Cambodia Silk Fashion Accessories Industry

An Expert's View about Sourcing in Cambodia

Posted on: 5 Apr 2010

Cambodia’s silk fashion accessories industry is an emerging line that shows great potential for development as one of the country’s major exporting sectors.


The industry is small and mainly composed of NGOs that provide employment opportunities to many disadvantaged people who have been affected by conflicts and disease. These efforts by social-civic enterprises have resulted in not just introducing local products to a worldwide buyer audience, but also in helping uplift the plight of the underprivileged.


The industry’s strengths lie in its strong design capability and acceptance of small orders. Some suppliers do not even have minimum order requirements.


Silk fashion accessories from the country include a variety of products such as fashion bags, wallets and purses, headwear and neckwear, fashion jewelry, and casual wear. Products usually feature traditional designs unique to Cambodia.


Although the majority of manufacturers are NGOs, a number of enterprises are joint ventures or foreign invested companies.


Phnom Penh is the main production hub. The country’s capital is home to almost two-thirds of suppliers in this report. Other important sourcing centers are the provinces of Siem Reap, Battambang, Kandal, Pursat, Kampong Chhnang and Kampong Thom.


Despite strong consumer interest, manufacturers of silk fashion accessories in Cambodia are facing certain issues that have made the business environment more challenging.


The local supply of silk is short, forcing manufacturers to use imported materials from Vietnam and China. Due to low supply, costs have climbed by as much as 20 percent over the past 12 months.


In response, the government is planning to revive the local sericulture industry to keep silk imports at a manageable level.


Another key hurdle is low production capability due to the continued employment of traditional processes done by hand. But since local items are characterized by their quality, which is achieved through painstaking detail, most suppliers are unwilling to shift to modern, machine-based production.


The following are some of the keytrends we see in Cambodia’s silk fashion accessories industry:

• In an effort to generate more orders and stimulate buyer interest, the majority of suppliers are expected to keep prices at current levels.

• Exports in the line are expected to see substantial growth, with close to half of manufacturers seeing exports to surge by at least 10 percent. Anal most equal number of suppliers expect overseas shipment to increase by up to 10 percent.

• Suppliers consider the EU as their top target market in coming months. North America and the Asia-Pacific region are expected to be strong secondary markets.

• More products will feature environment-friendly components. These include natural and recyclable materials such as reed, sedge, jute and coconut shell.



The above is extracted from the Executive Summary of China Sourcing Report: Cambodia - Silk Fashion Accessories


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Posted: 05 April 2010

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Cambodia Silk Fashion Accessories Industry   By Global Sources