Despite technology disruption, Central Department Store remains upbeat that Thai department stores will survive, boosted by growing tourism and seamless offline and online integration by existing operators.
Piyawan Leelasompop, the company's executive vice-president for marketing, said the department store segment will never die and its prospects are expected to outstrip the country's GDP growth.
"We will put more emphasis on two strategic areas: tourism-oriented business and social platforms," Ms Piyawan said. "We have seen the continuous growth of our businesses in tourist destinations in nine locations, and we are scheduled to open one Central Department Store in Phuket and one Zen Department Store in Patong, the most recognised tourist area in the South, this year."
Some 37 million foreign tourists visited Thailand last year, and 30% of them were Chinese with high spending power, she said.
Central Department Store began providing shopping on social media platforms last year via Central On Demand.
At present, Central Department Store offers services on Facebook, Twitter, Line and Instagram, with 1.2 million, 980,000, 5 million and 38,000 followers, respectively.
Central On Demand has 65,000 followers and recorded total orders of over 10 million baht in 2017. This year's orders are forecast to reach 100 million baht.
"We're offering a seamlessly connected omni-channel shopping experience," Ms Piyawan said. "We have seen a rapid increase in millennials at Central. In 2016, the portion of millennial customers was 12% of total customers, with the proportion expected to rise to 30% this year."
Central On Demand is aimed at customers aged 30-40, while physical stores target those aged 25-70 and e-commerce is for those aged 20-35.
Central on Demand became a full service in January. It makes shopping easier through three steps: chat, shop, ship. Customers can download the application and scan the QR code available at Central Department Stores or search @CentralOnDemand for Thai and @CentralOnDemandEN for English.
Shoppers can chat with staff to ask about the products, which will be sent to homes or can be picked up via Click & Collect at any Central Department Store.
Central on Demand is different from e-commerce because the latter only offers products available on the website and customers have to wait for delivery. Central on Demand provides a similar experience to shopping at a physical stores, she said.