenery and done so to the tune of an estimated $1 billion in imported items since just 2012.<\/p>\n
The FMCG revolution, which is still in its infancy in Cambodia, is reshaping the idea of status, redefining how goods are sold online and in-person, how they are advertised and how affluence is measured.<\/p>\n
The global FMCG market stands at more than $10 trillion and is expected to reach $15 trillion by 2025, according to Allied Market Research. For fast-developing countries like Cambodia, changes can come quickly.<\/p>\n
\u201cChanges in lifestyle drive the growth of the FMCG market. Moreover, increase in global population, growth in awareness of FMCG products, frequent launches of new products, and effective advertisement of the FMCG brands are the other factors that boost the growth of the global FMCG market,\u201d according to Shankar Bhandalkar, senior research analyst for consumer goods at Allied Market Research.<\/p>\n
For investors, Cambodia also offers incentives not always found in other Asean countries such as 100 percent foreign ownership and low taxes. And despite increased demand, analysts say the consumer market is still underdeveloped.<\/p>\n
\u201cThere is still room for expansion,\u201d says Christopher McCarthy, chief executive officer of MangoTango Asia, a creative and digital media marketing agency that produced a study on the subject called \u201cOpportunities for Consumer Goods in Cambodia\u201d.<\/p>\n
McCarthy points to several key factors when it comes to the increasing popularity of brand-name consumer goods, including a modern economy with a business-friendly environment and a growing middle class. He also points to the numbers. Cambodia has a gross domestic product of $18.2 billion and an annual growth rate of 7.7 percent. Out of a population of 16 million, 52 percent are below the age of 25. \u201cThey are eager to embrace a modern lifestyle,\u201d he says.<\/p>\n
Cambodia has also been the sixth-fastest-growing economy in the world and the nation\u2019s urban population has grown, as has the spending power of the average Cambodian consumer. \u201cAgainst this backdrop, consumer tastes, preferences and habits are forming and changing rapidly,\u201d according to the MangoTango study.<\/p>\n
Mindshare and market share<\/strong><\/p>\n Consumer products being gobbled up in Cambodia include everything from luxury to mass-market brands. Those keeping an on eye on the markets like McCarthy say that the brands in Cambodia today are building mindshare and market share.<\/p>\n The European clothing brand Mango, for example, arrived in Phnom Penh in 2014, and now dominates clothing brand awareness and brand desirability simply by being early to market, according to the study. They have built a loyal following among middle-class Cambodians.<\/p>\n Luxury brands like Christofle, Boss, and Brioni have opened shops. Supermarkets are lined with western food and beverage products and beauty supplies. Foreign wines and spirits have proven hugely popular, as have luxury automobiles, like Lexus.<\/p>\n \u201cThese brands understand that by arriving early in the marketplace, they can shape preferences for their products among their target wealthy consumers,\u201d the study reported.<\/p>\n \u201cThe big international corporations in mass-market products are already in the market, benefitting from Cambodia\u2019s high economic growth rate. Companies including Unilever, Proctor & Gamble, and Nestl\u00e9 understand the importance of building awareness and loyalty while brand preferences are being established.<\/p>\n Asian companies have also arrived, building preference for their own FMCG brands, such as Indonesia\u2019s Indofoods (large variety of food and beverages), Julie\u2019s of Malaysia (packaged cookies and crackers), Philippines\u2019 Universal Robina Corp (snacks and candy), and Korea\u2019s Nature Republic (cosmetics).\u201d<\/p>\n This has also meant retail is expanding. Until now there has been limited availability of branded retail, says Nancy Jaffe, head of strategy for MangoTango Asia. \u201cThis is changing rapidly,\u201d she says.<\/p>\n That includes sports apparel, shoes, fast-fashion brands, and even western sizes.<\/p>\n Local distribution<\/strong><\/p>\n A benefit to Cambodia and foreign companies welling consumer goods in the country is the existence of well-established distribution channels, particularly for alcohol and food.<\/p>\n Many of the distributors operating in the consumer goods sector are local and some have been around since the 1990s distributing products from conglomerates like Proctor & Gamble. Companies like Goodhill Enterprise Ltd, Octopus Asia Pacific and DKSH are just a few of the dozens of companies.<\/p>\n \u201cAt present, there are few requirements for bringingproducts into Cambodia, such as permits or food safety certifications \u2013 although this may change as the nation works to improve its regulatory infrastructure,\u201d according to the MangoTango study. \u201cPaperwork and bureaucracy can be among the greatest hurdles; working with a local importer or distributor to prepare forms ahead of time can help.\u201d<\/p>\n Although the ease of business should be an attraction, most goods still come from Asia, McCarthy says. But business groups like EuroCham are working to spread the word.<\/p>\n \u201cNow is the time to come to Cambodia,\u201d he says.<\/p>\n","protected":false},"excerpt":{"rendered":" Fast-moving consumer goods like brand soaps, imported soda, luxury goods, clothing, fast food and beauty products were almost unheard of 10 years ago here.<\/p>\n","protected":false},"author":3,"featured_media":2417,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":" Beauty products are displayed during the 14th \"Beauty Fair\", in Sao Paulo, Brazil, on Sept. 10, 2018. (Xinhua\/Rahel Patrasso) ","_FSMCFIC_featured_image_nocaption":null,"_FSMCFIC_featured_image_hide":null,"footnotes":""},"categories":[258],"tags":[573,574,172],"yoast_head":"\n