The Retail Report 2023 by Adyen - a Dutch fintech company that provides payment processing and financial services to businesses around the world - discusses recent developments and trends in the retail industry. The survey was submitted to 12,000 businesses from 24 countries and 36,000 consumers from 26 countries. The report highlights the challenges retailers face today and the opportunities that are emerging, especially in the area of international expansion. One of the success ingredients for such expansion is a good online payment partner.
Changing retail landscape
The report provides an accurate picture of the current state of the retail industry. The past few years have seen dramatic changes, including the pandemic, international tensions, supply chain uncertainties and a reduction in purchasing power. Despite these challenges, retailers have found room for innovation and transformation. Technological trends such as omnichannel experiences, artificial intelligence (AI) and marketing automation transformed the retail sector.
Customer loyalty and rewards
One of the notable trends featured in the report is consumers' increasing focus on customer loyalty and expectations around rewards. Customers have become more conscious of their purchases and prioritize quality, affordability and convenience. As a result, they look for bargains more often, wait for seasonal discounts, and expect personalized offers in exchange for their loyalty.
International expansion
In a striking finding, the report indicates that a whopping 68% of retailers plan to explore new markets this year. The majority of them are focusing on online expansion into countries such as the United States, France, Germany, China and Canada. Despite the looming recession, discovering new markets is a strategic choice that offers long-term opportunities.
Why should retailers commit to international expansion? The report points out some key benefits. First, entering new markets can result in less competition, which in turn leads to better deals when purchasing equipment and raw materials. In addition, the figures show that international expansion can indeed bring more revenue and customers. By 2024, 55% of retailers expect to be in a better financial position thanks to sales from different countries.
The importance of local approach
The success of international expansion depends on two factors: a solid strategy and a local approach. Retailers must conduct thorough research into their target markets and gain insights into which products and services resonate with local consumers. They must also consider local regulations, logistics, shipping and marketing.
The payment partner
One of the crucial aspects of international expansion is dealing with different payment methods, currency conversions and taxes. That's where the payment partner comes in. The report emphasizes that choosing the right payment partner with international reach is essential for flawless expansion. Such a partner can help retailers quickly launch into new markets and efficiently integrate local payment methods without having to open local bank accounts.
Are you curious what PHPro can do for your web shop or e-commerce?
Then take a look at our great reference cases of Hopper or InMusic Brands: they are very satisfied with Ayden as a payment partner.
Are you convinced to expand internationally?
Let us help: in consultation, we analyze the needs for your business and provide the right payment partner to make your international ambitions a reality. Contact us.