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Date Published: 25/04/2025

Are Spain's Chinese bazaars disappearing for good?

The pandemic, shifting consumer habits, and rising costs are pushing many to shut up shop or reinvent their businesses.

If you’ve walked around Spain’s city streets recently, you may have probably noticed that quite a few Chinese-owned bazaars – known to Spaniards simply as ‘chinos’ – are closing down. But don’t be fooled, this doesn’t mean Chinese entrepreneurs are packing up and leaving Spain. In fact, many of them are adapting and finding new ways to keep their businesses alive.

A big reason behind the closures is the economic impact of the coronavirus pandemic. With fewer people shopping, many of the large stores started losing money, and some owners decided it was time to head back to China due to health concerns and ongoing uncertainty. As one shopkeeper put it, “Health comes first.”

And for others, running a business in Spain just became too expensive. With rents staying high but sales dropping, it was a tough situation to manage.

Even after the pandemic, things are still tricky. Pedro Nueno, a professor at IESE Business School, points out that a big shift in consumer behaviour, along with the rise of online shopping, has made life even harder for traditional retailers.

“The lack of tourists, changing shopping habits, and the quality of some products have all made a difference,” he says. These days, more and more people are opting to shop online, where they can find cheap goods directly from China; and that’s added even more pressure to the local shops.

Online shopping has become a real competitor. E-commerce sites that offer inexpensive products have really taken over, making it hard for physical stores to keep up. With the convenience of home delivery and cheaper prices, many consumers are choosing to buy online instead of visiting a shop. This is tough for small businesses, especially Chinese-owned bazaars, who now have to rethink their entire business model to stay afloat.

However, not all hope is lost. Instead of simply shutting up shop, many Chinese entrepreneurs are being creative and finding new opportunities. Some are moving to more affordable locations on the outskirts of the city, while others are changing their businesses altogether, venturing into things like bakeries, home delivery services, and even online sales.

Lidan Qi, CEO of Puente China España, points out that Chinese business owners in Spain are “very enterprising” and quick to adapt when times get tough. "Those who stay in Spain will find new ways to make it work,” she says.

Another challenge has been the rising cost of international transport, which has tripled since the pandemic. To cope with this, some owners are looking into franchises in other industries, like energy, while others are setting up online stores to reach a wider audience.

In cities like Barcelona, the situation is a little different. Many Chinese business owners are simply moving to larger places outside the city centre to save on rent. Some are even opening up big wok restaurants or bakery chains. According to Jonhi Zhang, general secretary for the Federation of Chinese Corporations in Spain, this shift shows that Chinese entrepreneurs are flexible and ready to embrace change.

So, while the closure of bazaars in Spain might seem like the end of an era, it’s really just a sign of Chinese entrepreneurs adjusting to the changing times and finding new ways to thrive.

Image: Archive

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