“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.

 

 

 

 

 

 

 

WHAT IS TRAFFIC LIGHT LABELLING AND HOW THIS SYSTEM DAMAGED EXPORT FOR “MADE IN ITALY” FOOD PRODUCTS

Traffic light labelling system’s classification for food

Great Britain is the fourth international market for Italian food companies which sell their products abroad. This means business and export opportunities for € 2.500.000.000, as Italy’s food and drink industry body Federalimentare points out. As we can easily understand, Italian farmers were very disappointed when Great Britain Department of Health annonced a new project: using traffic light labelling for food products.

HOW DOES THIS SYSTEM WORK?         

Helping customers to distinguish bad food from healthy food and fighting fatness problems: these are the main purposes declared by English Minister Mrs Anna Soubry one year ago. Each food item is labelled red, yellow or green depending on its fats, salt and sugar contents for a 100 grammes quantity.

WHAT DOES IT MEAN FOR “MADE IN ITALY” FOOD?

Italian exportation for food were damaged by this decision because traffic light labelling system is too summary. It doesn’t take into consideration neither quantities that are consumed nor other nutritional components. In a very simple way, labels communicate that an item is not absolutely healthy and this is wrong. The right information is that the item marked “red” must be consumed with moderation.

Traditional Italian products for which “Made in Italy” is a worldwide brand, such as olive oil and Parmesan cheese, were classified as “bad food” while cola is marked “green” and we know it is not healthier than cheese.Market research points out that 67% of English customers don’t buy a product labelled “red” because this colour means “warning, danger” and so both import and export to Italy for food products are decreasing. In addition, Great Britain is not a Country renowned for light food or balanced diet and so if English Minister Mrs Anna Soubry thinks a label may solve fatness problems she is off the truck.

A traditional “Made in Italy” food: Parmesan cheese

These are the reason why Italy decided to present this problem to EU Commission.
In particular, Italian EU Parliament members point out that labels are misleading and they don’t really help customers choosing healthy food as Great Britain claimed. On the contrary, customers are not responsible for their choices, they only look at the colour without analyzing the other components. It’s an easy and fast system but it is not realistic: if items marked as “red” were harmul for public health they would have been removed from both Great Britain and all international markets. As declaired by Paolo De Castro, Head of the European parliament’s agriculture committee, this system risks to damage quality products such as Italian ones.

WHICH IS EU COMMISSION’S DECISION ABOUT THIS SYSTEM?

Few days ago, Italy received an important confirmation: EU Commission decided to send a “letter of formal notice” to Great Britain, which has 2 months to answer. In case of no solution or no answer, Italian “dossier” will be submitted to EU Court. EU Commission confirms customers need information when choosing products but this is not the right method.

This success for Italy is justified by:

• combined actions coming from all Italian EU Parliament and Commission members during this months
• combined actions coming from Italian farmers, Federalimentari and other Italian Organizations
• Italian Prime Minister Mr Matteo Renzi’s commitment to solve this situation
• EU treaties’ rules

Concerning the last point, EU treaties allows free exchanges between European Union Countries. Each item which is produced and selled by an EU Country following its rules and its standard, legal and traditional procedures can be commercialized in other EU Countries. As a consequence, all EU members have to accept distribution and commercialization for EU products into their markets. Thanks to these rules, the whole Europe is a market without customs or restrictions. On account of this, traffic light labelling system is a clear discrimination against some products and this is not allowed.

Import to Italy, export companies and “Made in Italy” won this battle and this is a great success for the whole sector.

 

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.