The home appliances market is thriving due to the boom in construction, rising incomes, and lower electricity bills, industry players report.
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Local firm GGear Group, which has a strategic partnership with Seoul-based LG Group, has seen strong sales growth in recent years, particularly in home appliances.
Sok Piseth, the group’s CEO, said revenue from sales of electronics has increased, on average, 20 to 30 percent a year since the company began operations here in 2011.
“This year, we see that demand for air-conditioners has increased dramatically due to the hot temperatures,” he said, adding that, by contrast, sales of smart TVs experienced a sharp decline due to rising competition from other brands.
The company, which distributes a wide range of LG products in Cambodia, yesterday announced that it has been awarded the ISO 9001:2015 certification for quality management systems.
Mr Piseth said the spectacular rise in home appliances sales is driven by three main factors – a construction boom in Phnom Penh, higher incomes, and lower electricity fees.
The government late last year announced a plan to cut electricity bills in 2019 and 2020, particularly for small consumers.
Those that use between one and 10 kilowatt hour (kWh) will pay 380 to 480 riel ($0.10 to $0.12) per kWh.
Figures from the Ministry of Land Management show that Cambodia will need an additional 1.1 million houses in 2030, when the population is projected to reach 18 million. Every year, housing demand grows by 50,000 in Phnom Penh and all provincial towns combined.
As of last year, there were 110 buildings in the capital consisting of five storeys or more.
A representative from My Eyes Group, a local electronics dealer selling Samsung and LG appliances, echoed Mr Piseth’s remarks regarding growth in the electronics market.
He said the best sellers are refrigerators, air-conditioners, and washing machines, with sales growing by 15 to 20 percent annually.
The electronics market has now reached a considerable size in the Kingdom and is very competitive, Mr Piseth said, adding that Cambodians spend roughly $400 million a year on electronic products.