Spain at a Glance
Spain is located in southwestern Europe, and covers an area of just over 505,000 square kilometers. Surrounded almost entirely by seas, it is also one of the most mountainous countries in Europe, and has the second largest extension of forests on the continent. It features approximately 8,000 kilometers of coastline, and an extraordinary diversity of landscapes.
With a population close to 48.6 million people, it is the 4th largest economy in the European Union, and the 14th worldwide. The Spanish economy grew by 2.5% in 2023, posting its third consecutive year of annual growth after a historic 11.2% decline in GDP precipitated by the outbreak of the coronavirus. By sector, services represent 68.5% of the economy, followed by industry (15.2%), construction (5%) and agriculture (2.3%).
Renowned for its cuisine, its tourism enclaves, and its good weather, Spain is also an international leader in sectors like construction, transport, logistics, renewable energy, agri-food, banking and fashion. It stands out in tourism, where it is the second most visited destination in the world. It should be noted that it ranks second in the world in number of World Heritage cities, third in number of natural spaces declared Biosphere Reserves, and boasts the most “blue beaches” in the entire northern hemisphere. It is also uniquely rich in monuments, the result of a melding of cultures and centuries of history.
Basic Data
- Official Name: Kingdom of Spain
- Geographical location: In southern Europe, on the Iberian Peninsula.
- Area: 506,002 km2
- Population: 48,592,909.
- Density: 96 inhabitants/km²
- Capital: Madrid (3,280,782 inhabitants)
- Main cities: Barcelona (1,636,193), Valencia (792,492), Seville (681,998), Zaragoza (673,010), Málaga (579,076).
- Form of government: Parliamentary monarchy.
- Administrative division: 17 autonomous communities (regions), 50 provinces, and 2 autonomous cities: Ceuta and Melilla.
- Belonging to: CoE, Eurozone, EEA, IMF, NATO, OECD, UN, OSCE, EU.
- Annual GDP (2023): €1.462 trillion.
- GDP Per Capita (2023): €30,320.
- HDI (world ranking) 26/188
Direct Selling in Spain
Direct selling for business purposes made its appearance in Spain in the 1920s in the publishing field, but it has been more widely implemented since the 1960s. Since then, the channel has seen extraordinary development, with the concurrence of national companies and international brands; a wide diversification of products and services; and greater advantages for its distributors and customers.
Today Spain ranks fifth in the European Union market, with a turnover of 642 million Euros in 2023 and a network of about 190,500 independent distributors. In a society in which the omnichannel approach is positioned as the present and future option for sales, the formula of direct sales maintains its identity by providing buyers with the advantages of being able to consult products online or virtually, the convenience of personalized service, and the confidence generated by person-to-person guidance. Direct selling is characterized by distribution of great capillarity, which results in the development of local environments, whether it is a large city or a small town.
Direct Selling in Numbers
- Spain ranks fifth among the main European Union markets in direct sales (behind Germany, France, Italy and Poland).
- One in six Spaniards buys products via direct sale, for an annual volume of 7.7 million buyers and 4.8 million orders placed.
- By autonomous community (region), the penetration of direct sales as a purchase option stands out in Andalusia (20%), Catalonia (18%) and Madrid (14.5%).
- By product category, Spanish consumers are interested in well-being (30%), cosmetics (20%) and home items (19%), among others.
- 75% of customers are loyal and repeat their shopping experience an average of six times a year, with their average purchase receipt being 82 Euros.
The Spanish Direct Selling Association
Founded in Spain in the 1970s, the Spanish Direct Selling Association (AVD) was established to promote the reputation and recognition of direct selling and those member companies and independent distributors who market their products and services. It currently lists 20 member companies, which market a wide range of goods and services, covering sectors such as cosmetics and personal care, nutrition and wellness, home equipment, clothing and accessories, jewelry, home care, telecommunications, culture, etc., mainly using the direct selling system.
The AVD is a member of SELDIA, the European Association of Direct Selling Companies; and WFDSA, the World Federation of Direct Selling Associations.
Regulation and Self-Regulation
In Spain, direct selling is governed by Law 3/2014, of 27 March, amending the consolidated text of the General Law for the Defense of Consumers and Users, and other complementary laws, approved by Royal Legislative Decree 1/2007 of 16 November, which adapts consumer regulations to Directive 2011/83/EU and which entered into force on 29 March, 2014. One of the main advantages of this regulation for Spanish consumers is that it guarantees the right of withdrawal, which must be duly communicated.
Meanwhile, multilevel selling, applied by most direct selling companies, is governed in Spain by Law 7/1996 on the Regulation of Retail Trade.
In addition to what is established in the current regulation, the AVD subscribes to the European Code of Direct Sales, aimed at consumers and distributors. The Code is the result of the direct selling industry’s commitment to ethical business practices that ensure the protection of consumers and distributors, as well as its determination to ensure the equality and consistency of codes across the European Union. Its function is to ensure positive relationships between direct selling companies and consumers, striving to offer the public maximum satisfaction and safety in their purchases.
An Entrepreneurial Opportunity
In Spain, there are some 190,500 professionals who practice direct selling, either as their exclusive professional activity, or to supplement their incomes. It stands as an activity that facilitates entrepreneurship without barriers to entry based on age, gender, education, or initial investment, thereby favoring equal opportunity.
According to Seldia’s “Direct Selling in Europe 2023” report, these are some of the features defining the Spanish direct selling distributor’s profile:
- 77% are women and 23% are men. By age, 65% are between the ages of 35 and 54.
- 53% have been engaged in this activity for more than 4 years, with 23% having more than 10 years of experience.
- 90% appreciate the opportunity to start their own business, and consider it a good option to earn additional income.
Challenges Facing the Sector
At a time charged with transformation and rapid changes, direct selling seeks to preserve its hallmarks and recover a path of growth. Anticipating consumption trends and the efficient integration of ICTs will shape the sector’s future.
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Written by Tara López, President of the Spanish Direct Selling Association. Born in the United Kingdom, she holds a degree in Economics and Modern Languages from the University of Westminster and a postgraduate degree from South Bank University in London. In 2013 she joined Herbalife Spain as Senior Marketing and Sales Director. She was promoted to General Manager in 2019, the position she currently holds. She was previously Chief Marketing Officer at Iberia Airlines, and at British Airways for seven years in the UK. In Spain she first joined Avis, and in 2012, Loewe, as Head of Communication Strategy and Relationships with B2B Customers.
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