In the coming years, the geography of global relations will be rewritten. In 2016, the GDP of emerging countries (not only the BRICS but also African, Latin American and Asian states) will represent over 41% of world income and they will be at the helm of global growth with average growth rates of 6,7%. It will therefore be essential for Italian companies to be able to innovate their strategies to make the increasingly international management of resources more efficient.
In the next five years the spending power will increase by 6,7% in emerging countries and 3,4% in advanced economies. By 2020 China is expected to become the top global luxury market. At the same time in Brazil over 45 million people will have joined the middle class.
The hard core of Italian industry is exports: Italy remains the eighth exporting country in the world and Made in Italy products are the main channel of recognition of our goods abroad. And although the emerging countries are not today the main outlet market for Italian exports, they are the ones in which the growth rates of the Belpaese's exports will be the highest in the next ten years (+10% in China, Brazil and Turkey) .
But demand in emerging countries is not comparable to that of advanced economies – our main partners so far. The needs are different, the regulations are different and it is therefore necessary for our companies to start changing strategies as soon as possible to adapt to this new internationalisation.
Kpgm does an in-depth analysis of the business model to which Italian SMEs should refer. Among the various points examined, the two fundamental nodes on which national companies will have to invest are finance and new technologies.
The internationalization of operations requires a new financial dimension capable of guaranteeing liquidity to companies on a global scale. This requires a study of banking regulations, legal regulations, taxation, infrastructures and all those aspects that regulate economic activities in the countries with which there are commercial relations.
Also to facilitate these operations, investments in new Ict technologies must be increased. Which should not be seen as threats to businesses but as tools capable of solving many problems. And Italy is still too provincial on this front. Just look at the internet diffusion data on the territory: in our country only 53% of the population uses the internet while in the United States, the United Kingdom and Germany the same percentage exceeds 80%.
So Made in Italy must not fear foreign competition in terms of quality and diffusion but to continue to grow it is necessary for Italian companies to start changing their business models and launch themselves into the world of new technologies, which are not science fiction but useful tools within everyone's reach.
Attachments: Going-Global_Paper KPMG.pdf
