Logo of Phnom Penh Post newspaper Phnom Penh Post - Rising incomes lead to television upgrades

Rising incomes lead to television upgrades

Rising incomes lead to television upgrades

Cambodians spent more than $40 million on purchasing flat panel televisions from April 2014 to March 2015, on the back of improving economic prosperity among the middle class, according to Singapore-based research firm Gfk.

The data shows that 126,000 TVs were bought for $46.3 million during that period, marking a 40 per cent increase in the number of TVs sold and 23 per cent increase in the sales revenue from the year earlier.

Seraphina Wee, public relations and communications manager at GfK, said this was indicative of consumers wanting to upgrade to newer technology, like ultra high definition TVs, which recorded a 200 per cent increase in sales.

“Cambodia’s total sales volume of flat panel TV continue to increase and consumer demand for ultra-high definition models have spiked exponentially in the past year to help fuel the strong growth of this segment as well as the overall value growth of the TV market,” Wee said.

Hor Hab, head of sales for GGear, an authorised LG Electronics distributor, said rising incomes are just one part of the story.

A decrease in TV prices combined with an increase in the number of hotels, apartments and condominiums all looking to have the latest technology, was also a factor, he said.

“Electronics market in our country is growing quite fast, very fast. The TV industry will be positively growing year by year,” he said. However, he said TV price were still higher when compared neighbouring countries because of high taxes in the Kingdom.

“The import cost for TV is zero per cent in our neighbouring countries, while there is a 5 to 15 per cent import tax and 10 per cent special tax [in Cambodia],” Hab added.

Independent economic analyst Srey Chanthy said middle income groups in Cambodia largely consist of young adults living in urban areas, who are increasingly tech-savvy.

“I think not just TV sales are increasing – smartphone sales are too. This is driven possibly by the purchase on credit scheme, such as through AEON micro-finance,” he said.

MOST VIEWED

  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • EBA withdrawal provides ‘opportunity for growth’

    Economic analyst Khoun Bunny said on Tuesday that the loss of the EU’s preferential Everything But Arms (EBA) agreement could be a golden opportunity for Cambodia to show it deserved to be ranked sixth on the list of the world’s fastest-growing economies. Government

  • Malaysia MP accused of ‘influencing law’

    Malaysian Member of Parliament (MP) Larry Sng arrived in Siem Reap early on Wednesday, in what was slammed by one NGO as efforts by Kuala Lumpur to “influence Cambodian law”. The Malaysian Embassy in Phnom Penh requested on January 30 “cooperation from the Ministry of Foreign

  • Ministries begin measures to offset EU’s EBA decision

    In the wake of the EU’s controversial announcement this week that it has begun the withdrawal process for Cambodia’s Everything But Arms (EBA) preferential agreement, government ministries and political analysts continued to share their reactions and economic mitigation plans in preparation for the