adyen, financial technology platform chosen by many of the world’s leading companies, presents the annual results of its Adyen Retail Report 2022. This new study makes visible the digitization and expansion plans of retailers in Spain, 34% of which already have a formal digitization strategy, along with 27% that are in the planning phase, while 6% have currently unified physical and digital channels; which raises the number of retailers that prioritize this strategy over 67%, up from 44% the previous year.
These local data, collected and analyzed by Adyen through a rigorous study* of 411 surveyed Spanish retailers and 1,096 consumers between the ages of 18 and 65, make it possible to visualize a transformation in the habits of our country as a direct consequence of the transformations experienced. on the market in the last two years. The health alert has reconfigured the profile of the current average consumer and has caused profound changes in their way of understanding purchases. while last year 7 out of 10 users preferred to go to physical stores, in 2022 when asking respondents this question, almost 4 out of 10 consumers of them agree or strongly agree that they prefer to buy in a physical store.
On the contrary, despite the fact that consumers are slowly going back to making purchases in physical stores, they are now looking for more flexibility and options in their purchases, since 6 out of 10 consumers they prefer to opt for a unified commerce experience, which allows them, for example, to buy online and return in store.
Juan Jose Llorente,Adyen Country Manager in Spain and Portugal, claims that “It is interesting to observe the changes in purchasing habits and the need for a financial platform with the necessary flexibility to carry out a real transformation.” And adds: “In the face of an increasingly mature panorama with regard to digital transformation in Spain, we can conclude that optimizing the customer journey in multiple channels is already the objective of the 87% of retailersa revealing and optimistic fact in the face of a moment of special uncertainty at a global level”.
For this reason, Adyen is committed to developing a phygital experience, closely linked to technology, to the adaptation of the global market and to the personalization of the user experience. According to his analysis, the innovation of Spanish retailers is applied fundamentally to logistics (50%)the stock management (44%)marketing and social networks (44%) and the customer service (42%)main business areas where technology can make a difference.
It is essential to follow the market trend and bet on integrating the best of the physical and digital world. In this way it is possible to offer a unified commerce experience, but also have enough flexibility to adapt to user demand. so you think Dimas Gimeno, Executive President of WOW Concept which states: “Retail is undergoing a transformation and our partnership with Ayden has helped us make WOW an example of a truly phygital shopping experience. Adyen has provided us with the technology and tools necessary for our customers to pay in a single system, obtaining a unified shopping experience”.
From the physical experience to the online
Practically 5 out of 10 consumers in Spain have bought more online than in 2021. The purchasing trend has transformed from the essentially physical to the digital, from the website to the app, and even reaching social networks, but always with the physical store as a reference.
For this reason, in 2022 eight out of ten Spanish companies already provide new digital channels for the participation of their customers. This, added to almost 9 out of 10 respondents consider the journey of their customers through multiple channels as one of the main initiatives to apply in their companyare just a few examples of how the adaptation process is in a more mature process than last year and immersed in the path towards the development of unified trade.
The Adyen Retail Report 2022 analyzes the distribution of sales of Spanish retailers by channel. Although the figures have not changed much since the Adyen Retail Report 2021, in 2022 we observe that 40% of these sales are currently made in a physical store, followed by the web with 32%. However, those made through apps account for 16% and those that take place through social networks stand at 12%. When analyzing the data by sector, it is revealed that the retailers dedicated to the fashion sector, the apps channel 18% of their sales, data that rises to 22% in the luxury sector. For its part, in beauty the store represents 44% of sales, followed by the web with 24%, apps with 17% and social networks with 14%.
Technology and innovation, heading towards a more unified trade
When analyzing the main initiatives that are being applied within Spanish retailers, and just a few weeks before the start of 2023, we observe that more than 80% of the retailers surveyed affirm that the customer delivery optionstake advantage of sales opportunities through new social channelsprovide new digital channels for customer engagementoffer more payment options out of cash or improve the operations to reduce queues are their main objectives for next year.
Taking advantage of sales opportunities through new social channels is the initiative applied by companies that have a turnover range, specifically up to 25 million euros. Regarding this figure, those retailers that allocate a greater investment are those dedicated to the sale of fast food(96%)and secondly, those belonging to the sector of the Hospitality, leisure and free time (93%).
Given the advanced digitization process of retailers, when applying new technologies, the Adyen report reveals that 7 out of 10 companies value primarily risk control systems (74%) and applications (74%). To a lesser extent, specifically 5 out of 10 consider virtual reality / augmented reality relevant.
The following table details relevant data on the evolution in the application of certain technological advances by Spanish companies:
Security and payment methods, keys to success
Managing and controlling fraud in online payments is a complex job and requires continuous review and adjustment. Being able to have an intelligent financial platform that allows each business to tailor risk control is essential to avoid security breaches or risky behaviors.
One of the main problems for many Spanish companies lies in the final step of the payment process, while consumers increasingly need more guarantees when making their purchases.
For 8 out of 10 consumers double authentication is a good way to control fraud, since it is safer and they feel more comfortable with it when verifying their payments. However, they also look for the process to be quick and require no action on their part when it comes to authenticating the payment at the checkout (42%).
While 6 out of 10 companies in Spain assure that they contract third-party systems to identify fraud, mainly. Among the measures most applied by the respondents is: being prepared to deal with fraud (64%), count on customer behavior identification systems (63%) and have identified new types of fraud (56%).
The following table details relevant data on how Spanish companies deal with fraud:
Retailers’ commitment to the future
When asking Spanish companies what the general panorama of the sector will be in three years, they agree to a greater extent that consumers will want to buy increasingly on digital channels (70%)the operation of the physical stores will be too expensive (63%) and in what stores will be located in city centers (62%).
This report predicts the future of the retail sector and Spanish companies, providing the following conclusions:
- The networks will have, more and more, a prominent role in the field of online sales. There is data that confirms that up to 25% of users of the Millennial generation make their purchases through social networks..
- The mobile phone will be consolidated as the preferred purchasing device. According to the data from this same report where the trend of the different generations is detailed, the Gen-Z user trusts more and more in purchases through their phone, 37% no longer use physical cards and trust more in ewallets like Apple Pay or Google Pay at checkout.
- Settlement of deferred payment as a purchase alternative. In addition to a progressive growth in purchases through social networks, according to the latest Adyen Payment Methods Report 2022deferred payment options will make their way at a good pace among user preferences.
- Demand for phygital shopping experiences: the majority of companies already want the online and physical experience to be unified (75%). This supports a host of multi-channel payment experiences and forms, as well as simplifying reconciliation and capturing valuable consumer insights.
- Loyalty through increasing customization of promotions and offers: Away from the large global campaigns, the client will be at the center of the commercial strategy and companies will bet on it. Currently, 69% of consumers prefer to buy in stores that have a loyalty program and 7 out of 10 would download a store’s application to receive better bonuses or loyalty rewards.