The 2024 Consumer Report, recently published by Confluences in collaboration with Standard Insights, provides a comprehensive analysis of local market trends - with both French and English versions - highlighting both optimism and caution on the part of Cambodian consumers. This is the second edition of the report, published annually by Confluences.
According to Soreasmey Ke Bin, CEO of Confluences, “This document provides a detailed analysis of the preferences of consumers in the kingdom and the outlook for the country. The data covers budget priorities as well as the future of business based on a larger sample size and a more diverse panel of respondents, based on our 2023 findings...the unique aspects of the Cambodian market, such as the fact that 60% of its inhabitants belong to generation Z and are aware of new technologies, also contribute to its attractiveness for the business sector. However, global uncertainties, such as geopolitical tensions, are having an impact on consumer behaviour. Our report reflects this by outlining the strengths and challenges they face and highlights a mixture of optimism about the economy and concern about the international situation”.
Motivations
When the report was first published in 2023, the CEO of Confluences explained:
“At Confluences, we do many different things, but we are first and foremost a consultancy. Our core business is to support companies on the Cambodian market and also to accelerate those that are already established here, to support them in their operational and commercial deployment on this market and also in neighbouring countries... we are faced with a fairly recurring problem, and I don't think we are alone: there is a real lack of credible data about our market, particularly when it comes to the consumption habits of Cambodians”.
“Confluences has been built on strong partnerships, and when I had the opportunity to meet up again with Florian Gaudel, a former expatriate from Cambodia, now living in Hong Kong, our discussion quickly turned to the projects that our two agencies could carry out together. His company, Standard Insights, specialises in opinion polls and surveys, and that's how we came up with the idea of working together to produce an annual report on the Cambodian consumer. Their desires, their hopes, their consumption patterns”.
“This report is for everyone. It's certainly substantial, with 50 pages, but it's designed to be easy to read and very visual. The idea is really to provide as much information as possible on the habits of Cambodian consumers. It should be of interest to everyone, the consumers themselves, but also of course the professionals who work in this market or are in the process of studying it”.
2024 - Economic growth and consumer confidence
“Given that the country has not yet fully recovered from the pandemic and that economic challenges remain due to geopolitical tensions and conflict, some hesitation about the future is understandable. While these concerns need to be addressed by the government and the private sector, particularly if young workers are to play a leading role in the country's future economic development, the public, investors and young people also need to have confidence in new financial strategies and initiatives that show positive signs that the country is moving in the right direction. With 60% of people saying they are confident - and almost 40% saying they are very confident - in the direction the economy is heading, optimism is dominating in sectors that are starting to reap the rewards of investment outside the traditional sectors,” explains Dara N Van, Business Development Manager at Confluences.
“The Cambodian economy is experiencing impressive growth, with GDP increasing by 5.8% this year, enabling the country to strengthen its position both regionally and internationally. The Kingdom is now attracting substantial foreign direct investment: last year, $4.92 billion was invested in the manufacturing and industrial sectors, and in infrastructure. However, this confidence is not uniform across all demographic categories. The report reveals a significant degree of pessimism among those surveyed, particularly those aged between 18 and 34”.
2024 - Spending priorities and financial goals
Cambodian consumers prioritise financial stability, with an emphasis on paying off debts. In terms of major purchases, vehicles, electronics and property top the list for 2024. Younger consumers are more likely to buy vehicles and electronics, while older people focus more on real estate and other long-term investments.
2024 - Environmental concerns and sustainable living
The report shows that Cambodian consumers, particularly young adults aged 18-24, are largely concerned about environmental issues. Sustainable living seems to be increasingly important to Cambodian consumers. The majority consider them to be important or extremely important, although this feeling is less pronounced in the older age groups.
“It is encouraging to consider that awareness of environmental issues in Cambodia is widespread, across all age groups. The country is vulnerable to the consequences of global warming because of its geographical location and its dependence on agriculture and tourism, which underlines the attention that needs to be given to these concerns... the emphasis on awareness-raising programmes is essential, as prevention is often more effective than rehabilitation. It is no longer acceptable to ignore unsustainable practices, especially when we know the consequences,” writes Sébastien Ung, Cambodia representative for Asia Data Destruction.
2024 - Trends in health and well-being
The importance attached to health and well-being by Cambodians increased considerably after the pandemic. Favourite activities remain running, cycling and hiking, with a notable preference for individual sports over team sports. The survey also shows that relaxing at home remains the preferred leisure activity for all demographics, followed by playing sport and visiting a shopping centre.
2024 - The future of work and job security
Job security and opportunities for advancement are key priorities for Cambodian workers. Work-life balance is highly valued, especially among the 25-44 age group. Most respondents prefer on-site work arrangements, despite global trends in favour of remote working. This preference is influenced by cultural aspects and the value placed on personal relationships in the workplace.
Chila Heang, head of human resources and administration at Confluences, explains, “More than half of the population strongly prefers to work onsite due to the cultural importance of personal relationships and an improved working environment compared to life at home.”
Concerns about automation and AI predominate, with younger individuals showing an interest in efficiency and skills development, while older groups express concerns about job satisfaction and workplace dynamics.
Gabriel Tan, group communications director at Prince Holding, sees AI as a gateway to opportunity:
“AI integration unlocks vast potential for those who are ready to embrace it. In my communications department, AI tools are improving productivity and innovation”.
Strategic perspectives for businesses
The report offers a detailed and nuanced understanding of consumer trends in Cambodia. The data highlights optimism about economic growth, a focus on financial stability and environmental sustainability, as well as changing preferences for media consumption, health and wellness. These findings are essential for businesses and policymakers to develop strategies tailored to the diverse needs and preferences of Cambodian consumers.
For a more detailed analysis or specific information, companies are invited to download and consult the full report.
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