"The Empire of Cindia"This is one of the best sellers in Italy which talks about where the attention of the world business community is being focused on nowadays. The two most emerging markets and fastest growing economies in the world: China and India.

Until now Italian companies have approached the Indian market in a traditional way: participation in exhibitions and commercial visits, focussing on "placing the order" rather than on "building a market".

This is not working anymore. If the Italian companies want to be present in India as permanent players in a permanent market instead of spot players in a spot market, there has to be a drastic change in the internationalization strategy.

With this aspect in mind, the Chamber of Commerce of Vicenza (one of the most important cities in the Veneto Region) and the Fondazione Giacomo  Rumor- Centro Producttivita Veneto (a foundation of the Veneto Chamber of Commerce) decided to tackle the problem. Along with other Associations of the Veneto Region and with the support of the European Community, a project aimed at building a permanent network between India and Veneto was initiated. They called the project "NETGLOBO" to stress the willingness to create a global network of contacts and knowledge.

The project started considering some key points:

1.    Small average size of the Venetian companies. For most of them, it is difficult to maintain a permanent commercial structure in India.

2.    High quality of products and long tradition in machinery and electronic-automation.

3.    Strong brand and high quality in design products (particularly furniture and marbles).

4.    The Indian market is booming and probably now begins to feel the need for quality products.

5.    The Indian market is peculiar and presents different characteristics compared to the western markets.

Conclusion:

The problem is not with the products but in the difficulty for the Venetian companies of getting in touch with Indian partners and also in the way they have approached the market till now.

Pro active measures for the Veneto Region Institutions:

The Chamber of Commerce of Vicenza and the other Institutions have to act as business facilitators for the companies. The best way to do this is sending qualified people to India for a reasonably long period in order to understand the Indian market and companies from inside and identify potential partnerships and business opportunities.At the same time they can promote the identity of the Region they belong to.

 Business Units - Vicenza (Italy)

Action to be taken by the Italian companies:

Begin to consider Indian companies more as partners than buyers, involving them in the marketing strategy and entering into long lasting relationships.

Mutual advantages and business opportunities

The Chamber of Commerce of Vicenza has identified some main sectors that probably give the highest mutual benefits to the two countries:

1.    The building sector (furniture, marbles, tiles and building equipments):  The Veneto Region, and Italy in general, is world renowned for the fine design and for high quality standards. In other words the "Italian Style" is appreciated and recognized all over the world. On the other side, in India, the real estate market is booming and it generates a strong demand for this kind of products. Nowadays people are more knowledgeable about good things and recognise good quality when they see it. The other plus is that they are able to afford it and are willing to pay for something better.

2.    The industrial automation / mechatronic sector. The Veneto Region, and the city of Vicenza in particular, has a very strong and long tradition in the automation sector. During the past 40 years, the companies of this sector have contributed in a strong way to make Italy becoming one of the most developed countries in the world. During this time they gained competences and experience in almost all the automation applications. The distinctive characteristic of these companies is supplying customized solutions to the client thus delivering a "solution" rather than a "product". On the other side, the Indian automation market is at its infancy which will definitely grow in the next few years. Increase in the demand of goods will also increase the necessity of producing them faster and with better quality.

3.    The machinery sector. This is strictly tied to the automation sector. In fact to make a machine automatic, the first requirement is to produce the machine. Curiously the city of Vicenza has a long tradition also in machinery manufacturing. Some examples of excellence are: woodworking machines, sheet metal working machines, jewellery machines, marble working machines., The same considerations valid for the automation sector can be made concerning the Indian market.

Principal economic data regarding the city of Vicenza and its province:

Population                             831.356

Companies                           89.493

Staff                                       374.000

Unemployment ratio             3,3%

Exports (million of Euro)     12.012

No of business per
100 inhabitants                    9,2

Source: The Chamber of Commerce of Vicenza - February 2006

For more information and Details please Contact: Federico Castagna Consultant Fondazione Giacomo Rumor- Cento Producttivita Vento (CPV) and The Indo Italian Chamber of Commerce. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Issue BG66 Sept06

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