SMEs' blueprint for success in Cambodia

 

Somphob Ritthikulprasert, executive adviser at ARS Chemical (Thailand), said to tap into Cambodia’s growing consumer market, Thai SMEs should learn how to use mass media channels like radio and TV to build brand awareness and attract local distribution partners to access their targeted market.

“TV commercials are still very important when introducing new brands and products in this 15-million strong population market. Compared with advertising rates in Thailand, Cambodia’s leading TV broadcasters offer lower rates,” Somphob said.

With more than 16 years of trading experience in Cambodia, Somphob shared this lesson to a dozen Thai SMEs at a seminar about expanding business opportunities in Cambodia organised by Chandrakasem Rajabhat University on Saturday.

Somphob began his long journey |in trading and marketing with Ajinomoto Co (Thailand), a Japanese manufacturer of seasonings, processed food and beverage products when the company decided to penetrate into Cambodia.

Top-rated Cambodian TV channels charged advertisers about US$300 (Bt10,100) per 30-second |TV commercial during the prime-time slot, Somphob said. But in Thailand, market leaders like Channel 7 and Channel 3 charge their clients at least Bt400,000 per minute despite having new digital terrestrial TV rivals in the market.

The main players include Cambodia Television Network (CTN), Hang Meas channel and My TV, he said. Communication via free-TV channels along with other mass media like radio and billboards were key to creating brand awareness among those tar-geted customers in urban and rural areas. The broadcasting regulations governing TV and radio commercials were also more flexible than in Thailand, he said.

According to Dataxix Reports on Cambodia Television Market 2012-2020, the TV market in Cambodia is dominated by 11 terrestrial TV broadcasters with highest penetration of 73 per cent of total households.

He said several local TV production, run by Thais, were providing advertising production service in Cambodia. If there was more demand from brands and companies in hiring TV production, this would create further opportunities for Thai production houses to tap into the Cambodian advertising industry.

Apart from free-TV broadcasting services, direct-to-home (DTV) is another effective communication channel to reach a wider targeted audience. Home-shopping channels are widely used for selling health and cosmetic products.

“Satellite-based home-shopping channels increasingly play a key role in the Cambodian market. Thailand-based home-shopping operators like TV Direct are also well-recognised by DTV customers there,” he added.

However, Thai SMEs should be concerned about logistics issues if they want to do business in Cambodia. 

“Finding a trusted local distribution partner is key,” he added. Major operators have their own distribution channels and reach mass audiences.

Meanwhile, Sompen Kruthanon, special lecturer at the Humanities and Social Science faculty of Chandrakasem Rajabhat University, said that product research and development was as important as market assessment to keep improving sales performance.