Italy attacks

Enterprise networks and internationalisation are the two winning features to face the challenge of growth and competitiveness. It is affirmed by the new minister for Economic Development and put continuously into practice by of our country’s franchise networks which are conquering the world.

According to data published by Assofranchising, in 2010 Italian networks outside the county’s borders were 214 (-3,6 per cent than the previous year), totalling 7.114 stores (+16,8 per cent). Less networks but more “solid” ones – testify a growing penetration capability of our networks outside Italy. To represent the “Bel Paese” outside our market are above all brands of clothing and accessories sector, made in Italy par excellence.  The markets more interested by our international expansion are in the Middle East and in Europe.

The majority of the networks have chosen to grow abroad master franchise as development way, a formula by which the Italian franchisor  signs an agreement with a local entrepreneur (the master franchisee) who will look for affiliates for the brand in his country. The principal advantage of this kind of contract is given by the support of a partner who knows well the local market and laws, thus permitting a rapid and capillary expansion. Looking further than domestic market answers first to the need of rethinking its own strategic positioning in a global context in deep transformation, but it is also part in some way of franchising itself, that has to “grow, grow and grow” as necessity to function and avoid implosion. On the other side, to structure yourself to go abroad  means adopting financial and managerial resources which seem often inaccessible to small and medium enterprises, that  represent the majority of our franchisors.