Experience overtakes points in Indonesia retail loyalty

Retailers are shifting towards emotional engagement and omnichannel experiences to retain customers.

Retailers in Indonesia are moving beyond discounts and points-based rewards as consumers increasingly seek emotional engagement, seamless omnichannel experiences, and deeper brand connections.

At the Retail Asia Summit Indonesia 2026, industry leaders discussed how retail brands are adapting to shifting consumer expectations by combining immersive store experiences, integrated digital ecosystems, sustainability programmes, and customer-centric technology.

Haryanto Pratantara, Business & Operations Director at PT Kurnia Ciptamoda Gemilang and Secretary General of HIPPINDO, said traditional loyalty mechanics are becoming less effective because customers no longer see points and promotions as differentiators.

“Customers now are looking for more emotional connection and memorable experiences,” he said.

According to Haryanto, this is driving a transformation in physical retail, where stores are evolving into “experience destinations” instead of purely transactional spaces.

Brands such as Charles & Keith and Pedro intentionally avoid standardising store concepts across locations. Instead, each outlet is adapted to its surrounding market and local culture.

A flagship store at Grand Indonesia was designed with a more metropolitan and premium façade whilst stores in Bali integrate local bamboo textures, Balinese elements, and regional aesthetics to create a more immersive atmosphere.

“If all stores looked exactly the same, it would become boring for customers,” Haryanto said. “Different store concepts create different experiences.”

He added that localisation strategies are becoming increasingly important because Indonesian consumers respond strongly to environments that feel culturally relevant and emotionally engaging.

Haryanto also pointed to sustainability initiatives as a growing driver of customer loyalty. Fashion brand Pomelo recently launched a clothing donation programme that allows customers to exchange unused garments for cashback vouchers.

The donated clothing is then sorted into three categories: damaged textiles are recycled into reusable materials through partnerships with textile recyclers, wearable items are donated to underserved communities, and higher-quality apparel is sold at low-cost community markets.

The resale initiative, he explained, was intentionally designed to preserve dignity amongst lower-income consumers.

“We are not only selling products, but also inviting customers to contribute to sustainability and help other people,” he said.

According to him, programmes that allow consumers to participate in environmental and social impact initiatives create stronger emotional attachment to brands than purely transactional campaigns.

Connie Florensia, Head of E-Commerce at PT Fast Retailing Indonesia for UNIQLO Indonesia, said the retailer has taken a different approach by focusing heavily on product relevance, customer feedback, and ecosystem integration.

Unlike fast fashion retailers, Connie said the company focuses on improving product functionality and incorporating technology into apparel to improve customers’ daily lives.

“We see customer feedback as a gift,” she said. “We actually want to know what customers dislike so we can improve our products.”

To better understand consumer needs, the retailer regularly organises community-driven events, including sports and wellness gatherings, where customers can directly share feedback about products and shopping experiences.

According to Connie, customer trust is built when consumers feel their voices genuinely influence future product development.

She added that the retailer’s strongest loyalty comes from customers who engage across both online and offline channels.

“The most loyal customers are those who interact with our stores and also use our app,” Connie said.

UNIQLO’s mobile application has become a central touchpoint connecting inventory visibility, promotions, and customer engagement across physical and digital channels.

The company has also invested in RFID-enabled inventory systems to improve operational efficiency and customer service. The technology allows staff to instantly locate products, reducing manual stock searches and improving the shopping experience.

“Before RFID, staff had to manually check stockrooms box by box,” she said. “Now we can find products much faster and improve productivity significantly.”

She noted that customers increasingly expect store staff to immediately know whether an item is available in another branch or online platform, making inventory integration essential for modern retail operations.

UNIQLO’s strategy also reflects a broader industry shift towards app-driven engagement. According to Connie, customers who use the app shop significantly more frequently because they receive weekly promotions, personalised information, and easier access to inventory across locations.

Fanky Mulia, SVP Membership & Loyalty at Blibli under PT Global Digital Niaga Tbk., highlighted the growing complexity of ecosystem-based loyalty programmes as retailers expand partnerships and integrate multiple digital services.

According to Fanky, retailers must carefully balance personalisation and privacy when sharing customer data across ecosystems.

“Just because data can be shared does not mean it should be shared,” he said.

He explained that data-sharing decisions are guided by three considerations: customer value, business enablement, and privacy protection.

Rather than directly sharing personally identifiable information, companies can instead rely on aggregated insights, behavioural models, encrypted identifiers, or event-based signals to support ecosystem collaboration without compromising privacy.

Fanky added that governance frameworks are becoming increasingly important as digital ecosystems grow more interconnected.

The company’s unified membership ecosystem now allows users to access multiple services using a single credential across brands within its ecosystem.

Still, he stressed that convenience should never override customer trust.

“If the data sharing does not create a more relevant, simpler, or faster experience for customers, then there is no point in doing it,” he said.

Frisma Esra, Head Marketing at Erajaya Active Lifestyle, echoed similar concerns around consumer trust and consent.

“We are very consumer-centric,” she said. “Consent is extremely important.”

According to Frisma, customer data is centrally managed and only shared externally in limited analytical formats to comply with internal governance standards and maintain consumer confidence.

She acknowledged that managing consent in offline retail environments can be more challenging compared to digital platforms, but said it remains essential as privacy awareness grows amongst consumers and regulators.

The executives also discussed how retailers are shifting away from fragmented “multi-channel” strategies towards fully integrated omnichannel ecosystems.

Haryanto said customers no longer think in separate channels and instead expect frictionless experiences regardless of where interactions occur.

“Customers want shopping experiences that are simple, fast, seamless, and enjoyable,” he said.

This includes allowing customers to browse products on social media, check inventory online, purchase through apps, and collect items from physical stores without barriers between channels.

Retailers are also increasingly integrating store inventory into online systems so customers can instantly locate products across locations instead of waiting for deliveries unnecessarily.

As Indonesia’s retail sector becomes more digitally connected and experience-driven, industry leaders at the summit agreed that loyalty will increasingly depend on how effectively brands combine emotional engagement, ecosystem integration, and seamless customer experiences across every touchpoint.