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Spain Market Insight: Economic Boom meets Cautious Spending. Industry Navigates a Complex Market.

Spain’s economy is growing and nothing indicates that it will stop anytime soon. There is more money in people’s pockets, although this does not reflect in all segments of board sports equally. 

Spain is amongst the top world economies in purchasing power recovery. Dropping inflation, increasing salaries, and job creation have helped. Indicators throw a forecast GDP growth of 3.3%, surpassing expectations. Spain and its southern neighbours are leading the eurozone’s growth, fuelled by tourism, policy reforms, and good use of the European recovery funds. Tourism has been positively influenced by a post-pandemic shift in spending behaviour patterns. Europeans invest less in assets and more in experiences. Investment in renewable energies has resulted in a much cheaper energy bill than Russian-gas-dependent northern countries. This has invited relocation of many European factories, who also appreciate the immediate availability of workers. As a result, savings rates have also hiked. However, most of these savings belong to people over fifty years old, who tend to spend less. How does all this impact the board sports industry, one that benefits from higher purchasing power but with a young target consumer?

The post-pandemic boom of board sports has left a lot of people well-equipped, and growth of these sports seems to have stalled. Retailers report cautious spending generally. “Consumers only buy what they strictly need, comparing prices and looking for what best suits their budget”, says Artur Pedrell from Nautilus Sports in Cambrils. “I focus on basic needs, such as leashes, pads or wetsuits, and stock very little hardware”, says Hector Perez from Northwind Watersports Company in Somo. This is more true for surf, skate, snowboard and SUP than for kiteboarding or wing foiling. Kiteboarders and wing foilers seem more ready to spend on innovation, with wing consumers refreshing their quiver every year. For multi-sports retailers, wing foiling is maintaining the industry’s health. This sport has attracted fans from other sports. Windsurfers get a similar thrill with much less equipment procrastination and less wind. Surfers use the foil to reach further and less populated breaks. Kiteboarders find it less physical and safer. Retailers who sell wing foiling equipment have experienced much better winter sales than those who don’t. Although sales have picked up in summer, they have been lower than expected. July did not offer the best weather, especially in the north. Better weather in August could change the trend.

Retailers have been forced to set up their own e-commerce sites. However, they remain mere showrooms for their brick-and-mortar stores, which handle most of the business. It is not the case of activity schools. Those retailers who have a school see most of their turnover through it. Some retailers complain about the impact of “pirate” distributors and schools. They use beach ambassadors to clear old stock at very low prices or offer unregulated lessons. Newcomers to the sports that fall for them have a lasting bad induction experience that damages the sport in the long term. This is a unwelcome addition to the general unpredictability of sales due to changing weather and economic conditions. Without sales analytics to base a forecast on, it is very difficult to comply with the early buying deadlines that brands require. However, there is one voice when it comes to satisfaction in board sports retail business. “Interacting with the client” is the literal answer of both Artur and Hector. Guiding the consumer through the purchase and seeing them in the water year after year feeds their passion. This gives the retailer an important role in the growth of the sport. There are things brands can do to support them in their quest. Keeping the newcomers in mind when they develop product lines is important. “Gear must be tested with schools, not only pro riders. Schools know how people learn and progress and what they need from their kit to keep practising”, says Hector. Once the gear makes it to the market, it is important to keep a good brand image. “Treat the brands with the respect that consumers deserve, avoiding massive discounts that reduce their value”, says Artur. Many years of dedication to the sport and daily interaction with consumers back these words.

By Rocio Enriquez.