Spain - Market Challenges Spain - Market Challenges
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Cost, financing terms, and after-sales service are important competitive factors. European exporters provide generous financing and extensive cooperative advertising, and most European governments support exporting with trade promotion events. Japanese and Chinese companies are also emerging as formidable competitors. Chinese President Xi visited both Spain and Portugal in 2018 as part of a concerted effort to cultivate more business and investment on the Iberian Peninsula. It was the first time in 13 years that a Chinese head of state had visited Spain. Although U.S. products are well respected for their high level of technology and quality, American firms sometimes fall short of their competitors in flexibility on financing, adaptation of product design to local market needs, and assistance with marketing and after sales service.
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Delays in reimbursement continue to represent a problem, particularly in the public sector, although the situation improved substantially in 2015 when additional legislation was passed to enforce more timely payments by the regional and local governments.
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As a member of the European Union, Spain is a party to the new EU legislation covering broader data protection throughout the EU that came into effect on May 25, 2018. Please check this link for details: https://www.export.gov/article?id=EU-NEW-DATA-PRIVACY-LEGISLATION-GDPR
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The economic downturn referred to above resulted in some Spanish companies being reluctant to commit to purchase or take on the expense of introducing and marketing new products or services. However, due to the continuing economic recovery, and given that developing export sales or distribution channels takes time, export-ready U.S. firms are urged to explore opportunities in Spain and throughout the Eurozone.
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Despite high-profile, high-impact raids in 2016, storefronts selling counterfeit goods have reopened and sales have rebounded. The USTR’s 2018 Notorious Markets List includes several parts of Madrid and Barcelona, as well as Els Limits de La Jonquera market in Girona (Catalunya) for widespread sales of counterfeit goods.