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.

Seeking for a Manufacturer or Supplier for Your Product Idea? Follow our 6 tips!

Whether it be manufacturing your own product or finding suppliers to purchase wholesale from, they aren’t always easy to find. Here, EGO International Group is going to look at the basics of sourcing a supplier for your next project. We will look at some places to search, how you should approach them and what to ask.

1) What Are You Looking For?

There are a ton of helpful resources to be found online just by searching Google. However before you begin, there are a few things you should know and decide. First, you should determine what type of supplier you’re looking for. This will help determine the terminology you need to use in your research. There are two options, with the most common being:

• A manufacturer to produce your own product idea
• A supplier, who may also be a manufacturer, wholesaler or distributor to purchase already existing brands and products

2) Domestic vs. International Suppliers

A classic question when looking for suppliers if you plan to manufacture or wholesale is whether you want to source domestically or from overseas. You likely already know that it’s almost always cheaper to source your products through International suppliers but there’s a lot more to that decision than just the upfront investment and costs. Here, some advantages and disadvantages:

Domestic Sourcing

Advantages

• Higher manufacturing quality and labour standards
• Easier communication with no language barrier
• Easier to verify reputable manufacturers and faster shipping time
• Greater payment security and recourse

Disadvantages

• Higher manufacturing costs
• Less product choice

International Sourcing

Advantages

• Lower manufacturing costs
• High number of manufacturers to choose from
• One-stop services have made it easy to navigate suppliers

Disadvantages

• Lower perceived quality from customers
• Language, culture and communication barrier can be difficult to navigate,
• Difficulty/costly to verify manufacturer and visit on-site
• Longer shipping time

 3) Where To Begin Your Search: Directories

Naturally, the internet is the best place to start, but there are a few places in particular that can help with your search. Below, we have listed out a few of the most popular ones below for both domestic and overseas suppliers:

Online Domestic Directories

• ThomasNet
• Makers Row
• MFG
• Kompass

Online Overseas Directories

• Alibaba
• AliExpress
• IndiaMart

4) Google Ranking

How can you find suppliers on Google? For the first time ever, you’ll need to explore page ten of Google search results, and beyond. You’ll also want to use a variety of search terms. For example, words like wholesale, wholesaler and distributor may be used interchangeably so you should search for all of them. It may help you make yourself familiar with Google’s search shortcuts to improve the quality of your searches, thus the results.

5) Libraries

You may also want to consider dusting off your library card and heading to your local library. Many libraries pay monthly subscription fees for online business and manufacturer directories that you normally wouldn’t have access to, or you would have to pay a large amount of money for, like the Scotts Online Business Directory. These directories contain profiles for many manufacturers, wholesalers and distributors in North America, depending on the exact directory. Make sure to give your local library a call ahead of time and ask them if they have access to these types of private directories. For larger libraries, you may need to chat with the business and technology department.

6) Strong Referrals

Some of the best leads can come from referrals by friends and family through the WOM. Social networks have made it much easier to get the word out so make sure to use these channels. As you do start to uncover suppliers, even if they aren’t the right fit for you, be sure to ask them if they can point you in the right direction. Being in the industry means they will likely have great contacts and many would be more than happy to refer you to someone that might be a better fit.

Made in Italy food excellence: export data and new dangers for its protection

Christmas Holidays have just finished and so we can analyse data about Italian products purchasing during last days of 2014. In effect, statistics point out that exportation for Made in Italy traditional Christmas deliciousness increased if compared with the same period of 2013. So which are the “best sellers”? You will discover it reading the first part of this article. Afterwards, we are going to put our attention to a related argument: new EU rules for food labels and risks for Made in Italy.

Part one

PANETTONE OR PANDORO: WHICH IS YOUR FAVOURITE ITALIAN CHRISTMAS CAKE TO PAIR WITH SPUMANTE?

In Italy, Panettone and Pandoro are symbols of traditional Christmas cakes. People main amusement is choosing between Milan and Verona, respectively the two cities where Panettone and Pandoro were born, and this is real challenge. Abroad, it is not the same: people love Made in Italy cakes without no competition.

The famous Italian traditional Christmas cakes: Pandoro and Panettone

Confartigianato, the Italian craftsmen and SMEs Association, claims that cakes exportation reached 280 millions of euros during 2014. In addition, research points out that the most “gourmand” countries are:

• France → export value €77,1 millions (with a growing purcentage of 10,8%)
• Germany → export value €40,7 millions
• United Kingdom → export value €31,4 millions

Quality and tradition, together with artisan skills, make food the Italian export excellence. Thanks to 90.980 artisan businesses, Italy has 261 food products with protected designation of origin (DOP, IGP, STG) and so “she” is the EU leader. As we can see, the other EU countries are left behind:

• France: 208 products
• Spain: 173 products
• Portugal: 123 products

In addition, exportations positive trend help artisan businesses growth: production workers reached 158.368 units in 2014 and this means 5,4% more than 2013. Confartigianato reveals that Italian areas with the higher number of craftsmen are:

• Lombardy (11.209 enterprises)
• Sicily (10.127 enterprises)
• Emilia Romagna (8.166 enterprises)

These features confirm that Made in Italy is a cultural inheritance to protect.

Spumante is another product which has a worldwide diffusion.

Famous Italian wine: Spumante

The famous bottle of wine is tipically uncorked during December 31st night in order to drink to the new year and so it’s connected to parties and other happy moments.

According to Coldiretti, the Agricultural Association, Italian spumante successfully won the market challenge with 170 millions of bottles consumed abroad, even 24% more than in Italy! We can easily affirm that Made in Italy is really appreciate and export is an engine for economic growth.

 

Part two

NEW EU RULES: HOW ARE THEY GOING TO CHANGE INFORMATION FOR FOOD? 

New EU regulation for food labels

EU introduced new regulation 1169/2011 concering food labels, which entered into force on December 13th 2014. The original intention is making information easier to read for customers, especially for allergic ones.

In particular, the main points to take into consideration are the following:

• better legibility for labels using a stardard minimum size of text
• allergens must be highlighted with different fonts, style or background colours. This rule is valid for non pre-packed food too, such as food sold in restaurants
• indication of vegetable origin of refined oil or fats is obligatory
• mandatory date of freezing or first freezing and indication of defrosted sold products
• mandatory country of origin for meat (beef, pig, sheep, goat and poultry), fish, fruit and vegetables, honey, extra virgin olive oil
• name of business operator is obligatory
• place of provenance of food is optional except for products already listed

IS REAL MADE IN ITALY IN DANGER?

Italian Government believes that last point of this rule is absolutely negative for both food export and customers. Italian companies are going to keep manufacturing plants information because Made in Italy sounding is a precious value. They are convinced that the more label is clear the more clients trust in their brands chosing their products. It’s a matter of reliability and honesty. In this way, they obtain sales increasing and they are able to establish long-term relationships with customers.

On the other hand, foreign enterprises may avoid to indicate their places of provenance and this means less control, less quality and less clearness. In effect, many international corporation outsource their production and so it is not easy to understand where food  really comes from. As a consequence, Italy wants EU to revise its decision. As Coldiretti points out, new labels rules are not the proper solution to save Made in Italy from frauds and forgeries, for which customers are often not informed. On the contrary, labels are anonymous for a large part of everyday products, such as milk or ham.

In addition, another danger is about to arrive: USA and China are discussing about a commercial treaty which allows American enterprises to export Italian and European counterfeit cheese into Chinese market. If this treaty was realized, protected designation of origin products would lose market shares and credibility. This would be a damage both for export and for Made in Italy brand image.

Conclusion? EU has to raise the voice up against every attempt to attack quality, authenticity and health protecting products which are typical of its history and culture.

“Made in Italy” and China: new business export opportunities

During its six months of EU premiership, Italian Prime Minister Matteo Renzi is successfully increasing importance of partnerships with key foreign markets. The last example concerns Mr Li Keqiang, who has been officially received as Chinese Prime Minister for the first time.

Mr Keqiang chose to visit Italy during his European tour and this is a clear and positive signal for future import/export operations. In addition, China and Italy celebrate the 10th anniversary of their comprehensive strategic partnership this year. Italy is one of China’s main partner in Europe and both Countries are interested in cooperation, economic growth and investments.

 WHICH ARE THE MAIN TOPICS DISCUSSED DURING THIS VISIT?

Chinese and Italian Prime Minister’s meeting at Innovation Forum

In effect, this visit aims to develop new business opportunities enhancing the traditional friendship relations between China and Italy, which are symbols of excellence for Eastern and Western cultures and they respect and appreciate each other. During the last six months, exchanges reached 23 billions of dollars and this is an encouraging data. In effects, China’s will is to increase import for “Made in Italy”products with particular attention to high technologies, energy, agriculture, machines and yacht sectors.

First of all, the two leaders met during China-Italy Innovation Forum and they signed 20 bilateral cooperation agreements. The total amount is over 8 billions of Euros and this is a great leap both for Italian exportations and economy. These are the most important exemples:

• Enel SpA and Bank of China signed an agreement which Italian Managing Director and CEO Mr Francesco Starace defined as strategic:  Enel SpA needs financial competences and Bank of China has at its disposal a company which is an international leader in utility sector. Both parties are satisfied and confident about results and reciprocal benefits
• Finmeccanica-AgustaWestland has an agreement with Chinese Beijing Automotive Industrial Corporation (BAIC): Italian company is now supplier for 50 helicopters, which will be used for public missions. The contract value is about 400 billions of Euros and it is only the first step towards future partnerships such as supporting activities, customized helicopters and in loco flight training
• Italian National Standardization Body -UNI signed a prior agreement with SAC–Standards Administration of China in order to cooperate and to share information and activities which simplify commercial exchanges.

The last point is particularly positive for Made in Italy food exportations as it aims to make controls, methods, timing and required documents easier and faster. In addition, Mr Renzi and Mr Keqiang discussed about solving two negative market trends which are oppressing this sector and many others ones: forgery and infringement of intellectual property. Joining innovation and creativity to scientific knowledge in order to improve and to make grow mutual industries: this is one of the key points expressed by Mr Keqiang during China-Italy business forum.

 WHICH ARE BENEFITS COMING FROM ASEM AND CHINESE PRIME MINISTER VISIT?

Chinese Prime Minister’s arrival at Asem, Milan, Italy

Mr Keqiang also attended to the 10th Asia-Europe Meeting (Asem) with leaders coming from over 50 Asian and European Countries and international organizations. For the first time in Italy, Asem’s theme was: “Responsible Partnership for Growth and Security“. In particular, the 53 member states discussed about the following topics:

1. Responsible
2. Partnership
3. Sustainable Growth
4. Security

As we can understand, this summit was established in order to help Europe and Asia solving a number of issues of global importance such as economic growth, energy safety, financial and economical cooperation, human rights and climate changes. All these themes concern improvement and simplification of future business relations and they are obviously related to import and export to Italy.

Milan was chosen as the right place to host the summit and this is a great pride for the whole Italy. As declared by Mr Pisapia, Milan’s mayor, the city lived two wonderful days thanks to journalists coming from the most important newspapers and to all international news channels. They had special consideration for Milan describing its beauty and pointing out attention to Italy. Therefore, events we all were witnesses lead a great value for internationalization.

China is a powerful economic, commercial and financial Country and it chose Italy as a strategic partner. This means that Beijing likes Made in Italy main features: tecnology, quality, design, innovation and creativity. Italian companies are ready to win this challenge and to take opportunities coming from exportation.

 

 

 

Made in Italy: a valuable brand to protect

Market research confirms that “Made in Italy” is the third brand in the world for international customers’ appreciation and awareness. This means that Italy has to introduce rules and strategies in order to protect its advantage. Italian Chamber of Deputies made one step closer to this purpose by approving EU law concerning extra virgin olive oil, which is one of the most famous symbols both for Made in Italy and for Mediterranean diet.

WHY DID EU INTRODUCE THIS LAW AND WHICH IS THE MAIN CHANGE?

We know that it’s quite difficult to distinguish Italian extra virgin olive oil from products coming from other countries without using a specific denomination about origin and composition on the packaging. As a consequence, many oil bottles used in public places, such as restaurants, have an Italian label but they really contain a mixture of oils. This happens because once the original product is finished or it is about to finish, the bottle is filled up with different oils which have nothing to do with Made in Italy. The same situation is diffused all along EU countries and so something had to be done in order both to inform customers and to protect brand from frauds.

Italian extra virgin olive oil

Which is the solution? Replacing traditional glass jugs with pre-sealed, non-refillable bottles that can’t be recycled when empty: this is the idea. A label indicating information about origin is also required: it has a different colour if the product is not Made in Italy and if it is a blend of oils coming from foreign countries.

It’s clear that this law is not only changing the way to serve olive oil but it’s a protection for Made in Italy import/export products: Italian clients are sure about what they are eating and international buyers know what they are importing.

Olive oil coming from other countries has not the same quality and security standards than Italian one and so a system which allows Made in Italy extra virgin olive oil traceability was required.

WHAT IS ITALY DOING FOR ITS BRAND PROTECTION?

Because of difficult economic situation, some Italian companies lost faith in political and financial system and so they used outsourcing strategies for their production. Now, they are coming back to Italy: they are aware that quality is tied up to their land and their roots. Being Italian, believing in Italy and being a part of this great country: these are the values which are encouraging pride in entrepreneurs.

After all, successful key factors for companies are:

• having a strong and recognizable brand on both local and international markets
• using brand to improve competitiveness and growth

EU and Italy: together for “Made in Italy” brand protection

As previously told, Made in Italy is a brand to protect because it is a guarantee of quality, innovation, professionalism, reliability, attention to detail and durability. For this reason, Italian institutions launched a plan of action, which is about to be presented at EU Commission by EU Parliament member Mrs Simona Bonafé.

At present, there are two guide lines concerning the brand:

1. custom rules approved by EU, which allow Made in Italy origin even if a product is only partially realized in Italy
2. Italian decree 135/2009, art. 16, which introduces 100% Made in Italy concept

The plan of action aims to develop the second point as the main purpose is to certify the whole Italian production chain.

PLAN OF ACTION: WHICH ARE THE KEY POINTS?

This proposal wants to modify EU rules in order to avoid frauds, “Made in Italy” products imitation and deceptions for customers. Mrs Simona Bonafé hopes that Brussels is approving the following points before the six months of EU Italian premiership ends:

• “Made in Italy” brand is only for products completely realized in Italy
• Introduction of a national identification trademark
• Companies can use this trademark only if their whole production chain is in Italy
• A public institution is in charge of certifying and controlling companies
• Certification has to be renewed once a year and it has a cost based on sales volume percentage
• Proceeds have to be used to promote “Made in Italy” brand on markets
• Introduction of tax benefits for companies which are using trademark
• No benefits for companies which are choosing outsourcing strategies

Supporting companies, in particular small-medium ones, is essential to gain the challenge of export and to launch more and more real Italian products on foreign markets.

Sourcing Italy: this is the key for internationalization.

 

 

 

 

 

 

 

HOW TO FIND PARTNERS FOR MADE IN ITALY IMPORT/EXPORT

Made in Italy products have features which are appreciated all over the world: quality, enduring, design, innovation, attention to details, customization and elegance.
If we think about clothing and food, which are the traditional sectors for Italian exportation, we know that Italy is usually considered as the best manufacturer.

Italian market is composed by many small and medium sized companies whose products have all these characteristics but some of them are not able to sell abroad because they don’t have an internal foreign department.
This is the reason why EGO International was established in 2002.

WHO IS EGO INTERNATIONAL?

EGO International Srl is a company based on Northern Italy which has a clear mission: connecting global buyers to Italian suppliers.
This purpose is also indicated by the name: in effect, EGO means Export Global Opportunities.
The company has 70 employees and a growing number of area and export managers and marketing & research experts.
The technical department consists of engineers and technicians, as well as technical and commercial managers for all sectors.
EGO International aims to make easy import/export transactions for Made in Italy products by:              

Made in Italy means quality, design and innovation.

1.selecting qualified and certified Italian suppliers which are interested in exporting their products

2.contacting buyers who wants to import Made in Italy products

3.helping buyers to find Italian suppliers who respect their requirements

4.supporting Italian suppliers and buyers during negotiations and quotes processing

Therefore, the company provides internationalization services for Italian companies while global buyers have new business opportunities to import from Italy.

HOW DOES EGO INTERNATIONAL WORK?

All Italian member entreprises are examined by a technical department, which verify their suitability for the export of their products. EGO currently counts over 1,800 qualified and certified Italian companies operating in various commercial and technological sectors.
These are suppliers business areas:

• Food & Beverage
• Frameworks
• Fashion
• Medical Sector
• Furniture
• Ceramics
• Packaging
• Marketing system
• Printing and Lythography
• Wooden houses
• Promotion material for trade fairs
• Contracting
• Automatic vending machines
• Building sector

According to buyers’ requests EGO is able to give quotes for the following parts, components and complete machines:

• precision mechanics
• metal sheet working
• moulding of items in plastic and rubber
• additional services such as surface treatments and foundry

The company operates as an external foreign office for Italian suppliers supporting them during the internationalization and selling process.

EGO International helps you finding new business opportunities.

On the other hand, EGO connects buyers to the best suppliers for them from a quality, quantity, delivery and price point of view.
This is a bespoke and a free of charge service for buyers: annual fees are paid by Italian clients.

This is how it works:

Step 1.
buyer send his RFQ to EGO International

Step 2.
he receives quotes that meet his needs

Step 3.
he chooses the best supplier and quote

Step 4.
he receives samples to ensure quality

Step 5.
buyer places his order and archive quotes he didn’t use this time

EGO supports buyers throughtout the process without any hassle or communication complications.

WHICH ARE MARKETS WHERE EGO INTERNATIONAL WORK?

All export managers are native speakers and they allow company to operate in different global markets:

• North, Central and Eastern Europe
• Middle East and Asia
• North Africa and Arabic Countries

WHICH ARE BENEFITS FOR ITALIAN SUPPLIERS AND BUYERS?

EGO International is the ideal partner both for importing and exporting Made in Italy products.

1. No costs and no commissions for buyers
2. Connection to suppliers who assure excellent Made in Italy products, best prices and customer care
3. Ensuring incredible returns on investments while building loyal and lasting relationships that remove any buying or selling risk
4. Increasing profits
5. Saving time and money: buyers and suppliers don’t need to search business partners by themselves
6. Whole linguistic, commercial, technical and cultural support during all phases
7. A bespoke service: buyers are connected to Italian suppliers who exactly match requirements

The company is the ideal partner for entreprises which are interested in both internationalization and in grabing opportunities from exporting their products.
On the other hand, importing from Italy is more profitable for buyers.
Therefore, EGO International plays a key role in spreading Made in Italy brand all over the world and it helps to avoid barriers which damage international transactions.

UKRAINE CRISIS MAIN EFFECTS FOR ITALIAN EXPORT TO RUSSIA

Importance of Russian market grew during last years for Italian companies.
Export value is about €11.000.000.000 for year 2013 and it would have been increasing if Ukraine crisis didn’t break balance of power between European Union and Russia.
President Putin decided to support separatist rebels and so Brussels started applying sanctions against Russian key economic sectors.

Italy-Russia

As a consequence, Moscow answered using the same strategy: a black-list containing EU Countries, among which Italy, who have no permission to sell their products/services to Russia.

Which are the main effects for Italian export now?

• A decreasing trend for export to Russia due to both embargo and sanctions.
Research highlights that Italy lost business opportunities for about €132.000.000 during the sole month of August 2014.

• Legislative Decree signed by President Putin on August 6th 2014 damaged agricultural and food: vegetables and fruits ready to be delivered were been rejected by Russian customs and this situation caused a great loss of production, time, money and human resources.

• In order to avoid embargo, many Russian companies established “satellite enterprises” into Countries which are not included in black-list.
This method inspired Italian companies to sell in other Countries using a triangulation transaction.
For example, Italy exports fruits to Serbia and Serbia resells products to Russia.

This situation is creating uncertainty and ambiguity concerning future business relations and so choosing a professional partner who provides services for internationalization is a urgent and essential need.