Why Retailtainment Will Be the Next Big Trend in Southeast Asia’s Retail Market

The retail landscape in Southeast Asia is undergoing a profound transformation. With the rapid rise of e-commerce and evolving consumer behaviors, traditional retail models are under pressure. Foot traffic alone no longer guarantees revenue. Shoppers may visit physical stores but make purchases online, forcing property developers and retailers to rethink their approach. To stay competitive, the industry is embracing retailtainment—a fusion of retail and entertainment—to create immersive experiences that attract, engage, and retain customers. 

1. The Current State of Shopping in Southeast Asia  

Retail in Southeast Asia extends beyond conventional shopping malls. It now encompasses lifestyle centers, mixed-use developments, entertainment districts, and transit hubs. This shift reflects a broader trend: successful retail spaces are no longer just about shopping—they are multi-dimensional destinations where people can shop, dine, play, and socialize. 

• Lifestyle Centers: These spaces blend retail, dining, and entertainment in open-air environments. The EM District in Bangkok is a prime example. By combining luxury shopping with cultural exhibitions and fine dining, it draws both local and international visitors. 

• Mixed-Use Developments: Retail podiums within mixed-use projects—including offices, residences, and hotels—outperform standalone malls due to built-in traffic from residents and workers. Landmark 81 in Ho Chi Minh City demonstrates this synergy, attracting thousands of daily visitors through its mix of retail, hospitality, and residential spaces. Jewel Changi Airport in Singapore also illustrates this trend, blending retail with attractions like the Rain Vortex and Canopy Park. According to a report by the Singapore Tourism Board, Jewel attracted over 50 million visitors in its first six months, boosting retail sales across the development. 

• The Browsing Problem—Foot Traffic Without Spending: Foot traffic alone no longer guarantees success. 80% of visitors to shopping malls browse without making purchases (according to Savills). This browsing behavior poses a challenge for both retailers and property developers. Simply attracting people to a space is no longer enough—without engaging experiences that encourage spending, these visitors will leave without making a purchase. This is where retailtainment becomes critical, offering interactive and immersive experiences that convert casual visitors into paying customers. 

  
  

Despite high foot traffic, Southeast Asia’s retail landscape demands more than just a physical presence. To thrive, developers and retailers must design spaces that go beyond traditional shopping, integrating experiences that not only attract visitors but also drive meaningful consumer engagement and sales. 

2. Why Retailtainment Is Gaining Momentum Shifting Consumer Preferences 

• Consumer behavior in Southeast Asia is changing, especially among Millennials and Gen Z. According to PwC, 73% of customers point to experience as an important factor in their purchasing decisions, behind price and product quality. To capture these experience-driven shoppers, both developers and retailers must shift from transactional models to creating spaces that foster emotional engagement. 

• The E-commerce Disruption: Online shopping in Southeast Asia is surging, with retail e-commerce projected to hit $230 billion by 2026 (according to McKinsey & Company). This shift reduces the need for physical visits—unless the experience itself is a draw. To remain competitive, brick-and-mortar spaces must become more attractive by offering immersive experiences unavailable online. 

• Increased Dwell Time & Spending: Retailtainment increases the amount of time consumers spend at a location, which directly correlates with higher spending. This economic impact has led developers to prioritize entertainment as a strategy to increase their return on investment.  

  
  

3. How Retailtainment Benefits Retailers, Investors, and Property Developers 

• Higher Lease Rates: Retailers adopting retailtainment strategies benefit from increased customer engagement, which leads to higher sales. This success has a ripple effect on the entire property. When retailers draw more visitors, property developers benefit from increased traffic across the building, allowing them to charge higher lease rates.  

• Increased Property Valuation: Retailtainment enhances a property’s long-term value by making it a desirable destination. This value isn’t driven solely by standalone attractions but by integrated retail experiences that increase consumer engagement. 

• Stronger Tenant Retention: When retailers succeed in drawing customers through experiential strategies, they are more likely to renew their leases, benefiting property developers. This stability not only secures consistent revenue but also enhances the property’s attractiveness to future tenants. 

  
  

4. Strategies for Stakeholders to Embrace Retailtainment  

To thrive in the evolving retail landscape, both developers and retailers must align their strategies to deliver immersive, customer-centric experiences. 

• Design for Multi-Use: Mixed-use developments—combining retail, residential, and hospitality—create built-in foot traffic and enhance customer convenience. By integrating retailtainment into these spaces, stakeholders can drive consistent engagement. 

• Invest in Smart Technology: AI-driven analytics enable businesses to track customer behavior and personalize offerings. Digital touchpoints like augmented reality experiences and interactive displays not only engage visitors but also provide valuable data to optimize layouts and marketing strategies. 

• Prioritize Experiential Retail: Retailers should lead the charge in adopting retailtainment strategies, as immersive experiences directly increase customer engagement and spending. This benefits the entire ecosystem, as successful retailers drive higher foot traffic, allowing property developers to command premium lease rates and maintain higher occupancy. 

• Bridge Physical and Digital: Retailtainment works best when physical and online experiences are integrated. Offering omnichannel services—such as click-and-collect and virtual try-ons—can connect digital convenience with in-store excitement. 

• Focus on Long-Term Growth: Retailtainment isn’t just about driving short-term traffic—it’s an investment in the property’s future. By fostering memorable experiences that keep visitors coming back, both retailers and developers can increase customer loyalty and future-proof their assets against industry shifts. 

In Southeast Asia’s competitive retail market, foot traffic alone is no longer enough. By embracing retailtainment, property developers and retailers can transform spaces into dynamic destinations where customers don’t just browse—they buy. This synergy between immersive experiences and retail not only enhances customer engagement but also drives long-term revenue and property value.