Market Ironies in Cambodia

Consider this irony: a country like Cambodia produces clothing shoes, bedding, and wood furniture for many high-end retail companies abroad, but one looks for good shoes, bedding, or wood furniture in Cambodia, it will become apparent that these homemade goods are the exception and, unfortunately, the cheap Chinese or Vietnamese knock offs are the rule.

In some sectors in Cambodia, there's a tragic form of globalization at work in Cambodia, in which predatory companies exploit both labor and consumers in Cambodia at the same time. The only justice is when entrepreneurial workers sneak out nice Gap clothes, Nike sneakers and Levis jeans. The tragedy is that knock-offs are so ubiquitous that no one will believe a poor girl that her Levis are the real thing. In all likelihood, even she will be exploited by someone one level down in domestic the private sector.

In many cases, I have been that consumer being exploited here. Having arrived in Cambodia a few days ago (and miraculously, having found an amazing apartment within four hours), it has been just this ironic tragedy that has followed me around as I attempted (and am still attempting) to furnish my apartment. Consider the following situation: a white, sweaty, and sunburned male trying to buy towels and a rice cooker. Snap analysis: a tourist. Second thought: oops, probably an expat trying to set up a home. Further analysis: I bargain in Khmer and I know many of the prices, so I am not a Freshman in Cambodia. Why, then, should 75% of the shopkeepers try to pull the 1000% markup on me and think they can get away with it? Do they only do the snap analysis... do they ignore telltale signs of experience? Frankly, I don't know but the consistency of this experience has me dazzled, and a bit frustrated. On principle, I won't buy things for the retail European price, so if the shopkeeper rejected any good offers (remember, I've lived in Israel and they bargain hard), I won't buy, even if I'm desperate. I toweled myself off with a pair of pants one night after a run-in with three annoying towel salespeople in a row. The next day in the market, I immediately get a straight up offer that's reasonable and I don't even have to bargain. What gives?!

And it's not just retail. I spent four hours looking for apartments of roughly the same specs, with only location being different in some cases. Adjusting for quality a bit, I bargained hard down to offers of $400, $300, $250 a month. In the end, I found a place for $80. Being unfurnished, it's going to cost me roughly $600 to set everything up, which could crudely be seen as a rent increase to $130/month. Consider alternatively, that these furnishings I am purchasing are an investment, and we're talking maybe $100/month. So, if a friend comes to Cambodia looking asking about a reasonable price on a one-bedroom, 1200 square-foot apartment in Phnom Penh, I am going to say not more than $400 and not less than $80. Good luck, friend. And thanks for all the help clarifying the market, Cambodia.

That being said, a shoe shine is 25 cents in Cambodia. No bargains necessary. Hallelujah.