South Korea’s LG Electronics launched its first premium showroom in Phnom Penh last Tuesday, signaling its seriousness in Cambodia’s growing consumer market.
In line with LG’s vision, “creating a better life with our customers”, the premium showroom, located in Monivong Blvd, provides special experiences for customers and offers best quality products with upgraded services.
“From an industry attractiveness perspective, I have seen great potential in Cambodia consumer electronics market. Cambodia has some strong points that makes it an attractive market,” said Sung Suk Kim, Managing Director of LG Electronics in Cambodia, at the lunching ceremony.
He said the premium showroom will play two important roles.
“Firstly, from the perspective of customers, we can launch high-end products that customers are willing to pay for and can be sold at an acceptable price in the market.
“It is a kind of flagship store for LG to build (its) brand image and deliver products that can provide the differentiated value we promised to our customers,” he added.
“Secondly, we focus not only on strengthening LG brand image but also making good performance itself though premium brand shop which contributes to LG’s next quantum growth,” said Kim.
He said the company has taken the first step to reach its aspiration to make LG a top selling brand in the Cambodian market and will increase its marketing budget to build its brand name.
The rising small middle class and Cambodia with a young population plus the availability of micro financing which provides consumers with quick loans — will push the demand for electronic items.
According to the Ministry of Economy and Finance, per capita income in 2018 is expected to touch $1,568, from $1,435 last year, due to the stable economic growth achieved at the rate of about seven percent on average for more than a decade.
At the same event the main supplier of LG products in Cambodia, Ggear’s Chief Executive Officer Sok Piseth said the company is trying to promote latest consumer electronics products in the Kingdom.
“The premium showroom is not an ordinary electronics showroom, all latest products available in the international markets are also sold at the premium showroom. It will give a new experience to our consumers,” he said.
The premium showroom displays a range of household products ranging from refrigerators, washing machines, vacuum cleaners, air conditioners, and the latest LG OLED television.
A study titled “Opportunities for Consumer Goods in Cambodia”, which was jointly commissioned by BritCham, EuroCham, and UK’s Department of International Trade, said the demand for electronics products will grow as household income rises.
“Ownership of consumer electronics is growing quickly in Cambodia. Since ownership of most consumer electronics other than mobile phones is still relatively low, strong sales are expected to continue in the coming years.
“Cooking appliances such as microwaves, toaster ovens, coffee makers, electric kettles, blenders, and food processors have not yet found their way into most Cambodian kitchens.
“Appliance makers that educate consumers on the benefits of these products will be rewarded with sales,” said the report published in 2016.