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V.
MARKET OPPORTUNITIES
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Italy
has reportedly one of the highest auto
densities in the world and still one of
the oldest circulating auto fleets in
Europe
with approximately 35 million vehicles
currently on the road. Despite the fact
that a stabilization, if not contraction, in
growth of the vehicle fleet and the
simultaneous increase in the reliability of
components would point to a slowdown in the
growth of the market, the higher frequency of
periodic compulsory motor vehicle inspections
and stricter pollution control regulations are
nonetheless expected to spur sales in Italy of
spare parts and service equipment.
The
Italian automotive independent aftermarket is
estimated at over US$4 billion yearly and covers
close to half of the total aftermarket. This
sector has undergone various changes in the recent
past. Ten years ago, Italian-made vehicles
represented over 70% of the car fleet. Today,
these represent only half of the car fleet and
cover only 35% of new registration.
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The
sectors that appear to have the best potential
are in the services area. New activities stemming from the "new economy"
are making a breakthrough and concepts linked
to Internet, e-commerce, telecommunications
and information technology have a proven
record of success.
In
general, rationalizing business practices in
Italy
and achieving cost-savings create opportunities
for equipment, technology and expertise in
computer software and hardware, management
consulting. The full liberalization of the
Italian telecommunications market, with a belated
but enthusiastic interest in the Internet, is
creating substantial business opportunities.
Privatization and liberalization in the energy
sector following EU directives should also spur
future demand for equipment and services in this
sector. In addition, the Italian public as
well as private sector is looking for ways to
improve efficiency while reducing costs, through
outsourcing, training programs and better
application of new information technologies.
IT Companies with products and services that
contribute to the further rationalization and
increased competitiveness of the Italian economy
will find that
Italy
offers significant opportunities.
Internet
usage in
Italy
has experienced explosive growth in the past four
years and the number of business and home Internet
users has boomed. Italian Internet users are
relatively less mature in the use of this medium
with respect to the European average, but they are
rapidly catching up.
Electronic commerce applications have taken
off and are experiencing very positive growth.
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The
Italian market for processed food has
increased pushed by socio-economic and
demographic changes have had a very positive
impact on the Italian consumer market. There
are many more singles and senior citizens who
have disposable income and are interested in
new and foreign products. These buyers want
consumer-ready products (in single portion
packages), and are willing to pay the price
for high quality food.
The
Italian hotel/restaurant and institutional food
products sectors are also booming, and is expected
to grow even more in the future.
Italy
is the world's fourth largest tourist destination,
attracting millions of tourists every year. This
has stimulated establishment of new restaurants,
both traditional and ethnic. In addition,
demand from
Italy's younger generation has supported this trend.
This presents enormous potential for quality food
manufacturers in this industry sector.
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Consumer-oriented
exports to
Italy
are also on the rise. The Italian diet
has
become an international reference point as it
combines both Continental and
Mediterranean
eating habits. At the same time,
Italians remain fairly traditional in their
food habits. Consumption trends indicate
that Italian consumers are very health
conscious and are willing to pay a premium for
quality foods such as seafood products.
Italy
is the world's fifth largest importer of seafood
products. With a population of approximately
58 million,
Italy
has an annual per capita consumption of about 23
kg of fish and seafood.
Italy
imports nearly $2.4 billion of fish and seafood
products annually, with half of its seafood
imports coming from EU member states, particularly
Spain
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Italy
continues to play a major role in the organic
and natural food sector, both as a
producer/exporter of bulk organic and natural
food products, and as a consumer. The Italian
organic food sector is enjoying a healthy
expansion, as Italians are becoming more
health conscious.
Focus is placed on the
nutritional/health aspects of organic
products, making them desirable and very
trendy.
The
Italian retail food sector in the north has grown
rapidly in the last few years, expanding from the
traditional mom and pop local store to an ever
increasing number of hyper-markets, supermarkets
and self service grocery store chains. This retail
evolution has brought with it a wider selection of
merchandise, better service and quality of food.
Italian consumers are becoming accustomed to
buying all of their food products in one large
store, versus going to several smaller specialty
shops. Competition is fierce, as many
foreign-owned hypermarkets have started to
penetrate the Italian market forcing the Italian
grocery store chains to increase the number and
quality of products offered. The growth of hyper
and super markets in the south is much slower.
Ongoing
socio-economic and demographic changes have also
had an impact on the Italian retail food market,
as the average consumer has more disposable income
and is better-traveled, and therefore is
interested in foreign or exotic foods. In
addition, the number of singles is on the rise
both among the young and the older generations,
forcing retailers to cater to their desire for
single portion, ready made food products.
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The
Italian and European sportswear market
reported encouraging growth in the
last three years. The encouraging data show
that the Italian sportswear is considered a
leader in the sales of sporting goods from all
over the world. Demand for apparel and fitness
equipment and accessories will remain strong
due to high interest in staying fit and
healthy. Sportswear today is worn as casual
apparel in daily life by all age groups. The
highest market potential can be found in the
medium-high and high fashion segment, thanks
to the greater emphasis on style and quality.
Italians continue to invest strongly in their
homes, despite their country's economic
uncertainties. The bulk of the spending has
continued to be driven by practical needs, in
particular purchases of pots and pans, metal
cutlery, home fabrics and other items. The leading
channels in
Italy
are retail shops and supermarkets, along with
department stores and hypermarkets. But mail order
and online sales continue to be lackluster.
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