Lippo Malls adapts to shifting consumer preferences

Over 60% of visitors to their malls are from younger generations.

IN these times when consumer preferences are constantly shifting, the retail landscape is forced into significant transformation.

With determination and a clear vision, Marlo Budiman, president director of Lippo Malls Indonesia (LMI), is leading the charge in adapting to these changes. In an interview with Retail Asia, he outlined his proactive strategies for evolving brick-and-mortar stores to meet dynamic customer needs.

Understanding customer dynamics

Marlo emphasised the importance of understanding who the customers are to effectively strategise. “Knowing who your customers are is very essential to define the right strategies that we are going to set,” Budiman said.

He pointed out that over half of Indonesia’s population comprises Millennials and Gen Zs, who are crucial decision-makers and consumers​​.

LMI continuously conducts internal customer analyses, revealing that over 60% of visitors to their malls are from these younger generations.

Leveraging data analytics

“It’s important for us to understand the characteristics and behaviours of both Gen Z and Millennials,” Budiman noted, highlighting that these groups are informed consumers who seek both online and in-store shopping experiences​​.

Data analytics plays a pivotal role in tailoring retail experiences to meet evolving customer expectations. LMI has been leveraging consumer insights to adapt and innovate.

For example, at Lippo Plaza Sidoarjo, data indicated a predominance of young families within a 3-5 km radius. This insight led to a strategic overhaul, transforming the mall to focus on family-friendly entertainment and dining options, resulting in a threefold increase in foot traffic​​.

Integrating dynamic trends

Successful integration of dynamic customer trends into retail environments is key. Budiman shared several initiatives, such as music concerts and K-Pop festivals, which have proven to attract Millennials and Gen Z. “Live music events and fashion-forward activities resonate well with our target demographic,” he explained.

Events like the “Starry Night” concert with Tiara Andini and the “Nostalgia The 90s Vibes” with Basejam have been particularly popular​​.

The K-Pop phenomenon has also been embraced, with events like the “Daebak K-Pop” Festival at Lippo Mall Puri which drew large crowds. These initiatives not only boost foot traffic but also enhance the overall shopping experience by aligning with contemporary cultural trends​​.

Embracing technology

Technology and digital solutions are crucial in enhancing customer experiences and driving traffic to physical stores. LMI’s customer loyalty app, STYLES, is a testament to this approach.

“STYLES is the first customer loyalty reward app in Indonesia, integrated with over 50 Lippo malls,” Budiman said. The app offers rewards, exclusive discounts, and updates on promotions and events, making shopping more convenient and rewarding for loyal customers​​.

Additionally, LMI has implemented digital tools for marketing campaigns and customer satisfaction surveys. A notable example is the “Free Parking” programme, where customers can redeem free parking by scanning a QR code or making transactions at partner tenants​​.

Overcoming challenges

Adapting to dynamic customer needs comes with its challenges. “The biggest challenge is being agile enough to adapt to the dynamic changes in customer behaviour,” Budiman admitted.

Continuous consumer and market research, exploring digital tools, and empowering staff to be adaptable are some of the strategies LMI employs to stay ahead​​.

By understanding their customers, leveraging data analytics, integrating dynamic trends, embracing technology, and overcoming challenges, LMI is setting a benchmark in the retail industry.

“Consumers are now looking for more than just products; they want memorable experiences and personal services,” Budiman said.