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Siam Piwat lays out strategies for keeping shopping centres 

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Siam Piwat lays out strategies for keeping shopping centres 
By KWANCHAI RUNGFAPAISARN
THE NATION

 

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BANGKOK: -- SIAM PIWAT, the owner and operator of several major shopping centres in Bangkok, has revealed its key strategies to overcome the challenges faced by the retail sector and in preparation for the government’s “Thailand 4.0” initiative.

   

Chief executive officer Chadatip Chutrakul said that globally, retailers had been disrupted by e-commerce, the increasing number of people shopping online, and the impacts of globalisation. In Thailand, despite the growing trend of e-commerce, it is still considered to be in the trial stage. 

 

Nevertheless, Siam Piwat cannot remain the same, as Thai retailers are not immune to the global digital evolutions.

 

“We have changed our aim, that we wouldn’t just create [shopping] destinations, but would make the destinations truly exciting, with ever-changing experiences so that people enjoy their time and want to keep coming back,” she said. 

 

“We must make our destinations constantly fresh, innovative and exciting all the time, places where people want to go for the fulfilment of needs that are much more than going online.” 

 

Chadatip received the Store Design of the Year Award for the Siam Discovery shopping centre at the World Retail Congress held early this month in Dubai. The event gathered 2,000 retailers from 65 countries and 140 speakers. These industry leaders and experts shared their ideas on global retail trends and concepts.

 

She said shoppers had a perception of benefiting from lower prices when buying products online because of lower operational costs compared with physical stores. Therefore, price promotions were no longer sufficient to lure customers back to the shopping centres.

 

“In developing Siam Discovery, we understood that in the new millennial era, shoppers have realised the importance of a brand’s story. They want to make the brand’s story part of their own story. 

 

“Good storytelling strategies by particular brands will become a significant selling point and crucial factor in adding positive value to the brand. That is why we chose to overturn completely the past retailing practice of presenting products by brand and by category. 

 

“Instead, multiple brands and complementary merchandise are brought together and unified with underlying stories, presented by type, by function, and by customer interest,” Chadatip said.

 

She said at the reopening of Siam Center about three years ago that “retailing is no longer about shopping. It is [about] providing ever-changing experiences to individual shoppers.”

 

Siam Center had been closed for six months. The shopping centre spent about a year gathering ideas for a new retail concept that aimed at attracting not only Thais but also shoppers from around the world.

 

Chadatip said that over the past three years since the reopening, the 42-year-old Siam Center had proved successful by being voted by Thailand.com as being at the top of mind for shoppers. 

 

The shopping centre has also earned 12 different awards over the period, including for best marketing position and best renovation project. “Since the renovation, Siam Center has enjoyed a 12-per-cent increase every year in terms of both sales and traffic,” she said.

 

 “At Siam Piwat, we do not manage ordinary merchandise any more, but [promote the] emotional benefits of our valued customers. We have also turned [some] of them into our peers, to learn and initiate tailor-made campaigns and marketing activities based on their specific interests. This is what we have made successful with Siam Discovery and what earned us the World Retail Award this year.” 

 

Chadatip said the company’s four key strategies were the following

 

1 Be a leader in creativity and advance innovations that are ahead of competitors.

2 Win the customer’s heart with good accessibility and understanding and by being “customer-centric”.

3 Create good value through the storytelling strategies of particular brands.

4 Work collectively with all business partners towards real win-win achievements.

 

Siam Piwat owns and operates Siam Center, Siam Discovery, Siam Paragon, Paradise Park and IconSiam.

 

Source: http://www.nationmultimedia.com/news/business/corporate/30312829

 
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-- © Copyright The Nation 2017-04-21

 

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On-line shopping will end the malls within 10 years, you cannot stop Ecommerce, if you think you can, look at the worlds biggest on-line shopping nation where the high streets are dying fast. Mind you here they could start banning the shopping websites, like they do with some others

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Probably a good idea to buy shares in the delivery companies who benefit from E Shopping as they deliver to your door., and the market is expanding.

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People shop online because of better deals, no traffic problems, no stalking vendors, no crowds, delivery to doorstep, better selection, no clueless sellers to irritate you, etc.

 

Good luck competing with that. Good riddance, Lazada <deleted>.

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Just turn them all into giant air conditioned relaxation spas for the everyone, with free wifi and comfy seats- I mean that is what most people use them for isn't it. 

 

I think online shopping is fast becoming the way forward. I wish you could get online grocery shopping here. It is a personal bugbear of mine and wish there was an alternative to Big C and co. The wet market is fine for daily stuff but spending an afternoon doing the monthly shop in those awful places ...urrrgh. 

 

Online grocery  shopping  anyone??

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In the West, experts reckon automation will kill off up to 80 percent of all jobs (including the majority in the retail sales industry) within a couple of decades. The vast majority of us will have to scrape by on a meagre Universal Basic Salary doled out by our respective governments.

 

Admittedly, the robotics revolution may take a little longer to arrive in Thailand - but when it does who will have the money to splurge at the existing plethora of shopping centers and malls, let alone any new ones?

 

If I were Chadatip Chutrakul, I would start thinking up new uses for her company's doomed monuments to mindless consumerism and corporate greed.

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Posted (edited)

I only shop online for things I can be fairly certain will fulfil my expectations. I certainly wouldn't shop for clothing or food for that matter. They tried that on Phuket (and Bangkok). The lack of quality ensured that didn't last long.

 

Btw, what does she mean by 'making it a more exciting experience'? GoGo girls shrieking into microphones? 

Edited by dageurreotype

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4 hours ago, wakeupplease said:

On-line shopping will end the malls within 10 years, you cannot stop Ecommerce, if you think you can, look at the worlds biggest on-line shopping nation where the high streets are dying fast. Mind you here they could start banning the shopping websites, like they do with some others

i beg to differ, i have 2 retail shops (beauty and cosmetic). business is doing well n picking up because of the over boom of e-commerce which makes everyone and anyone have an online shop or a online reseller. 

2-3 years ago, it was really doing well and me and my wife could really make alot of money from online sales of our products. but nowadays becos of competition (prices undercut) , added delivery costs, online scams and fake goods posing as real from everyone and anyone, online buyers are scared. 

nowadays alot of my customers both new and regular prefer to walk in to my shop to purchase products rather than buying online due to confidence that all my products are real, no delivery time or costs.

 

From sending over 100s of packages per day to sending out just 10 a day in 2-3years.

These are from real first hand experiences. However I am not saying E-commerce is not working. It does. it depends on the product and the model of 1's business. Just that it will not take over retail shops in Thailand becos rent and manpower is still cheap here.

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Bricks and mortar can still work in Thailand but so many of the retailers are rooted in the past, with models/layouts that have not changed and a low volume/high margin strategy.

The success of stores like Uniqlo should give them a pointer, H&M, Zara as well. Decent quality, fair price, attractive stores, relative fewer staff ( and those that there are can answer questions, point the way etc).

Central must be au fait with current trends in European retail , given that they own one of Berlin's oldest and largest high end stores.

Heaven forbid that the really savvy operators like Primark and Forever21 enter the Thai market...because many of these "take it or leave" operators would struggle to compete.

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1 hour ago, Eric Loh said:

I am not entirely convinced that e-commerce will end brick and mortar retail businesses. Seem a reverse trend in US in giant e-commerce business to get into a brick and mortar extension. Amazon open its physical store in Seattle and there are about 20 big e-commerce businesses that have physical extension. Physical extension is still needed for forging better customer and better product experiences. I think more so in Asia with the culture of community and personal relationship. Asians are more confident and feel safer to have the opportunity to see, touch and bargain. Feel brick and mortal businesses still have a better survival chance especially in Asia and will co-exist with e-commerce quick nicely. 

I agree.  I think they will co-exist.  There's still a large percentage that likes to physically shop for things they buy--to try on clothes, try on shoes, try the seating comfort of a sofa or chair before they purchase it, etc.  There's still a large percentage that enjoys going to the mall as a social activity.  Right now, America has far too many malls.   Some will close and the result will be the right number of malls.  I suspect the same will eventually happen in Thailand.  The best will make themselves 'destinations'--like Mega Banga.

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5 minutes ago, newnative said:

I agree.  I think they will co-exist.  There's still a large percentage that likes to physically shop for things they buy--to try on clothes, try on shoes, try the seating comfort of a sofa or chair before they purchase it, etc.  There's still a large percentage that enjoys going to the mall as a social activity.  Right now, America has far too many malls.   Some will close and the result will be the right number of malls.  I suspect the same will eventually happen in Thailand.  The best will make themselves 'destinations'--like Mega Banga.

That's so true especially in Thailand when going to the mall is a family and social activity. IT competency and infrastructure are still in its early phase in Thailand and the security of e-buying is still a question mark to most Thais. Like you said, malls have their work cut out and will need to find the right mix of products and attractions to be a shopping destination Those who don't keep up with customer behavior trends will fall by the wayside. 

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2 hours ago, jonclark said:

Just turn them all into giant air conditioned relaxation spas for the everyone, with free wifi and comfy seats- I mean that is what most people use them for isn't it. 

 

I think online shopping is fast becoming the way forward. I wish you could get online grocery shopping here. It is a personal bugbear of mine and wish there was an alternative to Big C and co. The wet market is fine for daily stuff but spending an afternoon doing the monthly shop in those awful places ...urrrgh. 

 

Online grocery  shopping  anyone??

tops online

villa online

lotus online

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5 minutes ago, Eric Loh said:

That's so true especially in Thailand when going to the mall is a family and social activity. IT competency and infrastructure are still in its early phase in Thailand and the security of e-buying is still a question mark to most Thais. Like you said, malls have their work cut out and will need to find the right mix of products and attractions to be a shopping destination Those who don't keep up with customer behavior trends will fall by the wayside. 

IT competency and infrastructure are still in its early phase in Thailand - is not in its early phase. In fact the boom had already happen a few years back. 1st hand experience, I actually was there when it happen and I profited alot from it but now there are too many and business strategy has to change. Thailand are in fact very up there with the times and advanced as well. Online payments applications, online bank transfers are all readily available on most phones and platforms. 

 

The rest I agree with you. 

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BANGKOK 18 December 2017 12:10
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