Spain: A new hotbed for cross-border e-commerce in China

At this moment, Emma is sitting at home, listening to the continuous honking of cars outside the window. Due to a large-scale power outage, the traffic lights failed and long queues of vehicles formed on the streets. She was glad that there was an adequate supply of drinking water and food at home, but unfortunately, there was no electricity and she could only make noodles with cold water. Emma plans to purchase some self-heating small hot POTS, flashlights, charcoal grills and household energy storage devices on Chinese cross-border e-commerce platforms after the power is restored, in case of emergency.

This power outage made Emma deeply realize the inconvenience of life and also made her aware of the importance of stockpiling emergency supplies. Since yesterday, the large-scale power outage in the Iberian Peninsula has affected millions of people, and daily necessities in offline supermarkets have been wiped out. After the power supply returns to normal, she plans to purchase some practical supplies through Chinese cross-border e-commerce platforms in case of possible similar situations in the future.

This power outage incident not only stimulated the stockpiling demand of Spanish consumers, but also enabled Chinese sellers to see the huge potential of the Spanish market. In recent years, the European market represented by Spain has increasingly become a place of attention for Chinese sellers. Especially after the Trump administration announced the “reciprocal tariff” policy towards China, many Chinese sellers began to turn their attention to Europe, seeking new growth points.

Since the beginning of April, the number of people coming to Spain for inspection and exhibitions has significantly increased. Chinese sellers from various sectors such as home furnishings, food, and small household appliances all want to learn about the Spanish market and consult some information on legal compliance and business environment.

As a southern European country, Spain has always been a hot spot for Chinese brands to go global. In the e-commerce field, as early as 2014, AliExpress entered Spain and expanded its reach to many countries in Europe and Latin America. In the past two years or so, the “Four Little Dragons” in the cross-border market (including platforms such as Temu and SHEIN) have also emerged one after another, quickly occupying market share. According to the data, in the first half of 2024, Chinese e-commerce platforms such as AliExpress, Temu, and SHEIN held a 34% market share in Spain, far exceeding that of other European countries.

In the automotive field, Chinese auto brands are also actively entering the Spanish market. In April 2024, Chery Automobile signed a cooperation agreement with EV MOTORS, deciding to jointly build an automotive production base in Barcelona and relaunch the well-known Spanish automotive brand EBRO. Chery has thus become the first Chinese automaker to have a complete vehicle production base in Europe and achieve mass production.

In terms of consumer brands, well-known Chinese brands such as Hisense, Pop Mart, Cha Bai Dao and Cha Li Yi Shi have also chosen to open stores or factories in Spain one after another. The entry of these brands not only enriches the variety of goods in the Spanish market, but also enhances the influence of Chinese brands in Spain and even throughout Europe.

Song Xin, the founder of Xinfu Think Tank and a former policy advisor to the European Union, analyzed and believed that the Spanish e-commerce market would be particularly hot this year. On the one hand, it is because the e-commerce penetration rate in Spain is very high, and consumers generally have no awareness of saving money and a strong desire to consume. On the other hand, it is because the Spanish market can serve as a base for brands to radiate throughout Latin America. In the Spanish-speaking world, Spain is a highland for brands. Brands that have established a firm foothold in Spain can easily spread to countries such as Mexico and Argentina.

However, behind the vigorous development of the Spanish market, there are also some challenges and problems hidden. With the influx of tourists and immigrants, house prices and commodity prices in Spain have been constantly rising, and many locals can no longer afford to rent or buy a house. This has also led to an increasing number of consumers turning to online shopping platforms with better cost performance. Meanwhile, due to the increase in rent and prices, the operation of many offline brick-and-mortar stores has become increasingly difficult.

Despite this, the prospects for Chinese cross-border e-commerce in the Spanish market remain broad. As consumers’ demand for cost-effective products continues to increase and the recognition of Chinese brands in the Spanish market keeps rising, the market share of Chinese cross-border e-commerce in Spain is expected to further expand.

Emma’s experience is just a microcosm among many Spanish consumers. During this power outage incident, she deeply realized the importance of stockpiling emergency supplies and purchased the necessary materials through Chinese cross-border e-commerce platforms. This also enables us to see the huge potential of Chinese cross-border e-commerce in the Spanish market. In the future, with the entry of more Chinese brands and the continuous development of the market, it is believed that Chinese cross-border e-commerce will achieve even more brilliant success in the Spanish market.

Furthermore, it is worth mentioning that although the Spanish economy has performed well in recent years, local people have not felt much of a sense of economic recovery. Due to the influx of tourists and immigrants, housing prices and commodity prices have risen, and the living costs of many locals are also constantly increasing. This also reminds us that when entering the Spanish market, we need to pay more attention to the needs and feelings of local consumers and provide products and services that better meet their demands.

In conclusion, the European market represented by Spain is becoming a new hotbed for China’s cross-border e-commerce. In this market full of opportunities and challenges, we need to keep learning and exploring, and provide better products and services to meet the needs and expectations of consumers. At the same time, it is also necessary to pay attention to the changes and development trends of the market, and adjust strategies and tactics in a timely manner to deal with possible risks and challenges.