Internationalization on foreign markets

The phenomenon of globalization is associated with the various business processes, from production and purchases to sales: in fact, companies seem to follow a process of progressive internationalization of all their functions in search of new competitive advantages.

We support companies in the phases of internationalization, so that they can sell and purchase products or services abroad, create production and commercial sites or strategic alliances outside the Italian territory, also with a view to international tax planning.

We carry out specific market studies, especially on the Chinese market, in order to:

identify the sector fairs in the most important cities, for example Shanghai, Beijing, Shenzhen & Guangzhou (Canton); find and analyze the Italian and foreign competitors present on the Chinese market, as well as their sales system and the market prices applied; find and analyze the potential customers in China of the products they intend to sell; verify the import procedures from Italy, as well as the costs, methods and timing of transport.

We implement different configurations of Global Sourcing (management of purchases outside national borders) to allow companies to procure the most convenient products and services (with particular attention to the Chinese market), offering the necessary assistance in the various stages of supplier scouting, negotiation, contracts and shipping.

We propose different market entry strategies, from the creation of online shops for e-commerce sales, supporting the entire logistics chain that allows the procurement of products from Italy to China, up to the creation of more complex structures, from sales networks. and distribution up to the construction of representative offices or real industrial / commercial establishments.

In the attached file, you will find a practical case of preventive analysis that we carried out for one of our customers in the agri-food sector: read carefully and you will find out how it is possible to enter the Chinese market without huge investments

Why turn to China?

The sector researches speak for themselves: Made in Italy in China is in great demand!

When we think of Italy, we often refer to those sectors that have allowed it to hold a position of excellence and that have always been characterized by a high level of specialization, or those that are commonly defined as the 4 A of Made in Italy: Agri-food, Clothing / Fashion, Home furnishings, Automation-mechanics.

As for the agri-food sector, for example, the Chinese love Italian food: according to the data released by Coldiretti, every year the exports of Italian food products to China undergo an increase of about 30%.

Among the most exported products we have wine, olive oil, pasta but also dairy products and sparkling wine. But fashion is also very popular, so much so that any products bearing the 'Made in Italy' label can be bought even at exorbitant prices.

China is a country that offers extremely interesting numbers. In the face of a constantly increasing population, however, it must be said that per capita income is also increasing, with a significant increase in the segment of the population considered to be well-off and who is also the most fond of Italian products.

The increase in consumption is aimed at those second and third tier cities which, from an income and socio-cultural point of view, would also seem ready to welcome the Italian product, like the four most "western" cities and commonly defined as "big four": Beijing, Shanghai, Guangzhou and Shenzhen.

A final element that favors the sales of Italian products is represented by the fact that China, being too large a country to be able to consider the idea of opening a store in every city, has given a strong impetus to e-commerce. .

An interesting element to underline, which differentiates the Chinese market from the Western one, concerns the influence of social media: particular emphasis is given to videos and films, including advertising of luxury brands, disseminated online.

To be truly successful in China it is therefore crucial to keep in mind and know, especially for the purposes of positioning on search engines (Baidu is the most used search engine in China), the characteristics of the language, which is vast and varied as well as composed. from hundreds of distinct language variants.

How to internationalize the business

Client: chemical company producing additives, pigments and dyes, both natural and synthetic, for the food industry; turnover of 8 million euros.

Problems: sales in decline and focused on the Italian market, in a context of generalized reduction in consumption and increasing competitiveness, with the need to identify new commercial outlets and different distribution channels.

Intervention: 12-month internationalization plan to search for new customers and strategic partners abroad. Given the high quality of the products, their ease of transport and the fact that some of the customers were part of multinational companies, the focus was on the Chinese market, proceeding through the following steps: identification of sector fairs in cities most important (Shanghai, Beijing, Shenzhen and Guangzhou); analysis of Italian and foreign competitors present in China, as well as their sales system and market prices applied; scouting of potential Chinese customers; verification of export procedures from Italy, in accordance with the requirements of MOFCOM (Ministry of Commerce People's Republic of China) and AQSIQ (Administration of Quality Supervision, Inspection and Quarantine); analysis of transport costs, methods and timing, taking into consideration that the import of agri-food products into China is subject to value added tax (special regime at 13% and non-ordinary at 17%), customs duties ( ranging between 15% and 20%) and the tax on consumption, the latter progressively abolished for the main products. The internationalization activity, also carried out thanks to one of our Italian correspondents residing in Shanghai, who has been present on site for over 15 years, involved visiting the main trade fairs and some potential customers, before reaching the signing of the first supply contract with Unilever; subsequently, a wholly owned subsidiary (WOFE) company was opened in China for the distribution of products on the Chinese market.