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E-COMMERCE IN SPAIN - 2012

Report By Inés Ramírez Nicolás eMarket Services Spain

ICEX www.emarketservices.com

January 2013

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Summary In this review of data dating from 2011 and the beginning of 2012, we see that consumers have embraced e-commerce, which continues its record growth every quarter. However, just as we saw in our 2011 report, there are challenges that still have to be met in order to be on a par with our European neighbors, like increasing B2B e-commerce in the country, even though we beat the last sales slump and are back on the path to growth. To put the situation in Spain into context, this report will give a brief review of the state of e-commerce worldwide and in Europe, by studying data on Internet usage and e-commerce by individuals and companies, and by signaling this year´s industry challenges and trends.

Overview of ITC and e-commerce worldwide As of December 31, 2011 there were 2.27 billion Internet users worldwide, 270 million more than in 2010. Data from Internet World Stats shows that Asia, with more than 1.01 billion online users takes the lead, followed by Europe with over 500 million, and North and South America both with 235 million.

Internet Users in the world by region 2011

46%

22%

12%

10%6% 3% 1%

Asia

Europe

North America

Latin America&Caribbean

Africa

Middle East

Australia/Oceania

Source: Internet World Stats and our own elaboration of data

The highest user penetration is in North America (78%), followed by Oceania/Australia (67.5%) and in third place Europe with 61.3%. Latin America (39.5%), the Middle East (35.6%), Asia (26.2%) and Africa (13.5%) still have a long way to go to extend Internet access to their communities.

Nevertheless, the 2,988.4% increase in Internet usage in Africa, 2244% in the Middle East and 1,205.1% in Latin America from 2000 to 2011 is remarkable, as well as the speed at which they are gaining ground.

Broadband Internet access technology is also on the rise, especially mobile broadband technology. There were 584 million users of fixed broadband in 2011, 12.3% more than the previous year. All of the major regions mentioned except Africa, which remains stable, have experienced growth. The 1.16 billion subscribers of mobile broadband account for 36.3% of the increase.

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As far as mobile access is concerned, 92% of the world´s population already has cell phones, since according to the 2012 TNS Mobile Life report, there are more than 6 billion users. Of those, 30% have a smartphone, 21% use their cell phone to surf the web and 39% express interest in doing so.

According to Digital Life, the TNS study on digital consumers, more product information searches are done online than offline, regardless of which stage the consumer buying decision process is at. The digital world encourages consumer buying since shoppers can search and make purchases anywhere and at any time; and that can be seen in the bottom line results of e-commerce worldwide.

According to the IMRG (Interactive Media in Retail Group) report B2C Global e-Commerce Overview 2012, consumer oriented e-commerce increased by 20% in 2011 to $961 billion (€690 billion) and is predicted to continue to grow in 2013 to over € 3 trillion, a figure that wasn’t expected to be reached until 2014. According to this data, by geographic region, Europe will benefit the most from this kind of e-commerce with $ 343 billion (more than € 246.5 billion), followed by North America with over $ 330.2 billion (more than € 237.3 billion), Asia Pacific with $220 billion (over € 158.1 billion) and Latin America with $ 38.9 billion (nearly € 28 billion). The e-commerce leaders by country continue to be the United States, followed by the United Kingdom and Japan. Even though growth in these mature markets is slowing down, there continues to be an annual double digit increase of between 10 and 15%. The 130% increase in e-commerce in China in 2011 drove much of the growth in Asia Pacific. Countries with the best prospects for growth in Europe are France, Italy, Spain, Russia, Turkey and Poland. Brazil and Mexico lead the growth in Latin America, and Israel and the United Arab Emirates are the main contributors to increases in e-commerce in the Middle East. Regarding the most widely used payment methods, the Nielsen Global Survey of Investment Attitudes says that half of online consumers worldwide (52%) use credit cards to pay for food, shopping and other leisure activities; 42% use debit cards.   

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Electronic Commerce, the key to growth according to the EU   In our 2011 Report on Electronic Commerce in Spain, we mentioned that in June of 2010, the European Council adopted the Europe 2020 strategy, which includes the Commission´s proposal for a strategy to help the European Union overcome the crisis and become a smart, sustainable and inclusive economy of productivity and social cohesion by 2020. Europe 2020 includes the Commission´s policy paper COM (2010) 245, “A Digital Agenda for Europe” which aims to “deliver sustainable economic and social benefits from a digital single market based on fast and ultra-fast Internet and interoperable applications.” The Digital Agenda aims to promote e-commerce among the population, boost cross-border e-commerce, and advance e-commerce in companies. This year, in its commitment to e-commerce as a means to bolster growth in the European Union, and on the 20th anniversary of the single market, the European Commission´s Single Market Act II covers the twelve points it considers most important in driving economic growth in the European Union. Because of its important indirect effect and since it is considered an opportunity not to be missed, improving the digital economy is among the twelve key points. To accomplish this, they believe it is important to promote e-commerce in the EU “by making electronic payment services easier to use, more competitive and efficient” and by improving consumer trust in order to build a real digital market by 2015.

Another key point is promoting electronic invoicing, to make it the standard invoicing mode for public procurement, because it seems generate savings according to EC spokespersons. The Single Market Act II follows the measures put in place by the Commission in the Single Market Act I (IP/11/469) and opens a new chapter in the process to bigger and better single market integration.

According to the National Observatory for Telecommunication and Information Society (ONTSI) the 2011 report on the Network Society , the two main uses of the Internet by Europeans in 2011 were to search for information on goods and services (more than half the population) and reading newspapers and magazines online (40%). Other uses include searching for information on health issues (38%), online education and training (29%), and electronic banking (37%). Among those surveyed, the Internet was least used for online courses (5%).

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Source: 2011 Report on the Network Society The European Multi-channel and Online Trade Association recently reported that B2C sales in Europe were up by 19% in 2011, to $307 billion, surpassing North America´s $ 297 billion. Internet World Stats´ 2011 statistics on Internet penetration, which appear above, show a slight decline compared to 2010, when Europe led the world in Internet penetration with 65 out of every 100 inhabitants connected to the Web. The following year it ranked third with 61.3%, behind North America and Oceania. However, according to Eurostat, in 2011 broadband access to the Internet by EU 27 member state companies was up 3% from 2010, to 87%. Finland and Spain with 96%, Malta with 94% and Luxemburg with 93% are the countries that lead the EU ranking. In 2011, 43% of EU 27 member state individuals shopped for goods and services online, 3% more than in 2010 although only 10% of the population made purchases in other EU countries. The highest percentage of e-commerce users among the population, 71%, was in Sweden and Great Britain. Denmark was close behind with 70% of the population shopping online, and the Netherlands with 69%. In 2011, the crisis took a toll on bottom line results of Euro Zone companies, since 37% had made purchases via the Internet or networks other than the Internet in 2010, and in 2011 the number dropped to 34%. Denmark has the highest percentage (71%), and contrary to the EU 27 data, it continues to grow (70% in 2010). Norway follows with 61%, and Austria is in third place, with 59%. At the bottom of the list are the republics of the former Yugoslavia (8%), Rumania (9%), and Estonia and Bulgaria (10%).

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Companies that made purchases via the Internet or networks other than the Internet in 2011

Source: Eurostat The percentage of businesses that sold via the Internet or networks other than the Internet from 2010 to 2011 remains stable at 15%. Norway leads this time with 36% of its companies selling online, followed by Denmark with 28% and the Czech Republic and Belgium, both with 27%. The countries that lagged furthest behind were Rumania, with only 4% of its firms getting orders, Italy, 5%, and Bulgaria, 6%. The percentage of profits from e-commerce for EU-27 companies remains unchanged at 14%. Czech companies stand out with 25% of total e-commerce profits, followed by the Finnish with 20%, and Hungarian and Swedish firms tied at 18%. By contrast, Cyprian companies only received 1% of the profits, Rumanian firms 3%, and Greek firms, 4%.

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Companies that sold over the Internet or networks other than the Internet in 2011

Source: Eurostat According to the comScore/Telefonica report Connected Europe, in Europe´s big five countries (France, Germany, Italy, Spain and the United Kingdom) 65% of traffic derived on devices other than computers is on cell phones , followed by tablets, which generate one of every four visits on devices other than computers . Mobile commerce is taking off and redefining the future of the retail industry. M-commerce is advancing by double and triple digits among smartphone users in European countries. The user growth rate is highest in Germany (up to 112% annually) and adopts emerging technologies like QR codes faster. ICT usage by Spanish businesses  According to the National Statistics Institute (INE) “2011 – 2012 Survey on ICT Usage and E-Commerce in Business” in January of 2012, 97.5% of Spanish companies with 10 or more employees had Internet connection, up 5.9% from the same month the year before. In addition, computers are used by nearly all of those companies (98.7%); 86% have a local area connection (LAN), and 51.7%, have wireless LAN.

The National Telecommunications Observatory and SI (ONTSI) 2011 Report on the Network Society     indicates that the Information and Communications Technologies and Audiovisual industries have full access (100%) to the Internet; car sales and repairs, hotels and travel agencies and wholesale trade are all above 99%. Retail trade with 96.4%, real estate and administrative activities (94.4%) are all below the total average of Internet access penetration (97.4%).

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As far as communications are concerned, mobile telephones are in 93.8% of the companies and 47.2% communicate via EDI (electronic data interchange). As a whole, in 2008 58.9% of Spanish firms had a web page and in 2011, they were 71% according to the Online Business School 2012 Report on E-Commerce. That represents a 20.54% increase in those three years. 93.1% of the companies use their web page to promote themselves; 61.2% include a policy statement of privacy and certify the site´s security, while 56.8% provide access to catalogues and price lists. Services available on the web page, by percentage

Source: National Statistics Institute 2011/2012 Survey on the use of ITC and E-commerce in business According to the 2011 Report on the Network Society, 90.8% of SMEs and big businesses in the hotel and travel agency industry have a web page. The Information, Telecommunications and Audiovisual sector follows with around 89.8%. Behind them are professional businesses (75.9%), wholesale trade (73.6%), industry (72.9%) and automobile sales and repairs (70.8%). The rest fall between 53.2% of retail trade and 60.4% of real estate and administrative businesses, that is to say, below the average (67%). As stated in the AMETIC and Everis 2011 report “Information and Communications Technologies in Spanish Companies”,  those companies with Internet connection use it mainly to communicate with customers and suppliers (55.2%), perform banking transactions (52.1%), and to search for work related information (48.1%). In addition, 28% of those organizations use the Internet to make arrangements or transactions with public administrations. INE points out that 47.5% of companies gave their employees portable devices that connect to the Internet to use for business purposes; of those, 35.6% are portable PCs and 42.6% are other devices like smartphones, or PDA phones. The AMETIC/Everis report says that 36.9% of companies surf the web via mobile phones and the larger the company, the higher the usage. Accordingly, 70.8% of companies with more than 250 employees have connected to the Internet via mobile device compared to 36.5% of micro-companies and 36% of those that have between 3 and 5 employees.

The Information and IT industries, report the most extensive use. More than half of those companies use mobile devices to surf the web (55.1%). The business services and financial and insurance services industries follow (47.4% and 40.2% respectively). Among those that use those devices to

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surf the web the least are basic industries, mining and energy (34.8%) and the metal mechanics industry and trade (29.1%). The Everis/AMETIC report also says that there are more and more companies that use cloud computing, and they represent 60.6% of businesses that are connected to the Internet (3.9 percent more than in 2010). Among the cloud computing services, most companies (86.4) use e-mail; 24.7% store information online and 19.3% manage software applications over the Internet. B2C Activitiy in Spain According to the Tatum May, 2012 report “The Internet in Spain and in the World”, which includes data from AIMC, Internet Word Stats, Nielsen Online, ITU and GFT, Spain is the seventh largest European country in terms of users, with a penetration index of 65%. TNS Mobile Life, a recent study from TNS, shows that 49% of mobile phone users in Spain already have a smartphone. Perhaps that is why the European Commission´s June, 2012 Annual Telecommunications report showed that Spain is the fourth EU country with the largest high-speed mobile Internet penetration after Sweden, Finland and Denmark. The use of broad band mobile has doubled in the first year and is now in 65.3% of the population, far above the EC average of 43.1%. By January, 2012, 30.1 million customers were using this service. The main reason that Spaniards use the Internet is to search for products and services; 47% are closely attached to e-commerce, 45% read newspapers/magazines online; and 43% search for information on education, training and other types of courses according to the 2011 Report on the Network Society.

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Source: 2011 Report on the Network Society

The TNS Digital Life report says that as far as people searching for information on goods and services is concerned, at any time during the decision making process to buy, more searches are done online than offline, regardless of the sector: automobile, travel, food and beverages, finances, mobile phones, etc. The digital world encourages consumers to buy and searching and buying now can be done all the time, at home, on the job and while traveling. We also consult several information sources, including the brand and seller, but nothing influences us more than personal recommendations from friends and family. According to the ONOTSI 2011 B2C report, there are three product categories on the Internet. On the one hand, the product category with the most online searches for purchases is tourism related (hotel reservations, transportation tickets, car rentals…) and downloads (apps, music, films, series…). A second category of products sought online, like telephone and Internet services, financial services and tickets, although they mainly purchased at physical stores. Lastly, the third category refers to products that were recently introduced and searched for online, like electronics, personal services, toys, household appliances, clothing, food and bazaar items, although they are not widely purchased or contracted via the Internet. Searches and purchases of products in this last category are done mainly offline. Last October, the INE 2012 Survey on Equipment and the use of ICT in Homes confirmed that the percentage of people that shopped online in the last three months was up 3.4% over the past year and accounts for 22.3% of the population. This means that around 10.7 million people (31.0% of the population between 16 and 74 years old) dealt with e-commerce last year.

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The types of products bought over the last 12 months have not changed much compared to the previous year, since vacation accommodations still leads (54% of people that shop online), other travel services (49.7%), and show tickets (40.3%). According to the Online Business School report “E-commerce in Spain, 2012”, the Spanish online shopper is male, between 25 and 34 years of age, buys mainly Spanish products, has completed high school, and is actively employed making an average € 2,250 a month, lives in Andalusia and his favorite product is reserving and paying for vacation accommodations. 70.92% of online shoppers in Spain are working people, 13.29% are students and 9.96% are unemployed. 55.7% are men, and 81.90% of purchases are made at Spanish companies. Cristina Tomas, director of research at OBS says that “in the last year, the trend that implied that the higher the education the more one shopped online has changed; it is also surprising to see that shoppers´ income level no longer corresponds to the amount of purchases made”. On the other hand we can also see changes in the profile of online shoppers from 2010 to 2011. The ONTSI report on B2C e-commerce points out that there has been an increase in the number of 15 to 34 year olds that use the Internet, and also in people over the age of 65, although that age group has fewer consumers. The number of online shoppers with a primary education has grown, although they are also a very low percentage of the total number of shoppers. The number of lower and lower-middle class online shoppers has also increased, as well as the number of unemployed people and housewives. There are also more communities with less than 10,000 inhabitants among the total number of online shoppers. With reference to billings, data from last year reported quarterly by the Telecommunications Market Commission (CMT)  shows that turnover from e-commerce in 2011 amounted to € 9.2 billion, up 25.7% from the previous year, and 131 million transactions were recorded. The stellar industries of the year were travel agencies (13.8%), air transportation (12.6%), direct marketing (6.7%), passenger ground travel (5.9%), games of chance and betting (4.5%), cultural, sports and recreational shows (4.0%), clothing (3.8%), advertising (3.1%).

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2011 B2C E-Commerce Data 

Q-1 Q-2 Q-3 Q-4 2011 Total

Turnover 2,055.40 2,322.10 2,421.80 2,401.40 9,200.70

% of change year to year 23.10% 26.50% 27.40% 25.70% 25.70%

Num. of transactions (millions)

30.2 31.3 32.6 36.9 131

Prominent Sectors

Travel agencies and tourism operators (12.4%),

Air transportation (12.2%),

Direct Marketing (6.3%),

Passenger ground Transportation (6.1%)

Games of chance and betting (4.9%),

Cultural, sports and recreational shows (4.1%),

Education (3.7%),

Clothing (3.5%),

Advertising (3.0%)

Computers and software (2.4%)

Air transportation (14.1%) Travel agencies and tourism operators (13.8%) Direct marketing (6.2%) Passenger ground transportation (6.0%) Games of chance and betting (4.3%) Clothing (3.5%) Cultural, sports and recreational shows (3.3%) Advertising (3.1%) Government, Taxes and Social Security (2.5%) Computers and software (2.5%)

Travel agencies and tourism operators (16.8%) Air transportation (13.4.%) Direct marketing (6.5%) Passenger ground transportation (5.8%) Games of chance and betting (4.1%) Cultural, sports and recreational shows (3.4%) Clothing (3.2%) Advertising (2.9%) Household appliances, radio, television and sound (2.2%) Cinematography and video (1,9%)

Travel agencies and tourism operators (12.3%) Air transportation (10.5%) Direct marketing (7. 8%), Passenger ground transportation (5.7%) Clothing (5.1), l Cultural, sports and recreational shows (5%) Games of chance and betting (4.5%) Advertising (3.4%) Household appliances, image, sound and music downloads (2.8%) Government, Taxes and Social Security (2.8%)

Travel agencies (13.8%) Air transportation (12.6) Direct marketing (6.7%) Passenger ground transportation (5.9%) Games of chance and betting (4.5%) Cultural, sports and recreational shows (4.0%) Clothing (3.8) Advertising (3.1%)

Source: CMT and our own resources 

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The most recent data, Q‐2 2012, shows that turnover from e-commerce in Spain amounted to € 2.64 billion, a 13.7% increase over the same period in 2011 (when turnover totaled € 2.32 billion); and a total of 36.7 million operations. The sectors that had the highest number of transactions were, travel agencies and tourism operators (13.8%), air transportation (13.8%), direct marketing (6.5%), passenger ground travel (4.8%), games of chance and betting (3.5%), cultural, sports and recreational shows (3.4%), advertising (3%), clothing (2.5%) and lastly, Government, Taxes and Social Security (2.5%) and household appliances, image, sound, and music downloads (2%). Turnover from transactions originating in Spain and directed overseas amounted to € 1.137 billion (43.1% of the total), with 19.2 million transactions. As in prior quarters, the European Union was the preferred destination for shopping abroad. Turnover reached €1.027 billion or 90.3% of the total. The United States too, as in prior quarters, was the second most preferred destination for Spanish consumers, with turnover amounting to € 49.7 million or 4.4% of the total. CEMEA countries (countries of Central Europe, the Middle East and Africa including Switzerland, Russia, South Africa, Turkey and Saudi Arabia) took in €39.2 million, or 3.4% of the turnover made from Spain. The markets of Asia Pacific and Latin America took in 1.1% and 0.3% of the total originating from Spain, with € 15.8 million (€ 12.9 million and €2.9 million respectively).

Source: Report on E-commerce in Spain through payment companies, CM Q-1/2012

The ten sectors with the highest percent of volume are air transportation at the top (12.5%), followed by games of chance and betting (7.5%), travel agencies and tourism operators (6.4%), direct marketing (6%), and clothing (3.6%). Behind them are advertising (3.1%), computers and software (2.9%), other businesses specializing in food (2.5%), household appliances, image, sound and music downloads (2.1%), and on the lower end, hotels and similar accommodations (1.8%).

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Also in first quarter 2012, turnover from overseas transactions with Spain amounted to € 394.5 million or 14.9% of the total (a 17.6% year-to-year increase). The European Union was the geographic area that bought the most goods from Spain online. Specifically, the EU-27 countries spent € 304.2 million in Spain via e-commerce, or 77.1%of the total. The CEMEA countries took second place in total e-commerce spending in Spain with € 26 million, or 6.6% of the total. Income from Latin America (€ 25.5 million) amounted to 6.5% of the total income from abroad. The fourth region to generate income for Spanish e-commerce was the United States, which amounted to € 17.9 million that quarter, or 4.5% of the total. Asia Pacific was the fifth region to generate income for Spanish e-commerce, spending € 15.1 million (3.8% of total turnover) shopping online in Spain.

Source: Report on E-commerce in Spain through payment companies, CMT Q-1/ 2012 The sectors with the highest turnover were tourism (including travel agencies and tourism operators, air transportation, hotels and similar accommodations and passenger ground travel), with over 58.4% of the income. By order of importance as far as income is concerned, they were followed by advertising (5.7%), direct marketing (5%) and cultural, sports and recreational shows (3.3%). Toys and sports items (2.1%), real estate services (2.1%) and education (1.9%) closed the list of most important sectors. E-commerce revenue from payment companies inside Spain in Q-2 2012 amounted to € 1.1 billion, or 42% of total turnover and 13.6% more than the same period the previous year.

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E-commerce in businesses Just as in Europe, the trend in Spain is that there are more companies that buy online than sell over the Internet. Data from the 2011/2012 INE Survey of ITC and E-commerce usage in business shows that in 2011, 14.2% of companies sold via e-commerce compared to 12.2% the previous year. Turnover generated by these sales amounted to € 187.5 billion, nearly € 20,000 more than the year before. The former survey showed a decline in companies´ online sales with respect to 2009, but this year there is evidence of a positive trend toward positive. The largest percentage of companies by sector that sold online (calculated by the total number of firms in a sector) were “Accommodation services” (75.7%) and “Food, beverages, tobacco, textile, clothing, leather and footwear, wood and cork, paper, graphic arts and reproductions of recorded media” (21.1%). Online sales accounted for 13.7% of total sales by Spanish companies, 2.2 points above last year´s figure, which demonstrates greater acceptance of e-commerce by businesses within the country.

Source: INE and our own resources  

B2B, or Business to Business, accounted for 89.5% of e-commerce sales, while the percentage of B2C (Business to Consumer) sales was 7.4%, and B2G (Business to Government) made up the remaining percentage according to the INE 2011/2012 Survey. The Everis report shows that of the Autonomous Communities with the highest e-commerce usage, the Community of Madrid leads with 59.2%, followed by Catalonia (55.2%) – both with percentages above 55%. The Community of Valencia and Galicia are at the tail end with 47.4% and 44.9% respectively.

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Source: National Statistics Institute 2011/2012 Survey on the use of ITC and E-commerce in business In the section on companies that make purchases, the 2011/2012 Survey on the Use of ICT and E-commerce in Business points out that 22.5% acquired goods and services via e-commerce in 2010, nearly a percentage point lower than the 23.3% recorded in 2010. The total volume of orders for goods and services made online increased by 5.4% to € 183.39 billion. Again it is the ICT sector that has the largest percentage of companies that made purchases via e-commerce (65.1%). Companies that purchased through e-commerce represent 19.1% of the total purchases made by businesses - 22.5% more than the previous year - which implies that they are adhering to this as a normal supply channel

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2006 2007 2008 2009 2010 2011 % Companies that sell 8.8 11 11.1 13.1 12.2 14.2 Volume sold 126,909 140,975 160,318 168,864 167,985 187,596 % Annual increase 30.6 11.1 13.7 5.3 -0.5 11.7 % On total sales 8.7 8.3 9.6 11.5 11.5 13.7

Top industries by sector with % of sales

Hotels and camping (62.9%)

Hotels and camping (64%)

Accommodation services (67.85%)

Travel agencies and tourism operators (42.45%)

Accommodation services (66.8%)

Travel agencies and tourism operators (42.2%)

Accommodation services (76.6%)

Information and communications

(18.9%)

“Accommodation services”

(75.7%) and “Food;

beverages; tobacco; textiles;

clothing; Leather and

footwear; Wood and cork; paper; graphic arts and reproductions of recorded media”

(21.1%)

Sales type: sales to end user

B2B (88%) B2C (11.3%) B2G (0.7%)

B2B (93.5%) B2C (5.5%) B2G (1%)

B2B (90.7%) B2C (7.5%) B2G (1.8%)

B2B (89.9%) B2C (9.2%) B2G (0.9%)

B2B (89.4%) B2C (8.7%) B2G (1.9%)

B2B (89%) B2C (7.4%) B2G (3.6%

% Companies that buy 19.3 21.4 20.3 24.1 23.3 22.5 Volume purchased 119,985 153,889 163,739 156,607 174,022 183,396.4 % Annual increase 40 28.3 6.4 -4.3 11.1 5.4 %sobre compras totales 11.7 12.6 13.8 15.5 15.6 19.1

Top industries by sector with largest % of

purchases

Computer businesses

(65.4%)

Computer businesses

(59.5%)

Travel agencies and tourism operators (57,5%)

Travel agencies and tourism operators (53.8%)

ICT (58.4%)

ICT (65.1%)

Information and communications

(52.7%) Source: Survey on the use of ITC and E-commerce in business and our own preparation According to the Everis/AMETIC survey of companies that make purchases online, the main products bought over the Internet are raw materials, consumable goods and merchandise related to their own business (51.9%). In addition, 38.2% of the companies that make online purchases say that they have bought office material, 27.5% find computer equipment and 15.1% contract travel related services and accommodations. Despite the fact that e-commerce via mobile phone is not generally used in business, it has been on the rise in the last four years, and in 2011, 3.2 % of the companies surveyed said that they do use it. That is one percent more than in 2010 and more than twice the 1.5% in 2009 and 1.4% in 2008. Mobile e-commerce or m-commerce usage seems to have increased in SMEs. While in 2010 companies with more than 250 employees used m-commerce more (4.9%), in 2011 the widest usage was by companies with between 50 and 250 employees (4.6%). They are followed by companies with 6 to 9 workers and firms with only 1 or 2 employees (3.3% in both instances). Big businesses with over 250 people on staff recorded the lowest usage in 2011, at 2.6%. M-commerce usage by industry records IT and R&D companies with the largest percentage (16.4%), 13.2% above average. Far behind are Financial Services and Insurance, with 6.6% and 4.1% respectively. The industries that recorded the least usage are Commerce and Hotels (2.6%) and Industry and Metal Mechanics (2.2%).

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Of the companies that use m-commerce, 74.2% use smartphones (up 28.2% in the last year). On the other hand, there are fewer businesses that use 3G terminals or basic mobile phones to buy or sell online (15.4% and 10.5% respectively). Electronic payment methods have been used by 39.1% of companies compared to 30.1% in 2010 and since 2001, the difference is 32.4%; 36.1% of companies make online payments, 8% more than last year, while 7.8% receive payment over the Internet, up 3.4%. Of the companies that purchase products and services online, 47.5% pay by credit or debit card and 28.7% use drafts, money orders, checks or transfers. Other payment options include online transfers (17.7%), bank debit (14.3%), and PayPal (10.8%). More than half of the businesses that sell via e-commerce receive payment through drafts, money orders, checks or transfers (53.2%). Likewise, 43.5% accept credit or debit card payments, 23.6% bank debits, and 17.2% use COD. Why do companies choose to sell over the Internet? According to the Everis/Ametic report, companies that sell products and/or services online say mainly because it is “simple and fast to manage” (45.1%). They also list as an advantage to selling online, the fact that it is “easy to deal with” (37.5%), it may “attract new customers” (35.3%), and it is cost saving (34.7%). “Simple and fast to manage” is gaining ground as an advantage to selling online, up from second place last year, when “attracting new customers” headed the list. For companies that buy online, “easy to deal with” was again the main advantage for nearly half the companies (48.7%), followed by “simple and fast to manage” (48.5%). Close behind are those that consider pricing to be better online (31.6%), while 25.1% believe the best advantage is that it avoids the need to travel. Insecurity and the fear of being robbed or scammed is still the main constraint for companies not to use e-commerce (55.1%), although that percentage has dropped since last year, when 61% of companies gave that as the primary reason. Another 35.3% (exactly the same percentage as in 2010) say that there are certain products and services that cannot be sold online; just as 16.1% claim that companies and products are not prepared, and 12.8% believe that employees’ lack of training and readiness keeps them from using e-commerce.

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We must point out that while social networks are not widely used as a channel for e-commerce, according to the 2011/2012 Survey on the use of ICT and e-commerce in business, they are catching on as a way to advertise to customers. In that respect, 17.4% of companies say that they have used social networks professionally in 2011, and of those, 84.4% use them to advertise, market and manage their image, while 74.4% use social networks to obtain information. Connecting to Government Online The United Nations Department of Economic and Social Affairs periodically publishes a survey on the level of E-Government progress in all countries, and it prepares a corresponding E-Government Development Index that offers a global view of the willingness and capacities of public administrations to use the Internet and mobile technology to execute their role. As we stated in the last edition of this report, in 2010 Spain moved up eleven slots in this Index to rank ninth out of 184 countries surveyed, and fifth among European countries, for which it received a United Nations E-Government Survey 2010 Special Award. However, in the “United Nations E-Government Survey 2012: e-Government for the People”, other countries advanced further and although Spain increased its value in the development index, the country dropped in Rank from ninth place to 23rd globally and 15th in Europe according to the 2011 Report on the Network Society. That same survey says that Spain provides a wide array of e-government services, although there is ample room to improve and integrate services. However the assessment for demand was more difficult since a fixed set of indicators does not exist as it does for supply. As in the previous edition, on the supply side we see that 99% of high impact procedures and 92% of all Central Government procedures were fully accessible over the Internet. According to INE, on the demand side, 44.7% of the population has interacted with the government online (5.6 percentage points higher than the previous year). In the past year 59.4% of Internet

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users said that they got information from government web pages, 41.0% confirm having downloaded official forms and 32.2% sent completed forms. Of the 12.4 million Internet users that in the last 12 months had to file forms with the government, 35.7% did not file online. The main reasons given were: they didn´t have an electronic signature or certificate (25.1%), because someone else filed online for them – a manager, tax advisor, family member or acquaintance- (24.3%) and because they weren´t used to or didn´t know how to do it (21.1%). According to INE, interaction of Spanish companies with more than 10 workers with the government increased from 84% to 95.1% in 2011. The ratio increases as the size of the company increases, to nearly all businesses with more than 250 workers. The main reason that companies use e-government is to get information (71.7%), to access forms and printed material (70.7%), to complete the process online (63.1%), to send back completed forms (62%). The professional, scientific, and technical services industry uses government web pages more than any other (78.3%) followed by the ICT industry (78%) and Information and Communications (76.9%), all of which are more than 10 percentage points above the average of total companies. Public tenders is at the bottom of the list of reasons to use e-government, since 9.3% of companies source contracting information at government offices, only 2.7% bid on public tenders (e-tendering) in Spain and a scant 0.6% in the rest of the European Union. The most active industries are Information and Communications, where 13.4% of companies have bid in Spain and 4.3% in the rest of the EU, and the ICT industry, where 11.9% have submitted bids in Spain and 2.9% in the EU. The Everis report shows which government pages are most widely visited by Spanish companies. Just as in the previous edition, the Tax Agency tops the list with 44.9%, followed by the Social Security portal (14.7%) and websites of the Autonomous Communities (12.9%).

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E-Marketplaces in Spain Spanish companies have different ways of selling online. According to the AMETIC/Everis report, most, 73.1% prefer to deal directly with their customers (up two percentage points from the previous report). However, 9.8% of the businesses that sell online do via e-marketplaces, and 15.5% employ both options.

Regarding online purchasing patterns, 71.1% of the companies that buy online, purchase directly from suppliers. On the other hand, 5.3% acquire their products from e-marketplaces, and 22.7% use both options. In this section we see that the number of companies that buy directly from suppliers as well as those that only buy through marketplaces has dropped one percentage point from last year, in favor of the category that uses both options, which last year recorded 20.7%.

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According to the eMarket Services directory, as of November 2012 there are 85 e-marketplaces and 8 business directories1 based in Spain, 21 more e-marketplaces than in the last edition of this report (+32.8%), an indication of the interest that exists in creating new platforms. Forty of the e-marketplaces focus exclusively on Spain, while the rest include others as well, with special attention to those that address foreign markets worldwide (16). Of the geographic areas or countries that are most frequently attended to, Portugal stands out (10) for geographic proximity; the rest of Europe (13), because Spain is a member of the European Union; and Latin America (17) because of the shared common language2. With regard to products and services, the e-marketplaces that supply multiple industries stand out, since there are 25. Of those that focus on one sole industry, Services, with 15 is notable, followed by those that concentrate on Foods (11), Construction (8), Government e-marketplaces that offer requests for bids (6) and the Health industry3. Addendum I has a full list of e-marketplaces and directories based in Spain.

1 E-marketplaces based in Spain but that do not operate in the country are not included in this count. 2 The number of markets mentioned by geographic distribution does not coincide with the total, since different markets can be included within several groups and not all geographic areas are noted. Complete information can be found in the Directory at www.emarketservices.es

3 The total sum of e-marketplaces by subject matter is not the total of existing e-marketplaces since there are markets that are included in different categories and this text does not mention all existing categories. For further information see the Directory at www.emarketservices.es

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Challenges and Trends Just as in the last edition of this report we noted disparities in the evolution of e-commerce in Spain, the figures now point to a tendency toward growth in the industry. Progress on the part of the consumer is evident. There is a marked increase in Internet penetration, especially with mobile devices; more consumers are going online, and revenue figures continue to break new records. In times of financial crisis the tendency is to save, and one of the main reasons that consumers go online is to comparison shop for better prices since the idea is that there are more offers online than in mortar and brick stores. In the section on companies we see that while the percentage of firms that sell online is up again after coming to a halt last year, the number of those that buy over the Internet continues to shrink, a trend that is also occurring in Europe. However, the volume of purchases has increased, which means that although fewer companies bought online, those that did purchased more and paid more. We believe that the data on companies is a result of the economic situation, and that the increase in online sales is due to the search for a new channel for product placement following the slowdown in national demand at street level; while the decline in purchasing could be in response to a more conservative spending policy. We still have a long way to go to catch up with the countries that lead Europe, so it is necessary to continue supporting measures that encourage Spanish companies to do business online. One such incentive is “Conecta tu negocio” (Link your Business), which was created in February, 2011 by CEPYME, Google, Banco Santander, STRATO, MRW, Orange, and backed by the Ministry of Industry, Tourism and Commerce through Red.es and the collaboration of Barcelona Activa and the magazine Emprendedores. This project, aimed at digitalizing business gives companies a free website with an online store or reservation system included. By February 2012, web pages were already created for 24,500 SMEs and entrepreneurs, and 39,000 domain names with the .es extension were registered. As we mentioned last year, those companies that have their own website or online store have to be taught how to attract and keep potential online consumers, since many of these platforms aren´t optimized, are difficult to navigate and don´t take advantage of the possibilities that social networks contribute to expanding their business. Again we note that search engine optimization (SEO) and search engine marketing (SEM) on social networks as well as shopping page usability are still unresolved issues for many companies. One of the biggest trends among Spanish companies is the search for new alternative markets to place their products, which is why exporting online is gaining popularity every day. For that reason, ICEX Spain: Exports and Investment in collaboration with aDigital, Deloitte, DHL, EOI, Esade Creapolis, and Google created Digital Export Accelerator, an initiative that aims to further economic development by assisting mid-sized companies in exporting their products through e-commerce. Translated, T-Index identifies markets to target for international sales through e-commerce. By combining data from the Internet population and GNP per capita, it predicts which markets will have better growth potential and helps entrepreneurs that want to invest in foreign markets. According to T-Index, the top 10 e-commerce players in 2015 will be China, the United States, Japan, Brazil, Germany, Russia, France, the United Kingdom, South Korea and Mexico.

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During the opening of European E-commerce Conference 2012, Elena Gomez del Pozuelo, president of aDigital presented an interesting summary of e-commerce trends in the country, in which she noted the six main trends that fuel e-commerce growth: mobiles and tablets; video; social networks; unique buying experiences; Big Data; and the Internet of things and services. The figures for mobiles and tablets indicate the dizzying growth of these devices as a means of access to the Internet, and by extension, as an avenue to online shopping. The latest survey from Monetate shows that the percentage of e-commerce done via smartphones was up from 4.51% in Q-3/2011 to 10.03% in the same quarter of 2012; and that the use of tablets for e-commerce increased to 18.4% from 7.67% the previous year. According to Adobe Digital Marketing Insights the conversion rate via tablet is 2.3%, only 0.2 percentage points below visits via traditional devices, and the conversion rate via mobile is 0.6%. These are the reasons why one must not lose sight of website and online store optimization for such devices, since their role in accessing websites and online shopping is increasingly substantial. With reference to social networks, Social-buy.com, the technology products company that integrates e-commerce into social media, indicates in its Social Commerce Barometer, that companies have a growing interest in this new kind of online trading. According to the indicator, 47% of companies believe that social networks are important to boosting online sales channels. More than a third of Spanish companies use Social Commerce to launch offers and promotions, and one in every ten uses a social profile to successfully sell their products. The Internet of things and services is another interesting trend in e-commerce. It refers to the relationship between identifiable objects or things and the virtual world. QR codes, used in marketing and advertising are an example of this trend that users are readily accepting. The food industry is one of the more notable industries experiencing online growth in all areas, since on the one hand B2C e-commerce in food is on the rise (consumers are gradually becoming accustomed to shopping for food online), and also because food leads in generating B2B e-commerce as an article by Solostocks for eMarket Services explained. Referring specifically to electronic marketplaces, in addition to continuing the trend we saw last year of introducing social tools, there are two types of e-marketplaces from which several websites have sprung, and are developing rapidly, following the global trend. On the one hand, there are more and more innovation e-marketplaces where companies ask challenging technological, scientific, etc. questions that they encounter in their day to day business dealings, and where researchers and the scientific community are providing solutions to those problems. Such websites in Spain include dipinnova and Innoget that are similar to the ones that pioneers like the U.S. firm Ninesigma launched in 2000. Professional networks and service e-marketplaces are showing great progress; and very effective new websites that promote international expansion, like Nubelo have also been launched. Along these lines there also exist some more comprehensive e-marketplaces that bring professionals and companies from diverse fields together, like Adtriboo, which unites text, audio, design, etc. Highly specialized websites like Increable a graphic design e-marketplace, are also springing up. In general terms and to conclude, one can say that consumer business is increasing, and new platforms being created online, although we still have work to do to attain a higher level of progress, especially in business, which for yet another year is where we must focus our attention in order for Spanish e-commerce to reach the same heights as the big European countries.

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Addendum 1 – List of Spanish electronic marketplaces

eMarket Products & Services Traded Geographic Focus Abc-pack A wide variety of products and services for

packing and the packaging industry such as adhesive applicators, wrapping machines, pallet loaders, plastic manufacturing, machinery, bagging machines

Global: Spain, Portugal, France, Germany, England, Romania, Hungary, China, North America and Latin America

acambiode.com Exchange and barter of goods and services.

Spain, Latin America, Portugal and Italy

adpv.com All kinds of publicity: Internet, press, television, magazines, etc.

Spain

Adquira Indirect goods and services such as: Office Supplies; Cleaning and Safety Services; Spare Parts for Machinery and Small Equipment, Production Consumables, Transportation

Spain, Europe and Latin America

Adtriboo Video, audio, test and graphic design projects and professionals

Spanish speaking countries

Agromaquinaria A wide range of farm equipment, livestock, hay and forage, seeds and supplies, transportation, and other kind of related machinery.

Spain and Portugal.

Agroterra.com All kind of vegetables, flowers, fruits, livestock, plot of land for crops and agricultural machinery

Spain

Alimentalia.com Food and beverage products such as water, juices, wines, fruits, vegetables

Spain

Aquanima Wide range of direct and indirect products and services within more than 120 categories such as: consumer goods, corporate services, urban services, financial services, industrial services and electricity, gas and water

Spain, Portugal, Mexico, Brazil and Argentina

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eMarket Products & Services Traded Geographic Focus Autoindustria.com Virtual business center addressed to

professionals of the automotive industry, suppliers and components directory, legislation and consultancy, virtual bookstore, training and employment agencies.

Spain, Portugal and Latin America.

Bud-Get Textiles, shoes, transportation, plastics, paper, metals, industrial machinery, electric and electronic products, and a lot of different categories of products.

Europe, specially Spain, and China

Buytextil.com Textiles (man, woman, home, babies, etc.), shoes and complements.

Spain

caloryfrio.com Air conditioning equipment, boiler heating, plumbing service, products and tools

Spain

CASADOMO.com Domotic and Inmotic products and services

Spain

COGUAN AdShare All kind of add space in websites Spain

Construarea.com Earthworks, architectural and engineering, real estate, consolidations, demolitions, building material stores, sanitary appliances, heating & plumbing, walls, foundations, elevation, joinery wood, etc.

Spain

construdata21 Construction Information System, Building materials, safety systems, electricity, house equipment. Consultancy and architectural services

European Union

CONSTRUIBLE.es Information about products and services related to Sustainable Building (bioclimatic architecture, renewable energy, energetic efficiency, Domotics and Inmotics...) such as as solar panels, refuse collection, etc.

Spain

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eMarket Products & Services Traded Geographic Focus Construred Virtual business centre addressed to

professionals of the construction industry, offering services of legislation and consultancy, information about biddings, works, building sites, etc.

Spain

Contrataciones Administrativas del Gobierno Vasco

The Basque Government´s (one of the Spanish autonomous regions) online tendering service for Construction and building; hospitality services, transportation, security, machinery, etc.

Spain

Deporte y Gestion Services: Professional contacts, employment, training, publications, news, events, professional markets. Products: sports equipment, health products, fitness machines.

Spain

dipinnova R&D and Innovation Spain

Easytoget All kinds of products and services needed by a company, especially SME's.

Global, but specially Spain

EconRed Multiple industries, but mainly business services.

Spain

EcoSpainB2B Certified organic products: oils, olives, cheese, cosmetics, animal food, marmalades, sausages, beer, coffee, tea, ham, etc.

Europe

Event Planner Spain Products needed to organise corporate events, meetings, exhibitions and presentations: Accommodation and venues, catering, entertainment, staging and decoration, transport etc.

Spain and Morocco

Eventoclick.com Assisting large companies or SMEs with their outsourcing services for events, such as accommodation, restaurants, travel agencies, translators, catering services, marketing and merchandising actions, etc

Global, but event in Spain

eventoplus.com Every services and products related to events: agencies, hotels, venues, providers, etc.

Europe, especially Spain and Portugal, and Latin America.

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eMarket Products & Services Traded Geographic Focus ExportMadrid.com A wide variety of services and goods are

traded through this portalThe suppliers and vendors are from the region of Madrid (Spain). The buyers are companies from around the world willing to do business in Spain

Ferbossa Industriactiva Pre-owned industrial equipment and machinery from automotive, metal, textile, chemical, food, plastic, paper, hospitality, etc. industries.

Global

GestionaEventos Travel agencies, stewardess services, hotels, catering, event professionals, business centers, indoor/outdoor activities and other categories related to events organization.

Spain, Portugal, Argentina, United Kingdom, USA and France

GetApp.com Business software solutions for customer management, finance & accounting, governance, risk & compliance, HR & employee management, IT & communications, marketing, operations managements, sales, Integration solutions, collaboration, etc.

Global

GLOBALINK All kind of products and services related to internationalization

Spain

Globbarea Building materials, construction services, technologies, industrial machinery, raw materials, food and gourmet products, fashion, tourism…

Global

Grèra Agriculture, Government, financial services, construction, tourism, ITC, services... products and services.

Spain but soon also Latin America

guiaverde.com Seeds, bulbs, fertilizers, manures, tools and all kind of garden and horticulture production articles.

Spain

GuidExport.com Advertising and agencies, automotive, chemical industry, construction, financial, electrical appliances, food, machinery and equipment, stationary, etc.

Global

Iberlonja Iberian pig products Spain and Portugal

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eMarket Products & Services Traded Geographic Focus Ibilonjavirtual All kind of products, but specially those

related to metal, plastics and mechanical industries.

Spain, by the moment

Increable.com Graphic Design projects. Spain mainly

Infoagro Fruits and vegetables, flowers, forestry, auxiliary industry, fertilizers, irrigation, seeds, logistics, machinery, packing and flow pack, biologic crops, tined goods, etc.

Europe

Infoautónomos All kind of services provided by freelances and suppliers for freelances

Spain

Infometal Metals and minerals such as speciality metals, ferro-alloys and metallic minerals. Machinery and services to the metal industry

Spain

Infotarifa Wide variety of products related to hardware equipment, appliances, industrial supplies, and electronic and construction materials

Spain

InnoCash Innovation, specifically R&D results and technology

Spain

Innoget R&D and innovation technologies solutions and services of acquisition, revaluation and marketing of these technologies.

Global

Interempresas Equipment and machinery for the metalworking as well as all the products and services related to the before mentioned industries

Focused on Spain and Latin America (Spanish speaking countries)

Jefe de Compras Electronics, Construction, Publicity and media, Office supplies, Graphic Design, Real Estate, etc, products and services.

Spain

Licitaciones.es Architecture, construction, software, renewable energies, office materials,

Europe, specially Spain

Logismarket Products and services related to logistics, storage, packaging and industrial equipment

Global, with a particular focus on Europe and Latin America

lugardelvino.com Wine, tourism, oil, healthcare (creams), hard cider and bottles rack

Spain

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eMarket Products & Services Traded Geographic Focus MachinePoint Used machinery in the plastic sector for

the film extrusion and converting, extrusion of pipes, tubes and profiles both rigid and flexible, bottles, thermoforming products, moulded parts, compounding, thermoplastics recycling etc.

Global

Maquiclick Industrial machinery: quality control, honing, grinding, washing machines, handling systems and assembly lines, welding cells, process automation, retrofitting, conversion and conditioning equipment, etc.

Spain and Latin America

Marketplace Tecnológico Madrid

The technological marketplace is a tool for technology transfer, which allows the establishment of mechanisms of communication among the offer and technological demand of organisations and companies.

The technology marketplace is an on-line site to facilitate that Madrid based enterprises and research institutions can identify potential partners from across Europe.

MaterialSanitario.com Pre-owned and refurbished equipment previously owned by healthcare facilities, and stocks of products for the health sector

Spain and Spanish speaking countries in South America

Medical Virtual Market Sanitary materials, surgical instruments, orthopaedic materials and implants, and hospital services

Spain

Mercachef Fresh food and related services: vegetables, fruits, meats, fishes, milk, eggs, etc.

Spain

Mercadeuda Debt eMarketplace Spain

Mercatrans Contracting of all kinds of transport for goods

Spain

MFAO Exchange to trade olive oil futures contracts

Global

Mundocatering Products and services related to the catering sector such as food, beverages, equipment, waiters and cooks.

Spain and Latin America

MyntMarket Graphic design, posts for blogs, eMail listings, photoshop works, SEO, Social Media related services, eLearning, etc.

Spanish speaking countries

Negocius.com Companies, franchises and real estate are the actives, as well as related services such as financing services, etc.

Spain and Portugal

Nubelo Hardware and Software development; telecommunications, Design and

Spanish Speaking Countries

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eMarket Products & Services Traded Geographic Focus multimedia; Sales and Marketing, Redaction and translation; Business Services and Administrative Support; Architecture and Engineers

Obralia A wide range of materials, equipments and services needed for the building and construction industry

Spain

Ochoanegocio Wide range of goods and products within multiple industries

Spain and Portugal

Pesca2.com Products in the aquaculture sector, such as fish and seafood.

Global with focus on Spain.

Pescastocks.com Aquaculture products, mainly fish, raw and prepared to consume, like frozen fishes, fillets, vacuum packed

Global with special focus on Spain

PiedrasB2B.com Natural stone and assistant industries Spain and Latin American (Spanish speaking countries)

Plataforma de Contratación del Estado de España

It is the Spanish Government online tendering service for Construction and building; hospitality services, transportation, security, machinery, etc.

Spain

Plataforma de contratación pública de Galicia

It is the Galician Government (one of the Spanish departments) online tendering service for Construction and building; hospitality services, transportation, security, machinery, etc.

Spain

Plazasalud24 All types of hospital equipment and pharmaceutical products.

Spain

Portal de la Contratación Pública de la Comunidad de Madrid

It is the Government of Madrid (one of the Spanish autonomous regions) online tendering service for Construction and building; hospitality services, transportation, security, machinery, etc.

Spain

Red Emprendeverde It is a professional social network for 'green' (environment related) entrepreneurs.

Spain

Sala de negocios All kinds of products, ranging from computer supplies, household appliances and antiques to IT and industrial products

Global any mainly focused in Europe, Spain and Latin America

Saniline Medical devices and equipment, diagnostic equipment and supplies, healthcare products and services, and all supplies to healthcare providers.

Spain

Segurb2b.com Insurance advices Spain and Latin American (Spanish speaking

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eMarket Products & Services Traded Geographic Focus countries)

SENDECO2 Carbon dioxide emissions allowances Southern Europe

Servicio Central de Contrataciones de la Generalitat Valenciana

The Valencia Government´s (one of the Spanish autonomous regions) online tendering service for Construction and building; hospitality services, transportation, security, machinery, etc.

Spain

Servicio de Contratación del Gobierno de Canarias

The Canary Islands Government (one of the autonomous regions of Spain) online tendering service and it deserves Construction and building; hospitality services, transportation, security, machinery, etc. tenders

Spain, specially the Canary Islands

SoloStocks España Textile, Food, Electronics, Construction, Furniture, Paper, Healthcare, etc.

Spain

Spanish Subcontrating Network

Every kind of subcontracting services, specially automotive, aviation and electronics companies.

Spain

Tiendas en Liquidación A wide variety of products, such as jewelery, baby supplies, cosmetics, clothing, etc., and, in general, all kind of clearance sales and stocks

Spain

WTCeurope Goods and services within many different categories

Global

Wtransnet Freight and storage exchanges Europe

Directories Products & Services Traded Geographic Focus Alimarketonline Sectorial information about food,

beverage, electrical appliances, construction, transport, hotel and geriatric hospital management as well as packaging

Spain

axesor On the site you can buy mercantile, commercial, risk prediction and financial-economic data of almost every company from Spain and some international enterprises.

Europe, specially Spain, and it has just started the expansion in Latin America.

Directories of Spanish Exporters

The Spanish Institute of Foreign Trade (ICEX) directories of Spanish Exporters

Spain

ÉGuiame! Directory for company and economic information

Global

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Fashion From Spain Womenswear, menswear, kidswear, jewellery, beauty, leatherwear etc.

Global

Home Textiles from Spain

Carpets and rugs, manufactured products for home decor, publishing houses, bathroom linen, kitchen and table linen, bed linen, passementerie and accessories, fabrics for upholstery and home decor, fabrics for home linen

Global

modaEspaña Womenswear, menswear, kidswear, jewellery, beauty, leatherwear,...

Global

TextilesfromSpain.org Knitwear, Corduroy, Woven, Hosiery, Lace, Fake Furs Technical Textiles, Hand Knitting, silk, etc.

Global

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Addendum 2 – Spanish e-commerce legislation It is important to understand the legal framework for e-commerce. Teresa Rodriguez de las Heras Ballel, professor of commercial law at Carlos III University in Madrid points out some of the rules that have changed between last year and this year in the Information Society Services and E-Commerce Act and the norms regulating online gaming platforms that may affect it indirectly. Both changes are mentioned below. The laws that affect e-commerce in Spain are: PROPOSAL for a DIRECTIVE of the European Parliament and of the Council on consumer rights, adopted on June 23, 2011

• June 8, 2000 DIRECTIVE 2000/31/EC of the European Parliament and of the Council regarding certain legal aspects of the information society, in particular, electronic commerce in the national market. (Directive on electronic commerce).

EUROPEAN COMMUNITIES

• ACT 34/2002 of July 11 on Information Society Services and Electronic Commerce.

April 2, 2012 version modified by

- The General Audiovisual Communication Act 7/2010, of March 31;

- Sustainable Economy Act 2/2011 of March 4;

- Act 26/2011, of August, adaptation of the norms of the International Convention on the Rights of Persons with Disabilities

- Royal Decree -Act 13/2012, of March 30, transposing measures concerning domestic electricity and gas markets and electronic communications, and adopting measures to remedy diversions for gaps between the costs and revenues of the electricity and gas industries.

HEAD OF STATE

• LAW 22/2007, of June 22, 2007, on Electronic Access for Citizens to Public Services

HEAD OF STATE

• ROYAL DECREE 292/2004, of February 20, creates the public seal of trust in information society services and regulates the requirements and procedures of concession.

MINISTRY FOR THE PRESIDENCY

• ROYAL DECREE 1163/2005, of September 30, regulates the public seal of trust in information society services and electronic commerce, as well as the requirements and procedures of concession.

MINISTRY FOR THE PRESIDENCY

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• ROYAL DECREE 1906/1999 of December 17 regulates telephonic and electronic contacting with general conditions in development of article 5.3 of Law 7/1998 of April 13 on general conditions of contracting.

MINISTRY OF THE INTERIOR

• ORDER EHA/962/2007 of April 10, which develops certain provisions related to online invoicing and electronic invoice storage, contained in Royal Decree 1496/2003, of November 28, which approved the Invoicing Obligations Regulations. MINISTRY OF THE ECONOMY AND THE TREASURY

• ORDER HAC/1736/2003 of June 24, which develops a special system applicable to services provided electronically for purposes of value added tax. MINISTRY OF THE TREASURY

• CIRCULAR number 1/2002 of January 25, for National Electronic Compensation System Member Organizations, on representing Organizations in the National Electronic Compensation System and modifying Circulars 8/1988 of June 14 which approve the Rules of the National Electronic Compensation System, and 11/1990 of November 6, which approves Rule SNCE-004 on the general subsystem of checks and promissory notes from the account of the National Exchange System. BANK OF SPAIN

Other laws that regulate advertising, logistics, etc. also affect e-commerce and therefore other legislation exists that has an indirect effect on it:

• Law 13/2011 of May 27 regulates online gaming HEAD OF STATE

• Law 29/2009 of December 30, which modifies the legal regime governing unfair competition and advertising to improve consumer and user protection. HEAD OF STATE

• Royal Decree 671/2009 of November 6 which partially develops Law 11/2007 of June 22 on electronic access to public services by citizens.

MINISTRY FOR THE PRESIDENCY

• Royal Decree 899/2009 of May 22, which approves the bill of rights of users of electronic communications services. MINISTRY FOR THE PRESIDENCY

• Law 16/2009 of November 13 on payment services. HEAD OF STATE

• Law 15/2009 of November 11 on contracting ground transport of goods.

HEAD OF STATE

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Sources and references

• ABI Research (www.abiresearch.com) • Spanish Association for E-Commerce and Relationship Marketing AECEM,

(http://www.aecem.org/) • Association of Electronic, IT, Telecom and Digital Content Companies of Spain, AMETIC

(www.ametic.es) • Banco de España (www.bde.es) • Official Bulletin of the State (www.boe.es) • Collins Stewart (www.collins-stewart.com) • Telecommunications Market Commission, CMT (www.cmt.es) • EAE Business School (www.eae.es) • Economist Intelligence Unit, EIU (www.eiu.com) • eMarket Services (www.emarketservices.es y www.emarketservices.com) • European Information Technology Observatory, EITO (www.eito.com) • Eurostat (www.eurostat.com) • Forrester Research (www.forrester.com) • BBVA Foundation (www.fbbva.es) • Orange Foundation(www.fundacionorange.es) • IDC, International Data Group (www.idc.com) • Spanish Trade Information, ICE (www.revistasice.com) • European Commission Annual Telecoms Report • National Statistics Institute , INE (www.ine.es) • Internet World Stats (www.internetworldstats.com) • Jupiter Research (www.jupiterresearch.com) • Kelkoo (www.kelkoo.com) • Nielsen Online (www.nielsen.com) • National Telecommunications Observatory, ONTSI (observatorio.red.es) • UN (www.un.org) • Red.es (www.red.es) • Social-buy.com, Barómetro del Social Commerce (www.social-buy.com) • Tatum (www.tatum.es) • Telefónica (www.telefonicaonlines.es) • Teresa Rodríguez de las Heras Ballell, Professor of Commercial Law at Carlos III University in

Madrid • TNS (www.tns-global.es/) • Translated.net (www.translated .net) • International Telecommunications Union, UIT (http://www.itu.int)