INTERNET RETAILING IN SPAIN

Euromonitor International
January 2018
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Internet Sales Are Boosted by Retailers’ Multi-channel Strategies ........................................... 1
Fast Delivery and Efficient Logistics Are Key ........................................................................... 1
Improvements in Post-sales Customer Service ........................................................................ 1
Competitive Landscape ................................................................................................................ 2
Amazon, the Leading Player, Focuses on the Expansion of Its Logistics ................................. 2
Inditex Grows Through Innovation ............................................................................................ 2
Media Markt Partners With Id Logistics To Enhance Its Logistics ............................................ 2
Channel Data ............................................................................................................................... 2
Table 1 Internet Retailing by Category: Value 2012-2017 ......................................... 2
Table 2 Internet Retailing by Category: % Value Growth 2012-2017 ........................ 3
Table 3 Internet Retailing GBO Company Shares: % Value 2013-2017 ................... 4
Table 4 Internet Retailing GBN Brand Shares: % Value 2014-2017 ......................... 4
Table 5 Internet Retailing Forecasts by Category: Value 2017-2022 ........................ 5
Table 6 Internet Retailing Forecasts by Category: % Value Growth 2017-2022 ....... 6

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INTERNET RETAILING IN SPAIN

HEADLINES
 The popularity of a multi-channel strategy boosts internet retailing in 2017, increasing by 13%
in current value terms to reach EUR8.2 billion
 The competitive environment remains very fragmented in 2017, with Amazon.com, El Corte
Inglés and Inditex, Industria de Diseño Textil holding the highest shares of 11%, 9%, 8%
respectively
 Internet retailing is expected to continue growing, as an increasing number of retailers will
have a presence online, and increasing investment will be seen in customer service and the
purchasing experience

PROSPECTS

Internet Sales Are Boosted by Retailers’ Multi-channel Strategies

Retailers are increasingly investing in multi-channel strategies, aiming to be more visible and
attract all types of consumers, being present in whichever are their preferred channels. For
example, two of the three major online retailers, El Corte Inglés and Inditex, are not in fact pure
e-commerce retailers, but gained popularity through bricks-and-mortar stores; only in the last
few years did they start investing in their online channels. The integration between online and
store strategies is complete for the retailer Zara, whereby customers buying products in-store
can return them either to the store or online. In addition, new goods are released in stores and
online at the same time. It is expected that an increasing number of retailers will invest in an
online presence and in e-commerce services, as Spaniards become more accustomed to using
this channel.

Fast Delivery and Efficient Logistics Are Key

Consumers are becoming more accustomed to purchasing online, and they are becoming
increasingly demanding, so online operators have invested in improving their customer service.
Amazon, for example, invested in increasing its logistics capabilities to offer faster and more
profitable delivery. In September 2016, it launched the new delivery programme Amazon Prime
Now, whereby its “premium” customers can have products delivered within one hour in Madrid
and 21 locations nearby. In 2017, the company opened new logistics centres, such as in Getafe
(Madrid), and is planning to build new warehouses to expand its sales and offer better customer
service. It is expected that consumers will continue to raise their minimum level of satisfaction,
and will become increasingly demanding. Therefore, companies are likely to invest in logistics,
such as adopting robot-based warehouses, and in customer service, aiming to be more
competitive.

Improvements in Post-sales Customer Service

Both pure e-commerce retailers and multi-channel players are focusing not only on the actual
purchasing experience, but also on post-sales customer service. The very profitable e-
commerce player PcComponentes, which operates in consumer electronics, has used this
strategy. It manages not only to offer low prices and excellent customer service during the
purchasing process, but has also focused on post-sales customer service, as customers with

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technical issues look for advice. It is expected that an increasing number of companies will
invest in offering a 360-degree service: from pre-sale, by improving their platform-friendliness, to
their purchasing experience, including pick-up and delivery, to post-sales service, including
fixing issues or being efficient in the management of returns.

COMPETITIVE LANDSCAPE

Amazon, the Leading Player, Focuses on the Expansion of Its Logistics

Amazon saw its sales continue to grow in 2017, and it made important investments in Spain in
order to become more competitive in the fast-changing competitive environment. In
Castellbisbal, near Barcelona, Amazon has its first robotic warehouse in Spain, which the
company is planning to adopt as a model for its other warehouses in the country, such at El Prat
de LLobregat. In July 2017, the company opened its first warehouse in Getafe (Madrid), and is
planning to open additional ones in both Madrid and Barcelona. The company is interested in
both small warehouses to store perishable products and in slightly larger ones to stock non-
perishable goods. in addition, the operator uses macro-warehouses in industrial areas to reduce
costs.

Inditex Grows Through Innovation

Inditex, Industria de Diseño Textil showed a good performance in 2017, mainly thanks to the
different innovative strategies it used to enhance its online channel. The operator decided, for
example, to launch the new marketing campaign for one of its collections online. The campaign
was different from usual, as it mentioned the name of the photographer who took the pictures,
Steven Meise; the photographer’s name is usually only written in small letters by the
photograph. Inditex also launched a new programme called #DressedinDutti, which lets users
purchase from pictures posted on its Instagram social network. The company announced the
opening of a new logistics hub in La Coruña, aiming to increase its efficiency in the delivery
process.

Media Markt Partners With Id Logistics To Enhance Its Logistics

Media Market partnered with ID Logistics to run its logistics hub in Pinto near Madrid, aiming
to continue improving its online channel and its customer service. The decision to partner with a
leading international specialised logistics player is due to the company’s very ambitious plans to
become a leading online operator in the coming years. In addition, the player offers high-quality
customer service by enabling its clients to pick up their purchased goods without getting out of
their car, thanks to the Stop&Go service the company offers.

CHANNEL DATA
Table 1 Internet Retailing by Category: Value 2012-2017

EUR million
2012 2013 2014 2015 2016 2017

Apparel and Footwear 522.9 656.3 892.9 1,142.5 1,355.5 1,520.5

Internet Retailing
Beauty and Personal 285.6 294.5 305.8 334.5 397.0 447.8
Care Internet Retailing

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Consumer Appliances 98.0 103.5 116.2 150.8 195.6 233.8

Internet Retailing
Consumer Electronics 410.9 584.4 722.7 788.6 898.2 941.6
Internet Retailing
Consumer Health 15.1 15.6 16.0 18.0 19.6 21.9
Internet Retailing
Food and Drink Internet 1,086.0 1,112.3 1,178.6 1,275.6 1,368.5 1,457.6
Retailing
Home Care Internet 32.9 32.7 34.5 39.8 49.9 64.3
Retailing
Home Improvement and 88.0 95.2 102.1 113.0 123.1 135.1
Gardening Internet
Retailing
Homewares and Home 184.1 177.1 184.9 208.9 238.8 267.1
Furnishings Internet
Retailing
Media Products Internet 667.5 768.8 863.4 954.7 1,047.4 1,159.4
Retailing
Personal Accessories 258.1 262.0 270.3 289.3 308.9 335.8
and Eyewear Internet
Retailing
Pet Care Internet 54.6 60.9 67.7 75.7 89.7 101.9
Retailing
Traditional Toys and 35.9 39.2 47.6 67.9 85.3 102.9
Games Internet Retailing
Video Games Hardware 34.2 38.1 43.9 51.0 55.1 66.8
Internet Retailing
Other Internet 1,331.1 1,094.4 952.7 903.7 1,015.6 1,348.1
Retailing Internet
Retailing
Internet Retailing 5,105.0 5,335.3 5,799.4 6,414.2 7,248.0 8,204.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Internet Retailing by Category: % Value Growth 2012-2017

% current value growth, retail value rsp excl sales tax

2016/17 2012-17 CAGR 2012/17 Total

Apparel and Footwear Internet Retailing 12.2 23.8 190.8

Beauty and Personal Care Internet 12.8 9.4 56.8
Retailing
Consumer Appliances Internet Retailing 19.5 19.0 138.5
Consumer Electronics Internet Retailing 4.8 18.0 129.1
Consumer Health Internet Retailing 11.5 7.7 44.7
Food and Drink Internet Retailing 6.5 6.1 34.2
Home Care Internet Retailing 29.0 14.3 95.4
Home Improvement and Gardening 9.8 9.0 53.5
Internet Retailing
Homewares and Home Furnishings 11.9 7.7 45.1
Internet Retailing
Media Products Internet Retailing 10.7 11.7 73.7
Personal Accessories and Eyewear 8.7 5.4 30.1
Internet Retailing
Pet Care Internet Retailing 13.6 13.3 86.6
Traditional Toys and Games Internet 20.6 23.5 186.8
Retailing
Video Games Hardware Internet Retailing 21.2 14.3 95.0

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Other Internet Retailing Internet 32.7 0.3 1.3

Retailing
Internet Retailing 13.2 10.0 60.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Internet Retailing GBO Company Shares: % Value 2013-2017

% retail value rsp excl sales tax

Company 2013 2014 2015 2016 2017

Amazon.com Inc 6.9 9.9 12.0 13.1 12.7

El Corte Inglés SA 3.0 5.2 9.1 9.0 9.1
Inditex, Industria de 2.3 4.9 5.4 6.7 8.2
Diseño Textil SA
Vente-privee.com SAS 2.7 2.8 2.8 5.2 4.8
eBay Inc 5.4 5.5 4.6 4.5 4.5
Apple Inc 2.3 3.4 3.7 3.8 3.7
Pc Componentes y 3.5 3.6 3.9 3.7 3.5
Multimedia SL
Mercadona SA 2.9 2.7 2.6 2.7 2.6
Ceconomy AG - - - - 2.0
Eroski, Grupo 1.9 1.9 1.9 1.9 1.8
Nestlé SA 1.0 1.1 1.2 1.3 1.2
Auchan Group SA 1.1 1.1 1.1 1.0 1.0
Asos Plc 0.3 0.5 0.7 0.8 0.9
Punto Fa SL (Mango) 0.5 0.6 0.7 0.8 0.8
Zooplus AG 0.4 0.5 0.6 0.7 0.7
Dell Inc 0.9 0.8 0.7 0.6 0.5
Zalando SE 0.2 0.3 0.4 0.4 0.5
Grupo Planeta 0.1 0.0 0.6 0.5 0.5
Carrefour SA 0.5 0.5 0.5 0.5 0.5
Lola Digital SL - - - - 0.4
Metro AG 1.9 2.3 3.0 2.5 -
Otto Group 0.5 0.5 0.4 0.4 -
Privalia Venta Directa SL 1.7 2.6 2.8 - -
Bertelsmann SE & Co KGaA 0.8 0.6 - - -
Groupalia Compra 0.4 0.4 - - -
Colectiva SL
Others 58.8 48.4 41.3 40.1 40.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Internet Retailing GBN Brand Shares: % Value 2014-2017

% retail value rsp excl sales tax

Brand Company (GBO) 2014 2015 2016 2017

Amazon Amazon.com Inc 5.5 8.6 10.3 10.4

El Corte Inglés El Corte Inglés SA 5.2 9.1 9.0 9.1
Zara Inditex, Industria de 3.4 3.7 5.1 5.1
Diseño Textil SA
3rd Party Merchants eBay Inc 5.5 4.6 4.5 4.5
PcComponentes Pc Componentes y 3.6 3.9 3.7 3.5
Multimedia SL
App Store Apple Inc 2.5 2.7 2.8 2.7

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Mercadona Mercadona SA 2.7 2.6 2.7 2.6

Vente-privee.com Vente-privee.com SAS 2.8 2.8 2.4 2.2
Media Markt/Saturn Ceconomy AG - - - 2.0
Privalia Vente-privee.com SAS - - 1.8 1.7
3rd Party Merchants Amazon.com Inc 1.9 1.8 1.7 1.6
Nespresso Nestlé SA 1.1 1.2 1.3 1.2
Eroski Eroski, Grupo 1.2 1.2 1.2 1.1
Alcampo.es Auchan Group SA 1.1 1.1 1.0 1.0
Apple.com Apple Inc 0.9 1.0 1.0 1.0
Asos Asos Plc 0.5 0.7 0.8 0.9
Bershka Inditex, Industria de 0.4 0.5 0.4 0.9
Diseño Textil SA
App Privalia Vente-privee.com SAS - - 0.9 0.8
Mango Punto Fa SL (Mango) 0.6 0.7 0.8 0.8
Zooplus Zooplus AG 0.5 0.6 0.7 0.7
Media Markt/Saturn Metro AG 0.7 1.5 1.9 -
Redcoon Metro AG 1.5 1.5 0.5 -
Privalia Privalia Venta Directa SL 1.9 1.9 - -
App Privalia Privalia Venta Directa SL 0.7 0.9 - -
Others 55.8 47.3 45.5 46.2
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Internet Retailing Forecasts by Category: Value 2017-2022

EUR million
2017 2018 2019 2020 2021 2022

Apparel and Footwear 1,520.5 1,655.6 1,770.0 1,890.9 1,991.3 2,096.9

Internet Retailing
Beauty and Personal 447.8 486.4 523.8 558.1 749.2 1,005.9
Care Internet Retailing
Consumer Appliances 233.8 262.5 288.3 311.7 326.8 346.5
Internet Retailing
Consumer Electronics 941.6 1,046.4 1,048.6 1,091.4 1,110.7 1,116.3
Internet Retailing
Consumer Health 21.9 23.9 26.0 28.6 31.2 33.3
Internet Retailing
Food and Drink Internet 1,457.6 1,545.7 1,614.4 1,678.4 1,744.5 1,824.2
Retailing
Home Care Internet 64.3 78.7 92.9 102.0 104.1 106.3
Retailing
Home Improvement and 135.1 142.8 148.7 152.4 156.4 160.4
Gardening Internet
Retailing
Homewares and Home 267.1 285.2 300.8 318.5 335.7 353.8
Furnishings Internet
Retailing
Media Products Internet 1,159.4 1,222.2 1,273.7 1,320.8 1,368.0 1,410.4
Retailing
Personal Accessories 335.8 366.7 391.2 415.9 438.8 461.4
and Eyewear Internet
Retailing
Pet Care Internet 101.9 111.6 119.1 125.9 132.3 138.5
Retailing
Traditional Toys and 102.9 113.5 123.6 132.7 141.3 150.5
Games Internet Retailing
Video Games Hardware 66.8 75.9 88.8 105.1 123.0 144.0

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Internet Retailing
Other Internet 1,348.1 1,639.0 2,161.9 2,712.0 3,256.2 3,741.2
Retailing Internet
Retailing
Internet Retailing 8,204.7 9,056.2 9,971.7 10,944.4 12,009.6 13,089.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

Table 6 Internet Retailing Forecasts by Category: % Value Growth 2017-2022

% constant value growth, retail value rsp excl sales tax

2017/2018 2017-22 CAGR 2017/22 Total

Apparel and Footwear Internet Retailing 8.9 6.6 37.9

Beauty and Personal Care Internet 8.6 17.6 124.6
Retailing
Consumer Appliances Internet Retailing 12.3 8.2 48.2
Consumer Electronics Internet Retailing 11.1 3.5 18.6
Consumer Health Internet Retailing 9.5 8.8 52.3
Food and Drink Internet Retailing 6.0 4.6 25.1
Home Care Internet Retailing 22.3 10.6 65.2
Home Improvement and Gardening 5.7 3.5 18.7
Internet Retailing
Homewares and Home Furnishings 6.8 5.8 32.4
Internet Retailing
Media Products Internet Retailing 5.4 4.0 21.6
Personal Accessories and Eyewear 9.2 6.6 37.4
Internet Retailing
Pet Care Internet Retailing 9.5 6.3 35.9
Traditional Toys and Games Internet 10.2 7.9 46.3
Retailing
Video Games Hardware Internet Retailing 13.7 16.6 115.8
Other Internet Retailing Internet 21.6 22.6 177.5
Retailing
Internet Retailing 10.4 9.8 59.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

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