Retail leaders urge swift adaptation to tech disruption

Innovations such as leveraging AI and optimising supply chains were deemed crucial to the future of retail.

Retail in Asia is being transformed by AI, digital channels, and changing consumer behavior, pushing retailers to innovate and rethink their strategies to stay competitive.

This need for rapid adaptation was the focus at the Retail Asia Forum 2024 held at Makati Shangri-La, Philippines on 4 October, where about 300 industry leaders gathered to explore the emerging trends and technologies shaping the future of retail in the region.

Mary Jean Pacheco, undersecretary of the Philippine Department of Trade and Industry (DTI), kicked off the event by highlighting the government's newly formed E-commerce Group, which includes the E-commerce Bureau and the Office of Supply Chain and Logistics. The initiative aims to strengthen local supply chains and improve retail resilience.

Lance Katigbak, principal at Boston Consulting Group, also highlighted key trends such as sustainability, the increasing demand for digital experiences, and value-driven purchasing.

One of the forum’s key segments was the CEO Fireside Chat with Aashish Midha, CEO and managing director of ZALORA Philippines & Indonesia, where he discussed the power of AI-powered customer insights in retail, noting how data intelligence allows companies to predict and respond to customer behavior more effectively, creating real-time business opportunities.

“It's a big trend that's playing out. It's a trend that's going to stay, and it has transformative power,” he said. “AI is to serve humanity, not replace it,” he said.

Industry leaders Jayan Dy, VP of Digital and Innovation at SM Retail Inc., Pavan Powar, director of Online Retail, Strategy and Investor Relations at SariSuki, Toby Claudio, president of Toby’s Sports, Robert Go, CEO of Prince Retail Group of Companies, and Rosemarie Ong, senior executive vice president and COO of Wilcon Depot, Inc, also discussed how the pandemic has transformed consumer behavior and expectations in retail, highlighting the shift towards omnichannel strategies.

Additionally, Maria Kathrina Macaisa-Peña, partner in Business Consulting at EY, presented on the Three 'I's of Retail: Innovation, Integration, and Insights.

Bernard Ong, president of Ace Hardware, followed with a session on navigating the challenges of Philippine retail, offering practical strategies to overcome supply chain constraints and operational costs.

In her talk on global consumer trends, Anna Amador, client officer at Ipsos, discussed the evolving priorities of consumers, focusing on the transition from tension to intention.

“Understanding trends is no longer a nice-to-have. It is a must-have because it is a growth driver,” she said.

The second panel session explored the e-commerce revolution and how retailers are navigating the digital frontier. Alvin Ching, SVP and head of Buyer Operations at Lazada Philippines, Marcela Luca, retail operations manager SEA at Suyen Corporation, Warren Carman, VP of Technology at HMR Philippines, and Bela Gupta, founder of Edamama, discussed strategies for leveraging technology to drive growth in the e-commerce sector.

"Data analytics plays an important role in the shopping experience. No two people will see the same thing on their Lazada app because it's very personalised,” said Ching.

"The goal for any brand that wants to be digital is to embrace the omnichannel aspect of retail. You need to be where your customer is, whether they want to shop online or offline,” added Gupta.

Jerome Andrew Garcia, principal of Advisory Services at KPMG, also provided insights on the future of physical retail, followed by Christine Coqueiro, vice president of Retail Development at Rockwell Land Corporation, who discussed innovating for tomorrow's digital world.

Garcia noted that in the Philippines, 22% prefer shopping in physical stores, 17% choose online, and 61% want both options.

“What you saw during the COVID lockdown where people were doing their purchases online, and then when things opened, there was a revenge spending that has kind of balanced off into a blend of both the physical and the online,” he said.

“Consumers are evolving,” added Coquiero. “A large percentage of our consumers research online first before making a purchase.” 

Moreover, Mario Braz de Matos, co-founder and managing partner of Flying Fish Lab, then presented on how businesses can disrupt their markets and unlock growth by accelerating the insight-to-action cycle.

The rising power of influencers in driving retail success, from creating brand awareness to facilitating customer purchases, was also highlighted by Eucel Maximo, director at YCP Interactive Solutions, during the event.

The third session, which included panelists Yuki Sy, general manager for Technology Innovation and eCommerce at Primer Group of Companies, Wence Wenceslao, Digital Hub Lead for Beauty & Wellbeing Southeast Asia at Unilever, Denice Sy, chief sales & marketing officer at Ever Bilena Cosmetics, Neelam Gopwani, managing director of Vision Express, and Sherwin Pelayo, executive director at the Analytics & Artificial Intelligence Association of the Philippines focused on leveraging AI and machine learning for retail transformation.

The leaders discussed how AI and machine learning are shaping the future of retail, from optimising customer engagement to streamlining operations.

“If you don’t adapt or we don’t do things differently to go faster or adapt to what’s happening in the digital market, then you might be left out or you might be catching up in the future,” added Sy.