17 February 2023
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The Made in Italy sector is growing, but too many companies are lagging in e-commerce: however, solutions are available. The transition to digital and new business models can no longer wait
An old survey commissioned by Google from Doxa Digital, conducted years before the pandemic, highlighted the modest level of digitalization among small and medium-sized enterprises (SMEs). These SMEs were, and still are, the backbone of the Italian economy, with 8 out of 10 employees working in companies with fewer than 50 employees, while generating almost three-quarters of the country’s productive turnover. Although digitalization has been steadily increasing in recent years, partly due to the pandemic, it still lags behind that of other major European countries and the United States.
Yet digitalization also means exporting and internationalizing one’s business with a brand that is synonymous with quality worldwide Made in Italy. According to the ICE 2021 report (the Agency for the Promotion Abroad and Internationalization of Italian Companies), developed by the Politecnico di Milano during the pandemic, there has been strong growth in Italian exports, reaching around 500 billion euros in turnover (2021 data).
This growth, despite current difficulties and general uncertainty, is expected to stabilize at a slower pace but with international exchanges still on the rise, estimated to increase by another 10 percent. Unfortunately, it also faces the challenge of counterfeit Made in Italy products, which, in the agro-food sector alone, have reached a value of over 120 billion euros. Coldiretti disclosed this during the Anti-Counterfeiting Week organized by the Ministry of Economic Development: due to so-called “Italian sounding,” more than two out of three Italian agro-food products worldwide are fake, with no production or employment ties to our country.
The global market considers digitalization an essential element of export, enabling the promotion and sale of products on an international scale by integrating local and global aspects, which also helps combat counterfeit Italian products while establishing one’s own excellence and brand. Digitalization has thus become a fundamental component of any business expansion strategy, whether directed towards online B2B (business-to-business) or B2C (business-to-consumer), but, despite its growth, it still concerns a minority of Italian companies.
Our export still seems very much tied to offline channels or at least favors traditional channels like importers, distributors, or physical sales networks. The late adoption, compared to other countries, of online export strategies through e-commerce (directly or via platforms) puts Italian SMEs further behind.
Veronica Pitea, president of ACEPER, also highlights this aspect: “I still see too many companies without a website and even more without e-commerce. We cannot lag behind. Digitalization is a crucial process for small, medium, and large enterprises that must compete and establish themselves in the market. It is necessary to evolve the business by streamlining the company through technology and marketing. The lack of an online presence leaves space for fake markets, which have now reached staggering numbers, causing significant losses for Made in Italy and, above all, devaluing our artisanal products, our know-how, and undermining the tradition and work of those who, even with less advanced tools, have painstakingly brought our excellence brands beyond borders for years.”
New business models increasingly rely on, and in some cases cannot do without, digital tools for both sales through e-commerce platforms and communication through web, social media, and digital marketing channels. Internationalization and national dissemination depend on these channels. The lack of awareness among Italian SMEs about the necessity and benefits of digitalization seems to be cultural, not only in terms of managerial or operational skills but also, or especially, in understanding the opportunities that digitalization offers to businesses.
This cultural gap is being bridged but may be due to the need for ad hoc professional figures with specific strategic and operational skills. This is where Formazione 4.0 helps, promoting professional development (internal or external to the company) in digitalization and new technologies through tax credits, as discussed in this issue’s article by the Centro Sviluppo Brevetti.
The ACEPER president reaffirms: “Training is always at the core of business development and growth. We must use the available tools to remain competitive in the markets. Formazione 4.0 is one such tool.”
Taken from Green Company Magazine (Volume 9) – see all magazine issues
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