Those considering registering a fashion company in Spain should keep in mind that the country’s fashion industry is extremely important for the global fashion market. Many Spanish companies supply goods for major international brands or act as manufacturers for other companies. And even though textile manufacturers have largely relocated their production facilities to other countries, production of other consumer goods for major apparel manufacturers is continuing to play a dominant role in Spanish economy.
Registering a fashion company in the Kingdom of Spain holds a number of distinctive advantages. According to investment bankers, consultants & retail experts, there’s still excess capacity in Spain’s retail sector, especially when it comes to large department stores & ‘fast fashion’ franchises.
Regulation of Contractual Relations in Spain’s Fashion Industry
There’s no comprehensive regulatory framework applicable to each & every aspect of Spain’s fashion industry. The country’s system of contract law is quite similar to the identical legal systems in the majority of European countries. From a regulatory perspective, consumer protection legislation is strongly impacted by relevant EU directives, and the same applies to data protection & e-commerce regulations.
Launching production of fashion products in the Kingdom of Spain requires concluding various contractual agreements. Parties to those agreements can be:Because the Spanish authorities are directly responsible for trade regulation & consumer protection, retailers seeking to launch branded products in Spain must keep in mind specifics of both national & regional legislation.
- companies supplying raw materials & goods to producers;
- service providers;
- brands’ distributors/agents;
- warehouse service providers in the Kingdom of Spain;
- value-added providers in the Kingdom of Spain.
Spain: Concluding a Franchise Agreement
Distributors & agents have always been important for Spain’s economy, and the fashion industry is no exception to that rule. Therefore, major fashion brands, including luxury ones, have relied & are continuing to rely on wholesale distributors & agents in the Kingdom of Spain.
However, it is no longer the case. In an era when goods are delivered directly to stores or consumers, quite a few brands are beginning to rethink their distribution strategies. Therefore, cancellation of franchise agreements in the Kingdom of Spain can be expected in the near to mid term.
Because terms of cooperation can be freely agreed upon, there’s a strong likelihood that contracts may be structured differently. In particular, it is highly likely that the so-called "hybrid" contracts will be concluded. Also, one shouldn’t forget about the availability of selective distribution systems that allow suppliers to control resale of their products much more efficiently, protecting their brand reputation & ensuring the quality of customer service.
Import & Export of Branded Goods
Spain has no specific rules governing production, sale & distribution of fashion & luxury products. In fact, they’re regulated by the same customs regulations applicable to other goods.
Given widespread counterfeiting, protecting IP rights in the Kingdom of Spain poses a big challenge. IP protection lawyers, along with law enforcement agencies, are often involved in seizing counterfeit goods at Spanish ports & airports. Overall, counterfeiting causes significant damage to manufacturers & brands in the Kingdom of Spain & EU.
When registering a manufacturing company in Spain requires compliance with stringent safety & health criteria, and that is a big challenge in and of itself. However, the said criteria aren’t applicable to Spain’s fashion industry. Therefore, producers of fashion & luxury products aren’t required to abide by any particular regulations.
Protecting a brand in Spain can be a real challenge, especially for entrepreneurs who are only considering opening a fashion company in this country. Therefore, retaining services of highly qualified legal advisors can make a major difference And that’s where IQ Decision UK comes into play. Our legal advisors render legal assistance with starting a fashion business in Spain, as well as provide legal advice on registering a design as a TM in Spain.