The relationship between retailers and multinational suppliers is entering a new phase, as price pressures, the rise of own-brand labels and changes in consumer behaviour upset the balances that have existed until now. In an environment where stability is the exception, collaboration, speed and value creation have become critical success factors.
The above was analysed at the 23rd Cyprus Grocery Retail Conference presented by Alphamega Hypermarkets.
Loukas Zourides, General Manager of MAS Hypermarkets, spoke about the strategic importance of proper product categorisation and management, emphasising that the development of a category is not only a matter of price but also of overall architecture and experience for the consumer. As he noted, the own-brand label, also known as the private label, has now evolved from a low-cost alternative to a comprehensive strategic value proposition, with the potential to differentiate and enhance loyalty.
He estimated that the Cypriot market will follow the European trend, where private labels hold much higher shares, underlining that this is a transition that is already underway and will intensify in the coming years.
Andreas Papaminas, General Manager of Unilever Tseriotis Cyprus, stressed that “stability does not exist”, describing a market that is constantly changing and at a non-linear pace. He said that there is concentration in larger players, a shift away from traditional trade and increased pressure on smaller businesses.
He highlighted the crucial role of technology, noting that businesses are investing in tools beyond social media such as ordering platforms and logistics optimisation, with the aim of better service and cost reduction. He also made particular reference to the younger generations of consumers, who, he said, have different habits, are more familiar with technology and make decisions using different criteria.
Michalis Antoniou, Commercial Manager of Zorbas Group, highlighted through specific examples the impressive development of the company in recent years, underlining the importance of adaptability. As he mentioned, the Group has gone from approximately 15 stores to over 100, while from 450 employees it now has more than 3,500, recording significant growth in both size and activities.
At the same time, he noted that the variety of products has expanded dramatically, from a few basic options to over 30 different categories, responding to modern nutritional and consumer trends. He also placed particular emphasis on the speed with which the market is now changing, pointing out that while in the past a new product took up to a year to become established, today this can happen within a few weeks.
Finally, he emphasised that the Group's long-term success is based on a culture of development, on the ability to listen to the consumer and adapt promptly to new conditions.
Mikellis Christou, General Manager South East Europe at Diplomat Cyprus, highlighted the importance of creating value beyond price, noting that “price is the outcome, not the strategy.” As he explained, success is not based solely on offerings, but on factors such as availability, consistency, quality and convenience for the consumer.
At the same time, he noted that acquisitions and mergers are a natural evolution in a market under pressure, but stressed that even smaller players can survive, as long as they have a clear vision and strategy. Finally, he stressed that the competitive advantage will belong to those who can execute better, with speed, reliability and proper use of data.
The discussion was moderated by Marios Loucaides of Synpraxis Management Services.
(Source: InBusinessNews)
