Material issues, Challenges, Opportunities and Potential Impacts
Consumers’ behaviour shift
• Consumers’ behavior shifts with individual lifestyles and roles rather than differences in age, gender, or old-school population science classification
• Current consumers tend to expect and act like hyper connected consumers, that is, they want the best and the most convenient goods and services while showing less patience; they expect services that are standardized, safe, and beyond expectations, not to mention guarantees from experts or their trusted people/agencies
• Increase in trade competitors (conventional and unconventional) from outside the industry or with different business models, as well as the business speed of new-capital groups, impacts growth of the core business.
New risks arising from compliance with Personal Data Protection Act (PDPA)
• Among the impacts of technological innovation is the tendency to breach personal data and increasing rights to privacy, particularly the exploitation of personal data, undue disclosure, or disclosure without data owners’ consent for commercial gain or for personal data use in illegal acts, including fraud and libel. Thailand therefore promulgated PDPA in 2019, enforceable in 2020. It requires Central Pattana to establish a protection mechanism for personal data under the same standard and in agreement with international ones. Finally, the Company’s action must not create undue burdens on related parties that it constrains or hinders engagement in commerce and service provision by various sectors.
Impacts of disruptive technology
• Customers’ easy access to the internet and new technology, change their decision-making to be ease and speed up.
• Online marketing, trading, and payment play a greater role in everyday lives for all age groups
• AI and Big Data assume greater roles in the retail market and business processes, affecting change and creation of innovations that can also add value to the organization
Consideration of business responsibility from social, environmental, and corporate governance aspects
• It is no longer enough to show one’s responsibility when one’s organization causes social and environmental impacts while in legal compliance, since modern markets or consumers are increasingly sensitive to environmental issues and are willing to subsidize green products, even at higher prices
• Other stakeholders, including joint-venture partners, employees, communities, and environmental steward groups, all value issues of social and environmental impacts increasingly more and are ready to support, accept, and give their confidence to companies that do business with attention, transparency, and consistently practice what eventually becomes a corporate culture
• Leading entities are turning to social and environmental stewardship with a focus on looking after, being responsible for, reducing impacts on, giving more protection to, and striving for advantages in socio-environmental aspects in everyone’s interests