5 consumer habits to know before expanding your brand to Spain

The Spanish market is an attractive destination for e-commerce brands, as it is considered the 4th largest B2C e-commerce market in Europe behind Germany, the UK, and France.

Expanding your brand to Spain can be a great opportunity for growth, but it also requires careful planning and execution. There’s a lot to consider before expanding to Spain, and consumer habits are an essential aspect in your market research.

In the following article we will explore the importance of consumer habits when expanding your brand to Spain, and provide five key consumer habits of the Spanish market. We will cover:

• Importance of exploring consumer habits before expanding a brand
• Why you should expand to Spain
• Shopping habits and preferences of Spanish consumers
• Easy market expansion with a 3PL partner
• How Hive Pan-EU can help you expand your brand to Spain

Importance of exploring consumer habits before expanding a brand

Before expanding your brand to another country, it is essential to understand consumer habits, since they vary significantly across different cultures, regions, and markets. Conducting thorough market research to gain insights into the local consumer habits is key for a successful expansion.

There are around 47 million people living in Spain, around 70% of which are online shoppers. This is a significant market, so by understanding their preferences, behaviors, and buying patterns, your brand can adapt your products, marketing strategies, and customer experience to align with the Spanish consumer’s expectations.

Spain as a potential market for your e-commerce expansion

Spain is one of the fastest growing e-commerce markets in the EU. With an e-commerce turnover of 15.6 billion euros during the first quarter of 2022, the Spanish market has grown 25.3 percent when compared to 2021.This number is expected to increase by 20 percent by the end of this year, expecting to generate 65.3 billion euros in sales.

Spain is an ideal landscape for e-commerce, especially for those in the fashion and electronics industry, although various industries in Spain are growing and increasing in revenue. The main e-commerce industries in Spain and their percentage to revenue are:

• Fashion (29%)
• Electronics and media (26%)
• Toys, hobby and DIY (18%)
• Food and personal care (15%)
• Furniture and appliances (11%)

If you are looking to expand to Spain, working with a Third Party Logistics (3PL) partner that is based there to support you will be a great help. With numerous brands seeking to tap into the potential of the Spanish market, building a strong presence in Spain has become a strategic priority, and working with a 3PL based in the market will give you access to local knowledge.

Shopping habits and preferences of Spanish consumers

To facilitate your expansion in the Spanish market, we have compiled a list of 5 shopping habits and preferences of Spanish consumers. These valuable insights will empower you to tailor your strategy to meet the unique needs and expectations of Spanish customers and position your brand in this promising market.

1. Preference for local or “Made in Spain”

Spanish consumers demonstrate an interest in high quality products, specifically items that possess a distinct spanish look or essence. However, attempting to feign a Spanish identity or mentioning Spain in hopes of attracting customers is not an effective strategy.

Instead, integrating a touch of Spanish flair into your brand can prove advantageous. For example:

• Use local language on your marketing website
• Utilize inclusive language such as 'we' and 'us' to foster a stronger connection with the Spanish audience.
• Incorporate genuine representations of local influencers or locations to further enhance this connection and resonate positively with consumers.

Adding some Spanish personality to your brand can be easily done through marketing campaigns and personalized packaging.

You have the opportunity to make a lasting impression on your Spanish customers through the incorporation of branded packaging elements. These can include custom boxes, stickers, fliers, tape, stamps, and filling materials, among others.

With the ability to personalize your packages, you can add a touch of Spanish flair, such as using packaging elements in the Spanish language, feature Spanish places in your flyers or partner with a Spanish influencer for a marketing campaign. Collaborating with a local influence enables you to add flyers, free gifts, or thank you notes from the influencer in your packages.

These thoughtful details will not only help you establish a stronger connection with your Spanish audience but also elevate your image and your product’s perceived value.

In addition, you can leverage marketing campaigns and flyers to further nurture your relationship with Spanish consumers. You can elevate your customer experience and foster engagement among your Spanish community, by:

• Localizing your flyers into the Spanish language.
• Including cards or gifts related to Spanish holidays.
• Introducing time-sensitive fliers to create awareness about your seasonal collections.
• Promoting your offline stores by providing city maps specifically tailored to your Spanish customers.

These strategies will enhance your connection with the Spanish market and demonstrate your commitment to their needs and preferences.

Speak to your 3PL partner to see where they can support with custom packaging and fulfillment add-ons to personalize your Spanish customers’ journey.

2. Data protection and online security

Spanish consumers are concerned about personal data protection. Approximately half of them have expressed a lack of confidence in transparency and clarity of business data practices.  As a response, more consumers are taking action to protect themselves and their data.

The heightened concern among Spanish customers regarding personal data protection has a significant impact on brands seeking to expand to Spain. It is crucial to be transparent and provide clear information about data protection practices.

Implementing robust security measures, being compliant with relevant regulations, and clearly communicating these efforts can help build credibility and foster trust with Spanish consumers.

You can start by ensuring your customer’s payment transactions and personal data collection are protected. Make your shop platforms and checkout processes secure and transparent to build trust between your Spanish customers and your brand.

Use trusted platforms like Shopify, and ensure safe processing of customer payments. Shopify utilizes encryption technology during checkout to safeguard your customers' information and incorporates a robust fraud detection system.

You can also make your customer feel safe in the checkout by:

• Including clear labels and instructions on your checkout fields and forms: By making all instructions and requirements clear you'll avoid consumer’s confusion.
• Add logos of major credit card companies and third party payment methods accepted on your site: this will reassure the customer that your store is using safe methods.
• Add support methods on the page to ensure consumers can get aid at any time.
• Keep your website SSL certified: To avoid consumers' doubt, keep your SSL certificate up to date.

3. Discounts and pricing in purchasing decisions

Price is a key factor of Spanish consumer behavior, and it can highly impact consumers’ brand loyalty. 75% of Spaniards look for bargains before buying something, while 24% will abandon their regular retailer if they find lower prices elsewhere.

To succeed in the Spanish market your brand should have marketing campaigns that provide special discounts that affect the price.

If you are looking to avoid outright sales regularly, why not try the following discounts and promotions:

• Include discount codes and deals for next purchases.
• Add a free gift with every purchase over a certain amount.
• Include a free gift with certain SKU.

Moreover, spread the news of your discounts to reach a wider range of customer base by having your discounts and deals on the website or using flyers as a form of promotion. Increase LTV and encourage repurchase by including flyers within your customers’ packages, effectively communicating your discounts and promotions.  

4. Excellent customer service

To successfully operate in the Spanish market and build trust with your customers, you should prioritize excellent customer service and customer experience. Spanish customers highly value the opportunity to talk to someone when shopping, seeking assistance, or resolving any issues that may arise.

In addition, offering a convenient and hassle-free return policy is essential, as they expect prompt reimbursement for their returned purchases.

Hence, you need to ensure your customer service is top notch and that there is an intuitive user experience for Spanish speakers. You can easily do this and save time, by working with a 3PL partner.  

By working with a 3PL partner with a high accuracy rate in address validations you will be able to cut back on CS requests. Discover here how brands working with Hive cut down on hours of CS time every month.

5. Incorporating social responsibility and sustainability

Sustainability and care for the environment influence at least 60% of the purchasing decision of Spaniards when purchasing a product or service. Therefore, brands who value sustainability have a distinct advantage in the Spanish online market.

To thrive in this market, it is crucial to offer sustainable products that showcase responsible and ethical sourcing of ingredients or raw materials. Spanish consumers appreciate brands that show a tangible commitment to reducing their carbon emissions and taking proactive steps towards environmental preservation.

By aligning your brand with sustainable practices, like sustainable packaging and green delivery, you can establish a strong presence and gain a competitive edge in the Spanish online market.

Easy market integration with a 3PL partner

Having a 3PL partner for your expansions and market integration can bring numerous benefits to your brand.

A 3PL partner, such as Hive, has the expertise and infrastructure to efficiently manage and streamline your logistics operations.

Partnering with Hive as your 3PL partner enables you to offer your customers eco-friendly packaging choices made from recycled cardboard and utilize filling material made of resources that would have otherwise been wasted, effectively reducing environmental harm and fostering a circular economy.

Furthermore by partnering with Hive you can utilize the Hive Club to your advantage; which is cross-promotion in the form of inlays, samples, and flyers. Maximize your marketing campaigns and increase your customer acquisition by tapping into our network of brands.

Lastly, you can give your brand a Spanish touch with the Hive add-on rules, which is a set of automations you can create in the Hive app to add certain extras to your orders. By using the add-on rules you can include free gifts, discounts, personalized cards, add instructions, and flyers.

By choosing a 3PL partner like Hive you can successfully expand your brand to Spain and make your Spanish consumers happy.

How Hive Pan-EU can help you expand your brand

With Hive Pan-EU, you can effortlessly expand your brand presence to Spain and other countries such as the UK, Germany, Italy, and France, all while taking advantage of numerous fulfillment benefits.

Experience the convenience of swift 2-day delivery options in major EU markets, enjoy reduced local delivery costs, and benefit from automated inventory distribution. Additionally, our streamlined internationalization process is further enhanced by a dedicated team of experts specifically tailored to the Spanish market.

This comprehensive solution empowers you to seamlessly enter new markets, optimize your operational efficiency, and tap into the vast potential of the Spanish market with confidence.

Partner with Hive for a seamless integration into the Spanish market. Discover more about our services and how we can benefit your brand here.