The Spanish economy has experienced significant growth in the past few years, making Spain Europe’s seventh biggest recipient of Chinese investment. With the drop of prices of oil, the favorable exchange rates, and the structural reforms carried out by the government, Spain has turned into an attractive destination for foreign investments. Chinese investors have made some significant purchases within the past year, especially within the infrastructure and entertainment industries. The purchasing of the soccer club RCD Español, for instance, can be related to the growing Chinese community in Spain, an estimate of 161 000 people in 2016, and a high interest in European football.
Why the interest in Spain?
The reason why Chinese investors are increasingly interested in European companies and, more specifically, in the Spanish-based ones, is because through them they can gain access to the supply chains and provide high-quality products in China. Spain is the 12th largest economy when it comes to acquiring Foreign Direct Investment stock, and the bilateral trade between the two countries increased by +31.7% for the last two years. What’s more, even the Chinese president has openly encouraged the increased trade and investment with Spain, enhancing not only the trading volume but the quality of international communications.
Find your niche
Specializing in industries from Automotive and Aerospace to Environment and Natural Resources, the Spanish market will provide a suitable ground for your business. Currently, the business climate in Spain is favorable for most enterprises, as it provides highly educated and skilled professionals at a lowered labor cost. However, a trusting relationship with your business partners can be a challenge, especially when there is a language barrier. To make the most out of the newly established intercontinental relationship, you need to get familiar with the country’s cultural specifics and language. No matter how good your business’ infrastructure and product is, it won’t perform well on an uncommon ground if communication can’t be established.
Get to know the language
Translation and localization are going to be key factors for the further development of the economic and cultural relationship between Spain and China, especially since both countries’ leaders are keen on intensifying the people-to-people exchanges. To ensure that the ideas and beliefs behind your business are accurately represented and understood, reliable translation and clear communication will be essential.
Research the market
An example of successful integration within the European market is the high-tech Chinese enterprise Xiaomi, which opened 2 physical stores in Spain last year. The brand has been enjoying great interest from European customers and has been the first to explore the market by opening a physical store. This is a prime example of how knowing your customers and researching the market can help you get ahead of the competition and differentiate yourself. The yet-unexplored Western-European market can be conquered through forging a lasting relationship with your pre-existing online customers, which will help you in the process of developing a localization strategy.
With the trade ties between China and Spain growing stronger, you can use the language to gain an advantage to your competitors. Being one of the most frequently used languages online, Spanish is on its course to becoming one of the dominant European languages. Therefore, more businesses are looking to harness the power of Spanish-speaking consumers, which requires significant knowledge of their culture and language.
As the third-largest Spanish-speaking country, the influence of Spain on the global market cannot be underestimated. With the proper technology and translation expertise, Chinese businesses can easily reap the benefits from the European market. If you are looking into expanding your reach to Spain, at 1-StopAsia, we can provide you with the necessary assistance to bring the two diverging cultures together and build trusting business relationships.