Textiles and clothing to Spain

Trends and opportunities

The market

Spain is a modern, consumer-driven society, with a population of over 40 million. Its stable economic growth has resulted in not only improved standards of living, but also a large consumer base with sophisticated purchasing patterns. Increased purchasing power will benefit the apparel industry, especially since Spain has been the fastest growing major economy in Europe over the last three years.

The Spanish place great emphasis on their outward, physical appearance, and have traditionally dedicated a high proportion of personal expenditure to clothing and footwear. During the latest few years a change has been noted in consumer behaviour. Consumers appreciate above all, the design of the garment and its ability to adapt to the latest fashion tendencies.

Clothing imports account for 30.1 per cent of total textile imports (for a value of €2598 million), while knitwear garments imports represent 24.2 per cent (€2084 million). Source: Spanish Foreign Trade Institute - ICEX.

There are 7500 companies in this sector, providing around five per cent of the GDP, giving employment to more than 260,000 people.

Regions – characteristics and centres of consumption:

• Catalonia/Balearic Islands/Aragon: This is the richest area, marked by the Catalan entity and Barcelona, competing with Madrid for the title of capital of fashion. Hot summers and mild winters.
• East Coast: This is a very dynamic area. The mediterranean climate is very warm and dry with mild winters.
• South: This is the poorest and most populated area. The climate is dry to very dry all year around.
• Madrid/Centre: This is a very rich area with a continental climate.
• North/Centre: This is a relatively rich area, under industrial reconstruction. A damp climate all year round, strong wool consumption.
• North/West: Relatively poor - the birthplace of many Spanish creators of fashion. Climate and consumption similar to that of the North/Centre.

(Source: CMT España)

Opportunities

Opportunities exist in the Spanish fashion industry for new and innovative Australian brands/designers of:

• High-end designer labels for women’s and men’s wear.
• Swimwear
• Lingerie
• Australian street, surf and extreme sports brands - there is a growing interest in action sports among Spanish youth (winter and autumn are considered the strongest surf seasons in Spain and skiing, snowboarding and skateboarding are also popular).
• Fashion accessories

(Source: CMT España)

Competitive environment

European Union (EU) countries account for more than 60 per cent of imports into Spain. Italian, Portuguese and French imports account 45 per cent of that EU import figure.

Tariffs, regulations and customs

Spain applies the European Union Common External Tariff on imports from Australia. The customs duty for apparel imported from Australia ranges from 6.3 to 13 per cent. Australian suppliers can sometimes eliminate or reduce this disadvantage by either franchising local production to Spanish companies or by entering into joint ventures with local firms. Additional detailed information on customs duties is available.

A value added tax (in Spanish: IVA) of 16 per cent is applied in Spain on all clothing products.

Industry standards

Trademark protection in Spain favours registration. Spanish trademark law defines infringement of trademarks as unfair competition and establishes effective enforcement.

Clothing labels must provide the country of origin, cleaning instructions and the percentage of textile material used.

Requirements relating to textile content, labelling and packaging are regulated by Royal Decree 928/1987, published in the State Gazette on July 17, 1987. The decree establishes that textile and apparel products must clearly identify the manufacturer, provide the importer's tax registration number, and explicitly identify the quantity of textile materials used. The label must be written in Spanish. This regulation establishes a table on how to label specific materials and establishes specific requirements for certain apparel products.

Marketing your products and services

Market entry

In order to access the Spanish market, it is necessary to identify a distributor, agent or potential buyers. A visit to the market is highly recommended in order to position your product(s) in the most appropriate distribution channels to the existing offer and promote the brand to local media.

Spanish high-end priced fashion buyers usually visit major fashion shows and events in European fashion capitals, ie. London, Paris and Milan.

With high-end, designer brands, it is essential for Spanish buyers to see the entire collection in order to consider placing an order.

It is also important to maintain a close relationship with Spanish agents/distributors and provide them with support for the promotion of your brand/s in the market.

There are various trade fairs that attract a large number of brands and buyers, both Spanish and international, to the Spanish market, such as:

• SIMM, Madrid International Fashion Week
• Barcelona Fashion Week
• Textil Moda, Textile Salon

Australian suppliers can eliminate or reduce the disadvantage of import duties by:

• Franchising local production to Spanish companies
• Joint ventures with local firms

Austrade Madrid can provide in-market research for identification of opportunities and potential buyers/agents for Australian brands, assist with the organisation of new to market brand presentations, participation in fashion trade fairs/shows and market visits.

Distribution channels

Cataluña is the autonomous region with highest number of fashion retail shops in the country (20 per cent of total number in Spain), followed by Andalucía (15 per cent), Valencia (12 per cent) and Madrid (10 per cent).

Despite the penetration and growth of specialist chains such as Zara, Mango, H&M and Cortefiel, the number of independent retail stores in the sector is high compared to other European markets. There is a considerable number of independent boutique-style stores in the shopping circuit areas of all major cities throughout Spain such as Barcelona, Madrid, Valencia, Bilbao and Seville, and tourism centres such as Marbella, Ibiza and Palma de Mallorca.

Franchising is becoming one of the most successful formulae for the specialist chains in the garments sector.

(Source: CYTIC - Centro de Información Textil y de la Confección /Textile and Clothing Industry Information Centre)

Contact details

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

(Last updated: 18 Jul 2007)