Home improvement retail brands look to gain a foothold in Cambodia

• 22 May 2021
• Local News
• 2388 Views

With the increasing disposable income, rising consumer spending, remodel and renovation of homes; the rapid rate of urbanization of Phnom Penh, and the increasing middle-class population, these major drivers are increasing the number of new and existing home sales and home improvement businesses in Cambodia. In addition, cost control, innovation in products, better logistics, and supply chain management will further drive this industry.

Nowadays, product innovation through new market players and effective advertisements are the driving forces of the home improvement retail industry. A number of improvement retailers are set to open in order to cater to the growing demand for home-related design solutions in Cambodia.

Thailand-based SCG-Boonthavorn has launched a home-living retail outlet ‘Design Village’ in Phnom Penh’s Sen Sok district, which is expected to open in May this year. With its convenient location, ample parking, and an outstanding array of international brands, this will make the project stand out as a clear destination for those looking for design inspirations for their home.

The idea of ‘Design Village’ is the first of its kind in Cambodia, it will offer an exclusive collection of furniture, home decoration accessories, kitchen studios as well as food and drinks placed under a single roof, with international brands available there including American Standard, Cotto, Grohe, Kohler and Toto, etc. – an excellent choice that can fulfill the needs for home decorations for Cambodian consumers.

In addition, a number of home improvement retail brands have expanded their reach and launch franchise branches in Cambodia over the years – under the franchising model with local Cambodian partners. This model emphasized the cooperation with local operators who are experts in the Cambodian market.

Brands under the operation of this model including Index Living Mall and SB Furniture, located along with Mao Tze Tung Boulevard and Monivong Boulevard, respectively. These two boulevards in Phnom Penh are well-known roads lined with furniture and home decoration shops. So far, these brands are popular and well-known among consumers here in Cambodia.

Real estate developments in the medium and premium brackets here in Cambodia have been growing well. As a result, this will stimulate the demand for home decoration and remodel homes, as well as for improved quality of life, as the overall picture of Cambodia’s real estate market shows continuous growth, albeit at a slower rate.

—
Eric Wong has extensive experience in the field of property consulting and development sectors, primarily within the emerging markets of Southeast Asia. From the property consulting perspective, he has lead market research assignments inclusive of providing descriptive, exploratory market research and analysis reports within the office, residential, hotel, and retail segments in both quantitative and qualitative methods to determine suitable development types, scale, and product mix, and address property-related matters from project positioning to absorption rates, phasing and pricing and marketing strategies, etc.

• Analysis
• Business and Market