【BizSights】Immersive shopping is changing retail: The arrival of Mall 3.0 in the Philippines

As online platforms become the main players in price competition, large retail companies in the Philippines are adopting a strategy called “experientialization.” Moving from just shopping to engaging, touching, participating, and creating experiences that can only be done in physical stores. New business models for the digital age are emerging one after another.

ScreenX Reexamines the Purpose of Movie Theaters

SM Cinema, one of the country’s leading movie theater operators, opened the first SCREENX theater in the Philippines last September at SM Mall of Asia.

This experience is fundamentally different from traditional movie viewing. The images extend from the main screen to the walls on the left and right, creating an immersive feeling close to 360 degrees. Developed by South Korea’s technology company CJ 4DPLEX, which also produces cinema technologies like 4DX and UltraDX.

“The era of large theaters is over. What young generations seek is a deeper experience,” — points out Steven Tan, President of SM Supermalls. In fact, as the shift to streaming platforms continues, premium experiences like SCREENX are powerful tools to attract new audiences.

Ticket prices are 700 pesos each. During long holidays, viewers can experience blockbuster films like “Avatar: The Burning and Ashes.”

Customizing with Accessories: Experientialization of Flasks

Sunnies Inc., which started as a sunglasses retailer, launched Sunnies Flask as a new business axis. But it’s entirely different from traditional bottled retail.

Customers choose from three types of Robo flask, Bubble flask, and Pebble flask, and then select sizes of 16oz, 25oz, 30oz, or 32oz. The basic price starts at 695 pesos for the smallest size.

Next, they freely combine accessories such as rubber boots (195–245 pesos), gliders (195 pesos), cleaners (195 pesos), and sling bags (895 pesos).

A key differentiator is “personalization.” Insulated bottles can be engraved with names, initials, or arbitrary words and symbols for free. A variety of fonts are available.

CEO Eric Dee said: “What we offer is a unique experience. The flask itself was an existing product, but by adding mix-and-match customization features, this highly personalized experience attracts people to our physical stores.”

Furthermore, in collaboration with the popular KPop group Demon Hunters, they offer seven character-themed flasks: Rumi, Mira, Zoey, Jinu, Huntrix, Soda Pop, and Derpy Tiger. Each comes with a sticker set, allowing design customization of the flask.

Digital initiatives run in parallel. Live sales on TikTok expand, blending traditional in-store experiences with online shopping. Fully integrated Sunnies World stores have opened at SM Mall of Asia and Bonifacio Global City, offering eyewear, makeup, flasks, and coffee, along with consultation and café spaces for socializing.

New Ways to Add Emotion through DIY

Hello Bear, operating in several malls in Metro Manila, has transformed plush toy purchases into a “manufacturing experience.”

Customers start by choosing an unfilled stuffed animal. Placing it in a machine and stepping on a foot pedal inflates the stuffing. The firmness can also be adjusted.

Next, they can add a battery-powered red heart mechanism to give the toy a simulated heartbeat. They can also choose to record a message with a small voice recorder. Customers can sew the hole themselves or leave it to staff, then add accessories like clothes, hats, sunglasses, or cameras, and finally write a name on an ID card.

Minimum price is 1,000 pesos. The price increases with additional gadgets and accessories. The store is located in major malls such as Century City Mall, Venice Grand Canal, Newport World Resorts, several Toys R Us locations, and Green Hills.

Rebuilding the “Reason to Visit” in the Digital Age

What these three examples reveal is a fundamental shift in retail.

Steven Tan, President of SM Supermalls, points out: “Filipinos, especially Generation Z and Alpha, are seeking experiences, not just products. Merely displaying goods won’t bring them in. What truly attracts and entertains is something fun and engaging.”

“Sunnies World at MOA offers personalization, engraving, cafes, and makeup consulting. These are things that cannot be achieved online. They are value propositions that online cannot replace.”

From 2026 onward, experiential retail with immersive experiences will further increase in Philippine commercial facilities. Moving from mere product sales to “selling experiences.” This is the key for brick-and-mortar stores to survive in the digital age.

— Rappler.com