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Spanish 2021 Market Roundup

Despite a disappointing third quarter report, boardsports businesses in Spain are still enjoying a sweet moment. Cooperation between brands and retailers to sort out stock challenges will continue to secure ongoing steady sales. By Ricio Enriquez

Spain’s third quarter economic report has brought about some disappointment. There’s recuperation in employment, but private spending does not appear to be keeping up the pace. The economy grew 2% in the period from July to September. This was supposed to be the quarter of the big bounce-back. Tourism surpassed pre-pandemic levels, restrictions were lifted, and most of the population was vaccinated. Yet, private spending was far from the expected “Roaring Twenties” attitude. Inflation has a lot to do with this. Prices have gone up 5.5% from last year, marking a 30-year-high. Increasing energy prices are claiming a lot of families’ budgets. Bottlenecks in the supply chain are keeping factories halted and product scarce.

Despite the unexpected grey cloud in the general economy, the boardsports industry keeps seeing some sunshine. Pandemic restrictions impacted the mentality of Spaniards, many of whom have reconsidered their priorities; pastimes and sports being at the forefront of them. Home budgets save a chunk for outdoor experiences. Sergi Sanchez, owner of Kite Experience, explains: “Board sports have an adventurous edge. They offer individual challenges and freedom, something today’s society values a lot”. Water boardsports spots tend to be touristic ones, so stores have benefited from the influx of foreign euros. Summer was quite good, prolonged by quite a warm early Autumn. Hardgoods remain the top-selling category, even in the face of scarcity. Stock problems have posed challenges for retailers, but they have also helped sell the inventory at full price. Delivery delays and lack of stock have held back growth, but the demand has stayed strong. Dani Garcia, sales agent and owner of Special Surf, sees the bright side. “The high demand and stock scarcity has stopped the market’s suicidal tendency of overstocking, discounts and sales”. The primal position that sports have gained in consumers’ budgets promotes the sales of new high-end materials. They allow for all-condition riding, giving fans more time in the water, and even inland.

Skateboarding is riding the popularity wave boosted by the Olympics. Local authorities of many towns are investing in facilities that help the growth of the sport. It is yet to see if snowboarding will catch up with skateboarding and water boardsports. The last two seasons were heavily impacted by the travel restrictions imposed by Covid. Most professionals are optimistic about this season, though. “Once resorts are open, they are going to be packed. People really want to go and play in the snow”, says Dani García.

If brands and retailers can navigate the challenging stock situation, there’s no reason to believe that the sweet moment they have been experiencing will stop. The time for discounts and delayed payments, so needed during lockdown periods, is over now. The best help brands can offer to retailers now is to fearlessly buy good quantities of essential products, so retailers don’t run out of stock in-season. On the other hand, retailers need to cooperate by pre-ordering at the right time and doing well-thought forecasts. Dani sums it up: “Help measures are nothing but patches to keep afloat something that is not working well. If the market is clean and sustainable, there’s no need for help measures”. In this ideal situation, the money brands save by not having to offer discounts could be invested in Marketing and R&D. These initiatives truly progress the sports. Sergi Sanchez goes a step forward. “Looking at the bigger picture, manufacturing in Europe would be key to secure more quality control and carry-over collections”. He proposes the creation of sports collectives. These could offer feedback to brands about which products need to be replenished, guiding their production decisions. While the demand is high, there’s no better time to implement innovative changes that will ensure there’s stock to cover it.