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It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
Italy is one of the larger economies in Europe, but also a country with very different regions, ranging from rich to poor. Italy has a rich cultural heritage, with Rome being one of the oldest continuously occupied cities in Europe. The country’s official language is Italian, but there are regions where German, French, and Slovene are primarily used.
As of 2024, Italy’s population is estimated at approximately 58.78 million. The country has been experiencing a population decline since its peak in 2017, with a negative growth rate due to a higher death rate than birth rate and negative net migration.
Italy is known for its diverse industrial sectors, ranging from fashion and luxury goods to automotive and machinery. It’s a significant player in the European and global economy.
The major urban centers include Rome, Milan, Naples, Turin, and Palermo. Italy is characterized by an uneven population density, with dense populations in the Po Valley and metropolitan areas of Naples and Rome.
Conad: Leading the market with a total sales of €18.45 billion in 2022. Conad has a diverse network of 3,332 outlets in various formats including supermarkets, hypermarkets, and discount stores.
Gruppo Selex: Reported a turnover of €16.7 billion in 2021. With a market share of 14.6%, it is the second largest player in Italy’s modern distribution sector. The group consists of 18 member companies and operates 3,190 stores.
Coop: Recorded a turnover of €14.3 billion in 2021. Coop Italia managed to slightly increase its market share in the large-scale retail sector and operates more than 1,600 outlets.
Gruppo Végé: Saw continuous growth over the years, ending 2021 with €11.95 billion in sales. The group is a market leader in several Italian regions and operates 3,836 stores, the most of any nationwide group in Italy.
Esselunga: Achieved consolidated sales of €8.5 billion in 2021. Known for its superstore format, Esselunga has 168 stores primarily located in Northern and Central Italy.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.
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