Private labels dominate market as e-kalathi falters

Disagreements over the specifics and philosophy of the bill concerning the creation of the e-kalathi electronic platform have led to an ongoing debate in the House Commerce Committee.

This issue has remained unresolved since last year, with the Parliament's set timelines for concluding the debate long overdue. Beyond the objections raised, the key question is whether consumers will embrace this tool.

The competent service has provided answers, conducting a survey among 800 people in urban and rural areas across Cyprus, and the findings are now in the possession of "K."

The survey indicates that if the e-kalathi application is implemented and put into operation, it is unlikely to be widely adopted by consumers. Only 11% expressed they would always use it, while 19% would use it most of the time, amounting to a mere 30% who would utilize the provided product price comparison tool.

This percentage falls significantly short of those who conduct market research before selecting a supermarket for their food and basic necessities, which stands at 60%.

Market Research Habits
A survey by the Consumer Protection Agency reveals that 24% of consumers frequently conduct market research on product prices before making supermarket purchases, with 24% doing so most of the time and 16% doing it each time. Another 21% do it occasionally, while 39% of the sample doesn't engage in market research, including 21% who rarely or never do so.

This implies that the potential implementation of the e-kalathi platform might only impact the 40% of consumers accustomed to conducting market research before supermarket choices. Despite this, 67% of consumers believe the e-platform's implementation would greatly benefit them.

Influence on Shopping Decisions
The survey also highlights the significant influence of recommendations from the environment (35%), advertising/information brochures (32%), and television advertisements (14%) on consumers' decisions to visit a specific supermarket.

Consumer Education
The survey findings shed light on the level of consumer education regarding issues such as parallel import products and private label products. Only 24% of consumers are familiar with parallel-import products, and 39% are acquainted with private label products.

Private Label Appeal
Private label products are attractive to consumers, with 40% frequently or mostly choosing them, and 60% considering them when selecting a supermarket. Moreover, 46% opt for private label products due to their lower prices, while 35% see them as value-for-money products.

Parallel Import Products
Consumers show less interest in parallel import products, with only 24% of the sample frequently or always choosing them. Among those who know about them, 39% do choose them, albeit not frequently. These products are more likely to be found in the consumer's basket, with 42% of users reporting they make up to 24% of their shopping cart.

In conclusion, the ongoing debate surrounding the e-kalathi electronic platform bill remains intractable, and consumer behavior appears to favor private label products over parallel imports. The level of consumer education on these matters is also relatively low.

[This article was translated from its Greek original]