SM bets big on ‘experience economy’ to capture younger markets

SM Investments Corporation (SM Investments) is ramping up its entertainment ecosystem across its businesses to capture a bigger share of the growing “experience economy,” as younger Filipinos increasingly value experiences alongside traditional consumption.

“At SM, we recognize the younger generation’s growing preference for experiences, and this shift opens new opportunities for growth across our businesses,” said Frederic DyBuncio, President and CEO of SM Investments, during the company’s briefing in Pasay City on 20 August.

“By listening closely to our customers, we are broadening our entertainment offerings to strengthen engagement and create long-term value across the SM ecosystem.”

SM taps creative economy through expanded entertainment platforms

SM’s portfolio now spans multiple touchpoints in entertainment. Its holding firm, SMIC SG Holdings, became the first Philippine company to invest in Asia-based travel and experiences platform Klook. Logistics unit 2GO has incorporated karaoke lounges and video arcades on board its vessels, while banking arms BDO Unibank and China Bank integrate travel and lifestyle-related perks into customer rewards.

This positions the group to take advantage of the country’s P1.94-trillion creative economy, which expanded by 8.7 percent in 2024, according to the Philippine Statistics Authority.

Beyond its core retail business, SM has been steadily transforming malls, arenas, and convention centers into multi-dimensional experience hubs.

“Malling for the older generation of customers in SM Malls was much simpler and practical then – dining, shopping and fun. Fast forward to today with our emerging segments, the millennials and Gen Z, who grew up on the Internet and social media – they now value the experience, the feeling of inclusivity, community involvement, and even sustainability,” said Joaquin San Agustin, Executive Vice President for Marketing, SM Supermalls.

“That is why our marketing efforts, including entertainment events, are now geared toward targeting communities, or what we call ‘tribes.’ These are your gamers, geeks, foodies, and the many fandoms sprouting, who like more interactive and personalized experiences. The mall has become their entertainment hub and their escape.”

Entertainment at the Core of SM’s Growth Strategy

The group’s flagship Mall of Asia Arena continues to host international acts and is slated to be complemented by a larger arena in Cebu, signaling confidence in regional markets.

“Production value is a whole lot better at the MOA Arena because the building is able to accommodate the creative demands of big events and top-tier acts, especially for multi-sensory experiences. We see the value in constructing world-class venues in key areas that would be able to support their economic growth,” said Arnel Gonzales, Vice President for Arena Operations, MOA Arena.

Meanwhile, SMX Convention Center has seen a sharp recovery, buoyed by rising demand for fan meets, gaming expos, and pop culture conventions.

“Over the past year, there's been a remarkable increase in event bookings, ticket sales, and audience turnout at our venues, particularly for entertainment-driven events,”said Mike Albaña, Vice President and General Manager of SMX Convention Center.

“This upward trend gathered momentum in late 2023 and continued to grow steadily through 2024 into this year. Even weekday events are seeing rising attendance, indicating that audiences are actively making time – and room in their budgets – for these experiences.”

SM executives emphasized that entertainment is more than a complement to its core businesses – it is a growth driver that fuels consumer traffic across properties, builds partnerships with global content providers, and strengthens community engagement.

“Our role is more of an enabler for all of the entertainment content to pass through our properties, to be able to give back more to our stakeholders as well as to give the fans, our loyal patrons something to look forward to every time they visit our properties,” Gonzales added.