Vasilakos: The electrical and electronic goods market in Cyprus is on a growth path

Kotsovolos aims to continuously strengthen its presence in order to gradually reach every part of Cyprus.

Speaking to InBusinessNews as part of its IN Business Forecasting 2024 series, the CEO & Vice Chairman at Dixons South East Europe (Kotsovolos) John Vasilakos emphasises that the company will continue to evolve in 2024, placing particular emphasis on expanding its digital transformation, but also on the opening of new, modern shops providing high level services.

He also expresses the assessment that the electrical and electronics market in Cyprus will continue its growth path for another year.

Vasilakos characterises the changes in consumption habits as the main challenge, explaining that consumers are not interested in simply buying a refrigerator or a television, but are looking for an integrated set of services that can offer them the best experience.
How do you see the economic environment shaping up in 2024, in light of inflationary pressures, high interest rates and unpredictable ever-changing geopolitical developments?
The new year brings optimistic forecasts, with the economy recovering from the slowdown of 2023 and growing at a higher rate. However, the constantly changing environment, despite the good omens, in a demanding market like Cyprus, leaves no room for complacency.

For 2023, Kotsovolos' report includes strong investments in our network - with our new entry in Paphos being our 3rd store in a row- the development and availability of innovative services through a broad ecosystem of partners and corporate resources, as well as significant initiatives at a social and environmental level, composing a business model that makes us much more than a retail company.

In this context, we continue to listen to market demands and consumer needs and are always alert, with a team that makes a difference, creating a modern data driven organisation characterised by efficiency, high productivity, but also customer-centric service, thus ensuring that consumers can rely on us for their purchases and will find products and services for their every need. This remains our goal for 2024 as well: to continuously expand our boundaries in order to be a value chain that actually contributes to a Better Life for All.

Continuous development path
What do you consider to be the biggest and most difficult challenges that the Cypriot economy will have to face?

Increases in inflation, as well as further increases in key interest rates by the European Central Bank, continue to be significant challenges. The direct and indirect effects of the Russian-Ukrainian war on the European economy could not be absent from the equation, which burdens, among other things, the already existing supply chain and the energy sector. In these already disturbed conditions, the military conflict in Israel and the Gaza Strip is likely to amplify the above risks and bring about even more. Among the challenges that the Cyprus economy has to face are public expenditures, which are higher than expected due to fiscal risks.

Would you say that, taking into account the latest upgrades, the economy of Cyprus is now well on its way to growth?
I would say yes, growth will continue in the coming years, with the unemployment rate, but also inflation decreasing, and the electrical and electronics market in Cyprus continuing its growth path for another year.

What do you think will be the course of the sector in which you operate in 2024?
It is to be expected that the retail trade will follow the corresponding path of the Cypriot economy. Knowing that the Retail Trade Cycle Value Index increased in October 2023 by 5.7%, compared to the corresponding month of the previous year, I believe that the new year will move in a positive direction.
Consumers are changing their buying habits

What are the biggest industry trends/changes you anticipate in 2024?
The main challenge we have to face is the changes in consumption habits. Consumers are not interested in simply buying a refrigerator or a television. They are looking for a complete set of services that can provide them with the best experience.

In addition, consumers are changing their shopping habits both in-store and online to adjust to the much higher cost of living. As a result, they buy specific products when they are on sale, choose stores that offer better prices, and use comparison tools such as the internet more intensively and methodically.

At the same time, sustainability has become a critical factor for retail as consumers support businesses that adopt sustainable practices. They are interested in companies that have a dynamic footprint on the society they live in and can create the right conditions for a Better Life for All.

What are the most important problems that are currently plaguing your sector and the solution for which is considered by you to be a priority in view of the new year?

The most important problem facing consumers and retailers internationally at the moment are inflationary pressures and this needs to be addressed so that it does not have long-term effects on consumer confidence and behaviour. Another key issue is staff shortages. It is an issue that concerns several sectors of economic activity, including retail.

If you could ask the Government to take specific measures or formulate policies to support/strengthen your sector, what would they be?

In the context of dealing with inflationary pressures, the need to support affected incomes, the promotion of housing policy, and with the aim of strengthening the resilience of the Cypriot economy against external factors, it is very positive that the Cypriot State is proceeding with the immediate implementation of a package of measures. These economic measures, we hope, will create the right conditions to strengthen the economic situation of the country at a collective level, and especially of our most vulnerable fellow citizens. An imperative is to strengthen the sense of security and stability, which will help consumer confidence and ultimately all industries to chart an upward trajectory in the coming year.

Digital transformation and new modern stores

What are your organisation's plans/strategy for 2024? Should we expect new products/services/developments and your further establishment in the market? Will it be a year of growth/expansion or maintaining your existing market position? Can you tell us about any of your plans in particular?

So far we have seen an upward trend in sales, with our activity continuing to be strong. With an investment account of €13.4 million for 2022/2023 and a total investment plan for Greece and Cyprus approaching €20 million for 2023/2024, in this year's own financial year, which ends in April 2024, the time frame so far leaves us completely satisfied and creates the right conditions to vigorously continue our investment plan. This year, with the aim of full geographical coverage, the continuous upgrading of our infrastructure and the expansion of our boundaries, we opened - as I mentioned above - our third store in a row in Paphos- seeking to continuously strengthen our presence, so that we gradually reach every part of Cyprus.

In this context, and with the primary goal of Kotsovolos being established as a chain with added value, we will continue to evolve in 2024, placing particular emphasis on the expansion of our digital transformation, but also on the opening of new modern high-level service stores, "unlocking" at the same time , significant competitive advantages for the company throughout the Cyprus territory.

What role does technology, such as artificial intelligence, play and what changes is it expected to bring about in your field?

Undoubtedly, technology is shaping the new trends in the market to a great extent, which is why artificial intelligence is expected to play a key role in enhancing interaction with consumers, bringing about positive effects on their overall experience.

In addition, the use of virtual reality can create interactive shopping experiences for consumers, with the ability to try products before purchase or the use of augmented reality to virtually interact with products and services.

(Source: InBusinessNews)