Italian exports, as we also reported in one of our newsletters, in the first four months of 2021 recorded an increase of 19.8% on a trend basis over the same period of 2020 and of 4.2% over the period 2019 (ICE Report data).
If you have a product you believe in and if you are ready to ride the positive wave that has been created then you will have to be careful not to make one of the most serious mistakes: choosing the wrong destination.
You probably already know that there is a global attractiveness index that ranks 144 countries around the world and that sees Italy in 18th place. Keep reading and you will discover the global ranking but first, without too many technicalities, we want to remind you that the GAI is built starting from a set of quantitative indicators and taking into account the socio-economic and demographic dimension of the country. It is a dynamic index which is calculated over 5 years (2020-2015), includes more than 800,000 data and is made up of three complementary dimensions: Positioning Index, Dynamism Index and Sustainability Index.
From the data just released, here is the most recent ranking of the 10 countries in the world with the highest GAI:
1. Germany
2. Use
3.Singapore
4. Japan
5. Hong Kong
6. China
7. Canada
8. Korea
9. Netherlands
10. France
In addition to considering indices such as the GAI, your company must analyze five key elements in choosing the target country, namely:
The first element to evaluate: a country with a higher level of imports than exports is a country more inclined to import a given product, and therefore potentially more interesting for your business. Above all, by virtue of this it could import at higher prices than exports: large quantities of imports at high prices is the optimal combination for a firm that wants to export.
Is the country growing economically and demographically, or is it experiencing a stalemate? Indeed, it is logical to think that a phase of growth corresponds to better future prospects, and this could indicate an interest in the products of your sector also in the years to come.
How much are Made in Italy products appreciated in the country we are evaluating? By analyzing the levels of imports from Italy, you may discover that the products offered by your business are highly appreciated abroad!
Another element of fundamental importance is the presence of customs duties, and more generally the legislation of the country of destination. Considering the product requirements, the required certifications and the customs costs is in fact a step of fundamental importance.
Finally, especially for companies that have not had significant previous experience abroad, it is necessary to evaluate the presence of marketplaces dedicated to the product being evaluated. In fact, in one of our newsletters we talked about all the advantages that these platforms bring with them: visibility, positioning on the internet and ease of use.
Are you interested in internationalizing your products and do you want to thoroughly evaluate the possible destination countries? Then contact us and we will give you the necessary support.
Octagona is the right partner to support your company in the internationalization process: almost 20 years we have successfully worked on over 750 projects of internationalization, becoming one of the leading companies in International Advisory e among the top 5 in Italy.
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