Page 42 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

the services with social networks, such as LINE, WhatsApp, and WeChat, and can connect customers with sales
representatives from anywhere. This helps to drive sales through targeted promotions and accessibility. In 2021,
Central Retail has expanded the Chat & Shop service to all its business units. In addition, it has cooperated with
business partners in Thailand and Vietnam, such as Grab, Foodpanda, etc. to provide Quick Commerce services,
including Marketplace platform providers, such as JD Central, Tiki or Zalo, to better respond to customer spending.
It has also embraced the Cashless Society concept by deploying digital payment platforms such as Alipay,
WeChat Pay, Dolfin and other online payment platforms offered by banks in Thailand to help streamline purchases,
and has implemented e-Ordering, which allows sales staff to fulfill online orders in the store while increasing the
range of product categories available to them for promotion and cross-selling. According to The 1 loyalty program,
our omnichannel customers spend 4-5 times more than single-channel customers, with more variety categories as well.

Digital technologies make data collection and analysis possible on an unprecedented scale. Central Retail’s sales
staff have innumerable interactions with customers in-store and online and across omnichannel platforms. Central
Retail has total 25.3 million loyalty members form The 1 in Thailand, Big Xu Card in Vietnam and Rinascentecard
in Italy. See “Nature of Business – Loyalty Programs” for more details. These loyalty programs allow Central Retail
to extract valuable customers insights, develop personalized their profiles and identify their tastes and preferences.
As a result, it has developed a deep understanding of its customers, and it believes that this technology can help
identify what customers want in advance.

3. Diverse Ecosystem Attracts Prestige Brands and Drives Synergies
and Customer Engagement

Central Retail believes that its portfolio of diverse retail banners, together with its vast retail network and business
scale, has made the trusted partner of choice for global luxury and premium brands and mainstream merchandise
brands who seek distribution channels in Thailand and, increasingly, in Vietnam. Furthermore, the comprehensive
multi-format retail ecosystem benefits Central Retail’s brand partners and merchandise suppliers, while achieving
synergies and efficiencies through integration into Central Retail’s operations. Central Retail has attracted numerous
leading global merchandise brands to its platforms with its diverse selection of retail banners, broad retail network
coverage and strong customer loyalty. Brand partners include Apple, Casio Watch, L’Oréal, Guess, and Adidas.
In addition, Central Retail has been the only regional “preferred sporting goods strategic partner” for Nike in
Southeast Asia since 1999, which provides Central Retail with retail, online marketing, and merchandise support in
Thailand. It also has exclusive retailing rights in Thailand for brands such as Polo Ralph Lauren, Marks & Spencer,
New Balance, Calvin Klein and Speedo. As of 31 December 2021, it operated business with more than 20,000
suppliers. None of the supplier provide products to Central Retail exceeding 10% of the total purchase value.
Central Retail believes that it has healthy and stable relationships with the suppliers since it pays attention to all
suppliers. Also, it is a trustworthy, fair and reasonable business alliance, thereby leading to the relationships that
have lasted for more than 15 years.

Furthermore, the track record of long-term relationships, strong execution and professional trustworthiness provides
Central Retail flexibility in how Central Retail work with its merchandise suppliers, whether it be through exclusive
distribution and licensing arrangements, such as our licensing arrangement with Lee and Sanrio, or joint venture
arrangements, such as with Muji and Samsonite. Additionally, some suppliers provide Central Retail with exclusive
promotions and product lines, further differentiating Central retail’s merchandise selection with other domestic or
foreign competitors.

42 Annual Report 2021 (Form 56-1 One-Report)