The right experience is essential for navigating internationalization effectively.
In this interview by Daniela Bandera, CEO of Nomesis, I discuss how, after an international career in the B2B sector, I now provide consulting services for the internationalization of companies between Switzerland and Italy. In-depth analysis of the global market, risk assessment, and cultural adaptation are key elements for successful expansion. Additionally, a strategic approach which considers cultural and regulatory aspects is essential.
Export strategist: what has been your professional journey that brought you here?
I was born in Bolzano and grew up in Brescia, where I developed my education and professional career. After earning my degree in Foreign Languages and Literature from the Catholic University of Brescia, I specialized in the German language, which allowed me to enter the Brescia industrial sector, particularly in the B2B market. I began my career in a sales back-office role at a die-casting foundry specializing in aluminium parts for the automotive industry. In 1995, I was appointed Key Account for clients in German-speaking markets.
After this, I worked for a company specializing in the processing of plastics. Here, I had the opportunity to participate in a project for the relocation of supplies to Slovakia, an experience which transformed my commercial approach. I was involved not only in sales but also in managing the transfer and relocation processes of facilities, maintaining relationships with local clients, and training staff. I also had to learn the Slovak language to perform my job effectively.
In 2008, I decided to start a technology brokerage business, connecting supply and demand in the plastic and metal processing sector. Thanks to my international experience, I understood the needs of large multinationals and aimed to develop a business focused on niche products. This venture lasted until 2015, when I decided to move to Switzerland and liquidate my Italian company.
Today, I live near Zurich, but I continue to maintain strong ties with Lombardy, frequently traveling between Brescia and Switzerland for work. After three years at a global company which produces plastic components for medical applications, I decided to return to self-employment. Currently, I offer consulting services in business strategy and business development to companies focused on the European and German-speaking markets.
In which countries do your clients primarily sell their products, and through what channels (agents, distributors, commercial branches, etc.)?
As an example, I will describe three case histories about my customers and their business models.
The first example concerns a cosmetics company from the province of Bergamo, specializing in plastic packaging. This company has acquired several small businesses which process plastics to produce packaging for cosmetics. Its main market is Western Europe, and products are sold both through agents and via direct sales to key clients.
The second example involves a company which designs professional coffee machines, like those used in bars or by chains such as Starbucks. The target markets for these machines vary depending on the type of coffee produced, as there is more than just espresso, despite its global prevalence. In this case, I managed a project for a client from French-speaking Switzerland.
Finally, a particularly interesting experience was with a company which offers front and back-end innovation services. This company is involved in the development of new products, services, and solutions, from the initial concept to the functional prototype. Here, sales are also direct, and the clients are primarily global companies. It is clear that managing product innovation requires solid financial foundations, which implies that the end client is of medium to large size.
What are the essential aspects to focus on for a successful entry into international markets?
You cannot skip a detailed analysis of the context and strategic planning. Analyzing the market is one of the most important factors, which some entrepreneurs in my region (Lombardia) often do not adequately consider because they struggle to change their mindset and adapt to the incredible changes of the last 30 years. Today, the market is global and complex; it is essential to study the sector thoroughly, including trends, growth indices, and how the competition operates.
The fundamental question is: who am I competing with in the international market?
Is my product competitive? What are the legal, logistical, and regulatory constraints of the country where I want to export or relocate?
It is essential to understand customs aspects, product regulations, export norms for the product and services, and then the political and economic country risk.
For example, Russia was a growing and highly attractive market ten years ago, but today it presents different challenges. The context changes and must be monitored consistently to understand risks and opportunities and define how to proceed.
How do you identify the countries where to sell products and/or services? Is it a matter of intuition or structured analysis?
Identifying the countries to sell products and services requires a combination of intuition and structured analysis. While intuition can be helpful, it is essential to back it up with concrete data and thorough analysis to avoid risky investments. Investing means allocating a specific budget for internationalization, but it is also crucial to define indicators to monitor whether the project is moving in the right direction, preventing the late realization that resources have been wasted.
The process begins with an analysis of the global market and research on the countries of interest, considering industry trends, competition, demand, political and economic stability, trade regulations, technological trends, access to distribution channels, risk analysis, and opportunities for partnerships with local companies. Estimating financial resources and local personnel is also crucial, as is the linguistic factor. A deep knowledge of the language, especially in specific sectors, is essential to convey the right message to the client and to grasp nuances during negotiations.
A personal experience demonstrates this: during a negotiation with a German client in the automotive sector, my employer, not knowing the language, did not understand that it was unnecessary to grant a discount. Thanks to the trust placed in me, I was able to close the deal at the price we wanted, avoiding concessions to the client’s requests.
Language skills are essential for understanding the client and interpreting their intentions. Moreover, direct field experience, as I had in Slovakia in the 1990s, teaches the importance of understanding local culture and mindset to manage unforeseen situations, such as when machine operators were absent because they were busy with the potato harvest. These aspects, which go beyond numbers and traditional analyses, are crucial for a proper assessment of international opportunities.
Once the countries to sell products or services have been identified, what are the key aspects to focus on to increase the chances of success in the chosen market?
It is essential to determine, based on the product or service being sold, whether it is necessary to dedicate local customer service. Alternatively, the distribution of our product and service can rely on a more efficient distribution chain, such as a warehouse near the client’s production site. This is common in the automotive sector; obviously, the price must be competitive.
Developing effective promotions, listening to customer feedback, responding to market events, and maintaining a degree of flexibility and adaptability to the context in which one operates are crucial. Additionally, collaborating with local partners and never compromising on innovation and continuous adaptation is vital.
How do you identify and reach out to potential customers abroad?
Firstly, I would start with research on local contacts and networks, meaning I would identify local trade organizations such as chambers of commerce, associations, and industry events, and participate in conferences, webinars, or international trade fairs. Today, we have the help of online platforms: LinkedIn Sales Navigator is an excellent tool for finding contacts and potential buyers by reaching out to specific individuals in positions relevant to our goals.
Often, going directly to the purchasing manager to make a proposal doesn’t work; it’s better to collaborate with research and development or marketing to establish a certain type of partnership with the company. Local partners are also essential: sales agents and distributors who already have an established presence in the market can facilitate entry into the market.
What impact does internationalization have on the employees in the companies?
Internationalization can have an impact on the people within an organization, just like any change that takes us out of our comfort zone and affects corporate culture, employee skills, and organizational communication and structure. It is essential to create skills, flexibility, and cultural openness: adequate planning and adaptability are needed to manage the impact on operational processes. For example, even just adding a label could require a change in the production process, adjustments to information systems, and different software to interact with the client’s software abroad, etc.
What advice would you give to a company considering the possibility of internationalizing its business?
My advice, based on direct experience, is to start with a well-structured strategy and a cautious approach to maximize the chances of success. Cultural aspects, mindset, and language considerations should not be underestimated. It’s important to establish an accurate budget dedicated to internationalization and to test the market before making large-scale investments.
Today, there are many products available, and I frequently meet people who say, ‘Ah, I developed this product; I want to sell it in the United States.’ Before investing in product technological development, the market must be studied; otherwise, the risk of failure is high.
