The hand and power tools market in Italy - CBI

CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
CBI MARKET SURVEY
The hand and power tools market in Italy
Publication date: July 2007
Report summary
This CBI market survey discusses the following highlights for the hand and power tool market
in Italy:
• Italy is the second largest market in the EU, behind Germany. In the period 2001-2005,
the consumption of cordless power tools grew relatively fast with an increase of 8%
annually. All product groups saw an increase in consumption in the period mentioned, with
the largest growth recorded by pneumatic power tools (25% annually) and garden and
agricultural hand tools (17% annually).
• Due to new product introductions and the ongoing popularity of DIY activities in Italy, in
recent years consumption of DIY tools has increased faster than consumption of tools in
the professional market. This trend is expected to continue in the years to come. However,
the professional market will remain dominant in Italy as professional users still account for
60-70% of the power tool market. With regard to hand tools, this situation is different:
according to one of the large Italian hand tool manufacturers, professional users accounted
for about 45% of total hand tool consumption in 2004.
• Behind Germany, Italy is the second largest producer in the EU. The strong decline in
production of electric power tools in the period 2003-2005 was a result of economic
problems in these years, causing a decline in consumption of electric power tools.
• Total import value increased by 5% annually in the period 2001-2005, while the volume
increased by 12%. Compared to 2001, the total share of DCs increased from 11% to 17%
in 2005. The DCs’ share in Italian imports grew the fastest in the product groups ‘hydraulic
and other power tools’ and ‘pneumatic power tools’. The DCs that saw the largest increase
in exports to Italy were Malaysia, Mexico, China and India.
• In all product groups, China was the most important DC supplier, while other countries well
represented in the different product groups were India (3% in hand saws, hammers,
spanners, screwdrivers, pliers and other hand tools) and Turkey (1% in other hand tools).
• Average prices of imported hand and power tools decreased by 2.4% annually in the period
2000-2006, which is clearly the result of strong competition from cheap tools from China
and Taiwan.
This survey provides exporters of hand and power tools with sector-specific market information
related to gaining access to Italy. By focusing on a specific country, this survey provides
additional information, complementary to the more general information and data provided in
the CBI market survey ‘The hand and power tool market in the EU’, which covers the EU
market in general. That survey also contains an overview and explanation of the selected
products dealt with, some general remarks on the statistics used, as well as information on
other available documents for this sector. It can be downloaded from
http://www.cbi.eu/marketinfo.
1 Market description: consumption and production
This section discusses the consumption and production of the two product categories hand and
power tools. Where possible, data on the separate product groups are presented.
Consumption
As shown in Table 1.1, the total apparent consumption value of Italy showed a relatively
strong annual increase (5%) in the period 2001-2005, totalling €1,3 billion in 2005. In total
apparent consumption value, Italy ranked first in the EU in 2005, ahead of France and
Germany. However, if taken into account the fact that German annual production value is
about €0.5-1 billion higher than reported by Eurostat, Italy falls to second place behind
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
Germany. Unfortunately, the consumption volume can not be calculated due to the absence of
reliable production volume data.
Table 1.1 Italian apparent* consumption value of hand and power tools, 2001-
2005, € million
Average
annual
change
2001 2003 2005 (%)
Total 1,025 1,222 1,262 5%
Power tools 510 634 622 5%
Electric power tools 344 414 369 2%
Pneumatic power tools 36 52 88 25%
Hydraulic and other power tools 130 168 166 6%
Hand tools 515 587 640 6%
Hand saws, hammers, spanners, screwdrivers, pliers 245 262 288 4%
Garden and agricultural hand tools 13 20 24 17%
Other hand tools 257 305 328 6%
Source: Eurostat Prodcom (2007)
*Please note that the apparent consumption value is calculated by using import, export and production
data. As such, consumption is valued at manufacturer’s prices.
Power tools (€622 million) accounted for 49% of total tool demand. Within the product group
‘electric power tools’, cordless power tools performed very well in the period mentioned (+8%
annual increase). With €640 million, hand tools accounted for 51% of total tool sales, which is
above the EU average of 47%. Hand saws, hammers, spanners, screwdrivers and pliers
accounted for only 23% of total tool sales, which is below the EU average, while other hand
tools accounted for 26% of total tool sales, which is far above the EU average of 19%. All
product groups saw an increase in consumption, with the largest growth recorded by
pneumatic power tools (25% annually) and garden and agricultural hand tools (17% annually).
Market segmentation
Generally, the market for tools can be divided into professional users and Do-It-Yourself users
(DIY users). In Western Europe – also in Italy – professional users still account for 60-70% of
the power tool market. With regard to hand tools, this situation is different: according to one
of the large Italian hand tool manufacturers, professional users accounted for about 45% of
total hand tool consumption in 2004.
DIY market
Due to new product introductions and the ongoing popularity of DIY activities in Italy,
consumption of DIY tools has increased faster than consumption of tools in the professional
market in recent years. This trend is expected to continue in the years to come. Other
characteristics and trends of the Italian DIY market are:
• Italy is the fourth largest DIY market in the EU, behind Germany, the UK and France, but
far ahead of the Netherlands, Spain and Belgium.
• After an annual growth of 2.8% in 2005 and 4.8% in 2006, the market totalled €10.4
billion in 2006.
• Packaging of hand tools is an important issue. In Italy, as well as in most other EU
countries, it is the trend to display the tools while they hang, so that people can see and
feel the tool and its characteristics. This requires a minimum of individual packaging, as
well as a smart small hang-up package.
• From the nineties onwards, specialist hardware stores have lost market share to the DIYmarket
chains.
Please refer to Section 2 for more information on the major DIY-market chains.
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
Professional market
The production output of the construction industry is a good indication of the consumption of
hand and power tools by professional tool users working in this industry. The main
characteristics and trends of the Italian construction industry are:
• The Italian construction industry is a large one in the EU. It ranked third in 2005, behind
Germany and the UK, but ahead of France, Spain and the Netherlands. After a growth of
2% in the period 2002-2005, the Italian construction industry amounted to €182.5 billion
in 2005.
• In the next few years, the construction industry will not perform as strong as in other EU
countries. For the period 2005-2008, the European Network for Construction Forecasting
(Euroconstruct) expects Italian construction output to remain stable. The year 2008 is
expected to show the largest growth figures (0.2%).
• Although growth of tool consumption in the DIY market has outpaced gains in the
professional market in recent years, the professional market is expected to remain
dominant in Italy.
Trends in consumption
These are the major trends that influence tool consumption in Italy:
• Back to the basics. According to industry experts, the focus in 2007 and the years to
come is to reinvent the classics. Manufacturers and retailers are redesigning everything
from screwdrivers to table saws to make them more consumer-friendly.
• Professionals want ergonomically designed tools with cushioned grips that fit
comfortably in the hand and maximize the transference of muscle power to the workpiece.
They want tools that offer lightweight strength and durability. As a result of this increasing
demand, nowadays more and more tools are being sold with ergonomic or anti-shock
features.
• Three-in-one tools reduce the number of tools a professional must carry. They eliminate
hand motions and switching tools when going through a repair or installation process. The
increased use of lightweight, durable materials coupled with innovative designs has
resulted in the development of individual tools, combination tools and families of tools that
accomplish a specific task or series of tasks.
• The trend today is toward lightweight, durable materials such as aluminium,
magnesium, titanium and chrome vanadium rather than drop forged steel. Professionals
are willing to pay a premium for stronger, lighter tools made from these materials.
• Problem solvers. Clever innovators are creating new lines of products that address
common consumer problems in innovative ways. These tools build on the tradition created
by screwdrivers like the Retract-A-Bit, where a common user frustration (falling or
misplaced bits) was translated into a handy tool. Tools like these are the perfect stock
option for a clientele that wants to save time, space and a lot of grief.
• Spending more time in the garden. The age profile of the population has long-term
effects on demand for garden equipment. Italy, like other EU countries, has an ageing
population. Since most of them are wealthier than previous generations, older people are
more likely to have the time and money to spend on the garden and are likely to favour
gardening as a leisure pursuit in preference to other activities.
• Large power tools are increasing in popularity. Formerly expensive and specialized
large power tools like mitre saws are becoming less expensive. Because of the significant
price reductions, these bulkier tools are increasingly sold to DIY-users. They are made of
lighter materials and sometimes equipped with wheels, resulting in better portability.
• Decrease in popularity lasers. Tools with high-tech lasers were very popular a few years
ago, but the trend is running out of steam. Consumers are realising that laser tool
programmes are just not user-friendly. They are cumbersome and too complicated to use.
• Lithium-ion technology drives growth of cordless screwdriver segment. The
cordless screwdriver segment has grown fast in the last four years. The products with
especially high demand are the new lithium-ion tools. They offer convenience advantages
over traditional plug-in tools as they are portable, lighter and faster to charge and have
just as much power. Besides, lithium-ion technology is safer for the environment.
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
• The better DIY-users can plan a project, the more effectively they can implement it and
achieve the desired results. This leads to an increasing demand for measuring tools
which are easy to operate and make the preparation of projects more efficient. Safety is
also playing an increasingly important role: many users prefer to spend money on a good
reliable detector rather than have a water pipe or power cable repaired afterwards.
Production
Table 1.2 shows an indication of the production value of hand and power tools in Italy. In the
period 2001-2005, the total production value of Italy showed a moderate annual increase
(3%), totalling €1,1 billion in 2005. In total production value, Italy ranked second in the EU in
2005, behind Germany, but ahead of Sweden and the UK. Unfortunately, there are no reliable
data on the production volume available.
Table 1.2 Italian production value of hand and power tools, 2001-2005, € million
Average
annual
change
2001 2003 2005 (%)
Total 964 1,050 1,072 3%
Power tools 400 435 412 1%
Electric power tools 198 216 163 -5%
Pneumatic power tools 58 59 99 14%
Hydraulic and other power tools 144 160 150 1%
Hand tools 564 616 660 4%
Hand saws, hammers, spanners, screwdrivers, pliers 234 246 280 5%
Garden and agricultural hand tools 14 21 20 9%
Other hand tools
Source: Eurostat Prodcom (2007)
316 349 360 3%
With €660 million, hand tools accounted for 62% of total tool production. Italy, together with
Germany, France and Sweden, dominated the production of hand saws, hammers, spanners,
screwdrivers and pliers. Together these countries represented almost 80% of total EU
production of this product group. In the product group ‘other hand tools’ Italy’s domination
was even stronger: in itself, the country accounts for one third of total EU production. The
strong decline in production of electric power tools in the period 2003-2005 was a result of
economic problems in these years, causing a decline in consumption of electric power tools.
The best annual growth was recorded by pneumatic power tools (+14%), which was caused by
an improving local market and a growing export demand.
Interesting players
• Piergiacomi - http://www.piergiacomi.com produces more than 200 types of hand tools for
the electronics industry.
• Sveden - http://www.sveden.it is a producer of a wide range of hand tools for home and
garden appliance.
• Pastorino - http://www.pastorino.it is a producer of a wide range of professional tools for
craftsmen to the large-scale industry. It is part of Facom, which has been acquired by
Stanley Works.
• Usag - http://www.usag-tools.com produces both hand tools and electric and pneumatic
power tools. It is also part of Facom.
• Felicatti - http://www.felisatti.it is a large manufacturer of professional electric power tools.
USAG is the largest Italian hand tool manufacturer for the professional segment with a
product range of more than 5,000 items. In 2004, it was estimated that the company had a
market share of 20% of the total Italian hand tool market and 30% of the professional market
segment (€280 million and €190 million respectively). The company’s turnover in 2003
reached €60 million (10 million pieces), with 470 employees operating in two Italian plants.
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
• Officine Celsi (Ariex) - http://www.ariex.it produces a large range of hand tools.
• Eurobit Toolgroup - http://www.eurobit-toolgroup.it is a manufacturer of drilling, cutting
and threading tools for mechanical engineering, construction and woodworking industries.
• Bahco - http://www.bahco.com is part of Snap-On and has one plant for wheel service
tools and equipment in Italy (Correggio).
• Karat - http://www.karatutensili.it produces hand tools such as screwdrivers and hammers.
• Mundial - http://www.mundial-casartelli.it is a manufacturer of a complete range of
professional hand tools: screwdrivers, pliers, wrenches, sockets, hammers and chisels.
• Beta-Tools - http://www.beta-tools.com. Refer to textbox for more information on this
company.
Of the large brand manufacturers, Bosch still has an electric power tool plant in Italy, while the
Black & Decker factory was closed in 2000.
Beta-Tools is an Italian producer of professional tools with exports to over one hundred
countries around the world. Beta-Tools is a so-called generalist, characterized by having a
rather complete catalogue covering the most important families in terms of sales turnover
which they produce themselves. Since 2000 Beta-Tools has doubled its product range, it
currently relies on over 10,000 coded items. Besides, the company continues to introduce
restyled product lines. In 2006, after two years of research and defining new design concepts,
Beta has introduced a range of innovative pliers, screwdrivers.
Trends in production
These are the major trends that influence tools production in Italy:
• There is still cost pressure on the Italian and other EU power tool manufacturers because
of environmental legislation. Examples are the disposal of waste electrical and electronic
equipment, the restriction of hazardous substances, the environmentally suitable design of
energy-operated equipment, and the registration and approval of chemical substances. The
European Power Tool Association (EPTA) actively advocates for cost-effective solutions
which do not affect the competitive and innovative ability of the European power tool
industry.
• Increasing concentration. The recent acquisition of Facom by Stanley brought together
two of the leading Western European suppliers of industrial hand and mechanics tools
(Facom) and consumer hand tools (Stanley), allowing the businesses to expand their
brands beyond their existing markets. After the acquisition, two Facom plants in France
were closed, but the Italian locations of Pastorino and Usag are still open.
General outlook consumption and production
Growth of the tool market is expected to be good in the next few years, due to positive world,
EU, and Italian economy forecasts for 2007 (+3.5%, +2.6% and +1.9% respectively) and
2008. Economic growth will stimulate construction and consumer spending activity, two major
determinants of tool demand. Although subcontracting or imports from other countries may
also increase, Italian production is expected to flourish due to these positive economic
forecasts.
Opportunities and threats
Trends and market developments offer opportunities and threats to exporters. A given trend
can be a threat to some and an opportunity to others at the same time. The following trends
should, therefore, always be analysed in relation to your specific circumstances. Refer to
Section 7 of the CBI market survey covering the EU market for more information on
opportunities and threats.
The main opportunities and threats for DC exporters are the following:
+ Increasing consumption of innovative tools (solutions).
+ Increasing consumption of garden tools, large power tools and measuring tools.
± The economy is expected to recover, but the construction industry is expected to remain
stable in the next few years. In spite of that, the consumption of tools in the construction
industry will grow in the next few years, according to an industry expert.
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Page 5 of 11

Useful sources
CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
• DIY in Europe - http://www.diyonline.de; the specialist magazine for the EU DIY trade.
• Eurostat statistical data from the Prodcom database -
http://fd.comext.eurostat.cec.eu.int/xtweb - it is possible to register for free in order to
make large data collections.
2 Trade channels for market entry
Trade channels
The most important trade channels for DC exporters are importers and DIY chains. In addition,
it may be very useful to make use of an agent. This is because for a small exporter it is
difficult to get into direct contact with a large trade partner such as the DIY chains without
having established an export reputation. It is therefore recommended to focus your initial
attention on finding an importer or agent. Refer to the CBI market survey covering the EU
market for a detailed explanation on relevant trade channels in this market.
Examples of importers, agents and purchasing combinations
• Reit (agent with a distributor function) - http://www.reit.it deals with hand tools from
mostly German manufacturers.
• ETR Eurotrade - http://www.etreurotrade.it is an agent of mainly German manufacturers.
• GTG (importer with a distributor function) - http://www.gtg.it. GTG imports among other
things hand and garden tools, both for the professional and DIY market segments. Refer to
the textbox below for more information.
• Toolova Italia - http://www.toolovaitalia.com is an importer and distributor of professional
tools.
• Escher - http://www.escher.it is an importer/distributor of hand and garden tools and
builders’ hardware with their own brand range.
• Calamai - http://www.calamai.com is an importer of hand tools and other hardware.
• CDU - http://www.cdu.net is a purchasing combination that cooperates with EDE of
Germany.
GTG is an Italian distributor with a product range under its’ own GTG brand. The company
sources its’ tools from Chinese and Taiwanese intermediaries. A spokesman from GTG
mentions the German trade fair ‘Practical World’ and the ‘Hong Kong International Hardware &
Home Improvement Fair’ (http://hkhardwarefair.tdctrade.com) as the most important trade
fairs. As GTG visits these fairs, it is GTG’s tip for DC exporters to be represented at these fairs
as well. To come into contact with GTG an email can also be sent. Prospects are also directly
visited by GTG. GTG is always looking for innovative products of a high quality and the
company is aiming at long term supplier relations. The company prefers to source a complete
product range, as such complete product ranges (for example a complete range of
screwdrivers) have the best potential in Italy.
Examples of DIY-market chains
• Leroy Merlin - http://www.leroymerlin.it / http://www.leroymerlinsourcingportal.com is one
of the two leading DIY-market chains in Italy. The chain comprises only 15 stores with an
annual turnover of €608 million (2005).
• Bricocenter - http://www.bricocenter.it is the other leading DIY-market chain in Italy. The
chain comprises 77 stores with an annual turnover of €608 million (2005).
• Castorama - http://castorama.lavoraconnoi.altamiraweb.com is number three in Italy with
29 stores and €390 million turnover in 2005.
• OBI - http://www.obi-italia.it comprises 36 stores in Italy.
There are at least 6 more DIY-market chains in Italy. Some of the smaller DIY-market chains
in the country are Bricofer - http://www.bricofer.it, Punto Legno - http://www.puntolegno.it
and Self - http://www.selfitalia.it.
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
Price structure
Margins vary widely. No-name tools have lower margins than branded tools and DIY - retailers
aimed at large volumes have lower margins than specialized hardware stores. The following
margins are only general indications, based on the opinion of industry experts. The total markup
from manufacturer’s price to final consumer price including VAT can reach up to 400%,
especially when taking the costs of logistics and services into account.
Average margin
• Agent 2-5%
• Importer 15-50%
• Wholesaler / distributor 30-50%
• Retail 50-100%
Selecting a suitable trading partner
There are many ways to find potential trading partners in Italy. In this section, the focus will
be on the internet, sources in your own country and the target country. Refer to Section 6 for
main sales promotion tools.
Internet
Some examples of available general sources to find clients:
• Europages - http://www.europages.com. Search possibilities are limited to hand/power
tools and their application type such as metalworking and woodworking. Another
interesting search may be ‘Do-it-yourself hand-held power tools’ and ‘Do-it-yourself hand
held non-power tools’. The greatest benefit of Europages is that searching by type of
activity (such as manufacturer or distributor) is also possible.
• Kompass - http://www.kompass.com. The free part is useful in finding manufacturers of
specific tools such as hammers; the website is also listed.
Your own (DC) country
Some examples of sources which may be available in your own country:
• Diplomatic and consular representatives
• Public and private trade promotion bodies
• The Italian Embassy in your country. Find it at http://www.embassyworld.com
Italy
The following country-specific websites may be very useful to find potential Italian trade
partners:
• Federation of the Italian Associations of Mechanical and Engineering Industries (ANIMA) -
http://www.anima-it.com
• Italian Chamber of Commerce - http://www.unioncamere.it
• Your own countries’ Embassy in Italy. Find it at http://www.embassyworld.com.
• Italy Business - http://www.italybusinessnet.com is a site that brings together demand and
supply of a wide range of products
• Association for Supply Chain Management - http://www.ailog.it
Italy is home to two agent associations:
• Italian Federation Of Agents And Commercial Representatives - http://www.fnaarc.it
• National Federation of Commercial Agents - http://www.usarci.it
3 Trade: imports and exports
Total imports
In 2005, Italy was a large importer, ranking fifth in the EU, behind Belgium and the UK, but
ahead of the Netherlands and Spain. From 2001 onwards, the total import value increased by
5% annually, amounting to €816 million in 2005. In the same period, the import volume
increased by 12% annually. The most important suppliers were Germany, China, Belgium and
Japan. Far behind China, other DC suppliers to Italy were India, Turkey and Malaysia.
Compared to 2001, the total share of DCs increased from 11% to 17% in 2005.
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
Imports by product group
Table 3.1 shows that all product groups increased in value between 2001 and 2005. Hydraulic
and other power tools showed the largest growth (17% annually), followed by pneumatic
power tools (10%). With regard to the volume of imports, all product groups increased as well.
The import volume of hydraulic and other power tools grew the fastest of all (31% annually),
followed by pneumatic power tools (25%), electric power tools (11%) and other hand tools
(11%). In all product groups, China was the most important DC supplier, while other countries
well represented in the different product groups were India (3% in hand saws, hammers,
spanners, screwdrivers, pliers and other hand tools) and Turkey (1% in other hand tools). DCs’
shares in Italian imports of some product groups showed good growth compared to 2001.
These product groups were:
• Hydraulic and other power tools: growing from 0% to 6% in value and from 1% to 17% in
volume.
• Pneumatic power tools: growing from 2% to 7% in value and from 12% to 37% in volume.
• Electric power tools: growing from 13% to 24% in value and from 43% to 57% in volume.
• Hand saws, hammers, spanners, screwdrivers and pliers: growing from 8% to 14% in
value and from 31% to 45% in volume.
The DCs that saw the largest increase in exports to Italy were Malaysia, Mexico, China and
India. Of all intra EU imports it is estimated that between 5-10% are re-exports mainly due to
re-exports from the Netherlands and from Belgium. Unfortunately, the exact value is unknown
because Eurostat does not allow for such detailed analysis.
Table 3.1 Imports by and leading suppliers to Italy, 2001 - 2005, share in % of
value
Product
2001 2003 2005 Leading suppliers
Share
€ mln € mln € mln (%)
(%)
Total tools 676 731 816 Intra EU : Germany (24), Belgium (10), France (5) 57
Ext EU excl DC: Japan (8), Liechtenstein (6), Taiwan (4) 26
DC : China (15), India (1), Turkey (0), Malaysia
(0), Pakistan (0), Mexico (0)
17
Electric power tools 255 250 270 Intra EU : Germany (24), Belgium (5), Netherlands (4) 46
Ext EU excl DC: Liechtenstein (17), Japan (9), Switzerland (3) 31
DC : China (23), Malaysia (0), Mexico (0), Bosnia
and Herz. (0), Croatia (0), Thailand (0)
24
Hand saws, hammers, 153 147 166 Intra EU : Germany (30), Netherlands (8), France (8) 65
spanners,
Ext EU excl DC: Taiwan (10), Switzerland (3), USA (3)
21
screwdrivers, pliers
DC : China (10), India (3), Brazil (0), Pakistan (0),
Turkey (0), Croatia (0)
14
Other hand tools 127 125 149 Intra EU : Germany (25), France (13), Netherlands (4) 57
Ext EU excl DC: Taiwan (6), Switzerland (5), USA (3)
18
DC : China (21), India (3), Turkey (1), Pakistan
(0), South Africa (0), Thailand (0)
25
Hydraulic and other 71 123 133 Intra EU : Belgium (24), Germany (20), Sweden (14) 63
power tools
Ext EU excl DC: Japan (22), USA (7), Taiwan (1)
31
DC : China (6), India (0), Tunisia (0), Algeria (0),
Chile (0), Malaysia (0)
6
Pneumatic power tools 58 74 85 Intra EU : Belgium (25), Germany (20), UK (7)
66
Ext EU excl DC: Japan (11), Taiwan (7), USA (5)
26
DC : China (7), Brazil (0), Argentina (0), India (0),
Bosnia and Herz. (0), South Africa (0)
7
Garden and
12 12 14 Intra EU : Germany (22), Spain (13), Netherlands (11) 64
agricultural hand tools
Ext EU excl DC: Taiwan (10), Japan (4), USA (1)
17
DC : China (19), India (0), Turkey (0), Pakistan
(0), Philippines (0), Afghanistan (0)
20
Source: Eurostat (2006)
Exports
The total export value of Italy showed a slight annual increase (0.5%) in the period 2001-
2005, totalling €627 million in 2005. In the same period, the export volume decreased by 1%
annually to 102 thousand tons. In total export value, Italy ranked fifth in the EU in 2005,
behind Sweden and the UK, but ahead of France and the Netherlands. The largest exported
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Page 8 of 11

CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
product group was other hand tools (€182 million in 2005), followed by hand saws, hammers,
spanners, screwdrivers and pliers (€157 million in 2005) and hydraulic and other power tools
(€118 million in 2005). Hydraulic and other power tools (+8%), pneumatic power tools (+5%)
and hand saws, hammers, spanners, screwdrivers and pliers (+3%) accounted for the largest
annual growth in the period mentioned. Probably a small part of exports is re-exports to other
EU countries, but the exact value is unknown because Eurostat does not allow for such detailed
analysis.
Opportunities and threats
+ Italy was the fifth largest importer of hand and power tools in the EU in 2005.
+ Italy was a net importer for all product groups except the group ‘other hand tools’.
+ Total import value increased in the period 2001-2005.
+ Large import share for DCs (17%), although it was below the EU average of 20%.
+ Share of DCs in total imports grew faster than in the EU in average.
− China was a very large supplier to Italy (15% share in imports in 2005).
− Imports from China grew faster than the average total DC imports.
Useful sources
• EU Expanding Exports Helpdesk
http://export-help.cec.eu.int/ go to: trade statistics
• Eurostat - official statistical office of the EU
http://epp.eurostat.cec.eu.int go to ‘themes’ on the left side of the home page
go to ‘external trade’ go to ‘data - full view’ go to ‘external trade - detailed
data’
4 Price developments
Average prices of imported hand and power tools decreased by 2.4% annually in the period
2000-2006, which is clearly the result of strong competition from cheap tools from China and
Taiwan. Import prices of power tools decreased by 1% per year, while imports of hand tools
decreased by more than 3.5% in price annually.
Useful sources
The Italian Statistical Institute may have price indices of tools available, however, they cannot
be found on the website: Italian Statistical Institute / L’Istituto nazionale di statistica -
http://www.istat.it.
Furthermore, several DIY companies and wholesalers present prices on their websites,
sometimes in the form of a product catalogue. Some examples are:
• Ferramenta Online - http://www.ferramentaonline.com. Click on ‘Utensileria’ and on
‘Utensili manuali’.
• AB Shop - http://www.abshop.it/tools (online shop focused on the professional user)
• Bricoshop - http://www.bricoshop.it
• Rebelio - http://www.rebelio.it
• Kelkoo - http://www.kelkoo.it. Search for ‘attrezzi’.
5 Market access requirements
As a manufacturer in a developing country preparing to access Italy, you should be aware of
the market access requirements of your trading partners and the Italian government.
Requirements are demanded on legislation and on labels, codes and management systems.
These requirements are based on environmental, consumer health and safety and social
concerns. You need to comply with EU legislation and have to be aware of the additional nonlegislative
requirements that your trading partners in the EU might request.
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
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CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at
http://www.cbi.eu/marketinfo, select hand and power tool and Italy in the category search,
click on the search button and click on market access requirements.
Useful sources
• Additional information on packaging can be found on the ITC website on export packaging:
http://www.intracen.org/ep/packaging/packit.htm
• Information on tariffs and quota can be found at http://export-help.cec.eu.int
6 Doing business
General information on doing business like approaching potential business partners, building
up a relationship, drawing up an offer, handling the contract (methods of payment, and terms
of delivery) can be found in CBI’s export manuals ‘Export Planner’ and ‘Your image builder’.
Furthermore cultural awareness is a critical skill in securing success as an exporter.
Sales promotion
For DC exporters, trade press and trade fairs are among the most important promotional tools;
they are briefly discussed below. For more information, also refer to the CBI market survey
covering the hand and power tools market in the EU.
Trade press
Next to DIY in Europe - http://www.diyonline.de which is the specialist magazine for the
European DIY trade, relevant Italian trade magazines are:
• Edibrico shop - http://www.edibrico.it
• Ferrutensil - http://www.ferrutensil.com
• Ferramenta - http://www.ferramenta2000.net
• Ferramenta & Casalinghi - http://www.netcollins.com/homeferram.asp
Trade fairs
An excellent promotion tool is participating in a major trade fair in Europe. Exhibiting at a fair
can not only result in direct sales, it is also an effective instrument for testing the receptivity of
the DIY market and assessing the strength and scope of competition. Generally speaking, due
to its’ international scale, the German trade fair Praktical World (http://www.practicalworld.de)
also provides a gateway to other European markets such as the Italian market. This
fair, which is held in March in even years, is the most suitable trade show for the DIY industry
in the EU. Furthermore, the most relevant trade fairs for hand and power tools are related to
the DIY and construction industry:
• Il Mondo Creativo (annually, November, Bologna; trade & general public) -
http://www.ilmondocreativo.com
• Creare in Fiera (annually, February, Genoa; trade & general public) - http://www.fiera.ge.it
• Lignomec Woodworking Equipment (biennially, March, Bolzan; trade public) -
http://www.lignomec.it
• Baumec Construction Equipment (biennially, March, Bolzan; trade public) -
http://www.baumec.it
Business culture
Refer to Kwint Essential for practical tips on business culture and etiquette in Italy:
http://www.kwintessential.co.uk. Click on ‘Country Profiles’ at Resources and click on ‘Italy’.
Furthermore, information on cultural differences in the EU can be found in Section 3 of CBI’s
export manual ‘Exporting to the EU’. These manuals can be downloaded from
http://www.cbi.eu/marketinfo - go to search publications.
Useful sources
• Italian Federation of Trade, Tourism and Services - http://www.confcommercio.it
• Italian Distributors’ Federation / Federdistribuzione - http://www.federdistribuzione.it
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
Page 10 of 11

CBI MARKET SURVEY: THE HAND AND POWER TOOL MARKET IN ITALY
This survey was compiled for CBI by Facts Figures Future.
Disclaimer CBI market information tools : http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
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