Marketing your products and services
Market entry
It is essential to deal with a local distributor or agent who is familiar with European Union (EU) and Italian import-export legislation, marketing practices and assorted paperwork. A good place to start is by attending Italy’s major cosmetics trade fair, Cosmoprof. Also, a tour of as many retail outlets as possible will provide insights into the type of products and images Italian consumers prefer.
Another option is to manufacture products locally, in order to avoid expensive freight costs, ensuring that local contacts are reliable. Alliances or joint ventures with local manufacturers might be a more viable option.
Franchising is highly developed in Italy, and is seen as an innovative way to introduce a new business concept in Italy. Outfits such as The Body Shop are highly successful, and franchising could represent an excellent route into the Italian market, provided formats are adapted to the local business environment.
The Italian market is fiercely competitive, and Australian products should emphasise unique characteristics such as:
- Natural ingredients - such as aloe vera, native essences
- Environmentally friendly manufacturing
- Innovative formulations for specific conditions – eg. cellulite, wrinkles, spots
- Sunscreens with high sun protection factors, especially for children
- Barriers against day-to-day pollution
- Niche products for specific categories of consumers, eg. men, teenagers, women over 50
The promotion of a cosmetic product is the key factor in its success. To attract distributors and retailers to list your products, consider:
- Financial support for advertising and marketing in Italy.
- Make product samples available for retailers to test market.
- Attractive point-of-sale is vital in this competitive market.
- Attractive packaging, tailored to local tastes, is crucial.
- Emphasising that products have not been tested on animals is a good selling point.
The market is highly competitive, but Australian exporters may have good prospects especially for ‘natural’ face, body and hair care products, since Italians tend to perceive Australia as a sunny, unpolluted environment. However, products that are too highly scented such as tea tree and eucalyptus might be perceived as being ‘clinical’, and subtlety is recommended.
Italians are traditionally fashion and style conscious, so packaging and presentation are crucial. Packaging must be geared toward the sector of the market at which products are aimed. The leading cosmetic brands have spent considerable sums of money in the design of their packaging, including the labels, and this has resulted in increased market penetration and awareness. Packaging must conform to Italian and European Union laws.
Branding is equally important and if an Australian company would like to sell its products under its own brand, it is necessary to create the reputation of the product through a promotional campaign.
Advertising costs are very high in Italy, especially in the glossy up-market fashion and glamour magazines, and the newspaper supplements. Local retailers would expect contributions towards promotional expenses. Brochures and product samples are more useful for Italian retailers than information from websites.
Take seasonal buying patterns into account when considering your product and think about the end user: Italians are sun-lovers but are becoming increasingly aware of the need for protective sunscreens. Pollution is high in many large Italian cities, and products that combat its harmful effects on the skin are popular. Italian men also tend to use face and skincare products extensively.
Distribution channels
The distribution system is highly fragmented. Although supermarkets, hypermarkets and department stores sell large volumes of cosmetic products, Italians still prefer traditional channels such as (in order of importance):
- Supermarkets/hypermarkets
- Perfumeries
- Pharmacies and chemists
- Hairdressing salons (both for women and men)
- Beauty salons
- Herbalist stores
- Door-to-door sales (direct sales)
Department stores
Department stores welcome companies willing to pay for setting up 'stores-in-store', corners and kiosks to launch and promote new products.
The main Italian department store chains are:
Supermarkets
Principal supermarket/hypermarket chains include:
Perfumeries
Italy abounds in perfumery stores (Profumerie), where Italian consumers purchase their cosmetics and toiletries. They value the personal attention and advice they receive from trained staff, and appreciate the wide range of brands that most stores stock.
Perfume stores specialise in perfumes (84.5 per cent), men’s toiletries (43.6 per cent), make-up (49.6 per cent) and face care products (45.5 per cent).
Pharmacies and chemists
Italy’s pharmacies are either municipal or privately owned – there are no chains of pharmacies as there are in other countries. They tend to specialise in European brands sold exclusively through pharmacies, such as Vichy, Phas, and RoC, but many also sell homeopathic and natural remedies and cosmetics.
This retail outlet has a market share of 14.1 per cent. Pharmacies specialise in face care products (26.5 per cent) and oral and body hygiene products (15.1 per cent).
Mass distribution
Supermarkets and hypermarkets in the country saw an increase in cosmetic product sales (up to 5.3 per cent) and they accounted for 28.5 per cent of the total market. They are specialised in oral and body hygiene product and hair care product.
They offer better prices and a more innovative service to the customer.
Beauty salons and spas
Thermal spas and health/beauty farms are another small but promising outlet for the right products. There are popular spas at Montecatini, Ischia, Salice, Sirmione and Saturnia, and all also offer beauty treatments. Patrons are generally willing to pay higher prices for innovative and unique products.
Hairdressers and aestheticians registered the majority of cosmetic sales in Italy. Hairdressers show a 1.1 per cent turnover increase while aestheticians a 1.8 per cent turnover decrease.
Herbalist shops
There is an ongoing interest in naturally derived cosmetic products. Herbalist outlets saw an increase in sales of 7.7 per cent.
Direct sales
A proliferation in direct sales channels demonstrates that unconventional sales and distribution methods that used to be reserved for other markets are also proving to be successful in Italy, too. This retail outlet saw a 2.3 per cent turnover increase.
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