Philoshopic Managing Director Demetris Constantinou discusses the transformation reshaping the retail sector, highlighting the growing need for omnichannel strategies, data insights, and the right technologies to connect with consumers and gain a competitive edge.
What solutions does PHILOSOPHIC offer and how do you help companies upgrade and transform digitally?
Philoshopic offers in-house developed solutions for the Retail and Financial Services industries, focusing on consumer engagement and digital commerce. We offer three main solution families, including the SMASH framework (Smart Shopping), eVoucher distribution and PHILOBROKER solutions.
SMASH, our flagship offering, is used by some of the leading retailers in the Middle East, powering customer-centric programs such as wallet-based loyalty & rewards memberships, mass and personalised digital promotions, shopping assistance apps, physical & digital Gift Cards and more. All are supported by a sophisticated data analysis and visualization dashboard suite for data-driven decisions.
SMASHeVouchers offer end-to-end management of digital product sales such as eVouchers, airtime top-ups, tickets, gaming cards, digital gift cards, etc.
PHILOBROKER solutions offer software that connects merchants with payment service providers or, in Saudi Arabia, the tax authority (ZATCA) for real-time invoice reporting compliance.
We also offer consulting services to help companies explore, shape, operate, measure and transform consumer-facing transformation programs. Overall, we help retailers know more about their customers, engage smarter and reward better.
What are the main solutions that businesses are looking for when planning their digital transformation?
The needs around digital transformation are ongoing and span many areas. In-store modernisation is a major focus. While digital checkouts have been around for decades, recent advancements in technology are pushing more aspects of the shopping journey into the digital space. Online stores are also seen as a natural extension of physical ones, not a standalone effort.
Process automation, especially in the back office, is another focal area, aiming to boost efficiency and reduce friction. But if I had to pinpoint one area in retail and consumer-facing financial services, it would be mobile-first strategies. Consumers want to manage the full shopping experience through their smartphones, from discovery and payment to post-purchase service and experience sharing.
That’s why it’s essential to offer engaging loyalty and membership programs. These provide consumers with seamless access to services while allowing retailers to offer personalized, value-driven experiences. Topping it all, data and AI are now central. Leveraging modern tools for gathering, analyzing and using data smartly has become a make-or-break capability for businesses.
What are today’s younger, more digitally literate consumers looking for when they shop?
Today’s consumers seek a seamless, holistic experience – the modern shopper wants to see the dots connected and expects simple, exciting solutions that require no effort. The rise of younger, tech-savvy consumers brings both opportunities and risks. While they are driving many of today’s trends, we must not forget that the greatest spending power still resides with those who are less comfortable with technology. This is where the ‘one-size-fits-all’ mindset becomes risky. Omnichannel strategies, personalization and strong customer-centric values are key. The winners will be those who innovate boldly without abandoning the fundamentals that have always defined good retail. And technology providers must deliver agile offerings that adapt to the ongoing changes rather than aiming to impress.
Are you considering onboarding technologies such as augmented reality into solutions you offer the retail sector? If so, what impact will they have on the customer experience?
We are actively experimenting with various innovations, including augmented reality, especially in gamified promotions and brand engagement. However, while it looks really cool and exciting, we remain pragmatic. Unless we’re simply chasing a short-term ‘wow’ factor, these technologies need to mature further to become truly functional and blend smoothly into the retail journey. We must remember that shopping is both a necessity and an experience – sometimes even therapy. Disruptive technology can unintentionally compromise that comfort. Consumers will continue to have two hands at most and will most likely need one to pick and feel items… prioritizing practical usability over technological novelty is thus a valuable guideline in that domain.
The name of the game nowadays is immersive experiences. What do you offer to make the shopping experience more immersive?
Forget flashy gimmicks! True immersion comes from deep understanding. We are privileged to power the loyalty and rewards programs of some of the Middle East’s largest retailers, where digital transformation is a true race. Analysing demographics, preferences, baskets, items, choices of channel and payment for over 10 million identified consumers, we’ve learned that no matter how tech-rich an offering is, if it’s not delivered in the right mix and the right dose for each individual, it won’t truly connect.
Our role is to help retailers turn transactions into knowledge and insights into actions – not to impress but to address real needs. Immersive means relevant, timely and human. Technology becomes the vehicle to move from effective product selling to crafting meaningful and lasting experiences for each individual. In one word: personalised.
E-commerce sales have surged since the COVID-19 pandemic. How are companies that were traditionally run reaching an equilibrium between maintaining their physical space and expanding their online presence?
COVID significantly boosted online ordering, especially for ready meals, transforming the quick service restaurant sector in Cyprus for good. In retail, though, e-commerce is nowhere near dominating yet. In a market like Cyprus – with short distances, extended store hours, limited economies of scale but demanding customers – physical stores remain central. E-commerce may offer convenience for niche segments but, for most, it’s still a complementary service. It is thus not a matter of equilibrium but one of adapting to reality.
Younger generations, for instance, have long been exposed to well-executed international e-commerce platforms, so local retailers should not disappoint them, while foreign e-tailers like Temu and Shein offer an unbeatable range and prices that leave no room to play on their battlefield.
So, going back to the basics of first understanding consumers and making smarter investments of the limited funds available to achieve wins is key. Above all, commerce should not be split between online and physical. It can all be ONE digital commerce, tailored to the needs, habits and situation of each individual consumer.
Challenging? Absolutely. But then again, retail was never meant to be easy!
(Photo by TADOBI)
This Special Feature first appeared in the May edition of GOLD magazine. Click here to view it.