Today’s consumers are spending more on things meaningful to their ‘life, health and happiness’, says Siam Piwat CEO Chadatip Chutrakul

Consumers are now allocating more of their spending towards items that hold significance for their well-being and happiness, according to Chadatip Chutrakul, the CEO of Siam Piwat, a prominent retail mall developer in Bangkok. At Fortune's Southeast Asia 500 Summit in Ho Chi Minh City, Chutrakul emphasized that retail is not merely about shopping, but also about creating immersive destinations.

Siam Piwat recently unveiled ICONPHUKET, a new development in Thailand's Phuket province set to launch in 2029. This project will encompass green areas, health and wellness amenities, shops, residences, offices, and hotels. Chutrakul remarked that shopping malls in Thailand and across Asia have become akin to a second home for customers, and thus, they strive to offer more than just shopping.

Malina Ngai, CEO of AS Watson, a global drug and beauty chain, echoed Chutrakul's sentiments. She highlighted that today's consumers seek a reason to choose one retailer over another, asserting that the essence of retail lies in relevance. Ngai explained that customers are not merely interested in a wide array of products or advanced technology, but rather, they desire a brand they can trust.

Social media, influencers, and online platforms are also playing a pivotal role in shaping consumer relationships with brands. Ahn, managing partner at Rakuten Capital, noted that social media and influencers have accelerated the time it takes for consumers to form attachments to a brand, from years to just a few months. To capitalize on this shift, platforms like Rakuten Ichiba, the online marketplace of Rakuten Group, have partnered with Google through the YouTube Shopping affiliate program.

This initiative allows viewers to seamlessly purchase products directly from YouTube videos, thereby bridging the gap between interest and acquisition. Physical retailers are also leveraging technology to enhance the shopping experience. AS Watson employs artificial intelligence to analyze customer behavior within its stores, focusing on areas such as supplements, oral care, and hair care.

By identifying bottlenecks and optimizing store layouts or signage, AS Watson aims to streamline the shopping process, ensuring customers can swiftly locate products and make informed decisions.