Returning from a few days in London, I had the chance to gather valuable information directly from local economic operators and visit some of the iconic locations of British commerce, from department stores to brand stores. Despite the overall economic slowdown that also affects the UK – like many other European countries – I noticed several sectors that are performing well and offering opportunities for Italian companies interested in exporting.

The Luxury Sector in Difficulty

One of the most obvious aspects is the struggle of the luxury sector. Despite the wide range of prestigious brands in places like Harrods and along New Bond Street, I saw fewer people in these stores, and a larger crowd in shops like Uniqlo, which offers a more accessible option for consumers. This indicates a trend towards “affordable luxury,” which could be an important signal for high-end brands to reconsider their pricing and communication strategies. Inflationary pressure is changing purchasing behaviors even in the higher income brackets.

The Food Sector – Including High-End – Is Holding Strong

Another important consideration concerns the food sector, especially the high-end one. During my visit to Fortnum & Mason as well as Borough Market, I noticed significant foot traffic, and the feedback collected from sector operators was positive. The interest in high-quality, typical, and organic food products remains high, with strong demand for products that combine authenticity and innovation. This is an encouraging sign for Italian food companies, especially those focused on gourmet and premium products.

The Construction Sector is Growing

One of the most surprising aspects was the number of construction sites present in London: the skyline is crowded with cranes, and urban development is in full swing. I had the chance to speak with a temporary export manager resident who works with Italian construction companies. He confirmed that there are many opportunities for those offering innovative and sustainable products. Projects focused on energy efficiency, sustainability, and the use of innovative materials are gaining traction. Italian companies looking to export construction products, especially those related to eco-sustainability, can find fertile ground here.

Digitalization: A Cashless City

Another aspect that struck me was the advanced level of digitalization that London has achieved. During my stay, I didn’t touch a single banknote: everything, from coffee to bus tickets, is paid for with a credit card or phone. I even saw a street performer accepting payments with an electronic device for donations (see photo). This highlights a mature and fully digitalized market, which could represent an interesting opportunity for Italian tech and fintech companies.

Growing Sectors and Opportunities for Italian Companies

In addition to direct observations made during the trip, it’s important to note that some UK sectors continue to perform well despite the overall economic situation. These include:

• Technology and Innovation: The UK is one of the most advanced markets in the world in terms of digital innovation. Tech startups continue to grow, and the British government is strongly incentivizing the adoption of new technologies.
• Renewable Energy and Sustainability: The renewable energy sector is booming, with a particular focus on offshore wind energy and other sustainable sources. Italian companies operating in these sectors may find interesting opportunities for partnerships or product sales.
• Pharmaceutical and Biotech Sector: The UK remains a center of excellence for research and development in the pharmaceutical and biotech fields, with a strong push towards the discovery of new healthcare technologies.

A Focus on Italian SMEs: Looking Beyond Macroeconomic Data

A particularly important consideration for Italian companies is not to base expansion decisions solely on the country’s GDP performance or general economic information. Italian companies are often medium-small and dominate specific market niches, where they can offer highly specialized and high-quality products. Evaluating the market potential in the UK requires a more detailed analysis: despite the overall economic slowdown, there are still significant opportunities for Italian SMEs that can leverage their unique skills.

Conclusions

The UK, despite experiencing an economic slowdown, offers numerous export opportunities for Italian companies. For those looking to enter this market, it is essential to understand the dynamics of this market well and offer solutions that meet the new needs of sustainability, innovation, and quality.

If you’re considering exporting to the UK, now is the right time to explore these opportunities and prepare to enter a highly competitive but innovation-friendly market.

Pier Paolo Galbusera