Digitalisation in retail prompts shift to online channels

Consumer convenience continues as a catalyst for promoting this change.

DIGITALISATION in retail has led consumers to pivot towards online platforms, prompting business leaders to share strategies adaptive to this modern age during the Retail Asia Forum in Kuala Lumpur.

One key insight involves the necessity of an omnichannel presence, according to Mydin Mart’s managing director, Shaakir Siraj.

“In today’s digital age operating only offline is no longer an option,” Siraj said, underlining the significance of meeting consumer expectations to sustain market recognition,” Siraj said. “You must have an online presence whether it's a store or a Facebook page because that's how today's consumers recognise you.”

Siraj said this shift has led consumers to demand faster and more convenient service due to how easily available data is online.

He also cited the crucial role of globalisation and how it has altered consumer behaviour by making products more accessible through various platforms.

“Years ago, it was a business advantage to go overseas. Today, someone can sit down, pick up a device, order, and have it delivered to their doorstep in three days” Siraj said.

Staying competitive

To cope with these changes, TF Value-Mart Sdn Bhd Chief Financial Officer and Executive Director Anthony Lee highlighted the value of staying competitive through innovation.

This involves not just adopting new technologies but doing so in a way that best serves their customers’ satisfaction, as well as their business goals. “We don’t have to react hastily; it's more about how we respond,” Lee said.

He said their approach towards technology is aimed at enhancing customer experience and streamlining operations, citing their partnership with AWS and their early adoption of e-invoicing.

“We don’t necessarily need to be the first to adopt new technologies, but we aim to be the best,” he said.

Transition challenges

Meanwhile, convenience remains a significant demand amongst consumers of the digital age, prompting the transition to e-commerce to provide a seamless and satisfying experience for customers.

Building on her experience in the industry, Kim Xavier, business strategy head at Jaya Grocer, discussed the complexities of replicating an offline shopping experience in an online environment.

“We realised that when we moved groceries online; the experience had to be even better than offline,” Xavier said. To do so requires providing a vast product range, whilst ensuring quality and maintaining consistent prices despite platform constraints.

“If you want chicken rice, your main ingredient is chicken; and if chicken doesn’t come, then it’s a problem. Out-of-stock is a very key concern for most Malaysians, which is why the disappointing experience just means that we don’t come back for more,” she warned.

To address this, Xavier stressed the use of algorithms to improve the online experience. “You don’t need to scroll. You open the app and based on your last receipt, you can see your item displayed properly where you can instantly add to the cart,” she said.

Through algorithms and the adoption of artificial intelligence (AI), businesses can provide a tailored experience that saves time, increases convenience, and emulates the familiarity of offline shopping, she added.

Leveraging data

Another crucial element in today’s era of retail is maintaining a personalised experience for consumers, serving as both an advantage and a challenge in the virtual scene.

To Selena Chua, CEO of WCT Malls Management Sdn Bhd, leveraging data can aid in understanding customer preferences.

“It allows us to focus on the right time to take action and for us to closely examine our retention rates. From the data, we determine the optimal product mix for our store,” she said.

Building on this, Chua emphasised how effective marketing must understand customer demographics.

“Marketing strategies and campaigns need to be very personalised and specific because we need to know what our customers want and not just shove campaigns down their throats,” she said.

To achieve this, the CEO cited how data can help businesses develop targeted marketing campaigns that resonate with specific consumer segments, citing their very own loyalty programme as an example of offering customers specialised promotions.

“Since we have all the information and data, we can reach out to them,” Chua said.