New challenges for fisheries amid a complex context. (Photo: StockFile)
Spain in crisis can be a good business opportunity
Friday, February 01, 2013, 23:40 (GMT + 9)
The Spanish market is stabilizing after several consecutive months of falling prices and falling consumption. The fishery commercial sector underwent a major transformation in 2012, driven by cuts in credit lines from banks and a major fall in domestic consumption of 4 per cent. However, the adjustments that Spanish economy had to make to control its debt crisis have had a beneficial effect on the competitiveness of Spanish companies.
Companies increased their exports by 2.6 per cent and it seems that this trend will continue during 2013. Consequently, there are signs of improvements in the performance of some of the major Spanish companies, which have invested more effort in increasing their sales abroad.
For this reason, there is a tendency in the frozen fish sector to increase demand for raw materials for processing fishery products for subsequent export to other EU countries. The great capacity for frozen fish transformation of Spanish industry is a good opportunity for suppliers wanting to market their products in Europe, as, surprisingly, this market segment in Spain can compete better at this moment than a year ago.
However, the huge financial weakness makes the old system of selling shipping containers more complicated with full payment in advance or by letter of credit. Some companies have already realized this and have decided to take steps to maintain or increase its presence in Spain, but adapting to the new circumstances.
One chosen model is the representation agreement with a Spanish company that performs the function of sales agent, while the company willing to export to Spain makes its storage in a third cold store. The exporting company always keeps its stock under control and releases the goods after the sale is made by the Spanish company agent, and it can be paid when leaving the provider’s warehouse, keeping the selling risk in the domestic market, this way becoming a coordinated marketing.
This is the case of Kenneu, SL, a company with 11 years of presence in the Spanish market and 25 years experience in its sales team.
In the words of Kenneu, SL manager, Carlos Vazquez, "Despite the crisis, there are great opportunities for companies wishing to export to the Spanish market, but they must be prepared for a change in attitude and better understand the market. Only the financially strongest ones will be able to take advantage of these opportunities. "
The biggest difficulty right now is the financing of purchases by many companies; however their demand is in a phase of slow but steady growth.
The ignorance about the real situation of Spanish companies and the fear of the payment default risk on sales is the biggest problem faced by those wishing to export to Spain via the deposit system. To overcome this difficulty, companies like Kenneu, SL are a good choice as a strategic partner and sales force in Spain. Their long experience in the Spanish market allows them to know the real situation of enterprises and their needs and, on the other hand, their structure allows them to guarantee payment collection to companies that choose to deposit their goods in Spain and start a new selling model of their products.
By Tomas Gutierrez