Major Internet star companies have invested in Southeast Asia, which has led to the gradual warming of the Southeast Asian market. But most people now know Indonesia, Malaysia, Vietnam and other places.
Indonesia, a populous country with a strong focus on capital, has a large investment, a long period of time, and a relatively high risk. Therefore, it is more difficult for entrepreneurs to get the top spot from each track. When the “big market” competition is already fierce, perhaps some “small markets” have become a treasure land for making a fortune.
Cambodia, as a country along the “Belt and Road” of China, with the support of the Chinese government, the power grid, submarine cables, highways, ports and airports have been established, which not only drives the rapid development of GDP, but also the industry in Cambodia.
It has been improved, and it has also received a large amount of investment from China. For this reason, the economy has maintained a high growth rate of over 7 percents for 10 consecutive years. The per capita GDP has reached 1,500 US dollars, and the per capita GDP of the city has reached 4,000 US dollars.
Cambodian E-commerce and Internet development
With the economic prosperity, Cambodia’s Internet and e-commerce fields have also developed in a logical way. On the whole, the region is on the cusp of Internet entrepreneurship. Although the overall national income is still at a relatively low level, it does not affect its influence by advanced technology and the era of high technology.
Throughout Southeast Asia, Cambodia has 1.5 smartphones per person, and its penetration rate far exceeds that of other Southeast Asian countries.
Compared with the global perspective, the number of Internet users in Cambodia, the number of social media users and the number of social media users on the mobile phone are higher than the world level in terms of growth rate and penetration rate.
And at the congress held in Cambodia on October 8 this year, the draft of the Electronic Commerce Law was also adopted, which covers all areas of e-commerce, including electronic signatures, contracts, settlements, product and service quality standards, and aims to promote domestic electronics. Business development, promoting the development of Cambodia’s digital economy, will clearly regulate the norms of cross-border e-commerce transactions in Cambodia, eliminate barriers to e-commerce transactions, and promote the development of e-commerce.
Currently the main e-commerce platform in the region
– L192/Little fashion (local business)
Established in 2010, the local Cambodian e-commerce platform L192 (formerly known as mBuy) is an influential online fashion website in Cambodia. It is an online platform of Little Fashion (an informal Facebook retailer) that provides clothing and footwear, bags, accessories and beauty products.
At present, L192 has an absolute advantage in Cambodia’s online shopping market. Its parent company, Internet startup Groupin, also obtained a $5 million investment fund from private equity firm Leading Capital Management Co., Ltd. in March 2019, and established Cambodian technology. The largest financing record in the history of a startup.
– Smile Shop
In October 2018, the Smile Shop, a boutique e-commerce platform owned by Cambodian Technology Co., Ltd., is the most advanced B2C e-commerce platform in Cambodia. The Smile Shop name is derived from Khmer’s smile.
The goal is to build Jingdong Mall in Cambodia. It focuses on providing customers with quality products and creating “good things, to smile shop”. It has signed contracts with many well-known brand products and become many well-known brands (Millet, Mingchuang Premium, OPPO/Realme, etc.) Online Shop, Smile Shop is dedicated to providing Cambodian users with a worry-free shopping experience.
La Rue (local business)
“La Rue” is French and literally means “TheStreet”. It is Cambodia’s emerging online market, wholly owned and managed by Cambodians, to support the expansion and improvement of the Cambodian digital space, while paving the way for a mutually beneficial commercial space in Cambodia. At present, the products cover everything from electronics, fashion, health and beauty, home and life, sports and tourism, baby and toys to thousands of brands.
Tinh Tinh Online Shop (government certification)
On August 16 this year, the Cambodian government approved the establishment of the Cambodian Post E-Solution PLC. The e-commerce platform is an online service platform approved by the Cambodian government.
It has brought the world closer to Cambodia and made the world While enjoying the Cambodian special products quickly, it also marks Cambodia’s entry into the e-commerce era. According to reports, the TinhTin e-commerce platform has three business segments: “TinhTinh Mall”, “TinhTinh Logistics” and “TinhTinh Agency”. “TinhTinh Mall” ( Tinh Tinh Online Shop is dedicated to the local and global markets of Cambodia, attracting global merchants and bringing goods to buyers around the world.
Roserb (Main Beauty)
Roserb is a local Cambodian online platform offering more than 50 cosmetic and skin care brands, offering one-stop beauty products from skincare to cosmetics brands, each of which undergoes a test by their beauty executive before they can be placed on their online website. Sell on. Since its launch in March 2014, the e-commerce platform has achieved good development and effectively connected suppliers and customers. Founder Millberry said it will increase competition in emerging markets and provide more confidence to consumers who want to venture into digital shopping.
MyPhsar (local business)
MyPhsar is Cambodia’s online shopping site where you can sell or buy goods. Currently, the company only focuses on the Phnom Penh area.
NIKA (main mobile phone)
The NIKA mobile phone store is a Cambodian company engaged in communications business, providing customers with a variety of well-known smart phone and watch brands, headquartered in Phnom Penh. The NIKA mobile phone store is also a local e-commerce site that is popular among Cambodian users.
Hulu Trade (factory direct sales)
The online sales platform, in addition to retail products, also has direct sales products for factories. In addition to Cambodia, there are sub-sites in the United States, Russia, and the Arab region.
AliExpress (International Edition Taobao)
AliExpress is a B2C e-commerce platform launched by Alibaba Group in 2010, allowing Chinese individuals and companies to sell their products directly to foreign consumers. The website is similar to eBay, and the seller can be a company or an individual. AliExpress is different from Amazon because it is just an e-commerce platform and does not sell products directly to consumers. The platform is currently also available for use in Cambodia.
Advantages and future development
Today, Cambodia’s economic and development potential is recognized, and many investors have moved from China, Thailand and Vietnam to Cambodia, using the country’s favorable geographical conditions for investment (Cambodia is the core of the Southeast Asian transport network, from Cambodia). From the beginning, the transportation line can be diverted to countries such as Thailand, Vietnam and Myanmar.
At the same time, the further development of the e-commerce sector is also inseparable from logistics and third-party payment. In the current large cities with concentrated population, the development of express logistics is very fast. The logistics company GD express continuously learns and practices Chinese logistics experience locally. Domestic express companies have also copied China’s successful logistics system in Cambodia.
Nowadays, Cambodia is common. There are also domestic express delivery companies such as Zhongtong, SF, and Yunda. And in March of this year, 4PX handed the Quartet Express to sign a strategic cooperation agreement with the United Nations Development Program (UNDP) to jointly cultivate Cambodia’s e-commerce field and promote the development of Cambodian e-commerce, which will help Cambodia to quickly integrate into the global supply chain and reduce cross-border Logistics costs and expansion of product categories.
The 4PX, which is controlled by Ali, will invest US$1.3 million to help Cambodian small and medium-sized e-commerce companies to sell products and deliver goods overseas through Alibaba’s platform, as well as training services such as website construction. In addition to leading Cambodian sellers out of the country, this cooperation also opened up the Cambodian market and customers to the Chinese supply chain.
In terms of payment, powerful banks have also launched their own third-party payments, such as ABA PAY (ABA Bank launched), Dara Pay (Canadian Bank launched), and M pay (Southeast Asia Telecom launched). At the same time, in March of this year, HUIONEPAY (Cambodia local payment agency) also formed strategic cooperation with Alipay.
In addition, Cambodia is also a young man, with 70 percents of the population under the age of 30. Young people are willing to try and accept new things. Whether it is shopping in the mall or the payment of roadside stalls, they also like to use third-party payment to make payments, which also provides a better development environment for the e-commerce industry.
An imperfect market has more potential. Just like developing countries in developed countries, it is only because the infrastructure is not perfect and the industry is ready to go, it will be lively and extraordinary, and there will be room for rapid growth. Therefore, the future of Cambodian e-commerce is also true.