Italy is one of the countries most prone to international trade, mainly due to its strategic geographical position, which has allowed it to become a historically important crossroads of trade routes between Europe, Africa and Asia. This attraction has persisted to this day.
Let’s take a look at the opportunities and challenges of exporting to Italy, highlighting how our Kompass solutions can be the key to your successful international expansion.
The Italian market: brilliant prospects
Italy, known for its love of fashion, gastronomy and technology, offers a diversified and insatiable market for foreign goods. With a GDP of US$2,25 trillion, Italy ranks eighth in the world and is the third European economy.
This unique scenario not only reflects the diverse demands of Italian consumers, but also opens doors for exporters wishing to find specific niches and establish strong ties in this dynamic market.
Italy is a strategic country
Although Italy is a major exporter in some categories of goods (pharma products and medicines, motor vehicles and – of course – clothing and fashion accessories), in others it is fully or partially dependent on foreign imports (raw materials, basic chemicals, iron and steel products). In 2023 Italy imported US$ 639.63 billion worth of goods, which corresponds to 2.23% of global imports.
Italy imports mainly: mineral fuels, oils; motor vehicles; chemicals, pharmaceutical and medical products; computers, electronic and optical tools; non-ferrous metals; textiles, clothing, leather and accessories; food, beverages and tobacco; machinery and equipment.
According to 2023 import statistics, the main import partners are Germany (15.1% of total imports), China (8.04%), France (7.86%), Netherlands (6.15%), Spain (5, 53%), Belgium (4.51%) , USA (4.25%), Switzerland (3.03%), Poland (2.71%) and Algeria (2.37%).
Entering the Italian market: the fusion of traditional and digital
1. Traditional approach
Despite the great rise of the digital world, traditional methods are still one of the main ways to close international deals.
As a Martech company with an 80-year history, Kompass offers solutions that harmoniously combine traditional and innovative approaches: we can help you expand your export activities, whether it is ranking the foreign markets you are interested in or organizing business missions abroad through our local offices.
2. Digital channels
With the surge in digitalization, Kompass International was prompt to develop special offers for exports online promotion:
- Our Booster offers will provide your optimal visibility in the Italian market 24 hours a day. It is no longer you who will contact potential customers, but they themselves will be interested in your products or services, as 300 thousand B2B Italian users are searching for new suppliers in Kompass.com every month.
- Our online prospecting solution EasyBusiness Sales Accelerator allows you to fully digitalize your sales pipeline: from prospecting for potential importers to web analytics on closed deals. The global database here lists more than 7 million of Italian companies and 6 million of contacts.
Another example of a successful digital debut in the Italian market is the campaign from British sweets manufacturer Mars Inc launched via Pinterest in 2021. To promote their mouth-watering philosophy, Maltesers developed a strategy that included short and witty videos with the tagline #PrendilaAllaLeggera (#LookontheLightSide), encouraging people on Pinterest to treat life with a smile, a good dose of humor and delicious chocolate. The results were excellent – brand recognition and product awareness in a highly competitive market increased by 21%.
Specifics of accessing the Italian market
Italy is a developed and mature market with over 60 million consumers with high purchasing power, although there are differences between the northern and southern regions, which are characterized by lower economic standards. Italy currently offers exciting opportunities for potential exporters in almost all sectors. Moreover, the high degree of openness to trade in this transalpine country favors exchange in both directions. The most dynamic sectors in Italy are aerospace, agri-food, automotive, chemicals and pharmaceuticals, consumer goods, green economy and ICT.
Entering a foreign market, such as the Italian market, does not happen overnight, so it is necessary to develop a long-term plan and not to leave things to chance if the desired results are not achieved in a short time. There is no doubt that entering the Italian market allows you to expand your sales opportunities, but in order to compete with national operators, you need to be as efficient and productive as possible.
The Italian consumer is demanding and pays a lot of attention to presentation, so it is important to create an excellent company image, from the catchy online presentation, catalogs and website to the final product. In general, they are looking for high quality products or products that stand out in some way.
Promoting product exports overseas can be a challenge, but there are strategies you can use to increase product recognition and demand:
- Partnering with local distributors or agents in the target market increases product recognition and helps expand the network of contacts.
- Adapting the product to specific market needs increases the likelihood of success. This is confirmed by the experience of Starbucks, which entered the Italian market in 2018. The international coffee giant managed to adapt to the local culture: Starbucks worked with local craftsmen and Italian materials to adapt the design of its coffee shops to the architecture of Milan, they collaborated with local bakers to tailor the menu to local tastes, they even changed the flavor profile of the coffee, as Italians prefer darker and milder roasts, unlike American coffee, which some Italian coffee drinkers consider ‘weak’. As a result, the company has gained the trust of Italians and plans to expand further on.
Challenges and solutions
1. Language and cultural barriers
In a market as diverse as Italy, cultural and linguistic adaptation is not just a strategy, but a necessity for establishing strong ties with local customers. Foreign languages are not particularly common in Italy – only 13% of Italians have enough knowledge to communicate in English, 8% of Italians can communicate in French and 7% in Spanish. The best cities for communicating in foreign languages are Rome, Bologna and Milan.
Attempts to squeeze local producers of national products most often fail, as Italians are reverent about their culture and the concept of ‘Made in Italy’. For example, the American pizza giant Domino, which entered the Italian market in 2015, went bankrupt in 2022 due to strong competition, as Italians favor ‘home-style’ baking over pizza conveyor.
2. Regulatory Compliance
Although Italy is part of the European Union, Italy, like any other country, has its own regulations and standards. It is very important to make sure that products meet all legal requirements, from quality standards to labeling, to avoid regulatory obstacles.
Conclusion
Exporting to Italy is an exciting adventure full of possibilities. With our help, you can not only use the traditional approach, which is still valid, but also maximize the digital opportunities to successfully enter the Italian market.
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