KTС is a technology retailer that achieved growth thanks to the transformation of its business model during the war

08 June 2023

During the war and pandemic, the KTС company remains a reliable smart retailer. It has also created a space for work, rest and interaction. Since May 2023, KTС has been cooperating with the USAID Economic Resilience Activity on developing several IT clusters. Read more about the story of KTС, which supports the IT community and organizes volunteer events.

The unique KTС smart space, which combines a gadget store, a coffee shop with healthy desserts, a modern art exhibition center and a free co-working space, opened in Rivne in 2020. This space acquired special meanings since the beginning of Russia’s full-scale invasion of Ukraine. At the same time, the company never stopped its work not even for a single day neither in 2022, nor in 2023.

During the mass blackout, this smart space had sufficient power supply and allowed free access for all visitors. It enjoyed considerable popularity among IT specialists who chose KTС locations to work remotely. The company’s stores were added to the map of “Points of Invincibility” and were ready to shelter anyone willing, providing access to electricity, warm drinks, and snacks.

Scaling the company was a strategic goal of the enterprise. During the period of martial law, the company managed to save all jobs and even expand the number of employees in key areas.

Despite the fact that e-commerce is becoming the main channel of interaction with the client, KTС has also expanded the network of offline retail outlets using the model of co-branded stores. One of them appeared in Kyiv.

“We manage to keep our clients and ensure the stable operation of the company thanks to the fact that we are a reliable partner working in any conditions and support the economy of Ukraine. Fast transformation models and a flexible system approach helped us adapt to the difficult conditions of recent years. Our business partners and clients recognize KTС as a brand that cares not only about its financial well-being, but also about expanding its activities in the social sphere. This is what helped us successfully overcome difficulties and continue to develop the company,” said Mykhailo Shmatov, CEO of KTС.

Corporate social responsibility is an important activity of KTС, as the company’s strategic goals are not only to ensure economic growth but also to support charitable initiatives and the implementation of its own projects. Since the beginning of Russia’s full-scale invasion of Ukraine, KTS has focused on creating security conditions, cooperating with the Serhiy Prytula Charitable Foundation and the Veterans’ House in Rivne and transferring more than 4 million hryvnias to them. At the same time, the company continues to help the Rivne Zoo, sports teams, and educational institutions. In February 2023, the KTС held an exhibition of paintings and an auction, all proceeds were donated to charity.

Another important area of cooperation of the KTС company was participation in IT clusters, which unite IT companies for the purpose of regional development and economic growth of the industry. The company is an active member of Lviv IT Cluster, Ivano-Frankivsk IT Cluster and Rivne IT Cluster. In May 2023, it joined the organization of the student hackathon Digital Wear 2023 and a round table on the development of Ukrainian IT products in the field of business accounting automation. The partner of the event was the USAID Economic Resilience Activity, which provided support in the implementation of the event.

“For KTС company, cooperation with the USAID Economic Resilience Activity became an additional tool of supporting foreign partners in Ukrainian business development. We are grateful to our partners for cooperation in joint events, which we joined as a member of the Rivne IT Cluster community. Our company is interested in further cooperation – to develop effective strategies, innovative solutions and promote our products to new markets together with USAID ERA specialists. We thank you for the joint work and believe that our cooperation has great potential for strengthening the economy of Ukraine and supporting Ukrainian entrepreneurs,” Viacheslav Melnyk, Commercial Director of KTС.

Increasing globalization and the development of international trade create new opportunities for companies, but also increase competition in the market. KTС is considering the possibilities of expanding its presence throughout Ukraine and establishing partnerships with foreign companies in order to attract new customers and expand its global presence.

However, along with these challenges, companies face a difficult economic and political situation, increasing consumer expectations regarding the quality of products and services, as well as growing awareness of environmental and social issues. KTС recognizes this trend and sets a strategic goal of improving its sustainable development practices and maintaining a responsible business model. The company focuses on innovation and digital transformation, reducing environmental impact, supporting social initiatives to improve the quality of life of the communities in which it operates. These strategic goals will help KTС to cope with the challenges of the future and ensure the sustainable development of the company in a competitive business environment.