Successful Internationalization Strategies for the American Market

The importance of communication, marketing, differentiation, and product innovation in a highly competitive market like the United States of America.  A historical perspective on the development of small and medium-sized Italian enterprises.

Historically, Italian companies have been founded with a strong focus on quality and production: in the post-war period, it was common for workers to break away from large companies because they had an idea, created a new product, or invented a new production process, and started small businesses, often family-run. These were the years of industrial reconstruction and the Italian economic boom, and what was produced was sold. The economy is recovering, demand is strong, there are no Chinese competitors on the horizon, globalization is far away, and the domestic market is heavily protected.

Selling is Easy... What I Produce, I Sell

Starting in the mid-'90s, the scenario began to change: "low-cost" producers from Asia arrived, economic growth rates slowed, the market became saturated with products, everyone had everything, and in the affluent markets of the '90s, consumers no longer bought because they "needed" but because they "wanted". They bought a product simply because they didn't have it yet and because the product was new. The "WANT" economy was born, and the "NEED" economy faded away.

Especially in the United States, having a "new" product is crucial for those marketing consumer products. Differentiation is the key to success. The product must be "new" or "innovative," and if it is neither, communication is what creates differentiation in the eyes of the consumer.

Focusing on the needs of the consumer becomes the key to successful selling. Before producing, it is necessary to understand what to produce and for whom, for which market niche, for which consumer segment. In a saturated market like the United States, it is necessary to focus on the needs to be met and the lifestyles of the targeted consumers: you can't sell to everyone; you need to choose who to sell to. Quality alone is not enough, nor is "Made in Italy." It's essential to resonate with the consumers you decide to serve. In a saturated market, new products are needed... Market awareness and communication skills are essential.

Dyson Vacuum Cleaners. Who Would Have Thought to Spend 800 Euros on a Vacuum Cleaner?

Complicating matters [or simplifying them?] is a new factor: Internet. And soon after, two other factors that base their success on the Internet: social media like Facebook, Pinterest, Foursquare, Instagram, TikTok, or Twitter, and the advent of mobile devices like tablets, phablets, and various smartphones.

The American market is particularly ready to adopt this range of innovation because, on one hand, these innovations were born in America, and on the other, they fit well with the lifestyle of the new generations.

It's a scenario that finds Italian companies, especially small Italian companies, unprepared to face the challenge. Accustomed to focusing on product and quality, they struggle to refocus on marketing and communication. Still run by a "60+" generation, they fail to seize the opportunities offered by the Internet, social media, and the advent of mobile navigation.

Yet, small and medium-sized Italian enterprises have all the credentials to do well: creativity, production organization skills, attention to quality. Some might say they lack capital... In reality, Italian companies, typically family-owned, are often undercapitalized [because the families controlling them are overcapitalized...]

Problem? Solution! The Role of the Internet in Guiding Consumer Choices

What's needed is the willingness and ability to open up to new markets and new scenarios: A change in mindset is needed. In this sense, the United States of America offers a growing market, politically and socially stable [despite the melting pot of races, origins, and lifestyles...] A market, that of America, where public services work, with the rule of law, with clear and equal rules for everyone.

Additionally, prospects for economic growth are unique in the world because, by 2020, the United States will be almost entirely energy-independent and will begin exporting its natural gas to other countries, with positive impacts on consumption, unemployment, budget deficits, and trade balance. After the "BRICs" trend, perhaps it's time to think about the United States of America for the internationalization strategies of Italian companies.

The Generations of Consumers and the American Market

The three youngest generations of consumers in the American market have tastes, values, lifestyles, and consumption habits very different from those of the older generations who formed the backbone of the market and consumption in the '90s and 2000s.

It is necessary to understand how to change to keep up with the market changes.

Generation Alpha
also known as the Covid Generation, refers to those born starting in 2012. They are the first group born entirely in the 21st century. This generation's defining shared experience is the coronavirus (COVID-19) pandemic during their formative years.

Generation Z
sometimes called iGeneration, Zoomers, post-Millennials, or Homelanders, is defined by the Pew Research Center as those born between 1997 and 2012. This generation is the first "digital native" or "born digital" as the internet has always been part of their lives.

Millennials
sometimes referred to as Generation Y, are defined as those born between 1981 and 1996. The older Millennials have self-identified as Xennials, as they more closely identify with Generation X.

Generation X
defined by the Pew Research Center as those born between 1965 and 1980, is the smallest generation due to lower birth rates. Sometimes referred to as the MTV generation, as the MTV channel debuted during their formative years. This generation was born during the sexual revolution and women's liberation movement. Growing up, they witnessed the fall of the Berlin Wall, the AIDS epidemic, and the burst of the dot-com bubble in the '90s.

Baby Boomers
are those born between 1946 and 1964. The name and timeframe of this generation derive from the dramatic increase in birth rates after the war until 1964, the year after which the birth rate in the United States began to decline.