Experience is everything: How retail in the Philippines is evolving in the digital age

In the Era of Streaming Dominance, How Do Brick-and-Mortar Stores Survive?

With the rise of online platforms, consumers can easily purchase products from the comfort of their homes. However, large chain stores in the Philippines are tackling this challenge not just by selling goods but by creating “experiences” that encourage customers to visit in person.

The integration of digital and physical experiences is no longer optional but a necessity. Especially among Generation Z and Millennials, there is a growing demand for services that not only involve buying products but also provide enjoyable, memorable experiences throughout the process.

Movie Theaters Evolve: SCREENX Demonstrates 360-Degree Immersive Experience

The film industry faces the same challenge. As customer migration to streaming platforms continues, the Philippines’ largest cinema chain, SM Prime, aimed to break away from traditional movie experiences.

In September 2024, the first SCREENX theater in the country opened at SM Mall of Asia. SCREENX features a technology that extends the main screen onto the side walls, creating a 360-degree immersive experience. Instead of traditional front-only projection, images expand to the left and right walls, enveloping viewers in the world of the film.

This technology was developed by CJ 4DPLEX, a Korea-based company known for 4DX and UltraDX, which enhance movie experiences. SCREENX is said to deliver next-generation viewing that surpasses existing technologies.

Currently, blockbuster films like “Avatar: The Way of Water” are being shown in this format, with ticket prices at 700 pesos each. Steven Tan, an executive at SM Supermalls, points out that such innovative movie experiences are key to attracting younger generations back to theaters.

A New Way to Buy Water Bottles: Sunnies Flask’s Customization Strategy

Starting as an eyewear company, Sunnies Inc. now operates multiple business lines. Among them, the Sunnies Flask brand of insulated bottles has gained attention.

Traditionally, bottles were chosen from pre-made options on shelves. Sunnies Flask, however, offers customers a personalized experience, allowing them to customize their bottles.

The basic lineup includes three types: Robo flask, Bubble flask, and Pebble flask, available in four sizes: 16oz, 25oz, 30oz, and 32oz. The most affordable option is the smallest size at 695 pesos.

But the real value of Sunnies Flask lies in customization. Customers can select their preferred color from a wide range, then add accessories like rubber boots, sliders, or flask rings. Additionally, free engraving of names, initials, favorite words, or symbols is available, with multiple font options.

“We’re not just offering products; we’re providing a unique experience,” says CEO Eric Dee. “The flask market is an established industry, but by adding customization, we differentiate ourselves. This highly personalized experience draws people into physical stores.”

Sunnies has also launched exclusive collaborations with popular KPop group “Demon Hunters,” featuring several design bottles like Huntrix, Rumi, Mira, and Zoy, each with a dedicated sticker.

Digital strategies also play a vital role. Through live sales on platforms like TikTok, they directly reach younger audiences. “New marketplaces like TikTok are generating significant growth. By leveraging both physical stores and digital platforms, we’re building a multi-layered sales channel,” Dee explains.

Large stores called “Sunnies World” have opened at SM Mall of Asia and Bonifacio Global City, integrating eyewear, makeup, flasks, and even cafes. These spaces are not just product displays but serve as venues for customers to “meet, drink, read, and socialize.”

Emotional Connection Through DIY Teddy Bears: Hello Bear’s Experiential Store

Hello Bear has completely reimagined the teddy bear buying experience. Instead of simply choosing from shelves, the brand opened participatory stores inside Metro Manila malls, allowing customers to create their own teddy bears.

The process involves six steps. First, select an animal character plush that is unstuffed. Then, attach it to a machine and step on a foot pedal to automatically fill it with cotton, adjustable to desired firmness.

Next, add accessories like a small battery-powered red heart (which emits artificial heartbeat sounds) or a voice recorder for custom messages. After sewing the opening closed, decorate with accessories such as clothes, headphones, sunglasses, or headbands. Finally, name the plush and have the name printed on an ID card.

Prices start at 1,000 pesos for basic plushes, with final costs varying depending on additional gadgets and accessories. Hello Bear stores are located at Century City Mall (Makati), Venice Grand Canal (BGC), Newport World Resorts (Pasay), Toys R Us Power Plant Mall (Makati), Toys R Us Opus Mall (Quezon City), and Promenade at The Greene (San Juan), offering unique characters like derpy plush.

The Future of Experiential Retail: What Is the Key to Long-Term Success?

These examples demonstrate that the Philippine retail industry is shifting from mere product sales to providing experiences. Steven Tan of SM Supermalls emphasizes the inevitability of this change.

“Filipinos, especially the younger generations like Generation Z and Alpha, are now seeking experiences. The era of simply displaying products to attract buyers is over. We need to truly engage customers and offer fun, entertaining experiences,” he says.

“At Sunnies World, we offer personalization, initials embossing, cafes, and makeup consulting—all of which cannot be done online. These are values that only physical spaces can provide.”

While experiential retail linked to higher price points is still in the early stages, its long-term success remains to be seen. However, it is certain that from 2026 onward, more immersive experiential retail services will appear in Philippine commercial centers.

Despite the wave of digitalization, the reason to choose physical stores lies in “experiences”—an intangible but most valuable aspect that cannot be easily quantified.