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Spain Distribution Channels

Paper type: Essay
Pages: 5 (1079 words)
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Downloads: 25
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Spain Distribution channels A. 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 194 billion Euros (2005) and was achieved by the 646,000 retail businesses that Spain had (14. 6 per 1,000 inhabitants). The distribution sector in Spain has developed a lot with the potential increase of mass distribution (currently in focus) recently, 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 towards discount stores that he had been staying away from.

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) Types of outlet * Hypermarkets, supermarkets and superettes Located in city outskirts. Both food and non-food products are found here. Superettes are smaller retail outlets than supermarkets and are located in cities. Carrefour, Eroski, Alcampo * Specialized superstores Hypermarkets specializing in a family of products. Pronovias (wedding dresses), Fnac Spain (cultural products), Decathlon (sports goods). * Departmental stores Located downtown on several floors. There are different specialized departments. El Corte Ingles * Shopping centers Located in city outskirts or downtown.

Usually you find a hypermarket and a shopping mall here. Madrid Shopping Centers, Barcelona Shopping Centers. * Discount Mainly for food products. They offer distributor brand products or unbranded products. They are preferred for their discount prices. Lidl, Aldi, Dia * Retail traders Local specialized stores: grocery store, butcher’s store, fish shop, fruits and vegetables store, cheese store, delicatessen, baker’s store, cake store, florists. Preferred for the quality of their products, the human touch and their suggestions and advice. B. Distance selling * Most popular forms of direct marketing

E-mail, phone, telemarketing, teleshopping, mobile phone. * Type of products All types of products including food products * Evolution of the sector The total turnover of direct selling in Spain was EUR 440 million in 2009. The sector employs around 185,000 people. E-commerce is rapidly developing in Spain: this sector has grown by 30% in 2006 compared to 2005 and its growth potential is very significant. 38% of internet users buy online, which means 17 million e-buyers for a turnover of 3 billion euros. Net-buyers are usually 31-49 year old men having completed higher studies and belonging to the middle or upper class.

They spend on an average 523 Euros per year per person. The products in high demand are travel tickets (36. 5%), show tickets (16. 9%), books (13. 9%), hotel reservations (12. 4%) and clothes (10%). The telemarketing sector is still developing and its growth potential is going to be significant in the years to come. However, Spain presents for the moment a slight delay in this sector in comparison with other european countries, mainly due to three reasons: – The connection rates proposed by the Internet operators are generally low; – There are few online shops; The risks of payment by credit card. * Other direct marketing companies AECEM DSA Big names in distance selling La Redoute Catalogo | mail order selling, e-commerce| ready-to-wear clothes, home and decoration, hifi-tv| Manutan| E-commerce| Handling equipment, packages, machinery and tools, industrial and office supplies, maintenance, data processing and telecommunications| El Corte Ingles| E-commerce| ready-to-wear garments, home appliances, hifi-TV, entertainment, travel, house and food| Planeta Directo| E-commerce| Entertainment and culture|

Venca| mail order selling, e-commerce| ready-to-wear, beauty products, household linen, decoration| C. Organizing goods transport * Main useful means of transport 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. 8% 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 for container freight traffic) with a total traffic of 51. 4 million tons plus 2. 6 million TEU. Bilbao and Tarragona are the other important ports. Air freight reprented 86 million tons in 2006. In 2007, Madrid amassed 51% of the 624,000 tons of freight; Barcelona, second airport of Spain: 16%. 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 causes for poor rail traffic. 5% of Renfe’s goods transport is by railroad. Trains are especially borrowed by the iron and steel products, mining products, coal, 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

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Spain Distribution Channels. (2020, Jun 02). Retrieved from https://studymoose.com/spain-distribution-channels-new-essay

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