Technology, spearheaded by e-commerce, is redefining the boundaries of consumer experience, bringing radical changes to the preferences and behavior of Cypriot consumers.

Christina Kokkalo, CEO of IMR/University of Nicosia™, presented the results of a new study, offering valuable insights into the preferences, concerns, and expectations of Cypriots, ranging from Gen Z to Gen X.

The research, conducted in June 2024, was presented at the 16th E-Commerce Conference and covered various regions across Cyprus, including a representative sample of 1,000 consumers aged 18 to 59.

The analysis focused on the factors shaping purchasing decisions and the differences among generations.

Rapid Rise of Online Shopping

According to IMR/University of Nicosia™ data, 8 out of 10 Cypriots under 60 are now shopping online. This trend fits into a global context, with the overwhelming majority of shoppers choosing digital channels for the convenience and comfort they provide.

Main Reasons for Preference for Online Shopping

Based on the presented data, convenience (78%) is the primary reason driving consumers toward online shopping, with the comfort of shopping from home highlighted as a key factor.

This is followed by the search for better prices (66%) and a wider variety of products (58%), which are often unavailable in physical stores. Lack of time to visit stores affects 53% of shoppers, while flexibility in hours accounts for 49%.

Online platforms have gained significant ground, especially among younger age groups. Gen Z, known for their digital familiarity, shop extensively online, influenced by social media content, user reviews, and recommendations from influencers.

Compared to older generations, they seem to seek a navigation experience combined with a sense of authenticity and immediacy in their shopping experience.

Importance of User Experience and Customer Service

Usability and safe navigation on websites rank as the most important factors in choosing an online store (with a score of 9.02).

The availability of information regarding product features (8.96) and reviews from other users (8.38) are also critical elements. Additionally, money-back guarantees or product replacement enhance consumer trust, while free shipping serves as another advantage for online stores.

The CEO emphasized that consumers want to feel secure during their online navigation; therefore, reviews and experiences from other users play a crucial role.

Notably, the personal recommendations tool (recommended for you) is rated as particularly useful by 45% of users, offering personalized product options based on previous searches.

Spread of Artificial Intelligence in E-Commerce

About 41% of consumers use the auto-fill tool for easier order completion, while the use of artificial intelligence for personalized recommendations is gaining traction, especially among younger generations.

With 67% of Gen Z rating this tool positively, it is clear that artificial intelligence has a future in the field of e-commerce.

Ms. Kokkalo warned that these developments will continue to enhance consumer interaction with digital shopping, while the ability to try products through augmented reality (AR), though used by only 9% of consumers, is expected to influence the future of online shopping.

This capability is viewed positively by users and is considered promising, particularly for product categories such as fashion and apparel.

Trends and Future Prospects

Cypriot consumers prefer clothing, electronics, and food categories in their online shopping, with most spending significant amounts in these areas.

As Gen Z is more influenced by social media content and Millennials spend larger amounts on online purchases, businesses must adapt their strategies to meet the demands of each generation.

Analysis from Major Brands

Commenting on the results, Maria Germanou, Chief Transformation Officer of the Papageorgiou Group, noted the focus of Cypriots on products rather than the stores that offer them. “This shows that consumers choose specific products rather than brands.”

She added, “No one can exclude their marketplaces,” explaining that “for easy sales, you have to go there. If you want a long-term relationship with your customer, you need your own page with your values and build a culture. If your product allows it, both are necessary.”

Kostas Kastamoulas, Retail Sales & Marketing Manager at Bionic, shared his experience, stating that out of 100 visitors to the company’s website, only one or two proceed to make a purchase, preferring to visit their physical stores.

As a result, the company has developed an AI chat assistant set to launch in 2024, which will answer specialized inquiries.

He also discussed the trend of working and entertaining from home that emerged during Covid, significantly boosting sales of laptops and gaming products.

A large part of their clientele includes foreign workers, now permanent residents of Cyprus, who have relocated to the island for geopolitical reasons and seek high-quality electronic products and specialized solutions.

Christina Kokkalo, who participated in the discussion, talked about the maturity levels of consumers across countries and their habits and requirements.

Agreeing with the two speakers from well-known companies, she noted that online, the concept of branding is indeed fading, as customers go directly to product searches.

The discussion was moderated by Giorgos Malekkos, CEO & Software Innovation Architect of Powersoft.

Source: Inbusiness