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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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ID: 9   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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6 minutes ago, Moonmoon said:

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. 

Totally agree with you. Just that my feeling is that the use of online commerce is much concentrated to the more urban areas and to the educated. However in the overall scheme of things where education and connectivity are poor, most Thais would not be able to participate. 

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7 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

The only hope for shopping malls is to integrate food shops throughout the mall with a huge variety of foods

Then you give someone a reason to go to a mall Dont just put stall and restaurants on one floor 

 

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42 minutes ago, Moonmoon said:

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. 

For my shopping needs I find on-line shopping here still poor and in its infancy.  Large stores such as Index, Home Pro, Power Buy, Chic Republic, Numchai, SB Furniture, Koncept, Lazada, etc., mostly have poor search engines, in my opinion and sometimes confusing or poorly designed webpages.   Sometimes when I search for something I get little or nothing found or way too much of the wrong thing.  Often the on-line selection is a fraction of what I know is available at the store.  Sometimes I will start out in English on the webpage and the next page will revert to Thai.  Often the descriptions, product information, etc. is only in Thai.  Sometimes the products can't be ordered on-line.  Sometimes there is not a 'live' interactive  up-to-date product listing but, instead, one that you need to download--sometimes from the previous year.  Ikea Thailand is about the only website I've found that works fairly well.  On-line payments that I have tried for internet, phone, etc. are still rather clunky--payment information not saved so every month you have to enter it all again, for example, and sometimes the final payment screen reverts to Thai. 

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ID: 20   Posted (edited)

41 minutes ago, newnative said:

For my shopping needs I find on-line shopping here still poor and in its infancy.  Large stores such as Index, Home Pro, Power Buy, Chic Republic, Numchai, SB Furniture, Koncept, Lazada, etc., mostly have poor search engines, in my opinion and sometimes confusing or poorly designed webpages.   Sometimes when I search for something I get little or nothing found or way too much of the wrong thing.  Often the on-line selection is a fraction of what I know is available at the store.  Sometimes I will start out in English on the webpage and the next page will revert to Thai.  Often the descriptions, product information, etc. is only in Thai.  Sometimes the products can't be ordered on-line.  Sometimes there is not a 'live' interactive  up-to-date product listing but, instead, one that you need to download--sometimes from the previous year.  Ikea Thailand is about the only website I've found that works fairly well.  On-line payments that I have tried for internet, phone, etc. are still rather clunky--payment information not saved so every month you have to enter it all again, for example, and sometimes the final payment screen reverts to Thai. 

These r just but a few. No doubt they are so called big players in the market. I can say the language barrier is there because Thai is the first language and I had never had a problem with Lazada on english language. Lazada is easy to surf and buy imo.

You do not need to set up a website to sell something nowadays. Facebook, Instagram and LINE are what Thais are using as a platform nowadays. 

Never had a problem with internet phone utilities bill payments online. Online payments and receipts are all kept in my email and phone storage. Useful when if I might need to take a loan from bank for something, all my transactions are all well kept and can be easily accessed providing information to getting approval.

In fact, I find it all easy to use and convenient as compared to before I had to pay at 7-11. Never had a problem with english language too.

The language barrier might be there because the main bulk of customers are mainly Thais. If you are a Thai customer you will be able to find any products you want on facebook. everyone and anyone is selling products online for side cash.

The market is already over booming to a point that many of my customers and Thai friends are very turn off by online ads and online marketing on social media now by big retailers and small retailers and friends or strangers selling and promoting their products on facebook, instagram and LINE.

Everyone wants a piece of the pie creating the situation it is in now. 

But internet e-commerce is still important because product information and location can be easily access at the tip of a finger bringing customers physically down to the shop or store itself, and that is where I who has 2 retail stores and online shop on facebook and LINE benefit.

Even at my retail shops, I allow my customers and my resellers to do bank transfer to me on the spot if they do not have enough cash. Never had a problem with that. all done in 1min.

 

The problem i have with E-commerce in Thailand is that becos everyone is doing it. Everyone is under cutting each other for prices. Lazada is the biggest under cutter of them all.

Some sellers just want to sell fast and can accept a 20THB profit. The big distributors and the product owners are selling at both wholesale and retail price themselves online putting their own resellers out of business.

No one is controlling the market thus creating a big mess. Furthermore there are online scams and frauds everyday due to the explosion of E-Commerce in Thailand.

Thus while my online sales has suffered as a result of price wars, the online scams and frauds

and over use of online marketing has brought customers physically back my retail shop.

You do truly have to be in this line and business from 7-8 years back to now to understand it.

Also Mega Banga is expanding and doing a good job of providing a good experience for shoppers imo. Just hope that Thailand knows how to control and regulate the shopping mall industry and dont over build on the sector. 

 

Edited by Moonmoon
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6 minutes ago, Moonmoon said:

These r just but a few. No doubt they are so called big players in the market. I can say the language barrier is there because Thai is the first language and I had never had a problem with Lazada on english language. Lazada is easy to surf and buy imo.

You do not need to set up a website to sell something nowadays. Facebook, Instagram and LINE are what Thais are using as a platform nowadays. 

Never had a problem with internet phone utilities bill payments online. Online payments and receipts are all kept in my email and phone storage. Useful when if I might need to take a loan from bank for something, all my transactions are all well kept and can be easily accessed providing information to getting approval.

In fact, I find it all easy to use and convenient as compared to before I had to pay at 7-11. Never had a problem with english language too.

The language barrier might be there because the main bulk of customers are mainly Thais. If you are a Thai customer you will be able to find any products you want on facebook. everyone and anyone is selling products online for side cash.

The market is already over booming to a point that many of my customers and Thai friends are very turn off by online ads and online marketing on social media now by big retailers and small retailers and friends or strangers selling and promoting their products on facebook, instagram and LINE.

Everyone wants a piece of the pie creating the situation it is in now. 

But internet e-commerce is still important because product information and location can be easily access at the tip of a finger bringing customers physically down to the shop or store itself, and that is where I who has 2 retail stores and online shop on facebook and LINE benefit.

Even at my retail shops, I allow my customers and my resellers to do bank transfer to me on the spot if they do not have enough cash. Never had a problem with that. all done in 1min.

 

I am curious as to whether it is easy for you to tell who has transferred money into your--I assume--Thai bank account.  Do you get detailed information from your bank regarding the transfers?  I ask because recently my Thai partner had a ridiculously hard time trying to determine who had transferred money into his banking account.  With his job he often has clients transfer payments directly to his bank account. Usually he is expecting the transfers but this one he wasn't.   On his bank book there was just the amount and I think a code for the type of transfer.  Calls to the bank finally resulted, after several days, in the information as to which bank had sent the money, but not who had sent it.  That took another 3 or 4 days.  It seemed like an awfully long and involved process to get the information. 

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4 hours 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 with you Eric - now there's a first!

 

Seriously I think you are right. I do shop on-line sometimes but going to a good mall with the family is more of an experience. Can browse, shop, eat, drink and often see some entertainment. Some things I wouldn't buy on line because I want to see and examine befre I choose.

 

It's like suggesting "take aways" that can be easily ordered on line or by phone will replace restaurants and bars. Will never happen because people want a social experience which eating and drinking out provide, and so does going shopping.

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Just now, newnative said:

I am curious as to whether it is easy for you to tell who has transferred money into your--I assume--Thai bank account.  Do you get detailed information from your bank regarding the transfers?  I ask because recently my Thai partner had a ridiculously hard time trying to determine who had transferred money into his banking account.  With his job he often has clients transfer payments directly to his bank account. Usually he is expecting the transfers but this one he wasn't.   On his bank book there was just the amount and I think a code for the type of transfer.  Calls to the bank finally resulted, after several days, in the information as to which bank had sent the money, but not who had sent it.  That took another 3 or 4 days.  It seemed like an awfully long and involved process to get the information. 

i am surprised why u do not have the information who transferred money into your account. 

Usually when there is a money in or out, there will be an sms in my phone detailing the withdrawal or deposit, time and balance.

Then there is the transaction history in the email as well with information of the both accounts numbers but no names.

For eg. When I make a sale online. All my customer needs is to deposit or transfer money into my account. Then he/she should have an online receipt of the transaction which he/she is required to send to me. I will just look at my account through ibanking to verify the amount and time n date and the account number. 

all that is verified. I send out the product tomorrow either by Kerry express or Thaipost.

All bill payments and transactions are all well kept in my email. Just hope the extra layers of security for my email are good enough.

 

Yea i can understand your situation, uncoordinated amount from unknown person into your partners account. The transactions still need to be coordinated and verify which I think is ok and needed even if it takes a little more time.

Depending on the personnels in the Thai Banks, I have received good and bad services now and then. Totally understand what you are on about.

The only suggestion I can make for you is set up ibanking and get the bank to send you all transactions information into your partners email as well. While there are no names attached to the accounts. Based on the account number, if the customer is a regular, I think you would be able to verify then who send you the money.

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9 hours ago, webfact said:

In Thailand, despite the growing trend of e-commerce, it is still considered to be in the trial stage. 

Really read the following figures. ecommerce will huff and puff and blow your house down. It seems in Thailand when they hear the sound of lightening they congregate under a tree.  

Barely a quarter into 2017, year-to-date store closings have already topped the historical high of 2008, a Credit Suisse report said Thursday. About 2,880 stores have closed year to date, compared with 1,153 at the same time last year.

Since 60 percent of store closures are typically announced in the first five months of the year, Credit Suisse estimates there could be more than 8,640 store closings this year.

article-2601695-1CFF9CAB00000578-698_964x638.jpg

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1 hour ago, Moonmoon said:

i am surprised why u do not have the information who transferred money into your account. 

Usually when there is a money in or out, there will be an sms in my phone detailing the withdrawal or deposit, time and balance.

Then there is the transaction history in the email as well with information of the both accounts numbers but no names.

For eg. When I make a sale online. All my customer needs is to deposit or transfer money into my account. Then he/she should have an online receipt of the transaction which he/she is required to send to me. I will just look at my account through ibanking to verify the amount and time n date and the account number. 

all that is verified. I send out the product tomorrow either by Kerry express or Thaipost.

All bill payments and transactions are all well kept in my email. Just hope the extra layers of security for my email are good enough.

 

Yea i can understand your situation, uncoordinated amount from unknown person into your partners account. The transactions still need to be coordinated and verify which I think is ok and needed even if it takes a little more time.

Depending on the personnels in the Thai Banks, I have received good and bad services now and then. Totally understand what you are on about.

The only suggestion I can make for you is set up ibanking and get the bank to send you all transactions information into your partners email as well. While there are no names attached to the accounts. Based on the account number, if the customer is a regular, I think you would be able to verify then who send you the money.

Thanks for the information.

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BANGKOK 30 April 2017 04:18
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