Technology may be changing the way we purchase things but, says Yoram Kedem, CEO of My Mall, Limassol in an exclusive interview with Gold News, it can never replace the shopping experience.
What are the most prominent trends currently unfolding in Cyprus’ fashion retail industry?
In terms of the current trends, Cyprus is not much different from the rest of Europe. Regardless of category, consumers have little problem finding products that look the part and are good enough. “Good enough” isn’t necessarily the right criterion for fashion, of course, but then again, how many people truly appreciate fashion in the same sense that one may appreciate art or a good comic book? Nowadays the focus is more about the brand that is best seen to reflect the social circle to which someone believes that he or she belongs. Some people – those who are genuinely interested in fashion – have aspirations to be meaningfully different but very few can have an individual style and even fewer will be able to appreciate that it is, in fact, style. Others may appreciate quality and craftsmanship but the rest just follow fashion magazines and particularly social media, which, more than ever before, is playing a major role in pointing out what is considered (or “liked”) as trendy:
it is the constantly-changing Instagram post that gets the most “likes” and follows. In today’s world, “like” is king.
How has local consumer behavior changed in recent years?
About a decade ago, a woman’s wardrobe behaviour code dictated that she should “save the best blouse” for special occasions. The most expensive dress could be worn once of twice in order to fulfil its destiny. This was accepted as correct consumerism. But things have changed. The smartphone frenzy and zapping revolution altered this behaviour and –consciously or unconsciously – made consumers treat their closet in the same manner that they use their smartphone, with its constant data flow, variety and predominantly striving to be the one who first discovers the latest new & trendy item. So now it is more important to have a variety of options and to replace your entire wardrobe as often as practically possible so as to reinvent yourself every week. The market has adapted well to this change and the big brands now change store stocks on a weekly basis whereas, in the past, that was done seasonally.
Many people have a lot of stuff, and much of it has a sense of sameness, uniformity or monotony. This is, in part, the price of globalization and also because some people truly treat clothes as… just clothes! Also, as a result of consumer demand and fierce competition, the quality of most products has improved and they are, for the most part, able to serve the full life expectancy that meets their price tag. Suppliers and stores that have not adapted are probably out of the market already.
How should retailers respond to current trends in order to drive sales growth, whether in terms of store design, in-store promotions and loyalty schemes, technology integration or other ways?
The retail landscape looks quite different today from how it did even ten years ago. The way that consumers take their purchasing decisions has dramatically altered: they stand in stores using their smartphones and family and friends instantly weigh in on shopping decisions via social media. This shift has led a number of industry observers to forecast that retail will change more in the next five years than it has over the past century and that the extinction of brick-and-mortar stores isn’t far off. My own view is less dramatic but I do believe that big changes are inevitable and that retailers must act now to win in the long term.
There is historical precedent for this kind of upheaval, which recasts the industry’s leaders and followers. In the last century, local corner stores gave way to department stores and supermarkets, then to shopping malls and, in larger markets, to discount chains and outlet retailers too. Each of these shifts unfolded faster than the one that preceded it, and each elevated new companies over the incumbent market leaders.
Let’s remember that Cyprus is an island and relatively small market. The brands that operate here are established globally as well as islandwide. Don;t forget that, a decade ago, there were no shopping centres on the island and now we have three. To answer your question, like other industries, retail needs professionalism, experience and strong brand franchise management companies. In my professional opinion the leading retailers here are among the best in the market.
The global shift towards e-commerce is as powerful as it is undeniable. How do you predict this will alter the fashion retail landscape in Cyprus and the wider region as we know it in the years to come?
In recent years we have seen more merchants venture into “omnichannel” retailing – the use of a variety of channels in a customer's shopping experience – and to try in-store marketing solutions such as beacons to enrich the shopping experience. In the coming years, market specialists anticipate that stores will double down on these strategies and continue to find ways to bridge the gap between offline and digital channels.
In addition, platforms such as social media and mobile will soon play even bigger roles in people's shopping experiences. Many retailers have leveraged social to engage users and influence their merchandising decisions this year, but in the future it is anticipated that companies will go beyond that and use social not just to showcase products but to actually sell them. The same goes for mobile. Companies won’t just use the small screen to “get in front” of customers through geo-fencing and mobile-enabled sites. The leading retailers will step up their efforts by incorporating mobile into other parts of the customer journey, including order fulfilment, payments and loyalty.
As the Cut Copy song says, “Lights and music are on my mind” and the above is simply one further technological advancement but it cannot replace the thrill and enthusiasm of being in a shopping mall. No smartphone can ultimately replace the shopping experience. Time will tell but while today’s technology will ultimately be replaced by newer technology, shopping malls are forever. There is nothing more social than actually being social.
What, in your estimation, are the long-term prospects for the Cyprus market?
Cyprus has an open, free-market, service-based economy with a long record of successful economic performance. Although still in recession (of sorts), the Cyprus economy has proved resilient and has performed better than expected, drawing on its robust business environment, highly educated workforce and favourable tax regime. Looking ahead, a number of measures are in the pipeline aimed at restoring economic growth and creating jobs, including the reform of public spending, the privatization of major organisations, the acceleration of proposals to boost investment as well as the development of the investment fund sector. From where I am standing, Cyprus future looks very bright and pink!
What are the most prominent trends currently unfolding in Cyprus’ fashion retail industry?
In terms of the current trends, Cyprus is not much different from the rest of Europe. Regardless of category, consumers have little problem finding products that look the part and are good enough. “Good enough” isn’t necessarily the right criterion for fashion, of course, but then again, how many people truly appreciate fashion in the same sense that one may appreciate art or a good comic book? Nowadays the focus is more about the brand that is best seen to reflect the social circle to which someone believes that he or she belongs. Some people – those who are genuinely interested in fashion – have aspirations to be meaningfully different but very few can have an individual style and even fewer will be able to appreciate that it is, in fact, style. Others may appreciate quality and craftsmanship but the rest just follow fashion magazines and particularly social media, which, more than ever before, is playing a major role in pointing out what is considered (or “liked”) as trendy:
it is the constantly-changing Instagram post that gets the most “likes” and follows. In today’s world, “like” is king.
How has local consumer behavior changed in recent years?
About a decade ago, a woman’s wardrobe behaviour code dictated that she should “save the best blouse” for special occasions. The most expensive dress could be worn once of twice in order to fulfil its destiny. This was accepted as correct consumerism. But things have changed. The smartphone frenzy and zapping revolution altered this behaviour and –consciously or unconsciously – made consumers treat their closet in the same manner that they use their smartphone, with its constant data flow, variety and predominantly striving to be the one who first discovers the latest new & trendy item. So now it is more important to have a variety of options and to replace your entire wardrobe as often as practically possible so as to reinvent yourself every week. The market has adapted well to this change and the big brands now change store stocks on a weekly basis whereas, in the past, that was done seasonally.
Many people have a lot of stuff, and much of it has a sense of sameness, uniformity or monotony. This is, in part, the price of globalization and also because some people truly treat clothes as… just clothes! Also, as a result of consumer demand and fierce competition, the quality of most products has improved and they are, for the most part, able to serve the full life expectancy that meets their price tag. Suppliers and stores that have not adapted are probably out of the market already.
How should retailers respond to current trends in order to drive sales growth, whether in terms of store design, in-store promotions and loyalty schemes, technology integration or other ways?
The retail landscape looks quite different today from how it did even ten years ago. The way that consumers take their purchasing decisions has dramatically altered: they stand in stores using their smartphones and family and friends instantly weigh in on shopping decisions via social media. This shift has led a number of industry observers to forecast that retail will change more in the next five years than it has over the past century and that the extinction of brick-and-mortar stores isn’t far off. My own view is less dramatic but I do believe that big changes are inevitable and that retailers must act now to win in the long term.
There is historical precedent for this kind of upheaval, which recasts the industry’s leaders and followers. In the last century, local corner stores gave way to department stores and supermarkets, then to shopping malls and, in larger markets, to discount chains and outlet retailers too. Each of these shifts unfolded faster than the one that preceded it, and each elevated new companies over the incumbent market leaders.
Let’s remember that Cyprus is an island and relatively small market. The brands that operate here are established globally as well as islandwide. Don;t forget that, a decade ago, there were no shopping centres on the island and now we have three. To answer your question, like other industries, retail needs professionalism, experience and strong brand franchise management companies. In my professional opinion the leading retailers here are among the best in the market.
The global shift towards e-commerce is as powerful as it is undeniable. How do you predict this will alter the fashion retail landscape in Cyprus and the wider region as we know it in the years to come?
In recent years we have seen more merchants venture into “omnichannel” retailing – the use of a variety of channels in a customer's shopping experience – and to try in-store marketing solutions such as beacons to enrich the shopping experience. In the coming years, market specialists anticipate that stores will double down on these strategies and continue to find ways to bridge the gap between offline and digital channels.
In addition, platforms such as social media and mobile will soon play even bigger roles in people's shopping experiences. Many retailers have leveraged social to engage users and influence their merchandising decisions this year, but in the future it is anticipated that companies will go beyond that and use social not just to showcase products but to actually sell them. The same goes for mobile. Companies won’t just use the small screen to “get in front” of customers through geo-fencing and mobile-enabled sites. The leading retailers will step up their efforts by incorporating mobile into other parts of the customer journey, including order fulfilment, payments and loyalty.
As the Cut Copy song says, “Lights and music are on my mind” and the above is simply one further technological advancement but it cannot replace the thrill and enthusiasm of being in a shopping mall. No smartphone can ultimately replace the shopping experience. Time will tell but while today’s technology will ultimately be replaced by newer technology, shopping malls are forever. There is nothing more social than actually being social.
What, in your estimation, are the long-term prospects for the Cyprus market?
Cyprus has an open, free-market, service-based economy with a long record of successful economic performance. Although still in recession (of sorts), the Cyprus economy has proved resilient and has performed better than expected, drawing on its robust business environment, highly educated workforce and favourable tax regime. Looking ahead, a number of measures are in the pipeline aimed at restoring economic growth and creating jobs, including the reform of public spending, the privatization of major organisations, the acceleration of proposals to boost investment as well as the development of the investment fund sector. From where I am standing, Cyprus future looks very bright and pink!