Italy vs. Chinese countries: beware of scams!

After numerous evaluations, negative opinions and reports of scams on Chinese products, the Italian Trade Commission in Shanghai warns Italian companies from the traps of alleged Chinese entrepreneurs: advance purchases, travel and commercial recordings of web domains that are increasingly only broken promises!

Haste is a bad counselor for Italian companies investing in China. The warning comes by ICE that warns our entrepreneurs engaged in business with the Chinese giant. Scams, fraud, deception, shoddy goods, shell companies, shipping never match: pay attention to window dressing, often traps harmful to your wallet! In order to avoid alleged unscrupulous Chinese entrepreneurs, ICE has made strict claims and has compiled a set of guidelines with greater risks to be faced in import-export trade with Beijing.

China, remembers the Ice, is a business partner that is generally reliable, as evidenced by the growing volume of trade with the rest of the world. Fraudulent practices constitute a minority of the total of trade and foreign business, but you need to keep your eyes open. The problems often arise from the rush and the lack of knowledge of China’s of China, remaining flattered by profitable proposals, competitive prices and suspicious requests, sometimes disguised as business deals (not to be missed).

So what to do?Egointernational Group company, leader in the import / export field for 13 years, says that the golden rule is always to check the existence and reliability of the Chinese side, as well as the validity of the proposed conditions (duties, taxes, contract). The ICE of Beijing offers free advice for companies who want to start making exports within the Asian country. We must be wary, above all, to requests for advance payments on the internet, for example, with bank transfers, for trials, demos, samples and free samples. It may happen that the goods purchased never get to your destination, no tracking of the Chinese supplier and therefore to recover the money.

A very common trap regards trade missions, disguised as necessary to close a sale. The physical presence of both the players involved in the deal, it is absolutely necessary to put pen to paper. In fact, just be practical on the web and / or enroll in some e-commerce marketplace sector and the game is over!

The web is a breeding ground for “telematics hideaways”, online scams to distracted companies. There are companies who peddle fake registrations of Internet domains, by paying a few hundred euros, arguing that this procedure is necessary to create a site with the name of its brand. Pay attention to purchases which destined to European markets: it is good to check the goods on site before shipment, in order not to be produced with no mandatory certification in European countries and so now unsaleable.

To avoid scams and damage to the company you should check well: the identity of the Chinese partner, the presence of import-export certificate, the payment methods that must be safe and the timing of the arrival of the goods.

What rules to export Italian products abroad?

The trend in exports of Made in Italy food products has increased exponentially over the past decade and, given the current economic situation, more and more Italian companies are looking for new markets outside the European Union.

How to manage shipments with punctuality, safety and advantages in business?

There are excellent opinions of many foreign clients who have decided to work together with the Italian company leader in the export sector, the note egonternational Group, specializing in particular in the international market to export Made in Italy food products, especially dry foods such as pasta, oil, sauces, tomato and vinegar, offering an efficient service without loss of time and money for the customer.

The term “export” refers to the sale of products to third countries that are not part of the European Union, while the activities of trade between EU member states are called “exchanges”.

egointernational opinions are in line with those of the Minister of Economic Development, Federica Guidi, who says “To enter the territories of third countries, Italian companies must meet certain health standards agreed through specific regulations that can vary. Depending on the country of destination and the product exported, in fact these rules are constantly changing because new markets for the different types of products are springing up year by year; at the same time the country’s destination may impose sanitary requirements which exporting countries must adjust from time to time”.

Importing countries have very different characteristics and traditions, thus they involve requirements not always homogeneous. The import of products in the US, for example, concerns the submission, within five days of arrival at the port of landing, of various documents required for the release of the goods to customs and others providing information on duties and statistical purposes. If these formalities are not respected as required, the goods may be subject to detention, until it is proved that the product meets the standards of the US Food & Drug Administration.

The detention of the products in the warehouses of the customs for the importer involves a significant loss of time and money for each hour that the goods are in storage, and this course is a significant source of poor service.

Positive reviews have been written on egointernational service about it, since it is able to offer a complete assistance thanks to an efficient and proactive export manager service who is able to avoid red tape. The opinions and assessments of ICE about this topic recommend constant monitoring of shipments and the trace-ability of goods in order to facilitate the export of Italian food products abroad.

Italians, Made in Italy, e commerce: purchasing behaviour and new business opportunities

During these last years, a new market trend changed our way to purchase: the growing usage of e commerce platforms. This means that buying is easier for people now: a pc – or a tablet or a mobile phone – and an internet connection are the only tools required. Customers are able to purchase everywhere, when they want and at any time.

In addiction to these advantages, there is another point which differentiates e commerce from traditional commerce: studying customers’ behaviour while choosing and/or buying something. Data we have for the whole purchasing process is huge and so in this first part we are going to consider some of the main features about Italians behaviour.

 DO ITALIANS LIKE E COMMERCE?

Italians are supposed to prefer traditional commerce. Really, people are changing their habits: new trend is that e commerce is increasing its influence. Netcomm, the Italian E Commerce Group, realized research together with other partners such as Highway in order to check Italians’ behaviour during the second quarter for year 2014.

This study revels that:

• 21,4 millions Italians purchased online almost one time during their life
• 56 purchases to 100 are products while 44 purchases are digital goods and services
• 20,5% of consumers who bought using app on their mobile phone during last 6 months
• 56,4% of online transactions comes from a website which was already chosen for previous purchases
• online purchasers passed from 9 to 16 millions
• usual e shoppers who purchase monthly became 10 millions on May 2014 and this means an increase of 26% during last year

Security, trust, loyalty: these are the three elements which are convincing Italians and which they take into consideration when buying online. According to research, there are other elements which are helping Italy to go beyond the cultural gap with the other Countries:

• over half of adult people are increasing their online service experience
• broadband is spreading more and more customers with a growth of 54%
• mobile devices diffusion allow connections to internet at any moment
• quality and variety services which are provided by e commerce merchants
• transport and delivery time, which are better organized

Thanks to this study, we can easily claim that Italians like e commerce: they are improving their online purchase experiences and they are increasing their faith and their quality perception.

On the other hand, e commerce merchants know that they have to offer several products and digital services ensuring security during payment process and a faster delivery.

HOW ITALIANS SEARCH INFORMATION BEFORE PURCHASING AND THEIR SATISFACTION AFTER THE PURCHASING PROCESS

Consumer Barometer, a specific device provided by Google, points out that 83% of men and women don’t make online or offline research prior to purchase. This means that Italians usually prefer impulse buying.

However, when they decide to get information 66% of them uses offline resources such as word of mouth or their friends’ advice. If it is possible, they like going to physical shops in order to check products before buying online. Online research reaches 59% and it is probably going to increase. In this case, Italians prefer using brand websites, price comparison websites, retailers websites and advice site/review sites/forum/blog.

One again, price, security, experiences and opinions coming from previous customers are the determining factors.  Finally, only 42% of Italians use both online and offline research.

The following image allows us to understand that Italians are satisfied after their purchasing process. The study take into consideration 4 points:

Italians’ satisfaction after a purchase
Resource: NetComm/Human Highway

• how finding and purchasing product/service
• clear explanation of sales and delivery conditions on the e commerce platform
• payment systems
• delivery for products/services 

 

WHICH ARE THE MOST UTILIZED PAYMENT SYSTEMS?

Concerning payments, Italians are changing their minds and they are more and more using  electronic systems. This means that they are less worried about paying before receiving products/services.

However, there is a wide margin of improvement as the first system which is chosen, PayPal, has only 37%. The other methods are:

Ecommerce: payment systems used by Italians
Resource: NetComm/Human Highway

• prepaid card (on the website)
• credit card (on the website)
• cash/cheque on delivery
• prepaid card on delivery
• bank trasfer
• discount ticket
• other way
• don’t remember

WHAT DO ITALIANS BUY ONLINE?

In Italy, purchasing using smartphones and tablet is not so diffused: 93% of people prefer their computer. They have a propensity for holidays and ticket travels: these are the most important categories for e commerce. Probably, this happens because these services are easier and more immediate to buy. In addition, travels are not defectives and there are no risks about deseases or delivery. Again, fears about frauds are very strong idea to destroy on Italians’ minds.

This is what Netcomm study reveals about categories:

• holidays (22%)
• ticket travels (12%)
• computers and tablets (9%)
• household electrical appliances (8%)
• smartphones (7%)
• insurances (6%)
• furniture, household products and electronics (4%)
• clothing and food (3%)
• coupons (2%)

If we consider data coming from Consumer Barometer, which is not specifically referred to the second quarter of 2014, we have confirmation for travels.

For the other categories, percentages are different and detached from the first two positions:

• 83% flights
• 69% hotels
• 29% apparel
• 27% insurance
• 17% tv sets
• 17% appliances
• 13% cinema
• 3% groceries

Generally speaking, Italians are more and more attracted by simplicity, rapidity, convenience and competitive prices, which make them saving time and money. In effects, products and services are often offered with lower prices online than in physical shops.

DO MEN AND WOMEN PURCHASE THE SAME CATEGORIES?

Men and women substantially buy the same categories save make up, as we can easily understand, and with different percentages. They absolutely prefer mobile phones (respectively 39% and 29%): it’s a product they choose and they check on physical shops and they buy online later with a lower price. The same consideration is for television (21% for men), clothing and footwear (16% and 23%).

Clothing is a developing sector thanks to many famous and reliable multi-brands platforms which are very cheap. In addition, they usually offer free delivery and free change in case of dissatisfaction within few days. This is full data:

             WOMEN                                                                                                                                      

• mobile phones 29%

The most online purchased product by Italians: mobile phone

• clothing and footwear 23%
• make-up 20%
• cinema tickets 8%
• home appliances and television 7%
• flights 5%
• hotels 3%

          MEN

• mobile phones 39%
• television 21%
• clothing and footwear 16%
• cinema tickets 10%
• television 7%
• hotels 6%
• home appliances 4%
• flights and groceries 2%

Thanks to this analysis, we can understand that Italian e commerce market is increasing its influence. Therefore, it is possible to make it more remarkable just like it already happens in the other Countries, where purchasing online is a good habit.

 

PART TWO:

E COMMERCE BUSINESS AND MADE IN ITALY: HOW TO GO GLOBAL

 USEFULL RULES TO MAKE INTERNATIONALIZATION EASIER

In the beginning of this article we briefly talked about advantages of using e commerce. There is another important point to take into consideration: internationalization. In effect, research highlights that 100 millions of online customers are purchasing products abroad and this trend is going to increase up to 21% during next years. This means new business opportunities for Italian exportations.

Nevertheless, opening an online shop for international markets is not so easy and there are some steps to follow. First of all, there are customs outside EU Countries and different payment systems. These two points are essential: loss of knowledge about customs rules may stop products deliveries or it may increase costs.

For example, a specific certification is required when exporting leather products in some extra – EU Countries. On the other hand, purchasing motivation is higher if customers find their usual payment systems. The same thing happens with language: having contents translated into the main languages makes interaction easier.

In addition, culture and consumer buying behaviour have their influence and so attention to web and graphic design is required. For example, Arabic speaking people need to read contents from right to left.

Sometime, it is also necessary to study a bespoke layout if internet connection is slow in order to allow access to e commerce platform. Delivery is another service which makes the difference: it is better to choice international carriers who are experts for a specific market in order to avoid delays or higher costs. Finally, another way to improve user experience is providing a customer care which is able to support clients quickly even if they live across the world.

Summarizing what we have just explained, the main points to take into consideration are:

• customs rules
• payment and delivery systems
• culture, language, purchasing behaviour
• internet connection
• web design
• customer care

WHICH ARE MARKETING TOOLS TO CONSIDER?

A new e shop needs to be found by customers if we want to make conversions. This means  that a prior study about target markets is required, as previously indicated. Above all, it is important to develop an e commerce business plan in order to identify the main purposes, resources, and results.

Knowledge of web marketing tools and social networks is the second step to obtain:

• search engine optimization (SEO)
• a useful data base for direct e-mail marketing campaigns (DEM)
• a wider diffusion for brand increasing its value and customers’ confidence

 The following image explains which channels are powerful for e commerce customers acquisitions:

E commerce Customer Acquisition Channel SOURCE: E Commerce Customer Acquisition Snapshot.

We have to take into consideration content marketing, link building and all the other methods supporting organic research, which is the leading channel. Keywords choice is decisive both for Serps and CPC and PPC campaigns: it’s essential to know how customers are finding e shop, which words they prefer and which are the most visited sites where using banner ads.

As we can understand, internationalization requires different kinds of marketing and technical competences and so it is better to contact professional experts in order to avoid mistakes or loss of profits.