Entertainment hub: The Omega Christmas Pavilion celebrates the joy of the season with an array of activities, interactive experiences and iconic displays. – Omega Malaysia
PETALING JAYA: Walk into any mall in the coming weeks and you’ll be inundated with festive decorations and activities centred upon the celebration at hand. No doubt Christmas is taking centre stage throughout the month of December, but as soon as 2025 comes around, the shift will pan towards Chinese New Year.
Although it has become commonplace amongst shoppers and in the retail space, malls have grown beyond just the confines of commerce.
They have evolved into immersive entertainment hubs and social realms catered towards modern consumers. For many brands, the ability to adapt to create spaces that blend technology, community and consumerism in novel ways in these retail sectors is now a necessity.
A matter of immersion
Omega provides a prime example of this important retail marketing and branding execution. Throughout the month of December until Jan 3, the Swiss watchmaker is leveraging off the holidays with a branded Christmas Pavilion at The Exchange, TRX.
Located by the facade of its boutique in the mall, the festive space celebrates the joy of the season with an array of activities, interactive experiences and iconic displays from Omega.
In addition to watch displays and a festive tree, the pavilion also boasts interactive experiences including a 360 video booth and live Christmas Carol sessions on weekends.
The Omega Christmas Pavilion is just one of the many unique and experiential brand activations that are featuring prominently in malls across the country.
And it will be an on-going exercise that shows no signs of stopping as brands as well as popular retail spaces capitalise on enticing shoppers.
According to a recent report by global strategic insights practice Canvas8, South-East Asia’s iconic shopping malls are undergoing a significant transformation. Once merely retail spaces, these massive, multi-purpose venues have now emerged as dynamic arenas for connection, entertainment and innovation.
The report – “How South-East Asia’s malls are evolving post-pandemic” – by Canvas8 stated that with technology-driven, immersive experiences becoming the norm, mall operators and brands are rethinking how they engage with consumers.
They are constantly seeking ways to draw them back into physical spaces while staying ahead in an increasingly digital world.
Technology transformation
The demand for cutting-edge technology to enhance the shopping experience is at an all-time high.
Augmented reality (AR), virtual reality (VR) and artificial intelligence (AI) are no longer reserved for luxury brands; they are becoming essential to the mall experience.
Emerging tech is not just a novelty but also an integral part of building immersive, memorable experiences.
Brands that can effectively harness these tools will not only attract crowds but also keep them coming back. For luxury brands, the shift toward “phygital” (physical + digital) experiences has proven essential.
South-East Asia’s luxury sector is booming, with revenues expected to reach US$16bil in 2024.
To capitalise on this lucrative sector, high-end brands are now crafting all-encompassing experiences that engage the senses and attention of shoppers.
That said, technology alone though is no longer enough to just show off new tech for Instagram likes, observed Donnah Montemayor, an advertising consultant.
“Cutting-edge technology really draws a crowd, but there’s also now a need for brands to incorporate it into their actual experience, rather than just using it for surface-level promotions or Instagram clout,” added Montemayor.
This notion hasn’t escaped the attention of South-East Asian malls that are now working to elevate fun shopping experiences by banking on immersive technology.
Beyond fun and games
Recently Singapore’s ION Orchard used gamification to celebrate its 15th anniversary. Revamping its mobile app with an AR game called World of Rewards, it enlisted merchants like Nespresso, Estée Lauder and Guerlain to participate in the virtual gameplay.
“While the app’s fun interface and reward system has encouraged repeat shopper visits, ION Orchard went the extra mile by integrating loyalty points and digital payments into the ecosystem,” elaborated Daniel Ian Comandante, cultural desk researcher at Canvas8 APAC.
“This initiative helped make shopping frictionless from purchase to redemption. Through this activity, the luxury mall ushered in their loyal shoppers into a new digital frontier, turning their shopping trips into a more memorable experience,” he added.
We’ve seen these transformative experiences being orchestrated on local shores too. For instance, the opening of Watsons’ 700th store in Malaysia was equipped with AR technology allowing for personalised try-ons as well as the blend of phygital shopping and convenient payment options to make their shopping trips more memorable.
“Continued gamification and tech integration in retailing are trends that we will be on the lookout for,” added Comandante.
“South-East Asian retail malls are aware of shopper demands, but the real test is going to be whether people will find these offerings compelling or merely easy to ignore.”
Malls still matter
Comandante opined that despite the ubiquity of online shopping and social commerce, more than 40% of South-East Asians still visit shopping malls.
Amid choice overload online, malls are still providing elevated offerings that are wooing customers back to physical retailing.
“With luxury malls becoming more en vogue, retail groups are now more attuned to the increasingly global yet hyper-personal choices of their loyal shoppers.”
Comandante pointed out the dearth of brand pop-ups and activations expanding across categories in the region.
“While it’s not an entirely new phenomenon, pop-ups provide emotional reprieve amid constant permacrisis. Its prevalence can also be traced to shopper interest fuelled by increased yearning for new and elevated experiences,” he said.
Brands are no doubt increasingly turning to exclusivity and storytelling to create unique experiences for their customers.
For instance, Dior’s DIORIVIERA pop-up series and Hermès’ mythic Pegasus-themed store takeover in Singapore highlight the power of cultural collaborations and brand experiences in captivating an audience.
In Thailand, retail group Siam Piwat launched JAI by OneSiam, a luxury lifestyle club offering exclusive pop-up stores and events.
South-East Asians, especially younger generations, are keen on loyalty programmes that offer more than just discounts – they seek genuine engagement and personalisation.
“If a brand only ever greets you once a year with ‘happy birthday’, does that make you more loyal? No. You just think it’s spam,” Montemayor clarified.
“Brands must go beyond that, gathering data little by little to create a more holistic understanding of their market so they can create the necessary customer profiles in their database.”
Those that go the extra mile in creating meaningful interactions and experiences will see a stronger, more loyal customer base.
