Nielsen: Indonesian malls need to innovate to lure back visitors

Malls are now preparing to welcome visitors following the reopening of the shopping centres on 15 June. The mall business is one of the sectors that suffered the heaviest of blow during the COVID-19 pandemic. Due to the large-scale social distancing (PSBB) in DKI Jakarta, the number of mall visitors decreased by half (49%) from before, according to Nielsen's recent study of the impact of COVID-19 on consumer behaviour in visiting shopping centres in DKI Jakarta.

The Nielsen study revealed that 67% of consumers who previously visited the mall regularly intended to visit the mall after the PSBB is lifted up. The mall visitor behaviour study further showed that before the COVID-19 pandemic, the most common activities carried out by mall visitors were buying fast food and soft drinks such as bubble tea and coffee, or watching movies in the cinema.

During PSBB, consumers visit malls mainly to shop for daily necessities or buy medicinal products. When PSBB is lifted up or loosened, shopping for daily necessities is still the main activities of consumers who visit the mall, in addition to buying fast food, watching movies in theaters and hanging out with friends.

When the pandemic ends, 65% of consumers say they want to visit the mall because they need to relax and need entertainment.

This indicates that consumers are also looking forward to the reopening of shopping centres because they may already feel bored after staying at home for almost the last three months.

It is no doubt the COVID-19 pandemic has impacted consumer behaviour, and it has since shifted their priorities towards health and hygiene factors. As such, shopping centres will be required to bring back consumers’ confidence to return to visit, by ensuring the implementation of health protocols, both by the mall and by the tenants. 

As visitors also tend to reduce touch interactions with the people and the surrounding environment, shopping centres will need to innovate.

Rusdy Sumantri, director of Consumer Insight, Nielsen Connect Indonesia, said shopping centres can adapt technological innovations such as using touchless sensors on elevator buttons or parking ticket machines, and on appliances in the toilet area. He added that these efforts will be able to make visitors feel more safe and comfortable.

"Providing a place for sterilisation of groceries, for example by using UV light, can also be considered. Shopping centre management or owners also need to put an effort in convincing consumers to feel safe when returning back to the mall with intense and regular communication,” he added.

According to Sumantri, shopping centres and brand owners will have to advertise their businesses and operations, and showcase the mall’s efforts in ensuring safety. He encouraged brand owners to:

• Take advantage of corporate social media accounts to strengthen engagement with consumers.
• Utilise electronic media, print media or outdoor media, which will also greatly help reaching wider consumers.
• Communication content that shows the strength point of malls such as applying health protocols, using masks to workers, ways of serving and processing food with clean and healthy methods,
• Technological innovations that are adapted, wrapped this content in attractive and creative packaging will attract consumers to visit.

"It is important for shopping centres or malls and their tenants to be able to accommodate consumers’ ‘new normal’ habits. Not only related to the implementation of health protocols, but also to all efforts or innovations, the communication is very important to build visitors’ trust and rise again, as well as to run the business better in the future,” he explained.

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