Sales of electronic products in the Kingdom rose sharply last year, a reflection of the increasing purchasing power of Cambodia’s growing middle-class.
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According to the Singapore office of global research firm GfK, the value of sales of electronic products increased by 27.8 percent in 2018, reaching $413 million.
Mobile phones accounted for $282 million of this figure, while sales of consumer electronics – a category that includes televisions, washing machines, air conditioners, and refrigerators – amounted to $121 million.
By comparison, electronics sales in 2017 were valued at $323 million, with $214 million worth of mobile phones sold and $109 million of consumer electronics.
Sok Piseth, CEO of Ggear, an authorised distributor for LG Electronics in Cambodia, said demand for electronic products will be strong as long as the economy continues to thrive.
“Last year our sales numbers were huge. Despite this, our sales of consumer electronics did not grow as much as expected because competition is tough,” he said.
Hor Men, managing director for Sunsimexco, a company that imports many well-known consumer electronics brands, said the consumer electronics market is huge in Cambodia but added that the competition is fierce.
“Sales did not vary much from last year because, as you can see, there are just too many electronics stores. There is too much competition,” he said.
Thai Kheang, an employee at an electronics store in Phnom Penh, echoed Mr Men’s remarks.
“Sales were moderate last year because there are a lot of retailers that have joined the market. They know demand for electronics is huge and want to make a lot of money,” he said.
Mr Piseth pointed out that companies that operate in the grey market enjoy an unfair advantage over those the legally import their products, and added that this is a problem that requires government intervention.
“I wish to see fair competition and a level playing field so that we can provide quality products and a good service to our customers while fulfilling our tax obligations,” he added.
Last year, Cambodia’s economic growth rate reached 7.5 percent, with income per capita increasing to $1,563 from $1,434 a year earlier, according to figures from the government.