Annual Report 2019

OURSHOP OURSHOP started off as a small department managing our pre- book duty-free platform but was officially launched as a full- fledged e-commerce marketplace on 4 July 2018. Its objective is to create a multi-tenant, multi-fulfilment, multi-currency and multi-regulation marketplace offering not just luxurious goods but also curated local selections. Purchases can be picked up inflight or at the airport. OURSHOP’s differentiator is its unparalleled capacity to access our database of 100 million AirAsia guests. With this data, it is able to approach guests through various touchpoints with personalised messaging based on their lifestyle behaviours and preferences. Meanwhile, innovative improvements of AirAsia channels such as the in-app messengers for guests create the possibility of time-sensitive promotions that drastically improve conversion rates. Another unique feature of OURSHOP is its accessibility on AirAsia WiFi, enabling guests to make purchases during flights. In 2020, OURSHOP is set to launch its Home Delivery service, meaning that purchases online will be delivered to the home. SANTAN The Santan brand was introduced in 2015 as a gourmet inflight dining experience on AirAsia, replacing AirAsia Cafe, which offered only cold sandwiches and snacks. It became an instant hit while a number of items on the menu have become all-time favourites. Pak Nasser’s Nasi Lemak and Uncle Chin’s Chicken Rice even have cult followings – with frequent requests to take away the meals and queries on whether they can be bought other than inflight. This spurred the launch of Santan as a retail food outlet, enabling guests and others to savour the best of our culinary offerings, and other ASEAN favourites, on the ground. The flagship restaurant was launched in December 2019 in the high- traffic Mid Valley Megamall. Attracting on average 2,000 diners a day, Santan offers normal restaurant-sized portions of freshly prepared food, dispelling any possible notion of it dishing out standard inflight fare. Diners can place orders directly on santan.com.my , or the in- store self-service kiosks. These ordering channels are retrofitted with a smart menu equipped with artificial intelligence and machine learning to recommend popular dishes based on time, customer’s ordering patterns and demographic taste. Given the success of the first outlet in Mid Valley, Santan plans to own another two restaurants in 2020, while opening 15 franchise-operated Santan restaurants in Malaysia in 2021. By 2023, Santan aims to increase the number of franchise restaurants to more than 100 while taking the brand to other ASEAN countries as well as China, Japan, South Korea, the UK and US. Along with geographic expansion, Santan will continuously streamline and simplify its menus to improve throughput and efficiencies, the quality of food, and the order-to-collect time for consumers without compromising on the creativity of its offerings. Santan will also introduce more elements of digitalisation in order to increase its speed of service and level of personalisation, aspects which would resonate with Gen Z, who represent the emerging generation of diners. The focus in 2020 is to solidify Santan’s brand presence on home ground as a digital restaurant that serves ASEAN food and beverages at affordable prices. Santan will also include more vegetarian or plant-based meat alternatives to cater for a growing number of vegetarians while expanding its options for takeout and delivery. At the same time, it will expand the AIRASIA GROUP BERHAD ANNUAL REPORT 2019 111 BUSINESS REVIEW