Reaching the consumers

Marketing opportunities

Consumer behavior

Price is an important deciding factor in the purchasing behavior of Spanish consumers. They are not necessarily loyal to one brand any more and distributor's brands are developing rapidly. Payment facilities and an efficient after-sales service are other key factors.

Consumer profile and purchasing power

The Spanish consumer seems demanding, but attaches less and less importance to the guarantee of a known brand. He is conservative and prefers known products to new products but as his lifestyle changes, he can show a bit of curiosity. He has the tendency to favor Spanish products or those which look like them. Purchase of fair trade products increased from 18% in 2004 to 25% in 2005; the consumption of bio products remains very low. Youngsters are less and less loyal to brands and more open to new products.

Consumers associations

National Institute of Consumption (INC)
Organization of consumers and users (OCU)
General Consumers Association (ASGECO)
Confederation of Consumers and Users (CECU)
Consumers' Union of Spain
Federation of Consumers in Action (FACUA)
Federation of Users and Independent Consumers (FUCI)
Spanish Confederation of Housewifes, Consumers and Users (CEACCU)
Consumers and Users Cooperatives' National Union (UNCCUE)
Communication Users Association (AUC)

Main advertising agencies

PUBLICIDAD SUPRA
KINESTESIA
LIBER STUDIO
J.C. DECAUX ESPAÑA
UNIVERSAL MC CANN
MEDIOS OUTLET

Distributing a product

Evolution of the sector

The distribution market in Spain is very focussed and specialized.. In 2005, the turnover from retail trade increased to 194 billion Euros which was an increase of 5.6% compared to 2004. Some Autonomous Communities impose restrictions for the establishment of superstores and shopping centers.

Market shares

Distribution in Spain is still characterized by a large number of retailers and traditional stores. Retail trade which employs 3.1 million persons (2007) is seeing its relative influence in the economy decreasing gradually. Its global turnover reached even 194 billion Euros (2005) and was achieved by the 646,000 (2005) retail businesses that Spain had (14.6 per 1,000 inhabitants).

The distribution sector in Spain has developed a lot in recent years with the increase in potential of mass distribution (currently in focus), specialized chains and shopping centers. The consumer, whose purchasing power has increased thanks to the economic growth and the decrease in unemployment is looking for the best quality/price ratio and the variety of the offer. The new state of affairs (slower growth and rising unemployment) makes him turn more towards discount stores that he had been staying away from so far. In any case, he continues to prefer local supermarkets to hypermarkets located on the outskirts.

Organized distribution is dominated by:
- El Corte Ingles (super stores, hypermarkets, supermarkets and all types of specialized brand names with 25% of the turnover from 10 leaders,
- Carrefour (hypermarkets, supermarkets, discount stores) with 20%,
- Mercadona (supermarkets) with 15%,
- Eroski-Caprabo (hypermarkets and supermarkets) with 12.7%,
- Inditex (ready-made garments : Zara, etc.) with 11%,
- Alcampo (hypermarkets and supermarkets) with 7.3%, etc.

Organizations in the retail sector

National Association of Mass Distribution Companies(ANGED)

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party of the International coffee agreement 2001

Main International economic cooperation

European Union
European Economy Section.

Non tariff barriers

Spain applies the community regulations valid in the entire European Union.
There are a certain number of restrictions for agricultural products ensuing from the application of CAP (Common Agricultural Policy).
Besides, for health reasons, the presence of GMO must be systematically specified on the packages.
It is forbidden to import hormone-fed beef.
The BSE crisis (the "mad cow's" disease) prompted the authorities to strengthen phytosanitary measures to ensure the quality of meat entering and moving on the territory of the Union. The principle of precaution is henceforth preferred to a greater extent: in case of doubt, the import is forbidden until proof of harmlessness of the products is established.

Customs duties and taxes on imports

Operations within the EEE are exempt from duty.
The Common Customs of the European Union is applied to merchandise from outside Europe. Generally, customs duty are relatively less, especially for industrial products (4.2% on an average).

Customs classification

SH Nomenclature + additional subdivisions up to eight numbers and own legal notes created for community purposes.

Import procedures

You must submit to the Customs Office:
- the sales or pro-forma invoice
- a brief declaration (manifest (plane or ship)) for taking charge of the merchandise
- a common law declaration (UDF, unique data folder), as welll as teh accompanying documents to enable their customs clearance.
The UDF form can be collected from the chambers of commerce or from an authorized printer. A computerized customs clearance platform (SOFI) can be accessed in the customs offices or in some chambers of commerce.

 

In case of intracommunity deliveries and purchases, goods exchange declaration (GED) or Intrastat declaration must be send to the customs service.

Importing samples

Business executives entering with commercial samples must carry a letter from their company certifying their status, an identification document of the samples and a certificate that the samples are not for sale. The ATA book can be used.

For further information

Agencia Tributaria
Ministry of Industry, Tourism and Commerce
European Union

Organizing goods transport

Main useful means

Transport by sea represents 20% of the GDP of the transport sector and 1% of GNP. The freight traffic at the port reached 442 million tons in 2005, which represented a 7.68% increase compared to 2004. Container freight traffic reached 11.05 million TEU (Twenty-feet Equivalent Unit) in 2005, growing by 8.74% compared to 2004. 78% of imports and 51% of exports of Spain transit through the ports.
The country's main port is port of Bahia de Algeciras, with 71.8 million tons of goods in 2006, 3.3 million TEU of container freight in 2006. It is the first port in the Mediterranean in terms of container freight traffic. The second port of the country is port of Barcelona (free zone) which handled 53.6 million tons of goods in 2007 and which is the fourth Mediterranean port for container freight traffic and the first container port of Spain with 3 million TEU. Next comes the port of Valencia (third port of the Mediterranean basin for container freight traffic) with a total traffic of 51.4 million tons plus 2.6 million TEU, that of Bilbao and Tarragona.

Airfreight reprented 86 million tons in 2006. In 2007, Madrid amassed 51% of the 624,000 tons of freight; Barcelona, second airport of Spain, handled a part of close to 16% in freight.

Inland goods transport is handled 80% by road.

Rail traffic accounts for only 4% of the traffic. It is slow, it is not very reliable and the railway network is not well-maintained - these are definitely the cause for poor rail traffic. 95% of Renfe's goods transport is by railroad. Trains are especially borrowed by the iron and steel products, mining products, carbon, propane and butane.
Combined transport of goods (especially combined road and rail transport) is expanding.

Ports

State Ports
Independent Ports

Airports

Spanish Airports and Aerial Navigation

Sea transport organizations

Ministry of Transport

Air transport organizations

Ministry of Transport

Road transport organizations

Ministry of Transport

Rail transport organizations

Ministry of Transport

Identifying a supplier

Type of production

The industry represented 13.5% of the Spanish GDP in 2006. In the basic manufacturing industry, Spain is well-known for its metallurgy industry (iron, steel, lead and zinc), cement industry and chemical industry. The most important processing industries are ship construction, automobile, heavy equipment, rail equipment and electrical machines. Textile industry, leather and hide products, paper production, shoes, toys and tobacco figure among finished products. In the food sector, olive oil, sugar, wine, canned food, beer and liquor industries dominate.

Business directories

The Yellow and White Pages
Telefonica.es
Europages

Manufacturers associations of the main industries

Spanish association of automobile and truck manufacturers (ANFAC)
Spanish association of automobile equipment and component manufacturers (Sernauto)
Regional Council of Chemistry and Chemical Engineering Professionals (ANQUE)
Spanish Electrical Engineering Association (UNESA)
Spanish paper pulp, paper and cardboard manufacturer's association (ASPAPEL)
Spanish Machine tools manufacturer's association (AFM)
Association cotton textile industry (Aitpa)
Spanish Association of shoe component companies (AEC)
Spanish association for olive oil industry and export trade (ASOLIVA)

Trade Agencies and their representations abroad

Spanish Chambers of Commerce

Enterprises federation

Spanish Confederation of Organizations of Enterprises
Spanish Confederation of Small to Medium Scale Enterprise
Autonomous Spanish Associations or Confederations
Directorate general of SME policy of the Ministry of Industry, Tourism and Commerce
Directorate General Enterprises and Industries of the European Commission