The new challenges for Italian foreign trade

In which direction are the challenges of Italian foreign trade going? How important is the internationalization process, increasingly vital and strategic in the global economy, for Italian SMEs?

The growth of the "advanced emerging" and so-called "emerging emerging" markets, the crisis of the last three years which has hit the western world in particular, have led to a radical change in the global economy. Growing the 1% cannot be enough when other countries instead have a GDP growth of 8%: it has therefore become absolutely necessary to seek new ways, new markets, increase exports, implement a process of "strategic relocation". The relocation carried out by many Italian companies has turned out to be a wrong choice: therefore, in order to be able to keep up with today's dynamics, it becomes absolutely appropriate to internationalize one's own company, setting up one's own companies elsewhere, in other foreign countries, to attack the markets that are experiencing a sustained pace of growth. The Western consumer is experiencing a process of progressive impoverishment, unlike that of the BRICs: it is estimated that by 2050, only India and China will make up 50% of world consumers. Relocating also means creating prospects for development and improvement, not only in the markets where you are established, but also in the investing country.

Considering the particular structure of the Italian industry and company, characterized by a myriad of SMEs unable by themselves to penetrate foreign markets, it is deemed appropriate to find adequate solutions: it is therefore necessary to create mergers, aggregate, create consortia, create networks of 'Business. In short, join. The support of the Government and the institutions should also be fundamental. It would be enough to take an example from France: to revitalize the dying wine sector (champagne included), a government delegation, headed by Sarkozy himself, went to China with the most important producers in the sector to promote their products. Thanks to this move, China single-handedly managed to revive a sector that had experienced a slump in 50% consumption. The role of the manufacturing industry in Italy, for example, proves to be extremely fundamental: with 31% of total Italian exports, the 135,000 companies (with 1,350,000 employees) in the sector are able to generate a turnover equivalent to 112 billion euros. Therefore, supporting this sector in internationalization would make the entire Italian economy grow. Here too the logic that moves Italian companies must be aimed not at mere exports, but at a real process of relocation, which would also play an important role in the context of the so-called "currency wars".

After the collapse of 2009, production and world trade started to grow again: obviously the role of countries such as China, India (a country where Lombard companies export more than to China) and Brazil, but also Vietnam, Nigeria, Thailand, Turkey and Russia was more than relevant. Asia, in particular, presents many opportunities in various product sectors: from food to textiles, from chemistry to mineral processing, from mechanics to the electrical and electronic sector, from infrastructures to the manufacturing sector. Diversifying into different countries and markets therefore becomes a strategic choice, considering that the Italian product, thanks to its psychological substrate, is a particularly awaited type of product: the Chinese themselves claim that they imitate us because we are masters in what we do, and in the culture Chinese imitation has a positive meaning. International trade restarted in 2010, with growth of 18.4%: Asia and Latin America are the macro-regions that have experienced the most sustained development, even if the GDP growth rates are lower than those of the previous two-year period. crisis.

By analyzing the imports of Italian products on all continents, we can state that there is room for penetration into new markets: Italian exports currently reach a 30% only in France, Germany and the United States; those directed to Asia reach 6.9% and those to Latin America just 1.7%. In the coming years, in addition to China and India, countries such as Mexico, Argentina, Chile, Tunisia, the Philippines, Taiwan, South Korea, Indonesia, Malaysia, Vietnam and Thailand represent more than just a gamble. In Asia, for example, the growth of the middle class will pass from 23% to 40% in the coming years with a consequent increase in demand for consumer goods. More generally, the global opportunities in the electricity sector for Italian companies are particularly interesting: investments in the sector grew by 35% in Asia, 18% in Africa, 17% in Latin America.

So what are the strategies for Italian companies that want to internationalize their business?

The challenges of Italian foreign trade

First of all, it is necessary to make a leap in quality, there is a need for greater help from the country system, and Italian companies must understand that it is important to receive support from consultancy firms or bodies in charge, etc. Entrepreneurs often think they can do it on their own, but the company can give greater results if accompanied. So assistance plays an important role. The aggregation and union between companies constitutes another fundamental step considering the structure of Italian industry (characterized by a strong presence of SMEs) which cannot count on large-scale distribution such as France, for example, to be able to place its products . There is a need for greater coordination, between the political and economic worlds, and more generally in the business world: companies must not feel alone in their internationalization process. Accompanying Italian entrepreneurs on site, in addition to promoting the country's image, proves to be an important tool for promoting one's products and weaving those important ties for relocation. Foreign policy must therefore support trade policy.

Italy can also count on its brand: the made in Italy is still a source of fascination. Therefore, focusing on quality and design, which have always distinguished Italian products, still remains a must as well as a winning strategy for Italian foreign trade.

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