Selling abroad looks like one of the most attractive opportunities for the Italian economy, which has been bent by the containment measures taken during the covid-19 pandemic.
For many companies, especially small ones, this opportunity can really be a lifeline. In fact, should companies be able to export their products effectively, they could take advantage of the foreign country’s economy to overcome the stagnant local situation.
What globalization offers
Globalization and digitization offer opportunities unthinkable just a few decades ago.
Globalization has shown increasing economic interdependence among different countries. In addition, the liberalization of goods, achieved as a result of the removal of customs barriers and the lowering of tariffs, has facilitated the creation of new markets.
While the speed of trade has undergone an incredible boost with the implementation of the Internet and the use of e-commerce. New means of communication have made it possible to revolutionize and simplify contacts with foreign countries, giving companies the opportunity to make themselves known.
Export of Made in Italy
Italian products are an extremely renowned and appreciated brand on a global scale.
- Made in Italy is growing by about 14 percent each year (BrandZ: Top30 Most Valuable Italian Brands 2019).
- The mechanical instrumental and mechanical-textile, food & beverage, fashion and design sectors emerge as drivers.
- Exports are on the rise: rebound effect (+35%) after trade freeze due to lockdown (Source: Istat).
- The effect will last into 2021: estimated +9.3 percent.
- It is expected to grow by 5 percent in the next two years (according to SACE’s export report).
- Confirmation of the export orientation of the Italian economy: in fact, in the period 2012-2019 we observe an average growth of 3% in Export (MISE website: Ministry of Economic Development). (P)
Internationalization of Italian enterprises: solution to the crisis
The idea of internationalizing your business is a particularly attractive option. Particularly if you want to find solutions to the difficulties encountered domestically or decide to invest in a more ambitious project.
If the Italian market no longer has anything to offer your company, you can think about investing some of the available capital abroad. Creating a new market is anopportunity to avoid being trapped in an environment with limited prospects.
Here are some solutions:
- exporting Italian products to Europe
- Expand Italian enterprises in the world market
- marketing feasibility study
Exporting Italian products to Europe
Germany, France, Spain, Switzerland and the United Kingdom are among the top choices for those who want to export to Europe.
These countries represent long-standing trading partners. In fact, one could take advantage of the already strong relationships and reputation established over the years to make one’s name more easily known. In addition to this, the advantage of proximity should not be underestimated, especially if you are a first-timer.
Expanding Italian enterprises in the world market
Facing the global market is definitely a braver choice. Getting out of the comfort-zone is never easy, and doing it in a big way is not for everyone!
In this case, one of the most attractive options is the U.S., an economic giant that has never hidden its interest in made in Italy. Should other countries be chosen, it is necessary to proceed even more cautiously.
Remoteness, cultural, economic and bureaucratic diversity are elements not to be forgotten.
SACE’s export report offers the investment index to evaluate the countries that offer the most opportunities: to learn more, visit the website or download the report.
Marketing feasibility study to evaluate your proposal
The economic viability of the project must be considered before marketing the products. But not only that. It is essential to identify a marketing strategy that will enable the development and maintenance of an extraterritorial channel.
Isola di Comunicazione is the web agency that can help you plan the crucial marketing feasibility study. And even before that collaborate to design the best internationalization strategy.
You can learn more about marketing feasibility study in our article.
Regulations to comply with when deciding to open a new market abroad
The regulations governing the Italian market clearly are not shared by all other countries. When you have to market in other nations you have to subscribe to the set of regulations that are accepted by local competitors.
In order to sell in the European Union, products must comply with EU requirements for the protection of human and animal health, the environment and consumer rights. In addition, one must comply with the EU General Data Protection Regulation or GDPR.
In particular, with the 1968Customs Union, it is possible to reap the full benefits of the internal market, with smooth trade and secure consumers. In fact, the opening of customs makes it possible to facilitate the movement of:
- goods
- capitals
- services
In all other countries, the rules adopted by the WTO (World Trade Organization), which respond to agreements on trade in goods(GATT), services(GATS), intellectual property(TRIPS) and the principle of non-discrimination among members.
In any case, it is always best to carefully study the market of the nation in which you want to sell. In fact, knowing the regulations and tax requirements of the designated country is essential to avoid running into unpleasant penalties.
3 ways to ensure marketing support for exports
The most complex phase of the process concerns the management of sales channels and marketing support activities. Let’s look at some alternatives and tools that might come in handy for companies that want to sell products and services in foreign countries:
Open a physical office abroad
Opening a physical office abroad is almost counter to modern approaches.
It can be useful to make yourself known in a direct way, though. To achieve tangible results, it may be crucial to accompany the activity with a web advertising campaign and communication support as soon as possible. Especially abroad, the targeted goal of getting in touch with one’s target audience becomes vital with even more accelerated timelines than in one’s own country. Marketing can be of great help to the branch or salespeople in the foreign market to identify the typical buyer of their company and immediately expand the customer base.
The advantages of investing in a physical location abroad include:
- territorial presence and assistance
- showrooming
- increased brand awareness
- upselling possibilities
- customer contact
- immersive experience
Among the negative elements we undoubtedly find the cost incurred (room rent and furniture, salary of the collaborator,…) which can also be very high.
Making e-commerce site/supporting a marketplace
If you choose to set up an e-commerce site, you opt for a path that takes advantage of the potential offered by today’s technology. But not only that, you also intercept new market trends, where users have become increasingly accustomed to completing purchases online.
Here are the possible benefits derived from establishing e-commerce as an international showcase,
- Reduced cost: expenses are related to the implementation and maintenance of the site
- 24-hour sale
- increased company visibility
- selling easily, quickly (no waiting) and securely
The professionals at our communications agency are experts in creating dynamic websites and fully support this option. An optimized, local-language e-commerce site allows you to sell conveniently and efficiently.
The alternative would be to place one’s products on a local marketplace, thus a third-party platform where products can be displayed. Nonetheless, it is worth pointing out that a personal site is an added value and helps to provide greater authority to the company, as it directly handles the selling part.
Online advertising
Online advertising is an indispensable element, regardless of which channel you adopt.
That’s where Google Ads comes in.
Web advertising campaigns aim to connect those who express interest in what the company offers through Google searches with the company. At the exact moment when users express their need online.
They also allow the brand name to spread, contributing to the visibility andawareness of the company.
You can learn all about how it works and how to start a campaign on our Google Ads Adwords consulting page.
As you may have guessed, opening a new market abroad is by no means trivial. Basically, the elements to manage and consider are really numerous. The important thing is to go step by step and start by defining realistic goals based on the company’s characteristics and potential. Then you can continue with the development of a successful strategic action plan.
Our web agency in this provides you with incredible help, ensuring decision support in allocating your investments and initiating a winning communication project.
Do you have an initiative to support? Don’t hesitate to contact us, we will provide you with all the support you need.
