Luxury resists stable definition. The literature is united in the judgement that the construct is ambiguous, shifting with time, culture and socio-economic context (Donzé et al., 2022; Morhart et al., 2020). This ambiguity is not incidental but central: because luxury is defined relationally, against what is ordinary in a given market at a given moment, definitions developed in mature Western markets transfer poorly to emerging ones (Lu, 2021; Kaolawanich et al., 2020). Reviews of the field converge on the assessment that luxury scholarship remains thin relative to adjacent business disciplines, and that conceptual clarity has lagged the sector’s commercial growth (Ko et al., 2019; Langer & Heil, 2015).

Two broad positions can be distinguished in this debate. The first treats luxury as a social phenomenon: consumption is driven by status, self-image and social positioning rather than by the utility of the object (Mao & McAleer, 2017; Morhart et al., 2020). This position remains the dominant explanatory frame in emerging-market research, where visible status signalling is frequently observed (Studente & Cattaneo, 2023; Som & Blanckaert, 2021). The second position locates luxury in the object and its production, holding that an item qualifies as luxury through demonstrable attributes rather than the social meaning attached to it (Langer & Heil, 2015; Miller, 2017). The distinction matters in practice: the first implies that luxury status is conferred by the market, whereas the second holds that it is asserted by the brand.

The second position has proved more operationally useful, identifying recurring dimensions through which luxury status is claimed and recognized. These include brand storytelling and narrative (Morhart et al., 2020), craftsmanship and the visible investment of expert labor (Langer & Heil, 2015), innovation in design and materials (López et al., 2023), and heritage as a guarantee of authenticity and quality (Som & Blanckaert, 2021; Studente & Cattaneo, 2023). Each of these dimensions, however, depends on consumer recognition to function: a heritage claim that a market cannot read is not a signal at all. This dependence remains largely unexamined in markets where luxury literacy is still forming, and the Cambodian context exemplifies this.

Contemporary research on luxury brand management converges on three arguments, the third of which is the least resolved and the most consequential for this study.

First, heritage functions as a strategic resource rather than a historical fact. Brands deploy heritage to signal authenticity, scarcity and emotional resonance (Studente & Cattaneo, 2023; Solaru, 2024; Hirschler, 2024), and consumers reciprocate by treating heritage, quality, scarcity and craftsmanship as legitimate grounds for premium pricing (Tian et al., 2001; Ehrensperger et al., 2020). The evidence for this association is strong in established markets. What the literature does not settle is what heritage achieves when it is deployed to an audience with no prior exposure to the brands concerned, where the narrative carries no accumulated meaning.

Second, digital and social platforms have reshaped both the reach and the mechanics of luxury communication. Social media directly shapes purchase decisions and stimulates luxury consumer behavior, an effect that is amplified for brands with global coverage (Thirumaran et al., 2021; Lu, 2021). Aesthetic appeal alone is no longer sufficient; brands are expected to pursue multiple simultaneous approaches to reach increasingly brand-aware consumers, who invest more in the brands they choose and expect deeper relationships and greater accessibility in return (Kaolawanich et al., 2020; López et al., 2023). Alongside this, the client base and the range of luxury categories have expanded considerably, from fashion, cosmetics and perfumes to timepieces and automotive (Okonkwo, 2009; Ko et al., 2019).

Third, and least resolved, is the question of transferability. The bulk of this literature is generated in mature markets and then generalized outward (Ko et al., 2019; Lu, 2021). When emerging markets are examined, the analysis typically focuses on consumer responses to existing brand strategy rather than on the strategic problem of operating in a market where consumer understanding of luxury is itself under construction (Guo & Zhang, 2020; Sin, 2023). Brun and Castelli (2013) and Kaolawanich et al. (2020) treat emerging-market positioning as a response to observable demand, an assumption that presupposes a demand signal legible enough to respond to. This is the principal unresolved tension in the literature, and the point at which the present study intervenes.

Cambodia is now widely regarded as one of the fastest growing economies in the region (Guo & Zhang, 2020; Saly & Satrianto, 2024), a trend consistent with the broader diversification of Southeast Asian economies (Kaolawanich et al., 2020). The business environment has attracted substantial foreign direct investment (Boccia et al., 2024), with the overall FDI outlook assessed as positive and viable over the long term (Saly & Satrianto, 2024). Contributing factors include population growth and a marked improvement in human capital, which have fostered a workforce capable of supporting output across sectors and made the country an attractive proposition for outside investors (Saly & Satrianto, 2024; Ou et al., 2024). Government policy has reinforced this through competitive tax provisions and support for full foreign ownership (Guo & Zhang, 2020; Sin, 2023).

Demand for luxury products, experiences and services has surged across Southeast Asia, with consumers willing to pay premium prices (Kaolawanich et al., 2020). Regional luxury consumption is strongly shaped by branding and by the personal and societal value consumers attach to brands (Mao & McAleer, 2017; López et al., 2023). A recurring argument in this literature is that Western luxury brands became over-reliant on Chinese consumers and have since begun scouting and investing in other geographies, with Southeast Asia prominent among them (Kaolawanich et al., 2020; Mao & McAleer, 2017). Whether the region lags behind the established leaders of Japan, South Korea and China, or is simply at an earlier point on the same maturation curve, remains contested. What is not contested is the direction of travel: luxury consumption in Phnom Penh has risen sharply as consumers become increasingly driven by lifestyle and premium brand loyalty (Ou et al., 2024), and the Asia-Pacific region continues to generate high-net-worth individuals seeking luxury goods (Eijdenberg et al., 2024).

Phnom Penh is the centre of Cambodian cultural, political and economic activity and has driven national economic growth over the past decade (Guo & Zhang, 2020). Improved infrastructure and strong FDI have consolidated its position as a hub for business and consumer activity (Boccia et al., 2024). The market now receives international recognition for its high standards (Eijdenberg et al., 2024) and attracts travellers who intend to spend on luxury products and services (Thirumaran et al., 2021). Destination-based luxury shopping is a significant component of this. Research on cross-border luxury purchasing shows that travellers routinely concentrate high-value spending in the destinations they visit rather than at home, making the retail environment of a destination city a competitive asset in its own right (Hung et al., 2021). Domestic demand is likewise strong, driven by a status-conscious middle class aspiring to exclusivity (Eijdenberg et al., 2024; Guo & Zhang, 2020).

Four features account for the steady growth in demand: an expanding group of affluent, status-conscious Cambodians; wealthier inbound tourists with greater purchasing power; a substantial expatriate population that consumes domestic luxury products and services; and the commercial reach of digital and social media marketing (Guo & Zhang, 2020; Pich et al., 2025). The last of these is decisive. E-commerce and digital marketing have become the primary channels for advertising and purchasing in Cambodia, and consumers are highly receptive to trends and imagery across online media (Pich et al., 2025; Thirumaran et al., 2021). This is especially significant for consumers outside the capital, for whom digital channels are often the primary point of contact with luxury brands. Although Cambodia’s digital transformation remains constrained by uneven infrastructure and disparities in access between urban and rural consumers, rising smartphone penetration has driven rapid adoption of digital services (Ly, 2025), enabling the luxury sector to build and sustain relationships with high-income and high-net-worth consumers in Phnom Penh (Ou et al., 2024; Pich et al., 2025). Platforms such as Instagram, with carefully curated imagery, have been central to sector engagement and to prompting purchase decisions (Thirumaran et al., 2021).

Taken together, the literature establishes three positions relevant to this study. Luxury is a contested construct whose recognized dimensions (storytelling, craftsmanship, innovation and heritage) depend on consumer recognition to function. Contemporary brand management research explains how those dimensions are deployed in mature markets but assumes a level of consumer luxury literacy that emerging markets may not possess. The Cambodia-focused literature documents rapid market growth and rising consumption, yet does so almost entirely through quantitative, consumer-facing designs.

The consequence is a specific, addressable gap. There is currently no account of how luxury practitioners in Phnom Penh understand the conditions in which they operate, how they position brands in a market whose demand signals are still forming, or the competitive risks they perceive. The present study addresses this gap directly by generating qualitative insider evidence on the factors shaping the sector and the challenges they pose.

This study adopts a qualitative research design grounded in pragmatist philosophy. The justification is one of fit: a qualitative approach aligns directly with an exploratory research strategy, and qualitative data are well suited to examining insights, patterns and personal accounts, producing outcomes that serve the study’s aims and objectives (Saunders et al., 2016; Parnwell & Meng, 2023). An exploratory strategy seeks to generate insight and clarify understanding of a topic where existing knowledge is limited (Creswell & Miller, 2000; Saunders et al., 2016). The exploration proceeds broadly at the outset and narrows as insight accumulates. This design links primary data from semi-structured interviews with a secondary desk-based review of the literature (Parnwell & Meng, 2023).

A purposive sampling strategy was used, with sample size determined by information power rather than a predetermined target. Malterud et al. (2016) and Rosenthal (2016) support this approach as a means of producing rich and valid data in interview-based research, and Saunders et al. (2016) note that research conducted within a niche field or a defined geographical setting yields a more detailed account of the phenomenon, emphasizing depth over breadth. Participants were selected based on their direct knowledge and expertise in the sector (Brun & Castelli, 2013).

A total of eight participants were interviewed. All eight held leading or upper-management positions in the luxury sector in Phnom Penh, including luxury brand managers, luxury marketing directors and luxury business owners. The sample included participants of different genders. Eligibility required English-language proficiency, availability during the fieldwork window, and consent to the study parameters. No participant table is presented: the luxury sector in Phnom Penh is small enough that a matrix of role, employer type and tenure would identify individuals who hold senior commercial positions and who spoke candidly about their own brands, their competitors and the market. Therefore, participants are described only at the level of role group to preserve the confidentiality they were promised. Eight interviews were judged sufficient under the information-power principle advanced by Malterud et al. (2016), which holds that a narrowly defined aim, a highly specific sample and strong dialogue quality reduce the number of participants required. Each condition holds here: the aim is confined to a single sector in a single city, every participant occupied a senior position within that sector, and the interviews were conducted face-to-face and at length. The three reported themes were supported across multiple participants rather than resting on individual accounts.

Data were collected through non-standardized, one-to-one, face-to-face semi-structured interviews, a format that allows variation based on each participant’s knowledge and position while maintaining the immersion required for an exploratory study (Saunders et al., 2016; Parnwell & Meng, 2023). All eight interviews were conducted in person in Phnom Penh in early 2026 and were conducted in English.

The interview guide was developed directly from the research objectives and informed by themes that emerged from the literature review, namely luxury positioning, brand heritage, consumer perception and market barriers (Studente & Cattaneo, 2023; Som & Blanckaert, 2021). Questions were organized around three areas: participants’ perceptions of the current luxury landscape in Phnom Penh; the strategic and operational challenges facing luxury brands in the market; and participants’ views on consumer behavior and cultural engagement. Each area included open-ended core questions supplemented by follow-up probes, allowing participants to elaborate on their specific roles and expertise (Parnwell & Meng, 2023). This format balanced consistency across interviews, ensuring that all objectives were addressed, while allowing flexibility to pursue participant-led insights. The guide was piloted with a preliminary participant to assess the clarity and relevance of the questions before the main data collection phase.

Interview transcripts were analyzed using reflexive thematic analysis following Braun & Clarke's (2021) six-phase approach: familiarization with the data, generation of initial codes, searching for themes, reviewing themes, defining and naming themes, and producing the report. Coding was conducted inductively, with themes derived from participants’ accounts rather than imposed by a pre-existing framework, consistent with the exploratory and pragmatist orientation of the study and the active, interpretative role the researcher takes in reflexive thematic analysis. Transcripts were coded manually, with codes iteratively grouped into broader categories until three overarching themes were established across the eight participants.

Ethical conduct was treated as a condition of credibility (Saunders et al., 2016). Participants were informed of the confidentiality of their information and their right to withdraw at any stage, and all participated with full consent (Rosenthal, 2016). Responsibility, honesty and integrity governed the research, which was conducted under an honor pledge. Rigor was supported by a consistent interview structure across all eight participants, systematic manual coding, the requirement that every reported theme be evidenced across multiple participants rather than resting on a single account, and the transparent presentation of findings, including verbatim extracts, so readers could assess the fit between the data and the interpretation (Parnwell & Meng, 2023; Creswell & Miller, 2000).

In response to the research question “What are the key factors influencing the luxury landscape in Phnom Penh, Cambodia?” the analysis constructed three interrelated themes: luxury market positioning, luxury education, and luxury culture. Together, these themes address the first objective by identifying the key factors shaping the sector and the second objective by revealing where luxury brands face competitive challenges if those factors are not managed effectively (Figure 1).

The most strongly evidenced theme concerns how brands and companies in Phnom Penh are positioning themselves for a market they expect to mature. This forward-looking orientation indicates that prestige brands across the sector view Phnom Penh as an investment market.

The dynamic is particularly evident in the account of a participant, a luxury brand manager, who describes it as follows:

This indicates foresight on the part of luxury brands in Phnom Penh: they recognize that the market is maturing and understand why brands must position now for the future. A luxury marketing director expressed a similar view:

Networking, exclusivity and limited product runs are all mechanisms that build long-term positioning. A luxury business owner identified another dimension:

This participant makes clear the value of events and customization as ways to draw attention to luxury brands in the local market. A final observation concerns investor interest, which is gradually returning to Phnom Penh and raising expectations for quality. As a luxury marketing participant put it: “Investors are coming, demanding the highest quality.”

Collectively, these accounts identify strategic positioning as a primary factor shaping the current luxury landscape and indicate that brands that delay this process risk being left behind as the market matures.

The second theme, luxury education, emerged from accounts contributed by all eight participants. A luxury business owner made the following point about the limited understanding of luxury in the market:

The distinction between luxury and popularity is not yet firmly drawn, and the emphasis is on visibility and status. Another luxury business owner reinforced this:

This supports the preceding theme and explains why luxury brands in Phnom Penh are investing time and resources to build luxury knowledge. A luxury brand manager offered a further perspective:

Creating demand and legitimizing consumer mindsets is a demanding task, and educating luxury consumers about brand heritage, quality and prestige stands out as a distinctive aim for brands entering the Cambodian market. A luxury marketing director described how this is pursued in practice:

These accounts identify consumer education as a critical factor shaping the luxury landscape and indicate that brands that fail to invest in it risk prolonged exposure to counterfeit consumption and weak brand differentiation, undermining competitiveness in an emerging market.

Culture recurred throughout the interviews, with participants emphasizing that luxury brands should respect, use, or incorporate local culture. A luxury director observed:

Respect the culture and the people here. But I did notice that the rich and their friends are also trying to promote the goodness of Cambodia. Like, in the way of promoting culture, promoting content that Cambodia is safe to visit, this kind of message. So, no matter whether poor or rich, Cambodians want to shout out about their country.

This conveys the pride Cambodian consumers take in their culture and positions them as cultural ambassadors that brands should take into account. A luxury business owner framed the same point in service terms:

This illustrates how frontline luxury workers translate cultural understanding into service delivery. A luxury brand manager extended the argument to product and market strategies:

The implication is that brands should calibrate to local preferences and that Cambodian consumers would respond to products and services centered on local tastes. Another luxury brand manager identified collaboration as the means to achieve this:

Collaboration therefore stands out as a favored and effective way to bridge brand power and local culture. These accounts identify cultural sensitivity and localization as defining factors in the Cambodian luxury landscape and indicate that brands that neglect cultural alignment risk alienating consumers and losing ground to competitors who localize successfully.

In response to the research question, the findings identify three interrelated factors. Luxury market positioning reflects how brands are strategically preparing for a maturing consumer base; luxury education reflects the sustained effort to build consumer understanding and counter counterfeit consumption; and luxury culture reflects the necessity of localization and cultural sensitivity to establish brand resonance. Taken together, these themes indicate that success in this market depends not on any single factor in isolation but on the interaction among strategic positioning, consumer education and cultural alignment.

This study makes three contributions to the literature on luxury business. First, the positioning findings extend the work of Brun and Castelli (2013) and Kaolawanich et al. (2020) on luxury brand strategy in emerging markets by showing that Cambodian luxury brands are not merely replicating positioning strategies observed in more mature Southeast Asian markets but are engaged in anticipatory positioning: establishing brand presence ahead of the maturation of consumer demand rather than in response to it. This nuances the assumption that the timing of luxury market entry is driven by observable demand signals.

Second, the education findings contribute to a literature that has addressed consumer understanding of luxury primarily through the lens of counterfeit consumption and status-driven purchasing (Guo & Zhang, 2020; Sin, 2023). This study reframes consumer education not as a reactive measure against counterfeiting but as a proactive, long-term investment in market infrastructure, positioning brand-led education as a distinct strategic function in emerging luxury markets. This angle is largely absent from existing Cambodia-focused studies (Ou et al., 2024; Pich et al., 2025), which remain quantitative and consumer-behavior-focused rather than strategy-focused.

Third, the culture findings address the regional gap identified earlier. While Som and Blanckaert (2021) and Studente and Cattaneo (2023) treat cultural sensitivity as a general principle of luxury branding, this study offers one of the first empirically grounded, insider-perspective accounts of cultural localization in the Cambodian luxury context, thereby extending a discussion that has until now remained largely theoretical or based on neighboring Southeast Asian markets (Mao & McAleer, 2017; Eijdenberg et al., 2024).

Collectively, these contributions address the three gaps set out earlier: the limited depth of dedicated luxury scholarship, the scarcity of Cambodia and Southeast Asia specific research, and the near absence of qualitative accounts in a field dominated by quantitative studies.

The findings have distinct implications for three groups of practitioners. For international luxury brand managers considering entry into the Cambodian market, positioning strategies should be established well ahead of anticipated market maturity rather than calibrated to current demand levels; entering late risks ceding ground to brands that have already established market presence and consumer familiarity.

For local luxury entrepreneurs and business owners, consumer education is not a peripheral marketing activity but a core strategic investment. Resources should be directed specifically toward communicating brand heritage, authenticity and craftsmanship, because a lack of consumer understanding was identified as a persistent barrier to differentiating genuine luxury from status-driven or counterfeit alternatives.

For marketing and brand communications professionals, cultural collaboration and localization function as a differentiator rather than an optional adaptation. Structured local partnerships and culturally informed product or service offerings represent a deliberate strategy for building resonance, rather than a standardized global brand playbook.

The reflexivity of this study is grounded in insider perspectives, with the researcher’s position and assumptions made transparent throughout the analysis (Parnwell & Meng, 2023). Much of the existing research emphasizes the positive trajectory of the Cambodian luxury landscape. The themes generated here offer insights that were neither uniformly positive nor negative, in contrast to the more optimistic outlook suggested elsewhere (Guo & Zhang, 2020; Boccia et al., 2024). The resulting picture is more nuanced and, for that reason, more directly usable by luxury managers and business owners.