Italy boasts sophistication and discernment not only in its people but also in its business practices.
The Italian market is prosperous and highly competitive and has proven to be a front-runner for UK trade for many years. It is the seventh largest global market for British exports and, after Germany and France, the UK is the third largest supplier to Italy.
Italy’s efficient and versatile local industry has more than half its employees working for (usually family owned) small and medium sized enterprises
With more than 1,000 British companies participating in the Italian market, there is at present twice as much British investment in Italy creating a balance of trade that falls in Italy’s favour.
Italy’s efficient and versatile local industry has more than half its employees working for (usually family owned) small and medium sized enterprises (SMEs).
Many Italian companies are export-orientated and therefore expert at cross-border alliances, sometimes providing opportunities for co-operation with British companies in third markets.
Good reputation
British technology, equipment and components have always had a good reputation in Italy and, despite the current price issue, innovative and high quality goods are always of great interest to the Italian end market.
Having one of the highest per capita incomes in Europe and a savings ratio second only to Japan, Italy has a high level of consumer spending, particularly in the wealthier north. Traditional, top-quality British goods are likely to do well.
Italy adopted the Euro in 1999 and subsequent Government policies have been directed at the structural reform of the economy and at ironing out bureaucratic impediments to investment.
The ongoing liberalisation programme (especially in the energy and telecoms sectors), and the adoption of the British concept of public/private partnership are creating new and exciting investment opportunities for UK companies. Sectors ripe for investment are Aerospace, communication, clothing, design, creative and media, security, IT, food and drink, medical, oil and gas and telecommunications.
Although southern Italy is less developed than the north and suffers some long-standing structural problems, there are some areas of rapid growth, specifically in ports and electronics.
The preferred methods of market entry for UK business in Italy are, as with any Western European country, joint ventures, owned or partly owned subsidiaries or partnerships. Having an Italian partner is always a good first step, but there are no obstacles to outright purchases or setting up greenfield sites.
