Innovation

Challenges and Opportunities

The rapid pace of technological change and evolving customer demands pose significant challenges in introducing new innovations. Central Retail faces the complexity of integrating technology into existing systems, as well as adapting employees to work effectively with new technologies. Furthermore, cybersecurity risks and substantial resource investments are factors that Central Retail must consider to ensure the sustainable value creation of innovation adoption.

At the same time, innovation presents opportunities for Central Retail to enhance operational efficiency and gain a competitive edge. Technologies such as artificial intelligence (AI) and advanced data analytics enable more precise decision-making, process optimization, and cost reduction. Furthermore, adopting an omnichannel strategy improves customer experience and expands market access, particularly in remote areas.

To address these challenges and capitalize on emerging opportunities, Central Retail has implemented various measures, including employee capability development through training programs and structured skill enhancement frameworks. Central Retail also prioritizes the seamless integration of new technologies with existing systems and robust cybersecurity risk management. Moreover, clear performance measurement criteria have been established to monitor the impact of innovation on business objectives, ensuring that technology investments drive sustainable growth for both the organization and society.

Management Approach

Central Retail has established its "CRC Retailligence" strategy as part of its mission to become a leading retailer. By leveraging extensive data ecosystems and prioritizing customer needs, Central Retail aims to transform its services into a next-generation of omnichannel retail experience. This strategy focuses on delivering personalized experiences and collaborating with suppliers and business partners to create unique shopping experiences through specialized shops and lifestyle centers.

Central Retail Digital, a subsidiary of Central Retail, is driving Central Retail's digital transformation to become a leading global retail technology company and create Thailand's best omnichannel platform. The focus is on delivering customer-centric innovations that enhance every aspect of the retail value chain, ensuring a seamless and personalized experience for all customers.

To foster advanced innovation, Central Retail has established an innovation team dedicated to fostering a work environment that encourages creativity and collaboration among employees. This initiative aims to facilitate the exchange of ideas, enhance teamwork efficiency, and minimize work silos, enabling Central Retail to adapt quickly to industry trends. This development process is expected to instill a comprehensive approach to innovation-driven decision-making, helping Central Retail identify and implement effective projects throughout the retail value chain.

The innovation process, which will be applied to the omnichannel platform. This will result in increased efficiency in business operations. Central Retail has focused on communicating with employees at all levels about such innovation processes, consisting of 1) Design 2) Modeling 3) Processing and 4) Analysis of problems and obstacles. In addition, Central Retail has supported the Central Tech Retail Lab technology innovation development center to test innovation development within the organization through joint investment in start-up companies with high potential.

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Furthermore, Central Retail has also considered the implementation of AI to maximize efficiency while ensuring appropriate investment and potential benefits. This initiative aims to drive the integration of AI as a key component of CRC's value chain under the concept of AI-Driven Omni-Intelligence, as follows:

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AI-Driven Experience Strategy:

Enhancing the shopping experience or product selection and providing customer service that goes beyond simple transactional interactions. For example, introducing a Shopping Assistant and Personalized Recommendations as tools to suggest products/services to customers.
AI-Powered Operations Strategy:

Utilizing AI to improve operational efficiency, such as helping to forecast product demand at different times or developing a more appealing product catalog to attract customers.
AI-Enhanced Employee Strategy:

Using AI to enhance the capabilities of employees across the organization, such as summarizing large amounts of customer feedback to help employees analyze trends or customer behavior for better promotional strategies.
AI-Driven Sustainability:

Utilizing AI to promote eco-friendly services, design products that reduce material usage, encourage recycling, and improve waste segregation.

Project Highlights

Tops Chefbot - Virtual Shopping Assistant

Central Retail recognized the challenges faced by both customers and personal shoppers. Customers find meal preparation and grocery shopping time-consuming, while personal shoppers may be overwhelmed by the variety of global ingredients. To address these issues, Central Retail has implemented Chefbot, launched in 2024, a GenAI integrated with LINE OA, to assist customers with meal preparation, promotions, and product recommendations. Additionally, another GenAI chatbot has been integrated with the TOPS legacy system to provide personal shoppers with essential product information and promotions.

Tops Chef Bot offers real-time assistance, simulating an in-store shopping experience, through four key features:

Shopping Companion: Tops Chef Bot acts as a trusted shopping partner, recommending standout products, such as imported goods, new arrivals, and exclusive items tailored to the customer's lifestyle. It also includes personalised features such as creating shopping baskets based on purchase history and providing a summary of selected items.
Culinary Assistant: Making meal preparation easier than ever, Tops Chef Bot calculates the quantity of ingredients required for each dish based on the number of servings. It also accommodates individual needs, such as dietary restrictions, religious requirements, and food allergies.
Savings Guru: Tops Chef Bot compiles discounts, loyalty point promotions, and seasonal offers. This ensures customers can shop smart and save more.
Human Connection: For those who prefer interacting with a real person, Tops Chef Bot seamlessly integrates with the Personal Shopper service.

Tops Chef Bot delivers an enhanced shopping experience while optimizing inventory management through online systems, reducing manpower and resources for stocktaking. It also boosts sales with cross-selling strategies, promoting complementary products and services. Moreover, Central Retail has integrated employee interaction (Human in the Loop) alongside the development of AI to maintain the relationship between Central Retail and the customer. This solution is expected to increase sales by approximately 11 million baht annually for all Central Food Hall and Tops Market 17 stores and improve customer engagement and store operations.

AI Chatbot – Customer Service

In an era where convenience and speed are essential, providing services that respond to customer needs instantly is key to business success. With this in mind, Central Retail recognizes the necessity of developing service systems that efficiently meet customer demands, particularly in answering Frequently Asked Questions such as store hours, promotions, warranty conditions, and return policies. To address this, Central Retail has implemented an AI-powered chatbot system that offers 24/7 customer service. These chatbots can quickly and accurately respond to frequently asked questions, significantly enhancing customer satisfaction. This improvement in both customer experience for their satisfaction by up to 30-40% and operational efficiency is aimed at driving overall business success for Central Retail. Additionally, the chatbots assist employees by providing rapid access to essential information, streamlining store operations, and reducing training time for new staff by up to 30%.