Gen Z consumers are driving changes in how SM Supermalls markets its malls, designs customer experiences, and develops digital services, with artificial intelligence expected to play a bigger role in personalization.
At the SM Supermalls Midyear Business Review, Executive Vice President for Marketing Joaquin San Agustin said Gen Z now makes up the largest component of SM’s customer base, prompting the mall operator to move beyond broad demographic groups and focus on consumers’ specific interests and passions.
“The Gen Zs are actually consumers who would like you to speak practically directly to them. They want to see the sincerity in what you do, the authenticity in what you do,” San Agustin said.
The shift has led SM to adopt what it calls “tribe marketing,” grouping customers into communities based on shared interests rather than relying mainly on categories such as families and youth.
The approach is reflected in the MySM campaign and SM’s efforts to position its malls as lifestyle and experience destinations, with more distinctive installations, storefronts, and activities designed around different customer interests.
Younger employees are also helping shape the strategy through SM’s Gen Z Council, which gives management direct feedback on changing consumer preferences.
San Agustin said technology will become increasingly important as SM seeks to make its marketing and services more targeted.
“Moving forward and in the next year or two, we really believe that AI is going to play a very, very big part,” he said.
SM plans to use AI to help develop and distribute content, as well as determine mall activities based on customer interests.
SM Malls Online is also expected to incorporate AI next year to provide more personalized services to specific customer groups.
The strategy reflects a broader shift in mall marketing, where understanding what consumers want is becoming as important as attracting them through traditional promotions.
For SM, Gen Z is not simply another customer segment. Its preferences are increasingly influencing how the country’s largest mall operator plans its marketing, physical spaces, and digital services.
