Digital Signage and Retail Innovation in Indonesia
In the rapidly evolving retail landscape of Indonesia, several major players are leveraging digital technology to enhance customer experiences, boost sales, and create new revenue opportunities. Companies such as Lippo, Erajaya, and Kopi Kenangan are at the forefront of this transformation, utilizing digital signage and innovative space designs to meet modern consumer demands.
Digital Signage for Enhanced Visibility and Engagement
Lippo Mall, one of the largest shopping center operators in Indonesia, has embraced digital signage across its 69 malls. These LED screens, strategically placed in high-traffic areas like entrances and corridors, serve multiple purposes. They highlight new tenants, promotions, and mall events, while also integrating with Lippo’s loyalty app, Styles. With over 200,000 active members, the app provides a bridge between the digital and physical retail worlds, allowing users to discover promotions, event updates, and store openings. This integration not only increases foot traffic but also offers valuable support to tenants through enhanced visibility.
Monetizing Digital Displays
Erajaya Digital is another company that has recognized the potential of digital signage. By placing these displays in multi-brand outlets, the company enhances brand exposure and creates a monetization opportunity. Mark Go, chief strategy officer at Erajaya Digital, highlighted that the company offers paid placement packages to brand partners, turning digital signage into an additional revenue stream. This approach allows brands to reach a wider audience while providing retailers with a sustainable income source.
Smart Technology for Better Promotions
At FreshMart, a leading supermarket chain in Sulawesi, digital signage is being developed beyond simple visual displays. The company is working on technology that enables real-time price updates, which significantly improves promotional effectiveness. Andy Sumual, president-director and CEO at FreshMart, emphasized the importance of this innovation in staying competitive and meeting customer expectations for up-to-date pricing information.
Cost-Effective Strategies for Digital Signage
Kopi Kenangan, a popular coffee chain based in Jakarta, faces challenges related to the high cost of digital signage. To overcome this, the company negotiates with landlords to secure digital support when opening new stores. Ananditha Mayasari, AVP and Head of Marketing, explained that this strategy helps reduce initial costs. Additionally, Kopi Kenangan partners with food delivery platforms such as GrabFood, GoFood, and ShopeeFood to co-fund digital campaigns, further enhancing their marketing efforts.
Revitalizing Retail Spaces
Beyond digital signage, retailers are rethinking how space is designed and utilized. Lippo Mall has focused on transforming older properties to align with modern consumer behavior. A notable example is the former Plaza Semanggi, now known as Lippo Mall Nusantara. Since 2020, Lippo has prioritized revitalizing legacy malls to remain relevant in a changing market. Santiwati Basuki, chief marketing officer at Lippo Malls Indonesia, noted that many of their malls are already in prime locations, making revitalization a more cost-effective option than building from scratch.
“We’re not just designing stores; we’re designing experiences,” she added, highlighting the shift towards creating immersive environments that attract customers.
Enhancing Customer Experience Through Store Design
Kopi Kenangan has also made significant changes to its store layouts. Ananditha Mayasari mentioned that customers are increasingly looking for spaces that offer comfort, style, and Instagram-worthy aesthetics. In response, the company has invested in wide seating areas and visually engaging environments that encourage user-generated content. Larger stores have proven to drive higher sales, demonstrating the impact of thoughtful design on business performance.
Personalized Experiences for Modern Consumers
Mark Go of Erajaya Digital emphasized the importance of personalized experiences in today’s retail environment. “What’s important is making the experience feel personalized… Because in the end, there is no online or offline customer; there is only the customer,” he said. This philosophy underscores the need for seamless integration between digital and physical retail interactions, ensuring that all customers receive consistent and tailored service.
As Indonesian retailers continue to innovate, the use of digital signage and creative space design will play a crucial role in shaping the future of retail. By embracing technology and focusing on customer needs, these companies are setting new standards for the industry.
