An increasingly planned and consolidated international vision

The sectors that are most committed to internationalization in Spain include the agri-food sector, textiles, automotive, industrial machinery and equipment, tourism, construction and its materials, technology… «In the agri-food sector, for example, Spanish products have a good reputation for its quality, which drives the export of olive oil, wines, fruits, and meat products,” underlines López – Arenas. In the textile and fashion sector “many companies are expanding globally following in the footsteps of leading companies and taking advantage of the Spain brand that they are generating in international markets.” Additionally, service companies such as consulting, engineering, and technology companies have been expanding in recent years.

Antonio Bonet, president Exporters and Investors Club, Remember that betting abroad attracts multiple advantages, including market diversification, as happened with the 2008 crisis in which the domestic market collapsed and companies saw their salvation in sales abroad. “In addition, internationalization accustoms companies to production and marketing standards that must be continually updated and that forces them to innovate, research and invest to remain competitive compared to other companies in other countries,” he adds. Likewise, internationalized companies have more possibilities to grow, obtain greater profits and compete better in their domestic markets. “Precisely, foreign competition improves our companies because, among other things, it makes them more resilient when they face economic or geopolitical problems,” Bonet clarifies.

Leticia Poole, professor of Economics and Business at the European University of Valencia, talks about the driving effect of large companies on SMEs. “The main export sectors, such as capital goods, chemicals and food, are led by large companies, but they also have a relevant presence of SMEs,” he highlights. This indicates that large companies can exert a knock-on effect on smaller companies, “facilitating their internationalization and opening doors to new opportunities in international markets,” he adds. In 2021, SMEs represented approximately 95% of export companies in Spain and generated around 30% of the total value of exports. SMEs are gaining presence in sectors such as technology, food and fashion, highlighting the growth in exports of the agri-food sector, especially in products such as olive oil and wine.

Aids

From the Chamber of Spain they point out the existence of specialized organizations that offer their support services to exporting companies (Chambers of Commerce, ICEX, autonomous foreign promotion organizations and export associations, together with the Commercial Offices of Spain abroad and Chambers of Spanish Trade Abroad). «Together we offer training programs, advice, consulting and subsidies. But it is true that they are limited resources. We try to use them in the best possible way,” says Julián López-Arenas.

The Exporters and Investors Club talks about the importance of knowing how to adapt to the characteristics of each market. «You have to incorporate a lot of export-oriented intelligence. In addition to the official organizations that help us, such as ICEX, and whose work we appreciate, there are many consulting companies whose purpose is to assist companies in their export project, in terms of establishing delegations, legal issues, market analysis and a long etcetera”, explains Bonet. This is especially important work in non-European destinations, “to which today only 25% of sales of Spanish products abroad are directed,” he clarifies. In the Asia-Pacific area, for example, 40% of the world’s commercial transactions occur, but this area only represents 8% of Spanish exports. He believes it is important, when going abroad, to take into account the regulatory stability of the country, as well as the correct evaluation of the ability to be competitive with your product. “In many countries, there is the need to have local partners, or the obligation to make investments, beyond the mere sale of the product,” highlights the president of this organization. It also indicates that in recent years we have witnessed a certain process of “deglobalization” that has had a negative impact on supply chains, and that “has translated into neo-protectionist measures in many countries, which has forced many exporters to relocate their production centers or their regional suppliers.

For her part, Leticia Poole talks about some difficulties that exist in the internationalization of companies, such as the aforementioned geographical diversification, since Spanish exports are concentrated in Europe, “which limits access to other potentially lucrative markets.” And also the adaptation to the characteristics of each country once “differences are observed in the export performance according to sectors and provinces, which implies significant challenges of adaptation to the particularities of each market.

In his opinion, there are several key aspects to take into account, such as logistics and distribution. «Efficient logistics management is essential to ensure that products reach their destinations in a timely manner. This includes selecting suppliers, optimizing distribution routes, and managing inventories in different markets. International political instability has led to a diversion of transportation routes and a very notable increase in transportation costs,” highlights the teacher. Equally important is the adaptation of products or services, the marketing and branding strategy, the management of financial and political risks and having a trained and experienced team.