What will internationalization look like post-COVID-19? What challenges do Italian SMEs face in developing their exports? How to interpret digital channels? I address these and other topics in the article published on LinkedIn. What do you think?

The reopening of regions after lockdown was marked by long queues on Italian highways, while countless entrepreneurs, both small and large, performed miracles to get their businesses back up and running, prioritizing the safety of customers and employees. These are real signs that the country is ready to get moving again. However, a sense of great uncertainty remains, especially when discussing foreign sales.

Against this backdrop, our companies are on the grid with advantages and disadvantages: they are basically in pole position (many other countries are still experiencing growing contagions) but at the same time suffer the penalty of a domestic economic engine that is not performing at all (compared to that of foreign competitors who are particularly fierce and ready to exploit the post-Covid to gain market advantages).

It is therefore crucial to act quickly with targeted, essential, and particularly concrete actions. In my opinion, these are important levers for changing our approach to foreign markets. We must think about the efficiency of commercial actions and the return on investment they generate. For example, it makes no sense to try to open dozens of foreign countries when the company only has the resources to develop a couple. Therefore, a real strategy is needed, even for SMEs (which must become increasingly efficient if they want to continue to exist). One must start with analysis (first within the company and then of the market) rather than starting with the first industry fair that was suggested.

Once the market is chosen, the company must maximize its results by building a local presence. This does not mean opening a company (and certainly not relocating) but rather creating a network of relationships made up of people with whom there are ongoing and valuable relationships. There is no need to look for agents who set budgets with extremely high commissions (and uncompetitive prices) as long as they are not a fixed cost. If the analysis work is done well, and the market is monitored, the investment will certainly bear fruit. To do this, you need someone who is “present” in that market.

In these months that have immobilized us in front of our laptops, we have finally convinced ourselves that digital is beautiful. From smart working to smart yoga, not to mention webinars, we have all become familiar with digital tools. Consequently, we have understood that online sales, and not just retail (therefore also for B2B), can be useful for developing new markets or new customer segments. At the same time, we must not forget that digital export, which our foreign competitors are also resorting to, will make the world even flatter. The customer will struggle to understand if a product is Made in Italy or Made in another country. Therefore, the customer will increasingly seek the answer to their need or the solution to a problem.

In other words, if our company doesn't create value, digital or traditional export isn't the solution; in fact, it's the best way to spend money without getting a return.

In the digital sphere, there's been talk lately about the mirage of virtual trade shows. But are we really sure this is the solution? In my opinion, no! They will certainly be important showcases, useful promotional platforms for presenting new sector developments and understanding a market’s direction, but without the handshake (perhaps a touch on the elbow, given the situation), without direct interaction, there's no substance.

Post-COVID, we can no longer continue to live in the shadow of the “Made in Italy” brand. To succeed abroad, companies must focus primarily on Made in Italy Innovation / Design / Technology. We must overcome competitors because we have high-value-added products, not just because they are made in Italy. Otherwise, we will continue to fuel the "it's Made in Italy so it sells" spiral, because that does not work at all abroad.

We must move beyond a micromanagement approach and isolated actions. We need to focus on integrating skills into an increasingly sophisticated value chain. SMEs (which account for over 90% of our economy) must grow; otherwise, they will not be able to penetrate foreign markets and will miss out on the exponential growth that will characterize the post-COVID economy. After all, foreign competitors are generally larger on average and are therefore already able to draw on superior resources—both in terms of quality and quantity—anywhere in the world.

Last June 8, the Ministry of Foreign Affairs presented the Export Pact. This is a series of incentives and tools to boost the internationalization of Italian companies. Some of these are particularly interesting as they provide external support from competent personnel capable of guiding companies on their path to international growth. They will only be useful if the company truly wishes to change its culture towards internationalization activities.

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