Italian kitchens in the chinese market: Veneta Cucine spa case study

Abstract

The following chapters deal with the process of internationalization in the Chinese market, focusing on entry and distribution choices in the furniture industry. China has become a big opportunity for many Italian manufacturing companies which have taken advantage of the value of the ‘Made in Italy’ brand outside our borders. ‘Made in Italy’, which was originally used to refer to a product’s country of origin, has now become a real marketing phenomenon and today many Italian companies use the term ‘Made in Italy’ to help them promote their product in export markets. The progressive process of Westernization of lifestyle, the increasing purchasing power of the Chinese, and the status symbol value associated with Italian design make China a big potential market for Italian companies in the furniture industry. Nevertheless, entering a market that is already extended and also culturally distant is not so simple and, as the literature shows, many companies have failed. This is a case study of an Italian manufacturing company, Veneta Cucine (S.p.a), which has entered into the Chinese market successfully. The purpose of this study is to analyze the strategies that Veneta Cucine used during the process of entering the Chinese market, and so better understand the factors that result in export success or failure. This study will aim to generate useful entry strategies and respond to common questions posed for western industrial companies who want to explore a fascinating but very different market such as China’s.