Prepared for Marco Maria Cerbo, Consul General By Kirstin Couper & Matthew Hutton October 2016

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1 1 Prepared for Marco Maria Cerbo, Consul General By Kirstin Couper & Matthew Hutton October 2016

2 Background & methodology.

3 Research objective. The Consulate General of Italy wished to develop an understanding of Australian attitudes towards products made in Italy. The aim of the research is to deepen the understanding of the appeal of Made in Italy, to ascertain if this extends beyond food and wine, how Australians view the quality of specific product types, and whether they would venture out of their way to obtain them. 3

4 Sample profile. An online survey of Australians was undertaken using Colmar Brunton s weekly online Omnibus. The research was conducted between Wednesday 19 and Sunday 23 October Sample Achieved Total N=1001 Gender Male n=479 Female n= years n= years n=180 Age years n= years n= years n= years n=178 Location Sample Achieved NSW n=309 VIC n=271 QLD n=186 SA n=86 WA n=100 TAS n=25 ACT n=22 NT n=2 All data has been weighted to be nationally representative. 4

5 Summary.

6 Summary and recommendations. Shoes are the top products of interest: three fifths of Australians (59%) would be willing to consider purchasing Italian made shoes, two fifths (4) would consider paying more for them and three in ten (30%) would travel out of their way to find them. Leather goods and accessories and clothing items were the next top products that Australians would consider buying Italian made and paying a premium for. These products were also the top three products in terms of consideration and willingness to pay a premium for among Australians with different incomes. They would be the top product types to export to Australia. Kitchen homeware and appliances were widely considered, but quality perception may not be as favourable as shoes, leather goods and clothes. While nearly half of Australians would consider buying Italian made kitchen homeware and appliances, only one in ten would be willing to pay a premium for it. They would be worth exporting to Australia if the prices are competitive. High end furniture from Italy is another candidate for export. At a total level, consideration and willingness to pay a premium for Italian made furniture was moderate. However, looking at the income splits, half of those in households earning above $78,000 would consider Italian-made home use furniture, and it ranked fourth willing to pay a premium only behind shoes, leather goods and clothing. 6

7 Detailed findings.

8 Most Australians would consider purchasing at least one of the Italianmade products of interest. Of the products tested, Australians were most likely to consider purchasing Italian-made shoes, leather goods and clothing. Only 1 of Australians would not consider purchasing any of the products made in Italy. Products that Australians would consider purchasing if made in Italy (n=1001) Shoes Leather goods and accessories Clothing items Kitchen homewares* Kitchen appliances Watches Ceramic tiles Furniture for home use Jewellery and costume jewellery Marble benchtops and vanity units* Cars Light fittings and lamp Taps and fittings Sportswear and equipment Scooters and motorbikes Cosmetics Personal grooming items* Electronic devices Toys Tyres Bicycles Furniture for office use DIY tools and utensils Pharmaceuticals Prams, strollers and high chairs Yachts, motorboats Agricultural machinery* Weaponry for sport and recreation* 59% % % 40% 38% 36% 31% 31% 30% 29% 29% 28% None of 21% these 19% 17% 1 16% 1 1 0% 10% 20% 30% 40% 50% 60% 70% % of total respondents 8 Q. Which of the following products, if any, would you consider purchasing if it were made in Italy? Base: Total (n=1001)

9 Those who would consider purchasing Italian-made were most likely to pay more for shoes, leather goods and clothing items. Two thirds of those who would consider purchasing an Italianmade product claimed they would pay more for at least one item. Products that Australians would consider paying more for if made in Italy (n=843) Shoes Leather goods and accessories Clothing items Furniture for home use Watches Jewellery and costume jewellery Ceramic tiles Cars Kitchen marble bench Kitchen homewares* Kitchen appliances Cosmetics Scooters and motorbikes Taps and fittings Light fittings and lamp Sportswear and equipment Bicycles Personal grooming items* Electronic devices Prams, strollers and high chairs Furniture for office use Toys Tyres Yachts, motorboats DIY tools and utensils Weaponry for sport and recreation* Pharmaceuticals Agricultural machinery* 8% 8% 8% 7% 6% 6% 6% 16% None of these 36% 30% 29% 0% 10% 1 20% 2 30% 3 % of those who would consider at least one Italian made product 9 Q. For which, if any, of these goods would you be willing to pay more for if it was made in Italy? Base: Respondents who would consider purchasing products made in Italy (n=843)

10 A quarter of all Australians are most likely to pay more for Italian-made shoes, leather goods and clothing items. When we look at this same question, but reintroduce the 1 who would not buy any Italian made product, we can review the findings from an All Australian perspective. Having done this the top three items do not change, however we can say with certainty that of all Australians these are the items that people would be willing to pay more for. Although Italian-made kitchen items were considered by a large proportion of Australians, the willingness to pay a premium was not as strong. Italian-made products Australians would consider paying more for (n=1001) Shoes Leather goods and accessories Clothing items Furniture for home use Watches Jewellery and costume jewellery Ceramic tiles Cars Marble bench-tops and vanity units* Kitchen homewares* Kitchen appliances Cosmetics Scooters and motorbikes Taps and fittings Light fittings and lamp-shades Sportswear and equipment Bicycles Personal grooming items* Electronic devices Prams, strollers and high chairs Furniture for office use Toys Tyres Yachts, motorboats DIY tools and utensils Weaponry for sport and recreation* Pharmaceuticals Agricultural machinery* 7% 7% 7% 6% % 19% 26% 2 Would not consider and/or pay more 46% 0% 10% 1 20% 2 30% % of total respondents 10 Q. For which, if any, of these goods would you be willing to pay more for if it was made in Italy? Base: Total (n=1001)

11 Close to half of those who would purchase Italian leather goods would pay more. When we look at each product individually, and those who said they would buy the product and then if they would pay more we do not see any movement in the top three products. This approach to the analysis is helpful as it tells us that 4 of those who would buy leather goods would pay more for them. By excluding those who would not pay more for this specific item from the calculation we get a true understanding of the economic potential of each item. Products that Australians would consider paying more for if made in Italy Leather goods and accessories (n=544) Shoes (n=595) Clothing items (n=541) Cars (n=361) Furniture for home use (n=410) Jewellery and costume jewellery Marble benchtops and vanity units* Ceramic tiles (n=428) Watches (n=410) Kitchen appliances (n=448) Kitchen homewares* (n=483) Cosmetics (n=289) Scooters and motorbikes (n=292) Taps and fittings (n=308) Prams, strollers and high chairs (n=170) Yachts, motorboats (n=153) Bicycles (n=242) Light fittings and lamp-shades (n=313) Electronic devices (n=246) Weaponry for sport and recreation* Sportswear and equipment (n=287) Personal grooming items* (n=284) Furniture for office use (n=233) Toys (n=240) Tyres (n=248) Agricultural machinery* (n=129) DIY tools and utensils (n=207) Pharmaceuticals (n=194) % 30% 30% 26% % 21% 21% 19% 19% 18% 18% 18% % 4 4 0% 10% 20% 30% 40% 50% % of respondents who would consider each type of product made in Italy 11 Q. For which, if any, of these goods would you be willing to pay more for if it was made in Italy? Base: Respondents who would consider purchasing each type of product made in Italy

12 Shoes, leather goods and clothing items were the Italian-made products that most would travel out of their way for. Whereas toys, prams, tyres and furniture for office use are not rated particularly highly. Italian-made products Australians are most likely to travel out of their way for (n=843) Shoes Leather goods and accessories Clothing items Furniture for home use Cars Ceramic tiles Kitchen marble bench Kitchen appliances Jewellery and costume jewellery Watches Kitchen homewares* Scooters and motorbikes Light fittings and lamp Taps and fittings Cosmetics Sportswear and equipment Electronic devices Yachts, motorboats Bicycles Toys Prams, strollers and high chairs Tyres Furniture for office use Personal grooming items* Weaponry for sport and recreation* DIY tools and utensils Agricultural machinery* Pharmaceuticals % 10% 10% 9% 7% 7% 6% 1% 18% 17% 21% None of these 4 0% 10% 1 20% 2 % of those who would consider at least one Italian made product 12 Q. For which, if any, of these product would you be willing to travel out of your way to purchase? Base: Respondents who would consider purchasing products made in Italy (n=843)

13 A fifth of all Australians would travel out of their way for Italian Shoes. Toys, prams, tyres and furniture for office use are not rated particularly highly. Half of Australians would not travel out of their way for any of the goods listed. Italian-made products Australians are most likely to travel out of their way for (n=1001) Shoes Leather goods and accessories Clothing items Furniture for home use Cars Ceramic tiles Marble bench-tops and vanity units* Kitchen appliances Jewellery and costume jewellery Watches Kitchen homewares* Scooters and motorbikes Light fittings and lamp-shades Taps and fittings Cosmetics Sportswear and equipment Electronic devices Yachts, motorboats Bicycles Toys Prams, strollers and high chairs Tyres Furniture for office use Personal grooming items* Weaponry for sport and recreation* DIY tools and utensils Agricultural machinery* Pharmaceuticals 11% 11% 11% 10% 9% 9% 9% 8% 6% 6% 1% 1 1 None of these 5 18% 0% 10% 1 20% % of total respondents 13 Q. For which, if any, of these product would you be willing to travel out of your way to purchase? Base: Total (n=1001)

14 Three in ten of those who would consider buying an Italian car would be willing to travel out of their way to purchase it. Larger products such as cars, furniture, marble benchtops and vanity units and yachts / motorboats were some of the top products respondents who would travel out of their way to purchase. Italian-made products Australians are most likely to travel out of their way for Cars (n=361) Shoes (n=595) Leather goods and accessories (n=544) Furniture for home use (n=410) Clothing items (n=541) Marble bench-tops and vanity units* Ceramic tiles (n=428) Yachts, motorboats (n=153) Jewellery and costume jewellery Scooters and motorbikes (n=292) Watches (n=410) Kitchen appliances (n=448) Light fittings and lamp-shades (n=313) Taps and fittings (n=308) Kitchen homewares* (n=483) Prams, strollers and high chairs (n=170) Electronic devices (n=246) Cosmetics (n=289) Weaponry for sport and recreation* Bicycles (n=242) Sportswear and equipment (n=287) Toys (n=240) Agricultural machinery* (n=129) Tyres (n=248) Furniture for office use (n=233) Personal grooming items* (n=284) DIY tools and utensils (n=207) Pharmaceuticals (n=194) 31% 30% 28% 28% 28% 26% % 20% 20% 19% 17% 16% 16% 16% 16% % 11% 8% 8% 0% 10% 1 20% 2 30% 3 % of respondents who would consider each type of product made in Italy 14 Q. For which, if any, of these product would you be willing to travel out of your way to purchase? Base: Respondents who would consider purchasing each type of product made in Italy

15 The role of income.

16 16 Shoes, leather goods and accessories and clothing items were the top three most considered Italian made products for all income brackets. Consideration of kitchen homeware and appliances was higher amongst those with a household income of over $78,000. Italian Made products respondents will consider purchasing Total (n=1001) <$41,599 (n=224) $41,600- $77,999 (n=225) $78,000- $129,999 (n=244) $130,000+ (n=163) Shoes 59% % 7 Leather goods and accessories 5 46% 50% 60% 6 Clothing items 5 50% 48% 60% 6 Home ware, crockery, cutlery, glassware, pots and pans 48% % 56% Kitchen appliances 4 37% 41% 5 56% Watches % 49% 51% Ceramic tiles 4 38% 3 48% 5 Furniture for home use 41% 3 36% 50% 49% Jewellery and costume jewellery 40% 41% 39% 4 46% Kitchen marble bench-tops, marble vanity units 38% 30% Cars 36% Light fittings and lamp-shades 31% 28% 2 41% 3 Taps and fittings 31% 2 26% 41% 36% Sportswear and equipment 30% 2 27% 40% 3 Scooters and motorbikes 29% 2 28% 3 39% Cosmetics 29% 2 29% 36% 31% Personal grooming items: hair straighteners, stylers and shaving kits 28% 19% 30% 38% 29% Electronic devices 2 26% 2 31% 2 Toys 2 20% 2 30% 28% Tyres 2 20% 2 31% 2 Bicycles 2 19% 2 31% 26% Furniture for office use 2 16% 2 29% 29% DIY tools and utensils 21% 18% % Pharmaceuticals 19% 1 20% 27% 17% Prams, strollers and high chairs 17% 1 19% 21% 17% Yachts, motorboats 16% 10% 17% 20% 19% Agricultural tractors and garden machinery % Weaponry for sport and recreational use 1 8% None of these 1 21% 19% 11% 7% Please note: Green indicates significantly higher than total, and pink significantly lower. Q. Which of the following products, if any, would you consider purchasing if it were made in Italy? Base: Total (n=1001)

17 17 Once again, shoes, leather goods and accessories and clothing items were the top for all income brackets in willingness to pay more for. Those with over $130,000 in household income were significantly more likely to consider paying more for Italian made watches, kitchen marble / marble vanity units and kitchen appliances. Willing to pay more for Italian Made Total (n=843) <$41,599 (n=173) $41,600- $77,999 (n=184) $78,000- $129,999 (n=219) $130,000+ (n=1) Shoes 30% 26% 29% 31% 40% Leather goods and accessories 29% 19% 29% 3 39% Clothing items % 27% 31% Furniture for home use 16% 11% 11% 2 21% Watches 1 11% 1 18% 2 Jewellery and costume jewellery % 21% 2 Ceramic tiles 1 6% % Cars % 21% 1 Kitchen marble bench-tops, marble vanity units 1 9% 10% 16% 2 Home ware, crockery, cutlery, glassware, pots and pans 1 1 9% 20% 19% Kitchen appliances 1 6% 1 17% 2 Cosmetics 8% 9% 1 9% Scooters and motorbikes 8% 1% 1 1 Taps and fittings 8% 1 11% Light fittings and lamp-shades 7% 1 9% Sportswear and equipment 6% 6% 7% 11% Bicycles 6% 11% 8% Personal grooming items: hair straighteners, stylers and shaving kits 6% 6% 9% 7% Electronic devices 7% 7% Prams, strollers and high chairs 1% 6% 7% Furniture for office use 7% Toys 7% Tyres 1% 7% Yachts, motorboats 0% 6% 7% DIY tools and utensils 1% 6% Weaponry for sport and recreational use 1% 1% Pharmaceuticals 1% 1% Agricultural tractors and garden machinery 0% 1% None of these 36% 48% 37% 3 2 Please note: Green indicates significantly higher than total, and pink significantly lower. Q. For which, if any, of these goods would you be willing to pay more for if it was made in Italy? Base: Respondents who would consider purchasing products made in Italy (n=843)

18 18 Shoes, leather goods and accessories and clothing items were also the top products people were willing to travel out of their way for all income brackets. No significant differences were found between the four income brackets in this instance. Willing to travel out of their way for Italian Made Total (n=843) <$41,599 (n=173) $41,600- $77,999 (n=184) $78,000- $129,999 (n=219) $130,000+ (n=1) Shoes 21% 20% 21% 20% 28% Leather goods and accessories 18% 1 17% 18% 2 Clothing items 17% % 2 Furniture for home use 1 9% 10% 17% 17% Cars 1 7% 1 17% 17% Ceramic tiles 1 8% 11% 1 17% Kitchen marble bench-tops, marble vanity units 1 10% 10% 11% 16% Kitchen appliances 11% 11% 1 1 Jewellery and costume jewellery 10% 1 8% 10% 1 Watches 10% 6% 9% 1 17% Home ware, crockery, cutlery, glassware, pots and pans 9% 9% 8% 10% 11% Scooters and motorbikes 7% 6% 11% 9% Light fittings and lamp-shades 7% 10% 8% Taps and fittings 6% 6% 9% 9% Cosmetics 7% 7% Sportswear and equipment 6% 7% Electronic devices Yachts, motorboats 1% 6% 6% Bicycles 7% Toys Prams, strollers and high chairs 6% Tyres Furniture for office use Personal grooming items: hair straighteners, stylers and shaving kits 1% Weaponry for sport and recreational use 1% DIY tools and utensils 1% 1% Agricultural tractors and garden machinery 0% Pharmaceuticals 1% 0% 1% None of these % 4 3 Please note: No significant differences were found. Q. For which, if any, of these product would you be willing to travel out of your way to purchase? Base: Respondents who would consider purchasing specific products made in Italy

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