BIZ BUZZ: SM chases growing ‘experience market’

The SM group is leveraging the breadth of its assets and activities to penetrate deeper into the young consumer segment.

In particular, SM is positioning these as “entertainment hubs” to attract the experience-hungry youth.

“We recognize the younger generation’s growing preference for experiences, and this shift opens new opportunities for growth across our businesses,” said Frederic DyBuncio, president and CEO of SM Investments.

“By listening closely to our customers, we are broadening our entertainment offerings to strengthen engagement and create long-term value across the SM ecosystem,” DyBuncio added.

This push is noticeable across the SM group.

SM had invested in Asia-based travel and experiences platform Klook through SMIC SG Holdings, the first Philippine firm to do so.

Meanwhile, logistics firm 2GO has karaoke lounges and video arcades in its vessels. SM notes that these features are in interisland travel. Meanwhile, BDO Unibank and China Bank also integrated lifestyle and travel-related rewards into customer programs.

And yet, SM’s most familiar face—its malls, convention centers and arenas—are themselves undergoing transformation into “multidimensional experience hubs.”

“With our emerging segments, the millennials and Gen Z, who grew up on the Internet and social media—they now value the experience, the feeling of inclusivity, community involvement and even sustainability,” said Joaquin L. San Agustin, EVP for marketing at SM Supermalls.

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Thus, SM’s marketing efforts are now geared toward targeting communities or “tribes”—gamers, geeks, foodies and fandoms—who like more interactive and personalized experiences.

The MOA Arena continues to host international acts and will soon be complemented by a larger arena in Cebu.

The SMX Convention Center is seeing a surge of fan meets, gaming expos and pop culture conventions. The Mall of Asia now has shared spaces for leisure and wellness, such as the Fifa-grade football pitch at SM MOA Sky.

At this pace, even more should be added to SM’s list soon.