Viewing entries tagged
Strategia & Sviluppo Consultants

The commercial distribution in the US market



Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest and most important in the world. The U.S. economy represents about 20% of total global output, and is still larger than that of China. Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP (PPP). The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its output. The U.S. economy is dominated by services-oriented companies in areas such as technology, financial services, healthcare and retail. Large U.S. corporations also play a major role on the global stage, with more than a fifth of companies on the Fortune Global 500 coming from the United States.

Even though the services sector is the main engine of the economy, the U.S. also has an important manufacturing base, which represents roughly 15% of output. The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals. Meanwhile, agriculture represents less than 2% of output. However, large amounts of arable land, advanced farming technology and generous government subsidies make the U.S. a net exporter of food and the largest agricultural exporting country in the world.                                                         .                      

The U.S. is the 2nd leading exporter of goods and services in the world and the number one leading importer The U.S. has consistently run a trade deficit, mainly due to the dependence on foreign oil to meet its energy needs and high domestic demand for consumer goods produced abroad, however thanks to advances in domestic oil production, the energy gap is closing. The main trading partners of the U.S. are Canada, China, Mexico and Japan. Canada is the main destination for U.S. exports, whereas China is the main source of imports.                               


Before setting a real presence of the company in the US a company has to consider if it worths it. They have to consider the cost of the presence as the cost of HR, staff, offices, insurances, consultants, compliance, the product liability and the approach to the market, the Law, distances, consumers’ habits and if there’s a different language.
A company can consider different entry strategies and different organizational models.

About the distribution model, a company can distribute directly through a subsidiary in the US and it can be by agents or by distributors, or directly by sales representatives or indirectly through third party distributors.
In the US a great importance is given to the written contracts. A company must consider also the brand protection, eventual visas for the employees, the Law and the compliances to export products in the US.
Distribution models:

  • Distribution: a company buys the products and it earns with the mark up. In this model exists a market risk, there’s the need of a warehouse and for these characteristics it’s an expensive model.
  • Agents: in this model the agents don’t buy and resell the products but they earn only a commission.
  • Franchise: the company has the license of the brand and it pays a “franchise fee”. There’s a control on the sales process.

The written contracts in the US (distribution, agents, sales, joint ventures, etc) are very long due to cultural motivations, litigation risk, freedom of bargaining, and because the Civil Code is less strict.

It is foundamental to prepare contracts to manage the following risks:
·        In stores: prices, timing of payments, description of products or services, ownership, etc.
·        Legal risks: warranties, compensation, dissolution, arbitration, etc.
A bound contract could be not written (verbal, purchase orders, email, correspondence).

In a contract there are fixed clauses:
1.     Warranties: declared in the contract or implicit (Uniform Commercial Code, Article 2 for the trade of goods, warranties for “merchantability” and “fitness for intended purpose”). The implicit ones are inaccurate in favor of the buyer, often on the trade of specialized goods between merchants. They are applicable if they are not expressly excluded (magic language).
2.     Indemnification: area, restrictions, direct damages and indirect/consequential damages, lost profits.
3.     Territory
4.     Duration
5.   Obligations of the distributors: objectives, minimum of selling, marketing, limits to distribution to authorised retailers.
6.     Resolution: predict causes which attribute rights of termination and generally the termination is required from one part and it doesn’t give rise to compensation cause.
7.     Autonomy: provide the total autonomy of the Italian Company in respect to the counterparty in order to avoid the responsibility for act of the distributors or qualification of the counterparty as employer.
8.     Antitrust: Vertical Restraints – Rule of Reason

How to choose the legal entity
The advantages of set up a new company (NewCo) instead of a branch in the US are that in the US the set up of a NewCo is faster and cheaper than in Italy, there are less formalities, the disclosure is limited to the parent company and the shareolders, there's the need of a minimal capitalization even if there’s a thin capitalization for credibility on the market and with the Authorities. It’s important to decide where to open the New Co (Delaware vs other states).

Another aspect to consider is the kind of entity the company wants to set up: a Corporation or a Limited Liability Company.
A Corporation is the most known legal and fiscal entity with limited liability. From the fiscal view it has a permanent establishment and it doesn’t need to file the Income Tax Return of the parent company.
The hierarchy includes stakeholders, directors and officers and there’s also a Board of Directors (“The business and affairs of the corporation shall be managed by, or under the direction of the Board of Directors”- Delaware GCA Section 141a).
A Limited Liability Company has only a legal personality (“pass through”) and its consituition is more expensive but at the same time it’s more flexible.




Distribution Agreements under US Law
(Excerpts from Chapter 19 of “International Commercial Agency and Distribution Agreements: Case Law and Contract Clauses”, Second Edition, published on April 20, 2017 (Wolters Kluwer))

Understanding the interplay between federal and state statutory and common law in the US legal system is important to understanding the regulation of exclusive distribution agreements in the US. Under the US Constitution all power not specifically reserved for the federal government remains with the states. Federal law has exclusive jurisdiction only over certain types of cases (e.g., those involving federal laws, controversies between states and cases involving foreign governments), and share jurisdiction with the states courts in certain other areas. In the vast majority of cases, however, state law has exclusive jurisdiction.

Furthermore, because a distributor is typically an unaffiliated third party acting on its own account rather than on behalf of the supplier as principal, distribution agreements are subject to greater regulation under US federal and state antitrust law. Such law, among other things, (i) regulates whether and the degree to which a supplier in a distribution arrangement may seek in a contract or otherwise to dictate the price at which the distributor will resell products supplied; (ii) imposes restrictions on suppliers that engage in “dual distribution”; and (iii) may limit the suppliers’ ability to sell product to different distributors at a different price. Antitrust law also regulates exclusivity and selective distribution arrangements, as well as distribution relationships in certain industries.

Under the law of most states (including New York), exclusive distribution exists when a supplier grants a distributor exclusive rights to promote and sell the contract goods or services within a territory or to a specific group of customers. Exclusive rights in a distribution arrangement are often granted by the supplier for the distribution of high quality or technically complex products that require a relatively high level of expertise by the distributor, including staff that is specially training to sell the goods or specialized after-sales repair and maintenance or other services. In contrast to a distributor, a commercial agent does not take title to product, does not hold inventory and typically has no contractual liability to the customer (including risk of customer non-payment). Conversely, a distributor, in line with the greater risk of its activities, typically can expect greater upside economically in terms of margins on resale relative to an agent’s profit through earned commissions.

Under the law of most states (including New York), a distributor may appoint subdistributors absent any restrictions to the contrary in the agency agreement. Commercially, the appointment of a sub-distributor may have an adverse effect on the supplier by reducing the supplier’s control over its distribution channel activities or increasing the supplier’s potential liability exposure given the increased number of distributors whose actions may be attributed to the supplier.

Rights and Obligations of the Exclusive Distributor:

  • Sales organization: suppliers are not required to establish sales organizations in exclusive distribution agreements.
  • Sales’ target: there are no mandatory rules under federal law or state law (including New York) generally regarding sales targets in exclusive distribution agreements.
  • Guaranteed minimum target: minimum sales requirements are common in exclusive distribution agreements. As a commercial matter, a supplier as a requirement to give, or maintain, exclusivity with one distributor, will seek through such requirements to ensure that economically the distributor is performing satisfactorily.
  • Minimum stock: there are no mandatory rules in federal law or the law of the majority of states (including New York) regarding minimum stock. A supplier may seek to have the distributor agree, contractually, to maintain adequate levels of stock relative to market demands as well as to store the product properly.
  • After-sales service: the parties to a distribution agreement are generally free to agree as they deem appropriate with respect to after-sale service regarding products.
  • Resale Prices: the Exclusive Distributor is free to fix the resale prices. State law (including New York law) generally does not limit the ability of an exclusive distributor to fix resale prices. A supplier’s ability to set resale prices for distributors is subject to limitations under federal and state antitrust law.

Rights and Obligations of the Supplier:

  • Exclusive Distributor undertaking to supply: generally, state statutes do not specifically provide that a supplier in a distribution relationship has a duty to supply specific levels of product to a distributor, with such obligations generally be established by contractual provision. However, a supplier does have an implied covenant of good faith and fair dealing toward the distributor under state law generally, which generally requires that a party to a commercial agreement not do anything which injures the right of the other to receive the benefits of the agreement. Under the foregoing, a supplier may be deemed to have an obligation to supply product to a distributor. However, even where such a duty were found to exist, the quantity and frequency of product supply and other details often remain unclear.
  • Pricing Policy of the Supplier;
  • Retention of title: typically, in sales transactions on credit in the US, title is passed at the moment of initial sale. The buyer typically grants the supplier a security interest in the goods purchased, which if proper perfected under state law, affords the supplier with a priority position relative to other creditors with respect to the products provided (inventory) in the event of non-payment and enforcement.

The supplier and distributor can allocate third-party liabilities and related attorneys fees as between themselves through warranty and other indemnification provisions.
Exclusive-dealing provisions – under which the distributor undertakes not to distribute competing products in the territory – are quite common in distribution agreements.


Commercial Agency Agreement under US Law
To understand the regulation of commercial agency agreements in the US, it is helpful to remember the interplay between federal and state statutory and common law in the US legal system.

Commercial agency is regulated at the state level rather than by US federal law. Almost two-thirds of the US states have adopted specific legislation for commercial agency relationships with non-employees. Most state statutes regulating commercial agency relate to the relationship between a principal and an agent that solicits orders for the purchase of the principal’s products, mainly in wholesale rather than retail transactions (although state law often has special rules for agency relationships with respect to real estate transactions and insurance policies). A second, overarching theme of note to understand the regulation of commercial agency agreements in the US is the primary importance of the doctrine of freedom of contract under state law jurisprudence.

General Legal Provisions Applicable to Agency Agreements:
 As noted, commercial agency is mostly regulated at the state level in the US State laws on agency mainly address commissioned agency, and, where in force, is primarily aimed at ensuring that the principal timely pays the agent the commissions that are owed by imposing liability on the principal for a multiple (often two to four times) of unpaid commissions, as well as for reimbursement of the agent’s attorneys’ fees and costs incurred in collecting the unpaid amount.

Formalities for the Creation of an Agency:
 New York law does not impose particular formalities for the creation of an agency relationship. In fact, under New York law, absent circumstances under which New York’s general Statute of Frauds rules apply as set forth in § 5-701 of the General Obligations Law, parties may be deemed to be in an agency relationship even without signing an agreement evidencing the agreement consideration or any writing which evidences their agreement. New York law does regulate the payment of sales commissions under New York labor law. New York labor law defines a sales representative as an independent contractor who solicits orders in New York for the wholesale purchase of a supplier’s product or is compensated entirely or partly by commission.

Agency Elements and Purpose:
Under the law of New York and the majority of states, an “agent” is a person or entity who, by agreement with another called the “principal,” represents the principal in dealings with third persons or transacts business, manages some affair or does some service for the principal. The key elements of an agency are: (i) mutual consent of the parties; (ii) the agent’s fiduciary duties, and (iii) the principal’s control over the agent. A principal may act on a disclosed, undisclosed, or partially disclosed basis in dealing with third parties.

A defining element of agency under New York law and the law of the majority of states is the principal’s control over the agent. Indeed, whether the principal will be bound by the agent’s acts will depend, in large part, on whether the agent had actual or apparent authority to act on behalf of the principal. Two of the many factors taken into account in determining whether such a relationship could be characterized as one of employment include whether the agent: (i) provides the services according to her own methods and (ii) is subject to the control of the principal.

Appointment of Sub-agents:
 Under New York law and the law of the majority of states, a principal may authorize an agent to appoint another agent to act on the principal’s behalf. The second agent may be a subagent or a co-agent. A “subagent” is commonly defined as a person appointed by an agent to perform functions that the agent has consented to perform on behalf of the agent’s principal and for whose conduct the appointing agent is responsible to the principal.

Rights and Obligations of the Agent:
Generally, the following are the most important duties of the agent under state common law: (a). Agent must not act outside of its express and implied authority.  (b). Agent must use care, competence and diligence in acting for the principal.  (c). Agent must obey the principal’s instructions as long as they are legal.  (d). Agent must avoid conduct which will damage the principal’s business. (e). Agent must not act for an adverse party to a transaction with the principal.  (f). Agent cannot compete with the principal in the same business in which the agent acts in such capacity for the principal without the principal’s consent. (g). Agent must provide the principal with information relevant to the marketing of the principal’s products. (h). Agent must separate, account for and remit to the principal all collections for the principal’s account and other property of the principal. (i). Agent must not receive compensation from any third party in connection with transactions or actions on which the agent is acting on behalf of the principal. (j). Agent must maintain the confidentiality of, and not misuse, the principal’s confidential information.

Rights and Obligations of the Principal:
 The following are the most important duties of the principal under state common law: (a). Principals must promptly pay terminated agents the commissions that they are owed; in most states, failure to pay can result in penalties, including multiple-damages.
 (b). Under the law of some states, an agency arrangement must be in writing, and certain formalities complied with, for the agency arrangement to be binding.
State law generally does not contain mandatory provisions on exclusivity. Indirectly, certain rules (such as the Statute of Frauds under New York law that requires that exclusivity provisions be in writing if they will exceed one year) may apply. Otherwise, parties to a commercial agency arrangement generally may agree contractually on the terms of exclusivity.


Franchise Agreements under US Law

The interplay between federal and state statutory and common law in the US legal system is important to understanding the regulation of franchise agreements in the US. Franchise arrangements in the US are regulated at the federal and state levels. At the federal level, franchise arrangements are regulated by the US Federal Trade Commission (“FTC”) under the so called “FTC Franchise Rule,” while at the state level franchise arrangements are typically regulated by state agencies. In New York, franchise arrangements are regulated by the New York Antitrust Bureau under New York’s General Business Law. The FTC Franchise Rule applies everywhere in the US, while generally state franchise legislation requires contact with the state.

Under the FTC Franchise Rule, a franchise exists if the following elements exist: (i) the franchisee is given the right to distribute goods and services that bear the franchisor’s trademark, service mark, trade name, logo or other commercial symbol; (ii) the franchisor has significant control of, or provides significance to, the franchisee’s method of operation; and (iii) the franchisee is required to pay the franchisor (or an affiliate of the franchisor) at least US$USD 500 before (or within six6 months after) opening for business.

If a franchise is deemed to exist under the FTC Franchise Rule or under state law (and an exemption under such law is unavailable), the franchisor is required to comply with requirements that generally fall into three categories: disclosure laws, registration laws and relationship laws.

Formalities (registration, etc.):
 Registration laws like disclosure laws are pre-sale laws. There is no federal registration requirement. However, fourteen US states have registration laws (including California and New York). In the remainder of states, franchisors that comply with the Franchise Rule’s disclosure requirements can sell in states that do not require registration without having to file their document with any governmental authority.
Under most state registration laws, a franchisor must: (i) register in the jurisdiction before offering to sell or selling franchises in the jurisdiction by filing its FDD (or FOP), plus various application forms with the jurisdiction’s applicable regulatory agency, and (ii) update or renew its registration annually. As of 2016, franchise registration initial filing fees range from USD $250 (Hawaii, Michigan, North Dakota and South Dakota) to USD$ 750 (New York).

A franchise agreement typically grants the right to operate the business using the franchisor’s marks and system at a particular location and/or within a particular territory.
 There are two typical structures for franchise agreements: (i) a one tier structure consisting of a franchise agreement between a franchisor and a franchisee, or (ii) or a two-tier structure through a master franchise agreement where the franchisor grants the right and imposes a duty on a franchisee to operate the franchise itself within a particular territory, and to grant subfranchises to third parties within that territory.
Rights and Obligations of the Franchisee:
·        Fees and Royalties: under a typical franchise arrangement the franchisee is required to pay the franchisor an up-front franchise fee and royalties over time, in order to join the franchise network. Franchise fees can be large with a substantial profit element, or smaller to assist the franchisee to set up the franchise in a target territory. Because a franchise fee is a requirement under the FTC Franchise Rule and the laws of many states in order for a franchise to be deemed to exist, there is considerable jurisprudence on the question of what is considered to be a “franchise fee” for these purposes.
·        Marketing: typically a franchisee is required by the provisions of a franchise agreement to undertake advertising of the products in strict accordance with the franchisor’s instructions. A franchisor normally is prohibited from carrying out advertisement and promotional activities in a manner that could harm the franchisor’s brand or is inconsistent with the franchisor’s other advertising efforts.
·        Compliance with the franchisor’s standards: maintenance of consistent appearance, operations and array of products and services across multiple franchises is a hallmark of franchise arrangements in the US Most franchise agreements require that franchisees strictly abide by specifications, standards and operating procedures, each of which is built into the agreements. Given the difficulty of providing for all of these standards in a franchise agreement, many franchise agreements afford franchisors the right periodically to modify and increase the applicable specifications, standards (e.g., accounting) and operating procedures, usually by providing updates to the base operating manual.

Rights and Obligations of the Franchisor:
(A) Communication of know-how: initial know-how that may be communicated from franchisor to franchisee often relates to the specifications, standards and operating procedures that relate to the products to be sold and related site that are built into franchise agreements, as discussed above.
 (B) Ownership of improvements and modifications: franchise agreements typically contain acknowledgement by the franchisee that the trademark (and intellectual property generally) licensed under the franchise agreement and all related goodwill are property of the owner of the trademark (usually the franchisor). Therefore, all improvements to such intellectual property are property of the licensor.
(C) Assistance to the benefit of the franchisee: there are no statutory obligations on the federal and state level for initial or continuing assistance by the franchisor for the benefit of the franchisee.


Summary of Changes under U.S. Tax Law Affecting U.S. Subsidiaries of Non-U.S. Manufacturing Groups

The 2017 Tax Cuts and Jobs Act (the "TCJA"), signed into law by President Trump on December 22, 2017, introduces sweeping changes in U.S. tax law, affecting businesses of all kinds.  This Practice Note focuses on a few key provisions of the TCJA particularly relevant to non-U.S. manufacturing corporations with U.S. distribution subsidiaries.  These changes in U.S. tax law may impact these companies operate now, as well as future plans for entering the U.S. market. 

Federal Corporate Income Tax Rate: 
Most significantly, the US federal corporate tax rate has permanently been reduced from 35% to 21%.  In addition, the corporate alternative minimum tax (which applied when higher than the regular corporate tax) has been repealed. 
The reduction of the headline U.S. federal corporate tax rate to 21%, which is a lower rate than in many of the home countries of non-U.S. corporations, will obviously benefit non-U.S. manufacturers with existing U.S. subsidiaries, and may influence those who sell directly into the U.S. to consider forming US subsidiaries and expanding their U.S. presence.

Under the TCJA, net business interest deductions are generally limited to 30% of "adjusted taxable income," which is essentially EBITDA (taxable income plus depreciation and amortization deductions) for years 2018-2021 and EBIT (taxable income without adding back depreciation/amortization). Disallowed interest expense is carried forward indefinitely. Before the TCJA, interest was generally deductible when paid or accrued, subject to numerous limitations, including debt/equity ratios and taxable income.  U.S. corporations - other than small businesses (average annual gross receipts under $25 million, on an affiliated group basis) - are subject to these limitations. 
The TCJA's limitation on interest deductions are designed to protect the U.S. tax base.  As a result, non-U.S. manufactures with existing U.S. subsidiaries, and those planning to establish U.S. subsidiaries, may decide to reduce or limit the amount of debt in their U.S. subsidiaries.
At the following link you can find more material about the US Distribution:                


Strategia & Sviluppo Consultants

Industria, Keller, Pigliaru e Piras incontrano delegazione gruppo imprenditoriale cinese

Il 15 marzo a Cagliari è avvenuto un incontro tra il Presidente della Regione Sardegna Francesco Pigliaru, l’assessora dell’Industria Maria Grazia Piras, il presidente del Consorzio Industriale di Villacidro, Luca Argiolas e una delegazione della CRRC Zhuzhou Locomotive Ltd accompagnata da Fabrizio Zucca, presidente di Strategia & Sviluppo Consultants.

L'impresa cinese è la capofila della CRRC, la più importante azienda al mondo nella produzione di vagoni ferroviari, con un fatturato annuo di 30 miliardi di euro all’anno, 23 filiali in tutti i continenti e intenzionata a espandere il proprio mercato in Europa e in Africa. Il gruppo imprenditoriale ha mostrato interesse ad acquisire lo stabilimento della Keller di Villacidro.

L'articolo completo è reperibile al seguente link:

Segnaliamo inoltre gli eventi "Urban Development as a support to Eurasian Connectivity" e “The Silk Road in the new perspective of Eurasian Connectivity" rispettivamente il 22 marzo a Milano e il 23 marzo a Genova relativi all'attrattività e la competitività delle città europee e cinesi e la presentazione dei progetti in corso d'opera, di opportunità di investimento e di supporti finanziari.

Per ulteriori informazioni e per registrarsi agli eventi seguire il seguente link:

Strategia & Sviluppo Consultants



Strategia & Sviluppo Consultants moves its US office to New York City and became an ELITE Partner

Dear friends and colleagues,  After a few years of presence in Philadelphia we have decided to move our US office to New York City.  Due to the new partnership with Becker, Glynn, Muffly, Chassin & Hosinski LLP, our office will be located at 299 Park Avenue, New York 10171.  Becker, Glynn, Muffly, Chassin & Hosinski LLP ( ) is a full service, boutique law firm that offers top-level legal services. From its beginnings, Becker Glynn has built an international reputation combining domestic and international practice. The firm represents domestic and foreign businesses in a wide range of industries, including the manufacturing, mining, agriculture, trading, transportation, technology, pharmaceutical, healthcare, real estate, finance, insurance and service industries.  Mr. Eric D. Kuhn, Partner at Becker, Glynn, Muffly, Chassin & Hosinski LLP, will be our reference person there. Mr. Kuhn speaks Italian fluently and he will be in Italy from January 29th till February 9th.  If you are interested in setting a meeting with Mr. Kuhn, in order to analyze the situation in the US market, do not hesitate to contact us at .     Furthermore from January 1st 2018 we have become ELITE Partner.  ELITE ( ) is an international platform, deeply rooted in each domestic market thanks to partnership with local institutions combined with the opportunity to access international support and advice.  It boosts growth by providing companies with access to the capital, skills and networks needed  to strengthen scalable, sustainable and economically impactful enterprises, from the early stages to full  maturity.     Strategia & Sviluppo Consultants   

Dear friends and colleagues,

After a few years of presence in Philadelphia we have decided to move our US office to New York City.

Due to the new partnership with Becker, Glynn, Muffly, Chassin & Hosinski LLP, our office will be located at 299 Park Avenue, New York 10171.

Becker, Glynn, Muffly, Chassin & Hosinski LLP ( is a full service, boutique law firm that offers top-level legal services. From its beginnings, Becker Glynn has built an international reputation combining domestic and international practice. The firm represents domestic and foreign businesses in a wide range of industries, including the manufacturing, mining, agriculture, trading, transportation, technology, pharmaceutical, healthcare, real estate, finance, insurance and service industries.

Mr. Eric D. Kuhn, Partner at Becker, Glynn, Muffly, Chassin & Hosinski LLP, will be our reference person there. Mr. Kuhn speaks Italian fluently and he will be in Italy from January 29th till February 9th.

If you are interested in setting a meeting with Mr. Kuhn, in order to analyze the situation in the US market, do not hesitate to contact us at .


Furthermore from January 1st 2018 we have become ELITE Partner.

ELITE ( is an international platform, deeply rooted in each domestic market thanks to partnership with local institutions combined with the opportunity to access international support and advice.

It boosts growth by providing companies with access to the capital, skills and networks needed  to strengthen scalable, sustainable and economically impactful enterprises, from the early stages to full  maturity.


Strategia & Sviluppo Consultants


Serbia: opportunità nei settori energia, ambiente e infrastrutture

Il 25 ottobre si terrà in Assolombarda CMMB un evento sulla Serbia.
Sono invitate tutte le aziende interessate alle opportunità offerte dal mercato serbo, nello specifico quelle appartenenti ai settori energia, ambiente e infrastrutture.
L'incontro si terrà alla presenza di S.E. l'Ambasciatore della Repubblica della Serbia in Italia, Ljubiša Mihajlović, Direttore per le infrastrutture fluviali del Ministero delle infrastrutture e Branislav Blažić, Segretario di Stato, Ministero della Tutela Ambientale serbo.
Per approfondimenti:

Modalità di adesione 

Le aziende interessate a partecipare all'evento possono iscriversi al seguente link
Le aziende interessate ad avere un incontro one to one con Confindustria Serbia devono compilare la scheda allegata al link dell'evento entro il 22 ottobre ed inviarla a
Per informazioni:
Anna Gigliola (Area Rapporti Internazionali di Assolombarda CMMB), tel. 02/58370.452,

Strategia & Sviluppo Consultants



Analysis and opportunites: the Russian ICT Market


With a current population of 144 Million the Russian ICT market is one of the world’s largest ICT markets but its potential is still untapped. In 2025 the total Population is estimated to reach 148 Million with 124 Million Internet Users and Russia’s Internet Economy (as measured by total ICT spending) is estimated to reach $208.8 billion in 2025 and account for 6.0% of the country’s GDP.

By 2025, every Russian will possess 3 connected devices and 79.0% of the total mobile connections will be smartphone connections. Russia will have the highest Internet penetration among the CIS and the BRICS nations with 500 Million Connected Devices, 274 Million Active Cellular Connections and 235 Million Active Smartphone Connections. By 2025, 90.0% of the total mobile connections will be broadband connections. Another significant data for the ICT market is that online retail in Russia will reach $29.2 billion in 2025 and account for 4.0% of the total retail sales.

Government and state are working together to create a fertile environment for ICT companies which generate over $10B per year. Government and state are the main customers and IT solutions orders exceed $5B a year. As an incentive for ICT companies in Russia the Social tax for IT companies is settled at 14% (vs 30% for other businesses). There are already 30 Science & Technology Parks established across Russia, including 8 IT Parks.


IT Software

The software market consists of five segments: enterprise applications, enterprise mobility management, information management, security software and software infrastructure. Cloud technology, Big Data, the Internet of Everything, medical devices, transport and analytics applications have been the significant software trends in recent years.

In 2012 the Russian software market experienced double-digit growth and for the five-year period 2015-2020 the performance of the market is forecast to strong accelerate, with an anticipated CAGR of 7.6%, which is expected to drive the market to a value of $7.7bn by the end of 2020. Although growth has been strong in Russia, piracy is a considerable issue. According to the BSA, the rate of unlicensed PC software installations was 62% in 2013 (down from 73% in 2007). In addition, the conflict in Ukraine and subsequent sanctions has affected all parts of Russian industry, including the software market. Import substitution businesses are likely to see a rise in revenues if tensions continue.

The Russian software market had total revenues of $5.3bn in 2015, representing a compound annual growth rate (CAGR) of 6.1% between 2011 and 2015. The software infrastructure segment was the market's most lucrative in 2015, with total revenues of $2.9bn, equivalent to 55.2% of the market's overall value. The enterprise applications segment contributed revenues of $1.7bn in 2015, equating to 32% of the market's aggregate value.


Competition within the software market is boosted by constant advances in technology, by the presence of large international incumbents and a regular supply of new entrants with alternative business models forcing players to operate increasingly competitive pricing strategies.

Switching costs can be high for industry-specific applications but some partnerships between players promote interoperability. Easy access to the Internet as a distribution channel appeals to new entrants. Open-source software is becoming an increasingly credible threat.

The software market has many buyers: individual consumers, businesses of all sizes, and government institutions. Business buyers come from a very wide range of industries, including banking, retail, logistics, telecommunications and healthcare.

Buyers may be reliant on particular players as software is often industry-specific and/or requires users to be trained to use it, and thus switching costs can be high. However, buyers are often large companies requiring multi-user licenses across their entire business, which provides them with stronger bargaining power. Smaller buyers still require software but have much less power in negotiating price and terms of use.

As a transition to open-source software can be a lower-cost alternative to conventional products, its presence may accentuate price sensitivity in the market, increasing buyer power, particularly as buyers are demanding less complexity and lower costs.

There is also a move to software-as-a-service (SaaS) where buyers pay through regular subscriptions or when they use the software. This software variant requires lower upfront costs and may be more accessible, thus also increasing buyer power. Major players are increasingly switching to SaaS business models due to the march towards cloud computing and open source software. Switching costs are lower in the B2C software segment, particularly with entertainment-based software.

Inputs such as hardware components are often purchased from sole suppliers; these tend to be large companies offering differentiated products, resulting in significant supplier power. Since software is wholly designed on computer hardware, this makes suppliers an irreplaceable part of the market which, combined with the diverse customers that suppliers have and the importance of quality to the industry, increases supplier power. Due to the need for hardware and software to work successfully together and with a widening labor market in computer programming, suppliers may look to forward integrate.

In recent years the software development and the uptake by end-users of broadband Internet access made the access to distribution channels easier. Internet users as a percentage of the total population stood at 70.6% in Russia in 2014, allowing for new entrants to exploit contemporary distribution channels.

There are few substitutes for software. From the perspective of the major players, substitutes in this market are open-source software products, free web-based applications, and pirated versions of existing products. In this case open-source companies receive revenues from services and maintenance. Open-source software is often a lower cost alternative and has been particularly successful in website and web application development. Advances in technology mean that products are continually being introduced to the market, enhancing rivalry and allowing new entrants the possibility of gaining market share. Incumbents are often a dominant force in a specific market and it brings to a strong rivalry.

IT Services

The IT services industry is valued as the combination of the business process outsourcing (BPO) services market, the application services market, and the infrastructure services market.
The Russian IT services industry has historically been posting good growth for a number of years; however, there has recently been a marked slowdown and contraction in 2015. In the forecast period an acceleration is expected in this industry. The Russian IT services industry had total revenues of $3.8bn in 2016, representing a compound annual growth rate (CAGR) of 2.5% between 2012 and 2016.

The infrastructure services segment was the industry's most lucrative in 2016, with total revenues of $1.6bn, equivalent to 42% of the industry's overall value. The application services segment contributed revenues of $1.5bn in 2016, equating to 38.3% of the industry's aggregate value.

Cloud computing systems are expected to achieve dynamic growth over the next few years as buyers expand the use of data centers and advanced analytics in order to manage the vast amounts of data being produced in the connected world. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 3.7% for the five year period 2016-2021, which is expected to drive the industry to a value of $4.6bn by the end of 2021.

Buyers range in size from small businesses to multinational companies and government agencies. The main verticals that invest in IT services in Russia are the government and financial, telecommunications and media industries. Larger buyers, with greater financial muscle, exert more buyer power.

Inputs such as hardware components are often purchased from sole suppliers which are often large companies.

Entry on a small scale is achievable in the IT consultancy market; smaller players have experienced increased growth as both government and commercial institutions increasingly turn to third parties to provide specialized IT support. Similarly, buyers seek to cut costs wherever possible and data processing and other business processes have increasingly been outsourced to specialists, allowing clients to focus on core activities. Large companies in this industry have significant economies of scale in processing and can offer more services; smaller companies can compete by specializing in particular verticals, and offering customized services. Newly developing niche markets will offer opportunities for smaller players in areas such as green IT and the 'Internet of Things'. Equally, industry specialists operating in key markets such as administration and finance have significant opportunities. Nevertheless, new entrants may have more opportunities as brand recognition is not as strong in the domestic Russian market.

Distribution is often limited by technological infrastructure meaning new entrants to developing markets will find difficulties in expanding. In its 2016 Global Information Technology Report, the World Economic Forum ranks Russia 41st out of 139 countries in terms of network readiness, which suggests that the market has room for development in terms of IT infrastructure in comparison to other European nations.

Heathcare IT

Russia will focus on the optimisation of its public healthcaresystem and will look to remove gaps in regional capacities and engagemore private providers. The Russian healthcare system is dominated by public providers; private companies are most active in the outpatient services segment. Starting 2015, all state-funded healthcare services will be funded only from the Obligatory Medical Insurance (OMS) Fund. The private segment will register growing demand as patient awareness increases and as they look for higher quality. Public private partnership schemes will be mutually beneficial as the government cuts spending on infrastructure while private businesses get additional patient flow and funding from the OMS fund.

In particular, the private healthcare services market with a 15-20% annual growth rate over the last 5 years will grow by 17.0% in 2019 and reach $7.2 billion. This market is highly fragmented infact the top 25 participants account for less than a 20.0% share; stomatology and diagnostics services are the 2 major segments with shares of 50% and 20%. By 2018, Russia will adopt all key IT healthcare services, including EMR and telemedicine.

it russ.png

Cyber security

The CS market has a strong growth trend and the current CS market is USD 1’399 M/year.

The market is ruled by domestic Certifying Centers (CC) and there are around 200 authorized CC in the country. The 41% of the Russian CS market is covered by domestic solutions and western solutions keep a small share.

SIEM- Systems are moving forward, becoming a necessary IT tool for belt enterprises. Recently the market was filled with all-in-one systems, with one box for collecting, storing, searching, normalizing and correlating information.

Another sector that could be interesting in Russia is the Banking IT, infact over the next decade, Russia will see the transformation from SMS banking to mobile banking. The mobile banking segment will reach $3.8 billion in 2025 and account for 39.0% of the mobile payment turnover.

Banking IT

Till 2010 Russian banks remained committed to antiquated bureaucratic procedures and practices. From 2008-2010, banks and banking software vendors started to improve their online banking solutions and services.

The goal of these Fintech companies is to rise the living standars and quality of life of the Russian Population through the use of financial market instruments by the improvement of financial inclusion for household and small and medium-sized business, the improvement of tools ensuring financial market stability and developing financial consumer protection and financial literacy. Another goal is to facilitate economic growth through the competitive access of Russian economic agents to debt and equity financing and risk hedging instruments discouraging malpractice in the financial market, enhancing investor appeal for the equity financing of public companies via improved corporate governance and developing the bond market and syndicated lending market in addition to creating conditions for financial sector growth.

Strategia & Sviluppo Consultants

A Milano per "Lavorare allʼestero con il supporto della Banca Europea per la Ricostruzione e lo Sviluppo"

Il 6 luglio nella sede di Assolombarda Confindustria Milano, Monza e Brianza si terrà lʼincontro informativo e i meeting one-to-one sulle possibilità offerte dallʼistituzione alle aziende del Made in Italy

Fabrizio Zucca, Presidente di Strategia & Sviluppo Consultants.

Fabrizio Zucca, Presidente di Strategia & Sviluppo Consultants.

La promozione della transizione a mercati moderni e ben funzionanti di 36 Paesi dell’Europa Centrale e Orientale, di Caucaso, Asia Centrale e della regione meridionale e orientale del Mediterraneo è l'obiettivo della Banca Europea per la Ricostruzione e lo Sviluppo (European Bank for Reconstruction and Development, Bers). Ciò sarà al centro dell'incontro informativo, con possibilità di appuntamenti one-to-one, organizzato a Milano da Strategia & Sviluppo Consultants in collaborazione con Assolombarda Confindustria Milano Monza e Brianza il 6 luglio, dal titolo "Bers: Lavorare all'estero con il supporto della Banca Europea per la Ricostruzione e lo Sviluppo. Incontro informativo e one to one".


L'incontro informativo, che si terrà in lingua inglese, prevede gli interventi di Giulia Repetto, Head for Internationalization and Foreign Trade Unit di Assolombarda Confindustria Milano Monza e Brianza; Matteo Patrone, Regional Head of Romania & Bulgaria; Andrea Baldan, Associate Director EBRD, Deputy Director TC e Kamola Makhmudova, Associate Director, Trade Facilitation Programme. La partecipazione è gratuita, previa iscrizione online. Le aziende interessate agli incontri individuali con i relatori per approfondimenti devono segnalare la richiesta inviando una e-mail all'indirizzo

A moderare i one-to-one meeting Fabrizio Zucca, Bers Advisor. "Questo evento - spiega Zucca - così come la nostra presenza a Milano, vuole riportare la Banca, e il supporto importante che essa può dare, al centro dell'attenzione del mondo imprenditoriale italiano in un momento di ripresa ma anche di consapevolezza che il modello basato unicamente sull'export sta raggiungendo: la crescita ulteriore sarà difficile senza effettuare gli investimenti per localizzarsi e strutturarsi sui mercati esteri".

"Nonostante l’Italia sia uno dei principali azionisti della Banca Europe di Ricostruzione e Sviluppo - conclude Zucca - l'utilizzo da parte delle nostre imprese è stato fino ad ora molto limitato. Le motivazioni sono molteplici, da un lato il fatto che le nostre imprese abbiano fino ad ora preferito modelli di sviluppo internazionale senza localizzazioni o investimenti all'estero, dall'altro le scarse informazioni sulla banca e la mancanza di presenza sul territorio italiano hanno ridotto la capacità delle nostre imprese di accedere ai servizi offerti dalla Banca. Spesso inoltre manca totalmente la conoscenza o c'è molta confusione tra Bers e BEI".


Da Lisbona a Vladivostok: una free-trade zone tra Europa e Russia

Il progetto di cooperazione tra Ue ed Unione Euroasiatica al centro di un dibattito coordinato da Andrea Delogu.


I vantaggi della nascita di una free zone tra la Russia e l’Europa, con particolare riferimento alle opportunità per le aziende italiane, saranno al centro di un dibattito tra sei esperti di politica ed economia internazionale moderati dal vice direttore generale dell’informazione Mediaset, Andrea Delogu. L’incontro si terrà il 19 settembre alle 18,30 in Via Copernico 38, a Milano.

I rapporti tra Russia e Ue - L’Unione Economica Euroasiatica (Eaeu) è un’area di libero scambio, istituita nel 2014, che dovrebbe riprodurre il modello dell’Unione Europea. Ne fanno parte Russia, Bielorussia, Kazakhistan, Armenia e Kirghizistan. Il progetto ha destato interesse negli operatori economici ma, a causa della crisi ucraina, le opportunità sono state “oscurate” dal dibattito sulle sanzioni a Mosca. Gli imprenditori italiani si sono concentrati, più che sull’impegno a investire e lavorare in Russia, su un’attività di lobbying mirata all’attenuazione delle misure restrittive. Ed è stato proprio questo atteggiamento attendista a favorire l’arrivo di aziende estere che, approfittando del calo della presenza italiana, stanno penetrando gradualmente nel mercato russo.

I temi caldi - L’agenda attuale è estremamente urgente per tutte le parti interessate, con particolare attenzione ai settori dell’energia, del trasporto e delle infrastrutture, nonché ai temi legati all’emigrazione. Molti dei business europei sono pronti a cooperare e sviluppare relazioni con le economie dell’Unione Euroasiatica. Come può essere promossa la collaborazione strutturale tra l’Unione Europea e l’Eaeu? E' possibile trovare un accordo di cooperazione globale? L’impennata globale del protezionismo influirà sulla fattibilità del progetto "Big Eurasia"? Saranno queste le domande a cui cercheranno di dare una risposta i sei specialisti che parteciperanno all’evento.

La crisi dell'export italiano - L’Italia è al quinto posto tra i Paesi che esportano verso la Russia, preceduta da Cina, Germania e Stati Uniti. Un piazzamento deludente, soprattutto se affiancato a quello degli investimenti diretti. In questo ambito a primeggiare sono ancora tedeschi e statunitensi, sia per numero che per valore dei progetti. E tra i grandi partner commerciali della Russia, solo Pechino ha condannato le sanzioni imposte da Bruxelles. Non sembra possibile, dunque, uscire dall’impasse eliminando le componenti "esogene" della crisi.

Gli scenari - A frenare le aziende restano soprattutto difficoltà operative, in particolare le barriere tecniche di certificazione di informazione. Per questo, rispolverare un accordo di libero scambio tra Ue ed Eaeu - per quanto oggi politicamente impossibile - può rinvigorire il dialogo per facilitare l'accesso ai rispettivi mercati, riducendo differenze e barriere tra le due aree doganali.

Ad animare il dibattito interverranno: Stefano Maullu, parlamentare europeo e membro della delegazione alla Commissione di cooperazione parlamentare Ue - Russia; Fabrizio Sala, vice presidente e assessore alla casa, housing sociale, Expo 2015 e internazionalizzazione delle imprese; Marco Ricceri, segretario generale Eurispes; Alexander Linnikov, professore associato al Dipartimento dell'Economia Mondiale e della Finanza Internazionale presso l'Università Finanziaria sotto il Governo della Federazione Russa; Fabrizio Zucca, presidente di Strategia & Sviluppo Consultants, SDA professor e associate CERTeT Bocconi; Giorgio Barone, head of Certification Board presso QSA.



La cina ha voglia di healthcare straniero e l’italia si propone

Un confronto a milano organizzato dallo studio legale gianni, origoni, grippo, cappelli and partners mette in luce le opportunità individuate dalla nuova riforma sanitaria. Dalla farmaceutica ai devices, dalla formazione medica all’edilizia, non c’è settore che non possa essere interessato ad entrare in uno dei più grandi mercati del mondo