Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.
Our local consultant can advise you on the best way to enter the market, based on market and competition research.
Italy is one of the larger economies in Europe, but also a country with very different regions, ranging from rich to poor. Italy has a rich cultural heritage, with Rome being one of the oldest continuously occupied cities in Europe. The country’s official language is Italian, but there are regions where German, French, and Slovene are primarily used.
As of 2024, Italy’s population is estimated at approximately 58.78 million. The country has been experiencing a population decline since its peak in 2017, with a negative growth rate due to a higher death rate than birth rate and negative net migration.
Italy is known for its diverse industrial sectors, ranging from fashion and luxury goods to automotive and machinery. It’s a significant player in the European and global economy.
The major urban centers include Rome, Milan, Naples, Turin, and Palermo. Italy is characterized by an uneven population density, with dense populations in the Po Valley and metropolitan areas of Naples and Rome.
Rome is the capital, but most of the economic activity is in the North, mainly focused around Milan. Depending on your product one of these cities (or both) should be your starting point. From there you can approach the other cities. In Italy there are a lot of medium-sized family businesses, so it can be difficult to find one distributor for the whole country.
Finding an agent or distributor requires good knowledge of the Italian language and a good understanding of the culture. Without this it will be difficult to get access to the market.
The Italian online market has some unique characteristics that set it apart from other markets. Here are some of the key factors:
In general, there are two ways if you want to sell your products online in this market:
If you look at the most used third-party sales platforms, these are Italian versions of international websites and there is no incumbent party. But where other ‘foreigners’ have been able to make the step to the Italian market, with the right investments it should also be possible for you.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
With Trip.com you can compare flights and also book your hotel.
Hotellook compares different hotel sites so you always have the best rate.
Localrent connects you to national rental car providers per country.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
For a B2B product that is not a commodity or for customized solutions the story is different. Here sales needs to be done in alignment with the department that actually delivers the service or that determines the price case by case. Also then you have three different options.
As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention.
If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.
With the tooling of our partner Instantly.ai you can define your target group, whether it’s 50 or 50.000 people. Send them a sequence of emails, directly in their inbox, for typically under 10 dollarcents per persoon.
First determine who are the end-users of your product or service. And where do they buy it now? The best way to determine the right entry strategy is to approach these parties. Would they consider your product or service as an alternative? Do they agree with the positioning that you have in mind? And what competitors are they buying from now? These data will help you determine the right strategy.
