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Tech Innovations Driving Sustainable Retail Choices

By: Voralak Tulaphorn, Chief Marketing Officer, The Mall Group | Thursday, 3 October 2024

Voralak Tulaphorn is a seasoned marketing professional with over three decades of experience. With an extensive professional background including roles at Citibank, Minor Group, and Leo Burnett, she is a key leader shaping the retail landscape, contributing significantly to the industry's growth and evolution.

In a recent conversation with The Global Woman Leader Magazine, Voralak discusses about ‘Sustainable Retail Marketing: How Technology is Driving Eco-Friendly Consumer Choices’, speaking about technology’s role in reshaping sustainable consumer choices. In addition, she also speaks about the shopping patterns in the retail market and balancing physical and online presence for the same. Read the article to know more.

In the current retail landscape, how are you seeing technology reshaping sustainable consumer choices, especially with the growing demand for transparency in the supply chain? What innovative strategies are being implemented to ensure eco-friendly practices are not just a trend but a long-term commitment?

We believe technology plays a crucial role in reshaping sustainable consumer choices. We integrate digital tools to increase transparency and sustainability across our shopping centers. For instance, we launched an application that records expiration dates of products bought from our Gourmet market, helping customers manage their purchases and reduce waste.

Additionally, we implemented a machine that separates PET bottles and caps, facilitating recycling. The materials are collected by an association that recycles them into reusable products like clothing. This initiative has been running for over a year, with growing participation at our branches. With two to three million visitors per store each month, this initiative encourages sustainable habits, building customer awareness and adoption over time.

We are also committed to embedding eco-friendly practices into our long-term retail strategy. For example, our rooftop energy-saving system reduces energy consumption, and we grow vegetables on-site for staff to take home. We also use recycled water in our toilets, further supporting sustainability within our ecosystem.

Recently, we integrated AR technology into our app, replacing paper-based directories and signages. Customers can use the app for indoor navigation and access virtual privileges, reducing waste. This initiative won an award, recognizing our efforts to innovate and support sustainable consumer habits.

As AI and data analytics become more integrated into retail marketing, how can brands leverage these technologies to drive not only personalized experiences but also sustainable consumption patterns? What role do predictive analytics play in anticipating and promoting eco-friendly consumer behavior?

We analyze shopping patterns through our business analysts, allowing us to curate more relevant product offerings. By emphasizing eco-friendly options aligned with consumer preferences, predictive analytics help us anticipate demand for sustainable products, adjust stock levels, and reduce excess inventory. We also provide personalized recommendations based on sustainable products to guide consumers towards greener choices.

For instance, we periodically promote eco-friendly products through special events or promotions. Our data-driven approach promotes eco-conscious behavior across our centers, ensuring sustainability is an integral part of the shopping experience. Additionally, we encourage tenants and brands in our department stores to adopt environmentally responsible practices.

With the rise of digital platforms, how is the balance between physical and online retail evolving in terms of sustainability? What technological innovations are bridging the gap between these two realms to promote eco-conscious shopping habits?

As shopping centers have evolved, we’ve focused on balancing physical and online presence while enhancing sustainability. Physical stores are adopting energy-efficient lighting, waste reduction initiatives, and eco-friendly materials. Meanwhile, digital platforms are prioritizing carbon-efficient logistics and sustainable packaging. Customers are now more inclined to bring their own bags while shopping, and we’ve seen significant adoption of this practice.

These innovations allow customers to shop seamlessly both online and offline. We're educating them while promoting sustainability by offering incentives. For example, customers who bring their own bags can earn extra loyalty points. This has been in place for several years and is embedded into the shopping experience and customer behavior. On our platforms, we also encourage bagless shopping, integrating sustainability into both customer interactions and our internal processes to promote eco-conscious choices.

How do you see the role of virtual reality (VR) and Augmented Reality (AR) in driving sustainable choices in retail? Can immersive technologies enhance consumer understanding and appreciation of eco-friendly products, and if so, how are leaders capitalizing on this potential?

AI and VR will increasingly play a significant role in enhancing consumer engagement with sustainable products in shopping centers. For example, indoor navigation can be done via smartphones, reducing the need for materials like plastic or paper. AR technology enables consumers to visualize eco-friendly products in their homes and experience the product life cycle in advance. It also allows shoppers to learn about product materials and the manufacturing process, offering transparency about the sources of the products. AR provides immersive experiences, like virtual walkthroughs of sustainably designed stores, helping consumers better understand the origins and details of the products. For tech-savvy shoppers, it allows deeper exploration into the specifics of each item.

Sustainability often comes with a perception of higher costs. How can technology help retail leaders overcome this challenge, making eco-friendly options more accessible and appealing to a broader range of consumers? What examples are you seeing in the industry that highlight this shift?

Technology can help shift the perception that sustainable choices come at a higher cost. By using AI to optimize energy use and drive operational efficiencies, we can reduce costs and pass those savings onto customers. For example, by analyzing customer traffic patterns, we can manage resources accordingly. Tenants also benefit from smart logistics that reduce waste and streamline the supply chain, allowing them to offer competitively priced, eco-friendly products.

Digital platforms can broaden access to affordable, sustainable options through shared resources or economies of scale. In our shopping centers, we've seen how technology makes sustainability more accessible without compromising affordability. For instance, apps that notify customers of product expiration dates help them save money by reducing food waste while also fostering brand loyalty. This, in turn, helps offset the perceived higher cost of sustainable options through tangible savings.

As consumer expectations continue to evolve, how do you foresee the next wave of technological advancements shaping the future of sustainable retail marketing? What should retail leaders be focusing on now to stay ahead in this eco-conscious era?

The future of sustainable retail shopping centers lies in integrating cutting-edge technology to support eco-friendly initiatives. As AI and IoT become more advanced, we can implement real-time energy management systems to optimize efficiency across all centers. For instance, we can turn off the air conditioning an hour before closing, depending on the area, ensuring the temperature remains comfortable while saving energy. Technology will be key in maintaining optimal temperature and circulation flow.

Transparency will also be crucial, allowing consumers to verify the sustainability of the products they buy, such as knowing the source and production process. The rise of digital twins and smart buildings will help create more eco-conscious environments.

For example, we’ve designed a walkway between our buildings with plants along both sides. These plants help absorb heat, dust, and pollution, creating a cooler, more pleasant environment for customers to walk instead of drive between buildings. This design encourages eco-friendly behavior and enhances the overall experience. Incorporating both physical and digital elements into our strategies is essential to staying ahead in the evolving landscape of retail.

Messages For Readers

As a shopping center, we aim to be a place where people spend significant time outside their homes. Our goal is to contribute to society by encouraging customers to recognize the critical role they play in promoting sustainability for the future. We want to educate and provide real-life examples of how sustainability can be achieved. Our center serves as a hub for sustainable projects, helping shape a more eco-conscious society by offering consumers choices that allow them to be part of the effort to protect the planet.