7-Eleven Retail Market Gets Next Normal in Cambodia

Today, the retail business is well known and widespread among investors in Thailand. Despite the relatively high competition, many companies see the opportunity to expand their business to neighboring countries. Especially the country "Cambodia" that is being watched among the retail business. Because that is another country in CLMV that is worth investing in or expanding business. Due to the economic growth even during the Covid-19 outbreak, GDP in 2022 is projected to grow at 5.7% and there is a chance to grow 6.4% in 2023. With this overall economic growth forecast as a result, Thailand's largest retailer, CP ALL, or as we know it as the company that manages 7-Eleven convenience stores, has made a strategic decision to expand its business to Cambodia. Of course, this expansion of CP ALL's business will make the competition in Cambodia's retail market more intense. and more interesting to follow It also affects the overall economic activity in the country as well.

The 7-Eleven business in Cambodia is managed by a subsidiary of CP ALL or CP ALL (Cambodia) Co., Ltd. In the beginning, the company was managed by an experienced management team from Thailand. and many local staff are being hired for operational staff the company opened its first 7-Eleven store in Phnom Penh in August 2021, which was well received by Cambodian customers.

7-Eleven's entry into the convenience store market is considered "Next Normal" and is an important development step in the Cambodia retail market. This made the convenience store business significantly more active. Customers or consumers get new experiences from leading convenience stores from Thailand. During the initial investment period, 7-Eleven to establish 7-Eleven stores will start from important business cities such as Phnom Penh, Siem Reap Province. Battambang Province and Preah Sihanouk Province, etc., which is a province where many famous convenience stores have entered the business.

Currently, 7-Eleven's main branches in Cambodia are 7-Eleven Chroy Changvar (first branch), 7-Eleven PTT Preak Pnov Station, 7-Eleven PTT Prey Kei station, 7-Eleven PTT Chbar Ampov station, 7-Eleven PTT Phsar. Touch station, 7-Eleven Rule Monivong, and 7-Eleven Season Mall Poipet.

More than 90% of the products sold in 7-Eleven are from Thailand. It is a product that we are familiar with. Products that can be seen everywhere at 7-Eleven in Thailand. This is another channel for entrepreneurs to see an opportunity to expand their business through Modern Trade, that is, using 7-Eleven or even other well-known department stores to export products for sale. This will help enhance the good image of the brand. Make it a brand that is well known and accepted by consumers more widely.

Nowadays, there are convenience stores that are popular in Cambodia. There are many There are convenience stores run by local operators such as Kiwi Mart, Lucky Express/Supermarket, Chip Mong Express, Nham24, and Smile Mini Mart, among others. Foreign stores that have invested in, such as AEON Maxvalu, Super Duper, and Circle K, and convenience stores from Thailand such as 7-Eleven and Mini Big C, etc.

The expansion of 7-Eleven stores and retail stores in the future In addition to helping to increase the commercial value of the product even more can also penetrate the market to a variety of target groups, such as tourists who come to Cambodia at least 6 million per year (before the epidemic) and business people. Including foreign workers living in large cities, more than a hundred thousand people. It is also a good opportunity for many Thai entrepreneurs who can expand their distribution channels to sell their products in the Cambodian market. through negotiations with 7-Eleven under new conditions that are different from Thailand.

The reason why the 7-Eleven brand in Thailand is known to many Cambodian consumers Because the middle to upper class groups regularly travel to Thailand. And hundreds of thousands of Cambodian workers working in Thailand. Including Thai advertising media, dramas, movies, music from many channels that reach Cambodian people, giving Thai retailers a competitive advantage. And it is an additional channel for Thai entrepreneurs who want to expand their products to the Cambodian market to have more opportunities as well.

Although modern trade stores are constantly increasing, from Europe, America, Japan, China, and Thailand, including Cambodian investors. But 80% of Cambodia's main channels for purchasing goods are still traditional markets, such as stalls and wholesale markets. This makes Modern Trade only 20% of the total population. Most of them are in the capital and tourist cities. Most of Modern Trade's clients are foreigners living in Cambodia. tourist and those with middle income and above only. The main target group is young people with high purchasing power. and can be open to change as well

The city that stands out for investment and market expansion is inevitable, Phnom Penh. With a population of 1.6 million, the demand for goods and services has grown quite rapidly. because there are consumer groups with high purchasing power

The Office of Overseas Trade Promotion in Phnom Penh reveals considerations for entrepreneurs planning to expand the Thai market in Cambodia as follows:

1.     Thai entrepreneurs need to plan and adjusting the trading style that used to be used in Thailand due to the structure and distribution channels Distribution and consumer behavior of most people are quite different. Finding a good dealer or partner to help distribute is a good and appropriate main channel.

2.     Create distinctive features and differentiation as well as adjusting marketing strategies to meet the needs of domestic consumers So it will be able to compete with the same competitors and survive in this market.

From the Although trade in Cambodia presents challenges in terms of competitors in the retail market and insufficient production to meet consumer demand, however, due to the growing economy. Growing purchasing power of Cambodians and changing consumer behavior resulting in rapid urbanization. And after opening and expanding 7-Eleven stores, entrepreneurs have many avenues and possibilities. to do retail or bringing Thai products to sell through trade negotiations. Most of the businesses and products in Thailand are well known among Cambodians. Make it easy to invest and build a reputation of the business to be known and remembered widely.

This may lead to decision making for Thai entrepreneurs and investors. interested in expanding business or expanding distribution channels to Cambodia. The important thing is respect for the law and the practices of society to be a part in addition to focusing on the quality of products and services. Social and environmental considerations are required. to improve Cambodia's economy

Customers interested in doing business in CLMV or Great Mekong Subregion (GMS) countries include Cambodia, Laos, Myanmar and Vietnam, Siam Commercial Bank has foreign branches that are ready to take care and provide services. Please visit https://www.scb.co.th/en/corporate-banking/international-network.html

Thank you for the good information from: Siam Commercial Bank, Cambodia branch https://www.scb.co.th/ccb/corporate-banking.html



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