“Spain has a deficit of powerful international brands”

Invexport 2014

Spanish companies need to grow in size to become more competitive and achieve greater representation in the global rankings. A typical Spanish company is about a third the size of a comparable German company in the same sector.

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On October 8th and 9th, the International Business Show, the first major event focused on the internationalization of Spanish companies, took place at the Bilbao Exhibition Center.

 

In a country with over 150.000 exporting companies, this event has helped strengthen their international presence. It has provided an opportunity to examine the real challenge of increasing the number of companies that regularly export and conduct business on a recurring basis. Invexport consolidates its position as the leading showcase for the Capabilities of the companies with more than 1.000 visitors in its second edition

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Spain has room to improve its export potential. Although Spanish companies are increasingly looking abroad, there are still challenges that could reverse the stagnation in exports seen in recent months.“The big challenge for Spain is to gain in scale,” explains Iban Unzueta, CEO of Invexport.

In your opinion, "There is a deficit in terms of scale compared to our international counterparts (a Spanish company tends to be a third the size of a comparable German company in its sector) and this is a significant handicap when it comes to internationalization.We must create companies by investing in a strong brand; we continue to think of exporting as a short-term activity. And Spain still has a lot to do in this area. We have very few representative brands at the top of the world rankings (one study mentions that there are only two among the 100 most valued internationally).

Increasing the number of exporting companies, helping them become successful businesses with regular foreign revenue, and driving other companies to export are the other two major challenges. “We also need global profiles, more travel, and diversified markets. New markets: in addition to deepening our presence in Latin America, Spain should play a significant role in Africa, due to its geographical proximity, its affinity with Portugal, which has a strong presence in some African countries, and because it is a continent that needs to grow,” says the CEO of Invexport.

Despite everything, Unzueta believes that “Spanish companies have already internalized the importance of internationalization, and proof of this is that we have significantly increased the number of exporting companies, from barely 107.000 in 2009 to more than 150.000 in 2013.” This interest in international markets is also reflected in the success of this second edition of Invexport, which is establishing itself as a showcase for the internationalization of Spanish companies, boasting figures such as 40 exhibitors, more than 40 conferences on international trade, and specialists in over 50 markets.

The countries receiving the most inquiries were Mexico, the United Arab Emirates, Chile/USA, Peru, Germany, and Russia. Furthermore, according to SPRI data, 524 meetings were held between 27 delegates and other officials from the geographic areas of Africa and the Middle East, Asia, Europe, Latin America, North America, and multilateral organizations.

 

Food and drinks, the star

Invexport also hosted the forum AlimexportHighlighting the importance of the food and beverage sector, which already accounts for 15,5% of Spanish exports, according to ICEX data. The industry employs 440.000 people and last year generated €89.204 billion in revenue, of which 25% (€22.594 billion) came from exports, as detailed in the latest FIAB annual report.

 

In a keynote address, Jaume Llopis, academic director of the IESE Business School Food and Beverage Conference, highlighted the importance of exporting for companies in the sector. “Offsetting the drop in domestic demand, offloading excess production, diversifying risks, leveraging economies of scale, acquiring and applying new capabilities and/or resources (raw materials, technology, human capital…), reacting to the entry of foreign competitors, counteracting domestic market saturation, and seeking less mature markets with greater growth potential (emerging markets, BRIC countries, Next Eleven…)” were some of the arguments cited by the expert within the framework of Invexport.