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Cambodia: Monthly Q3 household income rises
The average monthly household income of Cambodian consumers rose in the third quarter of this year as compared to the same quarter last year and the previous quarter, according to a report by Indochina Research.
The report expects inflation to rise in the fourth quarter of 2022.
The survey ‘A Light Glimpse of Cambodia’ for Quarter 3 of 2022 was compiled after interviewing 2,000 consumers over the phone and face-to-face in Khmer language in July this year.
The survey covered five regions including the capital, plateau and the mountain belt, coastal area, Tonle Sap and the plains.
Consumers aged 16 to 65 were surveyed in Phnom Penh, the plateau and the mountain region covering Kratie and Kampong Speu provinces. It also covered the coastal area consisting of Preah Sihanouk and Tonlep Sap region, including Banteay Meanchey, Battambang and Siem Reap. The plain region covered includes Kampong Cham, Kandal and Prey Veng provinces.
Consumers from all the surveyed provinces generated an average household income of $415.19 in the third quarter, compared to an income of $376.12 in the previous quarter and $395.59 in the same quarter of last year.
However, the average household basket size — the products purchased to consume by households — has dropped to 10.43 from 10.96, according to the report.
“The average monthly household income of Cambodians has improved from the previous quarter and is even higher than the same period of last year. With the Ukrainian war showing no signs of an end, the impact of the geopolitical crisis will be felt in the Kingdom through disruptive supply chains and growing inflation. This also hinders the ability of the country to fully recover from the pandemic,” the report pointed out.
As per the report, the monthly household income in the urban area increased to $485 in the third quarter as against $479 in the second quarter.
Meanwhile, income in the rural area rose to $364 in the third quarter from last quarter’s $301.
“Higher monthly household income than the previous quarter is recorded across the regions except for the capital,” the report indicated.
More than half of Cambodians believe that the price of consumer products has risen significantly in the past six months and a majority expect that inflation will continue to rise within the next six months of this year.
The report does not highlight the inflation rate, but the Economic and Monetary Statistics recently released by National Bank of Cambodia showed that the country’s inflation has risen to 7.85 percent in June 2022 compared on a year-on-year basis to 7.17 percent.
The average household basket sizes that have dropped in the third quarter include seasoning, instant noodles, breakfast cereals, packaged water, milk, beer, shampoo, hair conditioner, detergent, toothpaste, feminine pad, vitamins, baby diaper, chocolate malt beverages, energy drink, infant milk formula and carbonated soft drinks.
“Product endorsements emerge as the primary consideration for purchase, especially within the urban area. Interestingly, advertisements are rated as the least consideration when purchasing across the regions. Discounted price on a product is the most appealing promotion to consumers followed by the ‘buy one get one’ promotion. It is also worth noting the increased interest for raffle tickets, reward points, and buy-now-pay-later promotion, particularly in the capital and plain areas,” the report pointed out.
The report also showed that convenience store shopping in the capital increased significantly due to their convenient location within the gasoline stations. Compared to the previous quarter, Cambodians are also purchasing more frequently at such stores due to more mobility. Meanwhile, the purchase incidence of hypermarkets or supermarkets is still minimal and mainly concentrated in the capital with Aeon increasing its share.
“Interesting and relevant pricing and value-for-money tactical campaigns would be a good way to compete in the fourth quarter of this year, taking advantage of the stronger consumer confidence and rising household income, while at the same time, taking hold of the cautious spending of Cambodians in the third quarter due to inflation,” the report indicated.
On the other hand, online purchases remain stable with Cambodians making online purchases twice a month and Facebook still being the most used purchasing channel.
The report found that the consumer confidence has risen by 6 percent to 47 points — in the safety zone — in the third quarter of this year from 50 points in the previous quarter, while it rose from 44 points from the same quarter of last year.
The consumer confidence score is projected to rise back to 54 points in the fourth quarter of this year, the report added.
Source: https://www.khmertimeskh.com/501175488/monthly-q3-household-income-rises/