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Business Business Profile Milan is unique out of Italy’s major cities for being predominantly a business rather than a tourist city. In an increasingly global market, the large international companies usually choose Milan over Rome for their Italian headquarters. Not only is the city well located – closer to the heart of Europe – but it also enjoys a temperate climate, has a modern infrastructure, efficient transport network and offers a well-educated, dynamic labour force. Unemployment figures in 2000 were down to 6.8%, almost half the national average of 9%. However, with the problems after September 2001, the global collapse of the telecommunications companies and the current serious downward revision of the world’s stock markets, this rate is bound to rise over the next year. The workforce is young (40% are under 35) and intellectual. Milan’s five universities contribute heavily to research, innovation and the supply of bright youth into the workforce. Women too enjoy far greater participation than before and are beginning to shrug off the traditional Italian stereotypes. Of the 34,000 new jobs created in 1998, women took 30,000 of them. Milan’s economic success in the early 20th century was based on manufacturing, particularly in the automobile industry. Pirelli and Alfa Romeo remain intrinsic symbols of the city and have been joined by textile manufacturers like Aurelio Valentino and the pharmaceutical industry, such as Unilever, Panexport Italia and European Generics Vanderval Group. The Italian giant Marzotto, which owns Calvin Klein, also has their retail headquarters here. Increasingly, however, Milan’s success has been in the service sector, where 63.5% of the labour force is employed. Armani, Versace and Valentino may hog the limelight but the increasing diversity in and the growth of the finance, media, publishing, fashion, design and communications sectors underpins the city’s prosperity. The Italian headquarters of most major international banks, such as Citicorp, can be found close to Italy’s stock market in Piazza Affare. Both the state-owned television company, RAI, and Mediaset, the media empire of Silvio Berlusconi (the Italian prime minister), are based here, as is the Italian publishing giant Arnolfo Mondadori. Recent investment in the city’s international trade forums has been extensive. State-of-the-art conference facilities have opened at Filaforum in the Milanofiori district, Palazzo Affari in the financial centre, and three new pavilions in the Fiera district, Milan’s dedicated trade fair. The Fiera district alone now offers a total of 26 pavilions and 375,000 sq metres (1,230,315 sq feet) of exhibition space, drawing almost four million visitors to 73 fairs in 1999. Milan’s economic future still looks bright. The city continues not only to exploit the strength of its financial markets and its fashion fairs in February and September but also new revenue sources from the rapid growth of investment in Internet technology. The technology fair in October, hosted by SNAU, has become one of the largest of the year, with over half a million visitors and 2900 exhibitors. Internet companies Lycos, Yahoo and Altavista have all based their Italian operations in Milan, along with homegrown Internet providers Arianna and Virgilio. The result is a mecca for business travellers who annually spend over 100 billion Euros in the city. The introduction of the Euro has already brought mixed blessings. Rounding up prices has meant that the Italian cost of living has risen by approximately €550 per year – the equivalent of around £350 or US$535. However, centralised economic control may very well stabilise the economy to a level previously unimaginable. Business Etiquette In general, the Italian laid-back attitude to life does not extend to their working day, and their approach to business is fairly formal. Appointments for meetings should be made in advance and punctuality is respected. Business cards are commonly exchanged by way of introduction. Smart dress is always appropriate – in keeping with the city’s stylish reputation, the Milanesi dress up at every occasion. Most executives will speak English but appreciate a visitor who makes a formal effort to speak their language. Italian associates should always be addressed as Lei (the polite form of tu) unless otherwise indicated. Normal business hours are 0900-1700 but executives often put in much longer hours. A world away from the languor and dust of southern Italy, Milan’s pace is fast and more akin to London than Rome, and things like long, leisurely lunches are much less common. Invitations to the homes of Milanesi are rare, as many live a considerable distance from where they work, commuting into the centre from the suburbs. In spite of the pressures at work, the Milanesi like to enjoy life and there is a lot of after-work unwinding in bars. If concluding a business deal, rather than long lunches or protracted meetings in the afternoons, discussions are likely to continue after working hours in the bars or gastronomic haunts of the city’s top hotels. Business is indeed the raison d’être for the city, and the pace of the creative, thoroughly modern and well-informed Milanesi’s working life may well surprise visitors. |
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