“The North American operators who attended the inaugural Milano Home gave extremely favourable feedback. They were impressed by the overall experience, the diversity and quality of the exhibitors, and the professional organisation. They urged us to continue showcasing companies that they can’t find elsewhere, examples of an Italian manufacturing culture that prizes high quality artisan production – companies with a history that is difficult to replicate outside our country.”

These were the flattering verdicts received by Paolo Cravedi, brand ambassador of Milano Home in North America. Since 1999, Cravedi has lived in the New York Metro Area, where he has managed the US branches of renowned Italian brands. Secretary of the non-profit organisation Be Original Americas, Cravedi previously served, among others, as Chairman of the Calligaris Group and Moleskine America, was Managing Director of Alessi U.S. and Kartell U.S. for almost 10 years, and spent 11 years with the De'Longhi Elettrodomestici Group, eight of which at De'Longhi America.

Concentrating on two broad themes, the success of Made in Italy in the American markets is primarily attributable to the quality and distinctiveness of its offerings.  In addition, with the growing demand for sustainable products, particularly among younger consumers, anti-pollution measures and recycling are two issues that are increasingly swaying buyers towards making mindful purchases.

How is the market moving in the US?

“Generally speaking, the market for household goods in the US has experienced a decline in the prominence of department stores, hindered by unwieldy and inefficient systems in adopting an omnichannel approach. Conversely, there has been a modest yet discernible revival of small independent retailers offering a carefully chosen selection of brands and products not easily found on major marketplaces such as Amazon and Wayfair. The driving forces behind this resurgence include customer service, product knowledge, and favourable store locations.

Additionally, the integration of digital platforms has become commonplace; independent stores now typically operate their own e-commerce websites.”

There seems to have been a significant shift in consumer behaviour, with the needle now pointing towards choices that blend the aesthetic appeal and practicality of an item or furnishing element with the adoption of responsible and sustainable practices.

Sustainability, along with ethical and social responsibility, are the two trends driving demand.

While the sheer scale of the North American market warrants a cautious approach in monitoring shifts in demand, a clear attitude among buyers emerges when evaluating a purchase.

Cravedi explains: “Two trends are becoming more deeply entrenched in consumer demand:

 • sustainability – which entails the use of recycled and recyclable materials, a preference for local production, and the avoidance of disposable items –

 • and ethical and social engagement. Consumers are increasingly opting for brands that transparently communicate their support for specific causes.”

What are the advantages and any difficulties in positioning for Italian products in the North American market?

“Made in Italy is experiencing a golden age in North America, driven mainly by fashion, design and food. The biggest limitation to the success of Italian brands and products in this context is price: freight, exchange rates, distribution cost and in some cases duties push the price positioning to the edge of luxury, even for lines that are competitively positioned in Italy. Another limitation is those Italian companies that do not actually manufacture in Italy. Americans are very sensitive to this issue and expect Italian products to be made in Italy.

Having said that, companies such as Alessi, Seletti, Guzzini and Mepra, or for furniture and lighting Kartell, Poltrona Frau, Cassina, B&B Italia, Artemideand Flos are very popular.”

You need to be able to choose a strategy and implement it in a simple and consistent way.

What are the main opportunities that the United States and Canada offer Italian companies? 

“Definitely the size. Every Italian company ready to enter North America can find a niche that suits its strategy, and here the niches are large. The important thing is to choose an approach and then implement it in a simple and consistent way, whatever it may be: use a marketplace like Amazon or commit to independent retail; focus on large volumes with low margins or work on the high end, and so on. The key thing is to be patient and not try to do a bit of everything, going by trial and error.” 

American websites are very transactional. The world of interior designers in North America plays a critical and pivotal role when breaking out of the mass market

Can you explain the behavioural patterns of the North American market?

“In this respect, we need to understand two significant differences between the European and North American markets. Let's start with ecommerce. American websites are very transactional. When a consumer arrives at the website, they have usually already bought into the brand and expect to find what they are looking for quickly and with just a few clicks. Storytelling, the softer aspects of branding take place elsewhere, and earlier: on social media, for example, or – in cases of omnichanneling – in physical shops. Landing pages are dedicated to products and aimed at facilitating consumer choice. If you then want to read about the history of the brand, you can look it up elsewhere on the site.

Last but not least, the role of the ‘trade’ should not be overlooked. The world of interior designers in North America plays a critical and crucial role when breaking out of the mass market.”

What are the main characteristics of American stores? Are there similarities with Italy?

“I don't seem to see big differences between Italian and North American physical shops, apart, of course, from the sheer range of them. I would say that one of the most visible differences is the fit-out of the store in general; in North America, a store designed and built according to Italian quality and design principles would be uneconomic. 

The digital-physical divide is not so marked; in North America everything is very smooth. Every consumer – regardless of where they are in the buying process, what they are thinking of buying, where they live – can move very easily between online and point of sale.”

What are the factors that decide whether a brand will become established in America?

“The success of an Italian company in North America depends on its ability to adapt to the local market in terms of its offering (different product) and communications (a different style, not just a different language), while keeping its DNA and brand values intact. An example that is near and dear to my heart is De'Longhi Elettrodomestici, which has been able to mould its product offering to the tastes and needs of the North American consumer while maintaining its positioning tied to quality, innovation and Italian design.”