Austrade - Spain

Austrade Madrid's business development manager Elena Obiols offers exporters a lowdown on the Spanish TCF market.

What you need to know
Spain is almost triple the size of the Australian market and exports over EUR$3.3 billion ($A5.2 billion) worth of clothing and footwear, with almost 70 per cent of all outbound products destined for other EU markets. High profile uber-brands Zara and Mango lead the way with a host of emerging names also gaining recognition worldwide.

It is also a desirable market for European, US and Latin American brands, and competition for the local and tourist market can be intense.

Aussie brands are most well known for setting the pace at street level. Billabong, Quicksilver, Mambo, Roxy and street jewellery brand Bico are sought after by hipster and surf-scene teens. Sally Jones and AussieBum have also gained a foothold, as well as childrenswear brand Eeni meeni miini moh.

Aside from this, a sense of Australian style is almost unknown, and a perception of risk can exist for local buyers when considering Australian designs, with distributors most receptive to brands already selling in Europe.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

Before you start
The major cities are expensive, and high tourist demand means rooms are scarce. To keep down costs plan well in advance with hotel bookings and flights.

The best strategy is to work directly with a Spanish distributor from the outset. As well as assuming the financial risk and resolving day to day problems, working with a Spanish distributor gives you a central point in the market that will make it easier to create and develop brand awareness, and offers bargaining power that can't be achieved remotely.

They will also help overcome customs clearance issues which frequently arise, and will be better positioned to resolve disputes with buyers - essential when only one in five Spaniards are proficient in English.

Talking to the trade
Australians and Spaniards both share an easy-going attitude when doing business, are honest and sincere in their feedback, but one of the limitations is how little we know about each other commercially.  

Invest in translation assistance for brochures, website and other marketing collateral, as well as business dealings. Be prepared to work past stereotypes of Australia to promote your work.

Provide FOB or CIF prices only for the agent or distributor. Spaniards do not know Australia well and presenting ex-works pricing to a Spaniard shows a lack of local familiarity that won't be received well.

Spanish agents and distributors also receive proposals for representing new brands from all over the world. It is likely to require phone calls and messages in Spanish to follow up and ascertain interest - Austrade can provide assistance on a fee basis to do this work on your behalf.

Current business opportunities
Twice a year, Barcelona hosts the street and surfwear fair Bread and Butter, breadandbutter.com, one of leading international fashion trade fairs in Europe - great opportunity to meet Spanish buyers and reps as well as network with relevant players from all over the world (especially the EU.)