Italian exports, as we also recounted in one of our newsletters, in the first four months of 2021 recorded a 19.8% trend increase over the same period in 2020 and 4.2% over the 2019 period (Ice Report data).
If you have a product that you believe in and if you are ready to ride the positive wave that has been created then you should be careful not to make one of the biggest mistakes: choosing the wrong destination.
You probably already know that there is a Global Attractiveness Index that ranks 144 countries around the world and Italy ranks 18th. Read on and you will discover the global ranking but first, without too many technicalities, we want to remind you that the GAI is constructed from a set of quantitative indicators and taking into account the socio-economic and demographic dimensions of the country. It is a dynamic index that is calculated over 5 years (2020-2015), includes more than 800,000 data points and is composed of three complementary dimensions: Positioning Index, Dynamics Index and Sustainability Index.
From the newly released data here is the most recent ranking of the 10 countries in the world with the highest JHA:
1. Germany
2. Use
3. Singapore
4. Japan
5. Honk Kong
6. China
7. Canada
8. Korea
9. Netherlands
10. France
In addition to considering indices such as GAI, your company should 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 likely to import a given product, and therefore potentially more attractive to your business. More importantly, by virtue of this it may import at higher prices than exports: large amounts of imports at high prices is the optimal combination for a business that wants to export.
Is the country growing economically and demographically, or is it stalling? It is indeed logical to think that a growth phase is matched by better future prospects, and this may indicate an interest in your industry's products in the years to come as well.
How popular are Made in Italy products in the country we are considering? By analyzing import levels from Italy, you may find that the products offered by your business are highly liked abroad!
Another element of fundamental importance is then the presence of customs duties, and more generally the legislation of the destination country. Considering product requirements, required certifications, and costs at customs is indeed a critically important step.
Finally, especially for companies that have not had significant previous experience abroad, the presence of marketplaces dedicated to the product being evaluated should be 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 want to thoroughly evaluate possible target countries? Then contact us and we will give you the support you need.
Octagona is the right partner to support your company in the internationalization process: in almost 20 years we have successfully worked on more than 750 projects of internationalization, becoming one of the leading companies in International Advisory and among the top 5 in Italy.
The GAI is a global attractiveness index that ranks 144 countries based on quantitative indicators and socio-economic and demographic dimensions. It is calculated over 5 years (2015-2020), uses over 800,000 data points and combines the Positioning Index, the Dynamism Index and the Sustainability Index.
In the most recent ranking cited, the top 10 countries by GAI are Germany, the United States, Singapore, Japan, Hong Kong, China, Canada, Korea, the Netherlands and France. Italy ranks 18th out of 144 countries analyzed by the Global Attractiveness Index.
In addition to indicators such as the GAI, a company must analyze five elements: the level of imports, the economic and demographic growth of the country, the appreciation of Made in Italy products, the customs legislation, and the presence of marketplaces dedicated to the product. These factors help to reduce risk and make the best use of limited resources.
A country with imports exceeding exports is more likely to purchase a given product from abroad and is therefore potentially more attractive. Moreover, it can pay higher prices. Large quantities imported at high prices represent the optimal combination for a company that wants to export.
The levels of imports from Italy to the evaluated country are analyzed, particularly for the category of the product in question. If the volumes are high, the products in the sector are likely to be preferred by local consumers, which makes the market more promising for the company.
For companies without significant foreign experience, the presence of dedicated product marketplaces is an important selection criterion. These platforms offer visibility, online positioning, and ease of use, allowing for entry into a new market with greater simplicity and fewer initial barriers.
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