Doing business
Business opportunities
Italy has a huge, sophisticated consumer market - almost any internationally competitive product has the possibility to succeed. The Italian industry is characterised by SMEs (over 80 per cent of companies) and family businesses with a strong regional focus.
Industry deregulation, privatisation, monetary union and a trend toward a single EU market are increasing competition and consolidation across most industries.
The key areas of opportunity for Australian exporters include:
- Environment and infrastructure development
- Alternative energy solutions
- ICT – banking services, mobile tech, broadband
- Marine – pleasure craft, equipment
- Media – programming, books
- Medical equipment
- Cosmetics
- Seafood
- Aboriginal art
- Plants and flowers
- Studying in Australia
- Pet products
- Skins and hides
Business culture
Business tips
Italians generally dress well at all times, but conservative attire is recommended for business meetings.
Good food and drink are always appreciated, but Italians generally drink alcohol only at mealtimes.
Traffic congestion can cause delays especially in larger cities.
Business visits in July and August are strongly discouraged as this is the Italian summer and most people and companies take their vacations at this time.
Italy is price-conscious and competitive, so do as much preparation as possible before visiting Italy and send detailed company information in advance.
Italian importers generally ask for a large amount of point of sale material and samples.
Quick responses and prompt follow-ups may not be forthcoming from Italian contacts, but are appreciated from Australian contacts.
Long credit payment terms are common (60 to 90 days, 120 for major department stores, large corporations and public sector organisations).
Prices should be quoted in Euro, cost, insurance and freight (CIF) Italian port, or alternatively in US dollars.
When writing figures, Italians invert commas and decimal points, eg. 1,5 per cent and ITL2.300.000.
Setting up in Italy
Establishing a presence in Italy
As the world’s seventh largest economy and a major industrialised nation with a population of around 60 million people, Italy offers considerable market opportunities for Australian businesses wishing to expand their presence globally and tap new markets and customers.
Italy also provides an excellent base from which to access other Mediterranean markets, as well as further business opportunities in the wider European region.
Bovis Lend Lease established their Italian headquarters in Milan, from which they also service business opportunities in neighbouring countries such as Malta. Their direct presence in Italy has enabled them to secure some highly coveted projects, such as the €3.5 billion Area Falck urban renewal north of Milan and the Armani hotel development in Milan, as well as participate in projects such as the Turin Winter Olympics. Their presence here ensures they are eligible to bid on key public projects from which non-European entities may otherwise be excluded and they also utilise their base here to promote Australia’s leadership in environmental sustainability.
Cochlear has been present in Italy for five years, capturing 65 per cent of the market in their first year of operation. They have since expanded from six staff members to 28.
Po Valley Energy’s Italian headquarters allow them to develop local gas licenses and production facilities; the company owns a number of gas fields and has also commissioned several gas plants in northern Italy.
Transport technology company ERG established an office in Rome to deliver a contract for the management of the electronic ticketing system for the Rome Metro; their in-market presence has also enabled them to subsequently bid for other key local projects.
Architectural and design firm Woodhead decided to expand into Europe via a joint venture with the Italian firm Interplan 2, creating a new business entity (Woodhead Interplan Srl) that is registered in Italy and therefore eligible to bid for any European Union project, including NATO defence projects.
Given the language and cultural differences, the importance of ongoing relationships and the value of a direct presence in negotiating local regulations and customs, establishing a local presence in Italy can offer many advantages to Australian companies wishing to expand their business into Italy and Europe.
Italians highly value innovation and 'best of class' products and solutions and Italy is a world leader in a large variety of industry sectors; opportunities therefore exist for tapping into these supply chains and offering innovative, world class solutions and technology. Italians often prefer to deal with the local representatives of overseas suppliers, so a local presence will help provide easier access to these opportunities.
How Austrade can assist
Whether your plans are to open a marketing office, establish a joint venture, set up a manufacturing plant, or grow your business from an established offshore investment, Austrade’s knowledge of commercial practices and in-market contacts in business and government can assist you in achieving your business objectives.
We can provide a range of support for Australian companies wishing to establish a direct presence in Italy, including:
- Provision of information about industry trends
- Assistance in the development of investment strategies
- Introductions to potential international partners
- Referrals to service providers such as lawyers, accountants and investment promotion agencies who can provide specialist advice
- Facilitation of access to government departments
- Ongoing support, including help in identifying market opportunities, tendering for projects and promoting your business in the market
If you are interested in expanding your business into Italy, please contact Austrade Milan on milan@austrade.gov.au.
Links and resources
Government, business and trade
Italian Chamber of Commerce and Industry in Australia – www.icciaus.com.au
The Italian Ministry of Foreign Affairs – www.esteri.it/eng/index.htm
Italian Statistics Institute – http://en.istat.it/
News and media
Il sole 24 ore – www.ilsole24ore.com
International English-language newspapers and magazines are generally available at railway stations and news stands in major cities. In smaller towns it may be harder to access news in English.
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.