Approaches of Italian Gold Firms to Marketing in the U.S.A. - A comparative study

Italy is the largest exporter and second largest manufacturer of gold products in the world, despite the competitive coming out of India, which has increased the value of its exports almost fivefold in the last five years. China, Hong Kong, and lately the upcoming Turkey are all increasing their presence in international markets. The competitiveness of Italian gold firms as measured in market share in the international markets has nevertheless been steadily eroding. The purpose of this study is to analyze current retail and export channel practices of Italian gold firms located in the province of Arezzo, Tuscany with a special emphasis on the US market and to contrast them with those of some Indian gold firms. We propose that many of the Italian gold firms difficulties are related to limited resources capabilities and investment in market development as well as the choice of indirect exporting as the primary channel in the US . As a result, direct and personal interaction with retailers and end users have dramatically been constrained. At the same time, Indian companies have been increasing their competitiveness in that industry worldwide, and in the US in particular. The explanation of India as an emergence as a global competitor include both firm specific marketing strategies and the support from the Indian government to foreign direct investment. The research includes a comparison of the market approach of midsize gold firms from Italy and India.