Italy - Market ChallengesItaly - Market Challenges
- Italy’s growth lags below the EU average although domestic consumption appears to be slowly rebounding. The Italian GDP grew marginally in 2018 and unemployment remains well above the EU average, particularly youth unemployment which is at 33%, the highest level across the Eurozone.
- Italy is a mature and sophisticated manufacturing market. U.S. entrants face strong competition from local and other EU companies in all market segments.
- Italy’s regulatory environment is complex and at times lacks the transparency, clarity, efficiency and certainty found in other developed economies.
- Products that involve health, safety, or environmental concerns are likely to be highly regulated. While EU-wide regulations often apply, Italian laws may go beyond the basic EU requirements.
- Italy has one of the lowest levels of Internet penetration of all European countries. Despite its rising trend, digitalization rates among Italian firms is quite low, and the majority of small- and medium-sized companies are far from embracing the Internet.
- E-Commerce remains less developed in Italy due to factors such as a high level of credit card fraud, lack of trust in the postal system, limited broadband connectivity, and the traditionally less favorable return practices of Italian merchants. However, Italians do use the Internet extensively for social networking and information.