Expansion in Eastern Europe thanks to MatcHub: Iacovelli Case History

In short

Pasquale Iacovelli follows the family tradition and manages a carpentry business.

The manufactured products are gates, railings, doors, gutters, canopies and roofs.

The activity, concentrated in the past years, is now expanding thanks to Pasquale's efforts.

How Matchub helped Pasquale Iacovelli

"I discovered MatcHub thanks to a Facebook post. Until a few minutes before clicking it I had always believed that internationalization was only for large companies and for large investments.

I had always felt the need to expand the business and diversify it from the only opportunities I have coming from my area of ​​residence. I was looking for contacts directly, through partnerships with construction companies that work throughout Italy: I never expected to take advantage of a service of internationalization and moreover to start publishing my business proposals without any cost on my part!https://matchub.net/register

MatcHub has shown me how a portal with an innovative approach can give to any company the possibility to expand its business. I also find the MatcHub-2B service brilliant because, with a really low cost, you can meet a possible partner already interested in what you are doing. Indeed, starting from a list of possible partners, together with the MatcHub team, we selected the one we thought was the best profile and from there we held an online meeting.

Highly recommended!

Thanks to both services, in 2020 we will start doing business with two companies, one in Macedonia and one in Bulgaria."

Pasquale Iacovelli

Matchub's approach with the Iacovelli company

"We saw Pasquale Iacovelli's business proposals to sell metal artifacts in Eastern Europe and in particular in Bulgaria, Romania and Northern Macedonia. Our team found the choice appropriate, both as sector - expanding the market on construction field - and as territory - thanks to the proximity of Estern European countries with Puglia, where the company of Pasquale Iacovelli is located.

Within a few days he was contacted by a North Macedonian company interested in his products and few days later he received a second contact from a wholesaler of raw materials who proposes him a new interesting agreement. The last company was Macedonian as well.

Given these results, we contacted him to offer the MatcHub-2B service to find new partners through a tailor-made approach in order to avoid any waste of time and effort.

Thus, Matchub team and Pasquale Iacovelli have worked searching new possible partners, expanding the opportunities for growth of his company.

We used a very simple approach, trying to keep the cost to the user as low as possible, considering the type of company that manages it, favoring specific markets and creating online meetings.

We are particularly proud of this case because it shows our mission to provide internationalization services to everyone."

Donato Lorusso, CMO Matchub

 

You can grow your company internationally for free, just submit a business proposal on MatcHub 

The Fashion Industry In Italy

The entire fashion sector has around 82,000 active businesses. In the first few months of 2019 the sector recorded a trend of + 3.5%. With about 500,000 employees (+ 0.3% compared to 2016), the fashion industry is the second manufacturing sector in Italy after metallurgical activities.

The turnover is around 22 billion euros, or 1.3% of Italian GDP. This turnover derives mainly from the clothing sector which amounts to 40.5%, followed by leather goods for 20.9% and eyewear for 16.2%. The turnover of the fashion industry in Italy is worth about 22 billion euros, or 1.3% of GDP in 2017. This turnover derives mainly from the clothing sector which amounts to 40.5%, followed by leather goods for the 20.9% % and eyewear for 16.2%.

EXPORT

Export is the greatest wealth of the fashion industry. Italian products are very popular especially in France, Germany and Asia. The change in exports from 2013-2019 is + 29.6%, according to data reported by Mediobanca's February 13, 2019 survey, for every € 10 of turnover, € 6 comes from abroad.

OCCUPATION

Employment in the sector is also growing, having about 60 thousand more jobs than in 2013. In 2018, each company produced average daily profits of around 63 thousand euros compared to 38 thousand in 2013

SMALLER COMPANIES GROW

Mediobanca's R&D report on the main fashion groups has examined the dynamics of the 163 Italian Fashion Companies with a turnover exceeding 100 million in 2018, in addition to the main European groups in the sector. The gap between the top 15 and the "pursuers" has been observed to be narrowing in a context that is generally more homogeneous.

Overall, the Italian fashion companies have seen their annual sales grow by an average of 6.6% in 2013-2018. Overall, the companies have seen their annual sales grow by an average of 6.6% in 2013-2018.

SUSTAINABILITY

One of the strengths of the Made in Italy Fashion sector is the increasingly focus on sustainability. A decisive theme for the future of fashion in general, which is the second most polluting industry in the world. The Italian supply chain has had the merit of the last few years to demonstrate commitment to reducing the environmental impact and introducing new, less polluting processing methods even upstream of the supply chain.

 

Economy Of North Macedonia

The Economy Of North Macedonia in past years has suffered heavily from the conflicts that have upset the Yugoslav area. However, for the three-year period 2019-2021 a recovery of the Macedonian economy is expected, mainly supported by the positive trend of investments and exports. According to statistics, the Macedonian GDP should increase by 3.8% in 2020 and 4% in 2021. The country's economy is mainly concentrated in services (63% of GDP), mainly on industry (28.5%) and agriculture (11 , 4%). Among the services, we highlight the sectors: banking, technology, insurance, transport, tourism, wholesale and retail trade, logistics and communications. The main productive sectors are: car components, iron and steel, food, footwear, textiles, tobacco, construction, oil refining, chemical, mining. The industrial fabric is dominated by small and medium enterprises (about 75,000) present in all economic sectors. About 90% of the economy is privately owned.

THE ITALIAN PRESENCE

Italian products enjoy an excellent image in the Republic of Northern Macedonia; especially for personal consumer goods (food, clothing, furniture, appliances, etc.).

As regards capital goods, the Italian presence is concentrated almost in the food industry and in processing, and in particular: wine, sweets, vegetable products and preserves and frozen products and ice creams. In this comparison of huge spaces to improve the presence of Italian products in particular in the woodworking and furniture manufacturing industry, construction industry, plastic, metal-mechanics, automotive, etc. Historically, the most attractive sectors for Italian companies in the Republic of Northern Macedonia are the traditional ones: engineering, chemical, construction, automotive, footwear and textiles.

SKOPJE

In 2015, the US daily Forbes considered the current capital of Northern Macedonia one of the best performing economies in Europe. For a country of such modest dimensions (around 2 million inhabitants), Skopje boasts excellent values ​​in terms of investment potential and development prospects. It also offers great potential for further growth for the future thanks to public debt, equal to 33.8%, the lowest quarter in Europe, annual inflation of 1.5% and a deficit of just 3.9%.

Main Accounting Requirements And Records In Italy

What is the purpose of keeping a precise and organized accounting in your company?

Accounting plays a key role in managing your business as it allows you to constantly control your economic and financial situation.

To make a general picture that respects itself has the right and obligation keep a proper accounting. The reasons are relatively simple:

  • it is a right because through accounting records a company is always in control of revenue and expenditure trends and it has a final report at the end of each year;
  • it is an obligation because it is imposed by the law. Every company indeed should show its activities and performance to third parties.

HOW DOES ACCOUNTING WORK IN ITALY?

The mandatory accounting records which every entrepreneur should keep in Italy are:

- The general journal – collection of all the operations carried out during the course of the business organized according to the chronological record of transactions;

- The inventory book – collection of all the assets and liabilities of the company with also the profits and losses;

- VAT registers;

- The register of depreciable assets – it contains information on the company's assets including immovable properties (land, sheds, equipment, etc. ) or (trademarks, patents, etc.) and the movable proprieties defined in the public registers of the same company;

- The general ledger – of all the operations carried out during the course of the business organized according to the double-entry criterion: recorded per account using a  chronological order.

 

The entrepreneur should also keep all the other required records respecting the specific economic-sector and the business-size, such as for example:

- the cashbook – it is not a mandatory register but is a tool used by companies to facilitate their accounting;

- the warehouse book – collection of all the in-coming and out-coming goods – it is required only for large enterprises;

-  the register of receipts – it is required only for professional activities.

 

In addition to the above listed accounting requirements, the limited companies should also keep the following registers:

- the company books, the shareholders' book, the book of meetings and resolutions of the managing board. Moreover, on the basis of their organization, it can be required the book of obligations, of the board of directors and of the board of statutory auditors.

These accounting requirements and records, defined by the Italian Civil Code art.2220, should be kept for at least 10 years from the date of the last recording, even if meanwhile the company has ceased to work and exist. Once this period has passed, nobody can dispute the absence of these accounting documents to the entrepreneur.

Companies that work in Italy are obliged to comply with the accounting requirements contained in the Italian Civil Code (https://www.brocardi.it/codice-civile/) and the accounting standards issued by OIC (Italian Organism of Accounting),(https://www.fondazioneoic.eu/?lang=en) which integrate those contained in the Civil Code.

OIC is an Organization founded in 2001 and composed by various bodies. It has the role of issuing the national accounting standards for the preparation of financial statements of all the Italian companies. OIC cooperates with many international bodies such as AISB (https://www.iasplus.com/en/resources/ifrsf/iasb-ifrs-ic/iasb) or IFRS (https://www.ifrs.org/), providing in this way support to Italian companies to comply also to international standards too.

Now we will shortly describe the 2 main types of accounting-standards actually in force within the Italian fiscal legislation. Here below the specific subjects included in the Ordinary or Simplified accounting type.

 

ORDINARY ACCOUNTING (art. 13 of D.P.R. 600/73):

It is required by the law for all the companies with revenues above €400,000 for service-activities and €700,000 for products/goods.

What are the companies included within this type of Ordinary accounting standard?

- Corporation (srl, spa, sapa) ;

- Cooperative societies

- Mutual insurance societies;

- Consortiums / insurance companies or unrecognized organizations;

- Public and private bodies operating for commercial purposes with residency in Italy.

 

SIMPLIFIED ACCOUNTING (art. 18 of DPR n.600/73):

It is required by the law for all the companies with revenues above €400,000 for services-activities and €700,000 for products/goods.

What are the companies included within this type of Simplified accounting standard?

- Individual companies;

- Partnership (ss, sas, snc).

Romania, the production of dried fruit has increased

The change in consumer behavior has led to an increase in the consumption of nuts in the world. In 2018 Romania became the leading producer of nuts in Europe. In a constantly evolving market, Romania has succeeded in securing its leadership in the sector thanks to more than 500 land for cultivation and a production of 45 million units, increased by 40% compared to 2015.

PRODUCTION OF WALNUTS FROM 2010 TO 2018

Walnuts represent the 95% of global dried fruit exports and 50% of Romanian ones. After the nuts, dried fruit exports concern hazelnuts and almonds. The main suppliers are Ukraine, Hungary and Italy.

DRIED FRUIT TRADE

In the last 7 years the dried fruit market has become increasingly important. Imports have increased significantly. In 2011 they were 5.2 tons, while in 2018 they reached 10,000 tons.

Almond plants are grown on large areas, with a Mediterranean climate in the southern and western regions of the country. Consumer demand is offset by imports. 

WORLDWIDE PRODUCTION

The world production of nuts in shell, according to the International Nut and Dried Fruit Council Foundation, amounted to about 4.8 million tons in 2018, growing by 11% compared to the 2016/2017 period. The products that record the greatest increases are almonds (1.18 million tons, 28%), followed by walnuts (854 thousand tons, equal to about 20%), pistachios (762 thousand tons, about 18%), cashew nuts (almost 755 thousand tons, about 18%) and hazelnuts (397 thousand tons, about 9% of the total). 

ITALIAN IMPORT

The first three products concerning dried and dried fruit, imported in Italy, according to data Inc, are hazelnuts, almonds and raisins. Hazelnuts had a negative trend in imports from 2005 to 2010, going from 68 thousand to around 40 thousand, while from 2010 to 2015 they started growing again, reaching around 57 thousand tons. Situation similar to that of almonds with a rise since 2015. Instead, the supply of raisins is stable.

PRODUCTS THAT CONSUMERS WOULD BUY ONLINE

The Agroter fruit and vegetable monitor asked a thousand Italian consumers which fruit and vegetable product they would buy on the web in the future. At the top of the ranking, with over 50% of the votes, we find dried and dried fruit, and specifically walnuts (56%). The products that still raise doubts are melons (26%), tomatoes (26%) and strawberries (only 20% of respondents would buy them online).

3p-method

PLACE

PRODUCT

PLAN

How we work

MatcHub supports companies that have the desire to expand into new markets and to
find reliable partners abroad or in new regions. Matchub operates in 2 ways: with the free portal www.matchub.net and with the 3P method.

We operate in various countries such as Italy, Bulgaria, India, Romania, Northern Macedonia and in various sectors such as Agri-food, Energy and Mechanical Machinery.

Our 3P Method

PLACE- Analysis of the target country and region, its peculiarities, culture, trends and specific market dynamics.

PRODUCT - Product analysis: characteristics, specifications, regulations, pricing, sales strategy.

PLAN- Definition of a successful entry strategy able to fully exploit the opportunities of the new target country.

Country Business Consultant & Country Business Expert

MatcHub professionals will guarantee the right development and implementation of the PLAN thanks to its Country Business Consultant (CBC) and Country Business Expert (CBE).

Matchub CBC and CBE will take care of your international activities, representing you in the new target country: by working with them, you will avoid long bureaucracy and cultural misunderstandings, and most importantly you will save time and costs.

Main Activities

  • Research of databases and new leads
  • Phone Marketing
  • Partners search / Suppliers
  • Tender search & support
  • Company acquisition after insolvency
  • New Production plant development
  • Business meetings & Networking
  • Business trips

Extra Activities

  • WEB & SEM services
  • Marketing services
  • Accounting & Legal services
  • Translation & Interpreting
  • Real Estate
  • Recruitment & HR services

 

Last trends in the Economy of India

The Indian economy is growing in the recent years. According to data from the International Monetary Fund, today it’s the fastest growing economy and the seventh largest economy in the world. Among the most developed sectors we find in addition to mining (in India 80% of the extraction concerns the production of coal) is also the food processing sector, which is enjoying success, thanks also to economic incentives provided by the Indian Government.

Import

In 2018, Indian imports reached 421 billion euro, realizing a significant growth, as shown in the chart below. Raw materials, including energy raw materials, ores, raw wood, etc. excel with 37% of the total import. Follow then, with 21%, from industrial raw materials (steel, copper, aluminum etc.).

Export

As for exports, in 2018, 280.5 billion euro were reached, with a growth that should exceed 350 billion by 2021. Goods exported in India represent 3% of national production and in comparison of 2014, with 4.4% a slight decrease is reported. The main sectors, as shown in the graph, are those of fuels (14.9%), precious metals (12.4%), machinery (6.3%) etc.

THE FOOD PROCESSING SECTOR

The growth and liberalization of the food processing sector has made the Indian market even more attractive for foreign entrepreneurs. India is the second largest food producer in the world after China, but the waste along the chain that leads to the consumer is around 40% (about 10 million dollars). The causes are mainly due to the inadequacy of the infrastructures.

In the last 15 years, the sector obtained investments of around 6.2 billion euros and is estimated to reach 30 billion over the next 10 years, while in the last 5, the sector has grown by 9%. The agricultural sector is one of the largest in the world, just think that its production constitutes 8% of the world one.

These factors combine to create great demand for machinery for food processing. In this context, Italian and European companies certainly have the opportunity to satisfy this demand and acquire a decisive role. In recent years there has been an increase of 17% in the export of Indian food production machinery to India, placing the “beautiful country” in second place, behind China. Furthermore, the Central Bank classifies the sector as a “priority sector lending”, encouraging the provision of loans to companies (including foreign ones) operating in the sector.

Bulgarian Attitudes Towards Foreign Partners

An interesting survey conducted in February 2019 by the Bulgarian Chamber of Commerce and Industry (BCCI) has studied the attitudes of Bulgarian companies in cooperating with foreign partners. The survey has shown that over 76% of Bulgarian businesses have interested in developing partnership with foreign companies. In particular, the research has underlined that 36% of companies are looking for a good partner for imports; 28% need a partner for joint investment in Bulgaria, and 12% are looking for partners to invest in a new foreign country.
China is the most favourite business destination, quoted by 54% of interviewed. Germany remains second most desired destination among the included countries, and the most preferred within the EU.
Other selected business destinations are Italy, Serbia, Romania, North Macedonia and Russia. In comparison to 2018’s survey, a growing interest towards North Macedonia is analysed, explained by the recently ratified friendship agreement: the Neighbourhood Treaty between Bulgaria and North Macedonia.
Among all the interviewed, approximately 40% of those interested in business trip abroad have an interest in meeting companies from the following industrial sectors/priorities: machine-building, food and beverages, textile, and electronics.
The Market Answer of Matchub.net
Following the new results of the recent survey conducted by the BCCI, Matchub.net is supporting SMEs in increasing their network and developing new potential partners in an open, simple and cost effective manner. Thus, registering in Matchub portal and posting new interesting business proposals a company can get new contacts through which it can start working on new business horizons.
According to what we have read here above, Matchub.net is covering several of the main countries of interest of Bulgarian businesses: Italy, North Macedonia and Romania.
Matchub is supporting SMEs business development using a double approach, including an online and offline strategy. Both approaches aim to spread around the business proposals of a company which is willing to find a new partner abroad. The online strategy is focused on various online actions (social media, blog, advertisement, specific emailing, etc.) while the offline strategy is focused on networking personal contacts that the International Business Matching Unit is following and developing for each new user of the portal.
In addition to this double approach which aims to boost the international business network of each registered user of the portal, Matchub is offering several other services which can support and facilitate the access of a SME in a new country: Country Market Analysis, Country Sectorial Analysis, Legal & Policy Analysis; Public Tender Reporting; Country Leads Creation; Cold-Calling activities; Commercial actions; B2B meetings; etc.
Contact us for any further detail…

Trends of the Bulgarian Foreign Trade Balance

In the first trimester of this year (January – March 2019), Bulgaria’s exports to EU countries increased by 7% compared to the same period in 2018. The amount of exported goods increased to a total of 4.9 billion euro. Bulgaria’s main trading partners are Germany, Romania, Italy, Greece, France and Belgium, which hold 67.3% of exports to EU countries. The sector of mineral fuels, mineral oils and all the products related to their distillation marks the greatest growth – 75.4% – while the one of oils, fats and waxes of animal or vegetable origin is declining of 8.4%. In this first trimester, imports from the EU also increased by 0.3% on an annual basis and reached to 5.01 billion euro. During this period, Bulgaria mainly imports from Germany, Italy, Romania, Greece and Hungary. The greatest growth in sales was recorded in the Beverage (alcoholic and non-alcoholic) and Tobacco sector (+50%) and the largest drop was seen in the Raw materials sector (excluding fuels) which has decreased by 29.4%.

In the period January-April 2019, exports to non-EU countries grew by 14.7% compared to the same period in 2018 and amounted to 3.02 billion euro. Among the non-EU countries, Bulgaria has mainly exported to Turkey, China, Serbia, United States, Russian Federation and North Macedonia, which hold 51.9% of the total exports to non-EU countries. In non-EU countries, the largest growth is seen in the sectors of mineral fuels, mineral oils and all the products related to their distillation (54.8%) and of oils, fats and waxes of animal or vegetable origin (40.2%). In the period from January to April 2019, imports from non-EU countries grew by 9.1% and reached to 161.7 million euro. Bulgaria imports mainly from the Russian Federation, Turkey, China and Egypt. The largest growth was recorded again by the sectors of alcoholic and non-alcoholic beverages and tobacco (32.3%), food and live animals (23.1%) and mineral fuels, mineral oils all the products related to their distillation (21.2%). The greatest drop is observed in the sector of oils, fats and waxes of animal or vegetable origin (-9.6%). In the January-April period total Bulgarian exports amounted to 9.54 billion euro and grew by 9.5% compared to the same period of 2018. In the same period the total Bulgarian imports amounted to 10.54 billion euro, or 4.6% growth on an annual basis. The total balance of foreign trade of the Country is negative, minus 994 million euro, while at FOB / FOB prices the balance is minus 277 million euro.

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