I thought I’d blog some of the observations I made and information I collected when attending eCOMExpo 2014 Madrid, Spain in 8th – 9th of April.
It’s Huge
Many studies have shown that Spain is one of the fastest growing ecommerce markets in Western Europe. Total ecommerce turnover exceeds currently € 13 bn making Spain 5th biggest market in the whole Europe and by a clear margin the biggest in Southern Europe. It has been estimated that there are staggering 85 000 webshops in Spain.
Like European ecommerce in general, also Spanish ecommerce has continued to boom despite the economical down turn of 2008. I think it is obvious that they are doing something right!
It’s Fragmented
Even when considering the size of the Spanish market, it soon became clear that ecommerce field is very fragmented.
There are hundreds of logistics service providers with various sizes, service coverage and portfolios. There is a multitude of newly started development and consultancy companies with varying capabilities and experience offering webshop development services to businesses aiming to go online. Similarly a vast number of new companies are offering webshops online marketing tools, mobile apps, email campaign tools, business intelligence and online statistics services, you name it!
There is one webshop per every 555 persons is Spain the same ratio being in Finland one webshop per every 838 persons! The webshop density is way higher in Spain.
Simply put there is a huge buzz inside the Spanish ecommerce industry as everyone wants to have their slice of the cake that seems to be yet rising.
it’s Conservative
Looking matters from a more humane angle, studies have also shown that Spanish consumers are rather conservative. This tells us that ecommerce has only recently started to gain popularity amongst the consumers and is in reality yet nowhere near the trust and familiarity consumers experience in brick-and-mortar shopping. This becomes more evident as we list the most popular ecommerce sites in Spain that all are well known brands with history: 1st El Corte Ingles, 2nd Casa De Libro 3rd Carrefour.
When we take look at the payments, once again familiar options, credit cards and cash-on-delivery, are the most popular methods. People trust cumbersome but familiar online check-outs more than they do newer ones that are in fact easier and as safe or even safer than the old ones.
It’s Going to the Right Direction!
The eCOMExpo 2014 was co-located with online marketing event OMExpo 2014. There is certain kind of brilliance here! I can’t imagine better way to tell to the aspiring ecommerce businesses that you need to concretely define and know your customers, and even more importantly, you need to know how actually to reach your customers. The combination of eCOMExpo 2014 and OMExpo 2014 quite simply shouts to your ears the great rule of thumb: make sure you know how to get your hands on the money the consumers are willing to spend.
Spanish ecommerce is definitely going to the right direction. I am sure there will be some turmoil as the webshop density, size and expertize find optimal level. Something that also we here in Finland are still witnessing.
Written by Tatu Heiskanen - May 5, 2014
