consumer lifestyles in italy (2)

8/12/2019 Consumer Lifestyles in Italy (2)

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CONSUMER LIFESTYLES INITALY

Euromonitor International

August 2012



C O N S U M E R L I F E S T Y L E S I N I T A LY P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLESConsumer Habits in Context ......................................................... ................................................ 1

Current Behaviour Within the Broader Economic Climate ........................................................ 1 Consumer Confidence ......................................................................................................... ..... 2 Misery Index ............................................................................................................................. 2

Chart 1 Consumer Confidence Index 2006-2011 ...................................................... 2 Chart 2 Misery Index 2006-2011 ............................................................... ................ 3

Learning ....................................................................................................................................... 4 School Life .......................................................... ................................................................. ..... 4 University Life ................................................................................................ ........................... 5

Adult Learning ......................................................................... ................................................. 7 Chart 3 Number of Students in Higher Education and Expenditure per Student

in PPP Terms 2006-2011 ............................................................. ................ 7 Chart 4

Regional Ranking of Number of University Students 2011 ........................... 8

Working Habits ............................................................................................................. ................ 8 Working Conditions ........................................................ ........................................................... 9 Women in the Workplace .......................................................... .............................................. 10 Commuting ............................................................................................................................. 10

Alternative Work Options .......................................................... .............................................. 11 Retirement .......................................................... ................................................................. ... 12

Chart 5 Employed and Unemployed Population and Labour ForceParticipation Rate 2006-2011 ....................................................... .............. 12

Chart 6 Population Aged 15-64 Compared with Old-Age Dependency Ratio2000-2020 ............................................................... ................................... 13

Chart 7 Regional Ranking of Female Employment Rate 2011 ................................ 13 Eating Habits .......................................................... ................................................................. ... 14

Dining in .............................................................. ................................................................. ... 14 Dining Out ........................................................... ................................................................. ... 16 Café Culture ........................................................................................................................... 17 Snacking Habits ............................................................. ......................................................... 17

Attitudes Towards Food Trends ........................................................... ................................... 18 Chart 8 Per Capita Expenditure on Consumer Foodservice by Chained and

Independent 2011 ................................................................................... ... 18 Chart 9 Regional Ranking of Availability of Fresh Fruit and Vegetables 2011 ........ 19

Drinking Habits ....................................................... ................................................................. ... 19 Attitudes Towards Drinking ................................................................. .................................... 19 Drinking Inside the Home ....................................................................................................... 20 Drinking Outside the Home ................................................................. .................................... 21

Chart 10 Per Capita Consumption of Alcoholic Drinks and Soft Drinks byCategory 2011............................................................................................ 21

Chart 11 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade 2011 .................................................................................................. 22

Grooming Habits ........................................................................................................................ 23 Attitudes Towards Personal Care ........................................................ ................................... 23 Attitudes Towards Beauty ......................................................... .............................................. 24



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Male Grooming ......................................................................................................... .............. 25 Use of Hair Care Salons, Spas, Nail and Beauty Parlours ..................................................... 25

Chart 12 Value Sales of Beauty and Personal Care Key Categories 2006-2011 ...... 26 Chart 13 Regional Ranking of Per Capita Sales of Men's Grooming Products

2011 ............................................................. .............................................. 27 Fashion Habits ........................................................................................................................... 27

Attitudes Towards Clothing ................................................................. .................................... 27 Attitudes Towards Footwear ................................................................ ................................... 28 Attitudes Towards Personal Adornment ........................................................ ......................... 28 Attitudes Towards Accessories/luxury Goods ........................................................... .............. 29

Chart 14 Consumer Expenditure on Clothing and Footwear 2006-2011 ................... 29 Chart 15 Regional Ranking of Consumer Expenditure on Clothing and

Footwear as a Proportion of Total Consumer Expenditure 2011............. ... 30 Health and Wellness Habits ....................................................................................................... 30

Public Versus Private Healthcare ........................................................................................... 30 Attitudes To Health and Well-being ........................................................................................ 31 Over-the-counter Versus Prescription-only Medicines (otc Vs Pom) ...................................... 32 Sport and Fitness.................................................................................................................... 33 Obesity ................................................................................................................................... 33

Chart 16 Growth in Public and OTC Expenditure on PharmaceuticalsCompared with Healthy Life Expectancy at Birth 2006-2011 ..................... 34

Chart 17 Regional Ranking of Obese and Overweight Population 2011 ................... 34 Smoking Habits .......................................................................................................................... 35

Smoking Prevalence ...................................................... ......................................................... 35 Attitudes To Smoking .............................................................................................................. 36

Chart 18 Smoking Prevalence amongst Men and Women 2006-2011 ..................... 36

Chart 19 Regional Ranking of Smoking Prevalence 2011 ........................................ 36 Shopping Habits ..................................................... ................................................................. ... 37

Attitudes To Shopping ......................................................................................................... ... 37 Main Household Food and Non-food Consumables Shop ...................................................... 38 Top-up Food Shopping ............................................................................................. .............. 39 Shopping for Big-ticket Items ............................................................... ................................... 39 Personal Shopping ................................................................................................................. 40 E-commerce and M-commerce .............................................................................................. 40

Chart 20 Importance of Hypermarkets, Supermarkets and Discounters withinGrocery Retailing 2011 .............................................................................. 41

Chart 21 Regional Ranking of Sales through Internet Retailing 2011 ....................... 42

Leisure Habits ............................................................................................................................ 43 Staying in ............................................................ ................................................................. ... 43 Going Out ............................................................................................................................... 44 Public Holidays, Celebrations and Gift-giving ........................................................... .............. 44 Culture ..................................................... ................................................................. .............. 45

Chart 22 Cinema Attendances 2006-2011 ............................................................. ... 45 Chart 23 Regional Ranking of Consumer Expenditure on Leisure and

Recreation as a Proportion of Total Consumer Expenditure 2011 ............. 45 DIY and Gardening Habits.......................................................................................................... 46

Attitudes To DIY....................................................................... ............................................... 46



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Attitudes To Gardening ............................................................. .............................................. 47 Chart 24 Number of Home Owners and New Dwellings Completed 2006-2011 ....... 47 Chart 25 Regional Ranking of Home Owners as a Proportion of Total

Households 2011 ....................................................................................... 48 Pet Ownership Habits ........................................................ ......................................................... 48

Attitudes To Pet Ownership ................................................................ .................................... 49 Chart 26 Pet Population and Sales of Pet Food 2006-2011 ..................................... 49 Chart 27 Regional Ranking of Pet Ownership 2011 .................................................. 50

Travel Habits .............................................................................................................................. 51 Getting Around ....................................................................................................................... 51 Use of Public Transport .......................................................................................................... 52

Air Travel ............................................................ ................................................................. ... 53 Chart 28 Kilometres Travelled by Road, Rail and Air Compared with Motorway

Intensity, Petrol Prices and Number of Scheduled Airline PassengersCarried 2006-2011 .................................................................................. ... 53

Chart 29 Regional Ranking of Possession of Passenger Cars 2011 ........................ 54 Vacation Habits .......................................................................................................................... 55

Attitudes To Taking Holidays ............................................................... ................................... 55 Main Holiday-taking Trends ................................................................................................ .... 55 Domestic Versus Foreign Holidays ................................................................ ......................... 56 Preferred Travel Methods ......................................................................................... .............. 57

Chart 30 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011 ............ 58 Chart 31 Regional Ranking of Holiday Departures 2011 .......................................... 59

Financial Habits ...................................................... ................................................................. ... 60 Attitudes Toward Payment Methods .............................................................. ......................... 60 Savings ............................................................... ................................................................. ... 61 Loans and Mortgages ............................................................................................................. 61

Chart 32 Consumer Lending Compared with Savings and Savings Ratio 2006-2011 ............................................................. .............................................. 62

Chart 33 Regional Ranking of Financial Cards in Circulation 2011 ........................... 63



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CONSUMER LIFESTYLES IN ITALY

CONSUMER HABITS IN CONTEXT

Current Behaviour Within the Broader Economic ClimateItaly suffered a recession in 2008, and the negative effects of the economic and financial

crisis further damaged the country s structural deficiencies in terms of economic performance,causing a fall in consumer confidence and giving rise to a loss in global competitiveness andstagnant productivity levels.

The main factors affecting Italy s performance are a lack in innovation in producti on, a lack ofoverall competition in the service sector, inefficiency in the public services and an inadequatelyskilled workforce. These factors make Italy one of the slowest growing European countries andat the same time one of the most affected by the current economic and financial crisis. Givensuch negative economic conditions, rising unemployment and uncertainly about future economicrecovery, the consumer confidence index reached 98.4 in 2011, a decrease of 5.6% comparedto 2006.

In November 2011, highly criticized Prime Minister Silvio Berlusconi finally resigned afteryears of scandals. A new technocrat government headed by Mario Monti was appointed untilnew elections in April 2013 with the mission of leading the country out of the crisis byimplementing structural economic reforms. Italy continues to be characterized by deterioratinggrowth prospects, low productivity performance and declining competitiveness since theadoption of the euro, resulting in a reduction in the country s export share in world markets. Thecountry has still also a huge public debt. Unemployment remains high, and the labour market isuncompetitive. Foreign direct investment remains low, and corruption and organised crime arestill problematic, mainly in South of Italy, which continues to lag far behind in economicdevelopment. All of these problems need to be tackled by the new government.

A new financial bill published in 2012 has the objective of increasing state revenues in orderto reduce the national deficit in line with EU requirements and avoid a potential collapse of theeconomy. The measures required by the new bill tend to exacerbate the difficult situationalready faced by Italian households since the economic crisis that started in 2008.

In 2012, Italy is expect ed to enter its fourth recession since 2001. The country s pooreconomic performance is linked to several factors, including the ongoing austerity programmeand exporters' dependence on other European markets. Italy's real GDP grew by just 1.5% in2010 and virtually stagnated in 2011. In 2012, real GDP is expected to contract by 1.9%.Unemployment was 8.4% in 2011, and it is expected to rise to 9.1% in 2012. In 2011, theinflation rate was 2.8%.

Italy currently has the third oldest population in the world, and the rate of economic growthcould slip further as the population ages. The ageing population will create fiscal problems in thelong run. Annual spending on pensions is expected to rise by at least 2% of GDP over the next20 years. The fiscal deficit for 2010 was reduced to 4.5% of GDP. It fell to 3.9% in 2011, and adeficit of 2.7% is expected in 2012.

According to the Italian National Institute for Statistics (ISTAT), the fiscal burden in 2010 was42.3%. Tax evasion remains very high, particularly as the economy of Italy is based on manymicro, small and medium-size enterprises that base part of their revenues on evasion. In termsof the tax burden, Italy is one of the EU countries with the highest rates of taxation, and Italianscontinue to be unsatisfied that the level of public services provided does not reflect such highrates.





The level of GDP growth, together with inflation and unemployment levels, continues to affectconsumer confidence and therefore consumer spending. In addition, the risk of contagion fromthe sovereign debt crises in other European countries will remain high and may require thegovernment to implement stricter austerity measures to maintain investor confidence. At the

same time, declining economic competitiveness in Italy in the long term means that structuralreforms will be needed in order to promote economic growth.

Consumer ConfidenceDue to the negative effects of the economic downturn, consumer confidence as measured by

the Consumer Confidence Index compiled by the Institute for Studies and and Economic Analyses (Istituto di Studi e Analisi Economica) has been fluctuating in recent years. (TheInstitute s calculations for consumer confidence are based on the reading for the year 1980 andthus that year equals 100.) In 2006 and 2007, consumer confidence readings averaged 104 butdropped to 96.5 in 2008, slowly increasing to 103.3 in 2009 and 102.7 in 2010. However, at theend of 2011 there was another decline, to 98.4. Since then, consumer confidence hasfluctuated, increasing in the early 2012 as a result of relief that economic reforms wereintroduced by the government in December 2011. However, in recent months consumerconfidence has declined again. The eurozone debt crisis has had a significant impact onconsumers confidence and a return to optimism could be sluggish, affecting consumerspending. As well, Italian consumers are not enamoured with many of the recent austeritymeasures, including a rise in value-added tax that increased the price of fuel.

Misery IndexIn line with the poor economic recovery, readings on Italy s Misery Index (calculated by

adding the inflation rate and the unemployment rate) averaged 11.2% in 2011, the result of anaverage unemployment rate of 8.4% and an average inflation rate of 2.8%. This was up from9.9% in 2010 (8.4% unemployment and 1.5% inflation rate).

Inflation has remained stubbornly high in Italy in recent months, boosted in part by risingprices resulting from recently introduced austerity measures. For example, the increase in VAThas boosted the price of petrol. According to an article from Bloomberg in the spring of 2012,“Monti s austeri ty measures [have] deepened the recession...Rising crude prices and thegovernment s increase of value -added taxes led to a jump in gasoline costs that neared €2 alitre last week, crimping domestic demand”.

Unemployment in Italy is expected to continue to rise in 2012, boosted by generalunemployment throughout the eurozone as well as Italian firms choosing not to hire in the midstof the recession. The unemployment rate in Italy came close to its highest level in 13 yearswhen it hit 10.8% in June 2012.

Chart 1 Consumer Confidence Index 2006-2011





Source: Istituto di Studi e Analisi Economica (Isae)Note: Consumer Confidence Index measures consumers' levels of optimism regarding current economic

conditions and the direction of the economy.

Chart 2 Misery Index 2006-2011





Italian students in general do not wear any uniform, but during primary and secondary schoolchildren are requested to wear a smock. The number of higher-education students (includinguniversity students) was 1.99 million in 2011, registering a decrease of 1.5% from 2006. Theexpenditure per student in higher education in purchasing power parity terms was US$8,309 in

2011 in Italy, an increase of 5.1% compared to 2006. According to the OECD report “Education at a Glance 2011,” about 70.3% of the people aged

25 to 34 years old in Italy attain an upper-secondary education, well below the OECD averageof 81.5%. However, in Italy the number of 25-34 year-olds who have an upper-secondary orhigher education is at least 30% greater than the number of 55-64 year-olds with similar levelsof education, indicating that access to upper-secondary education has expanded considerablyover the past 30 years. According to the OECD report, Italy has one of the lowest tertiaryattainment rates among OECD countries: 20.2% of people aged 25 to 34 years old in Italy attainthis level of education compared to the OECD average of 37.1%. Graduation rates for bothupper secondary and tertiary education is below the OECD average (80.8% compared with82.2% for upper secondary education, and 32.6% compared with 38.6% for tertiary education).

According to an article published in Associazione Culturale Pediatri in April 2012, about 30%

of primary-school children walk to school. There is an increasing trend in Italy in the usage ofthe Pedibus, a bus that collects children so that they can join the walk to school accompanied byadults, generally volunteering grandparents, parents or teachers.

In general, Italian parents start back-to-school shopping around the months of July, Augustand September each year. The shopping is done in specialized stores as well as insupermarkets and malls. However, according to eBay in September 2011, there is an increasingtrend in purchasing back-to-school products online. In fact, in July 2011, the company registeredan increase of about 45% in the back-to-school products bought online compared to the yearbefore. The majority of products bought were related to football teams, Hello Kitty and thebrands Seven and Invicta.

University Life Access to higher education in Italy is reserved for students who have passed a national

examination at the end of upper-secondary school. The higher-education system is divided intothree sectors: university tertiary education, non-university tertiary education (such as the higherlevel Art and Music Education system – AFAM), and the post-secondary non-tertiary education(higher technical education and training). The Italian university system is aligned to theEuropean model. It consists of two training cycles: First Degree Courses (Corsi di Laurea) thatlast three years and Specialized Degree Courses (Corsi di Laurea Specialistica) that last twoyears.

In the publication Grande Guida Università 2011-2012, prepared by Repubblica and Censis,Italian universities are ranked according to their size, services offered, scholarships, state of thebuildings, web and internationalization. Bologna and Padova were rated among the best Italianuniversities.

The academic year is made up of two semesters and starts in general at the beginning ofOctober, ending in July. The start and finish dates depend on each university, but in generalsemesters are made up of 20 weeks, 14 weeks being a teaching period and 6 weeks being anexam period. Exams are graded from 0 to 30, with 18 being the pass mark. A cum laude isawarded when reaching the highest mark (30 e lode) as a mention of special distinction. Theoverall degree is marked on a scale from zero to 110, with 66 being the pass mark and asumma cum laude being awarded when reaching the maximum grade (110 e lode). The finalresult is awarded based on exam results as well as a dissertation presented in front of a boardof examiners.





Ente per il Diritto allo Studio Universitario (EDISU) offices are regional agencies that runstudent-welfare services. Such services are divided into two categories, one targeting allstudents and dealing with canteens, access to libraries, access to university sport centres, andreduction of ticket prices for transportation; and the other targeting specific student groups, for

example administering grants, accommodation and facilities for the disabled. Universities,together with the regional office of EDISU, provide a series of services and facilities for studentsin financial need and economic hardship. Italian universities generally offer students part-time

jobs, and they usually have career offices to facilitate contact between students and businesses.Many European as well as non-European students study in Italy on EU Socrates ErasmusProgrammes as well as other bilateral programmes with universities all around the world.Usually universities have an international relations office that is responsible for suchprogrammes.

State university fees vary between €800 to €1,000 p er year depending on the course of studyand on the university. According to the OEDC report “Education at a Glance 2010,” universityfees in Italy were about US$1,195 per year in 2010. Private universities in general charge higherfees. Student grants are usually funded by the State, and students receive a scholarship

evaluated under certain criteria, including academic achievement and income.In 2011, the number of university students in Italy was 32.1 per thousand people, registering a

decrease of 4.6% compared to 2006. According to the report ''Social and economic conditions ofstudent in life Europe - Eurostudent IV 2008 - 2011,” about 40% of Italian university studentswork. About 23.2% of students have an occasional job, while about 16.4% have a stable job.

About 41.7% of students who work in general come from lower-income families, while 29.8% ofstudents who work come from high-income families. Therefore, finding a job is done not onlydue to economic reasons.

According to the OECD report “Education at a Glance 2011,” Italians with a tertiary educationaged 55 to 64 years old earn considerably more than similarly educated 25 to 64 year-olds, witha difference of about 46%. This compares to an OECD average difference of 13%. Over theirlifetimes, Italian men with a tertiary education can earn more than US$ 300,000 compared to

men without that level of education, while the average earnings premium for men with a third-level education in OECD countries is about US$175,000. In addition, some 79% of tertiary-educated adults in Italy are employed, compared with the OECD average of 84%. Employmentrates are more than 28% higher for those with a tertiary education than for those who have notcompleted an upper-secondary education in Italy, while the average difference is 27% amongOECD countries.

According to ISTAT, Italian students decide not to continue to study if they come from poorerareas, but this phenomenon is also applied to some coming from wealthier areas, as a strong

job offer is an incentive for students to leave their studies. In fact, in 2010, about 18.8% ofstudents aged 18 to 24 left their studies after middle school and before completion ofcompulsory education. The EU average is about 14.1%. About 81.8% of Italians aged 15 to 19years were students in 2009, as were 21.3% of Italians aged 20 to 29 years old, while the EUaverage is 86.2% and 26.6% respectively. In 2010, about 19.8% of Italians aged 30 to 34

had a university degree, an increase of 4.2% compared to 2004. The EU average is 33.6%. According to ISTAT, a group that is of increasing importance in Italy is young people not in

education, employment or training (NEET) .In 2010, more than 2 million young people, about22.1% of the population aged 15 to 29 years old, were not studying nor working. Suchpercentages were even higher among women compared to men (24.9% versus 19.3%), whilethe EU average was about 15.3%. The higher levels of NEET registered in Italy is linked tolower participation of young people in the job market as well as stronger inactivity (as opposedto unemployment) compared to other European countries. In 2010, there was also an increasein NEET living in the centre-north of the country (16.1%), as the economic crisis decreased the





number of available jobs. The percentage of NEET was up to 30.9% in the south of Italy, as it ismore difficult to access jobs for young Italians living there.

Adult LearningDuring the middle of the 20th century, Italy started tackling its high illiteracy levels with the

introduction of the Società di Mutuo Soccorso and the Camere del Lavoro with the objective ofteaching reading and writing to adults. In 1947, the first schools for illiterates were introduced(Scuole Popolari per analfabeti), and these operated until 1982. In the 1960s, technical institutesintroduced evening classes for students and workers, and in the 1970s, classes were alsooffered in vocational institutes. The beginning of the 1990s saw the creation of the CentriTerritoriali Permanenti (CTP) and adult training started also to be provided during the evening insecondary schools with the objective of providing adults with knowledge in areas ranging fromcultural and relational skills to language skills. In addition, the objective of evening classes is toimprove and stren gthen adults basic skills in order to qualify them for secondary -schoolcertificates, which can be a determining factor in securing a job, as well as developing theirprofessional and personal lives though a lifelong learning.

According to the latest research published on the INDIRE website, “Monitoraggio nazionaledell offerta formativa per adulti erogata dalle istituzioni scolastiche nell anno scolastico 2007 -2008” and made by the Agenzia Nazionale per lo Sviluppo dell Autonom ia Scolastica on behalfof MIUR, during 2007/08 in Italy there were about 1,740 CTP offices and about 894 secondaryschools providing evening courses for adults.

According to the report, about 17.79% of adult students in 2007/2008 attended primary andmiddle school, including reading and writing courses. About 16.53% were foreign immigrantsstudying Italian language and culture. The number of foreign immigrants attending adult learningcourses has increased a lot in recent years, with immigrants mainly coming from Morocco,Romania and China. About 48% of them studied short courses to learn a foreign language(usually English) or to develop IT skills, while 17.4% attended secondary school. During the year2007/08, there were also 248 adult learning centers in prisons, which mainly provided primaryand middle education as well as short courses.

According to the OECD report “Education at a Glance 2011,” workers in Italy invest less thanhalf the amount of time in non-formal education during their working lives compared to theOECD average. In fact in Italy, this amounts to 353 hours of non-formal education for adultsaged 25 to 64 years, compared with the OECD average of 988 hours.

According to ISTAT, in 2010 only 6.2% of Italian adults were involved in lifelong learningactivities, while the EU average was 9.1%. Of those, about 40% was involved in a school oruniversity education, and 4% was studying a professional course organised or recognised bythe region. About 20% of studying adults attended a professional training course with theircompany, and the rest studied such subjects as IT or foreign languages.

Chart 3 Number of Students in Higher Education and Expenditure per Student in PPPTerms 2006-2011





Source: Euromonitor International

Chart 4 Regional Ranking of Number of University Students 2011


WORKING HABITS





Working ConditionsIn 2011, the labour force participation rate was 62.2% of the working population aged 15 to 64

years, a decrease 0.5% compared to 2006. The employed population amounted to about 23million people in 2011, an increase of 0.2% compared to 2006. The unemployed population was2.1 million, a growth of 25.7% compared to 2006.

In Italy, the normal working week comprises 40 hours. Depending on the type of job and thetype of contract, there can be variations in this working week, but the maximum number of hoursworked cannot exceed 48 including overtime. According to the Eurostat report “Labour MarketStatistics 2011,”,in 2010 men in full -time employment worked on average 42 hours per week,while women worked about 38.1 hours per week. In addition, Italian workers are entitled to arest of at least 24 hours every week and to at least 24 days of holidays per year.

During 2011, Italian workers could also benefit from public holidays, which in some caseswere extended with one or two days of holiday to get a longer break. For example, ThursdayJanuary 6, Thursday March 17 (celebrating 150 years of the Italian Republic), Thursday June 2and Tuesday November 2 represented opportunities for Italians to take Monday or Friday off toextend their weekend.

Accord ing to the OECD report “Education at a Glance 2011,” employers pay an additionalpremium for better-educated workers as well as for labour-market experience. On average,across OECD countries, an employer can expect to pay an additional US$29,000(approximately 50% more) per year for an experienced third-level graduate than for a recentgraduate. In Italy, employers pay 120% extra or more for an experienced third-level worker.

According to the Eurostat report “Labour Market Statistics 2011,” the average sal ary in Italy in2009 was €23,406.

According to ISTAT, limited working contracts in 2010 increased by 1.4% compared to 2009,bringing them to 12.8% of total working contracts, while in EU countries the average was about14%. This increase was mainly for men, but such contracts are more common amongst women(14.5% for women and 11.4% for men).

According to a research from Euroffice.it, some 57% of Italian consumers choose a casuallook in the office that reflects strong attention to detail and clothes combinations. The casuallook is preferred by 63% of women and 37% of men. About 9% of Italian consumers are obligedto wear formal clothing, 78% of whom are men, and in most cases, they must wear a suit. About20% of Italian consumers wear jeans, mainly during Casual Fridays. In addition, the economicand financial crisis is prompting Italian consumers to change their habits regarding the workenvironment. For example, about 70% of Italians prefer to have a low-cost lunch instead ofgoing to a restaurant. Some 30% of Italian consumers go home for lunch, 22% eat at their deskin front of the computer while 17% have lunch in the canteen or in the office kitchen.

According to Trend Micro, a computer security company, Italy companies show a strongtechnological trend called “consumerizzazione”, which involves using personal smartphones orlaptops for work purposes. The use of personal devices for working activities allows givesincreased flexibility to workers, improving productivity and work-life balance. However, suchpractices can represent a threat to data protection. About 59% of big companies in Italy allowemployees to use personal devices for working purposes, mainly laptops (72%), smartphones(58%) and tablets (35%). In 69% of cases, such devices are provided from the company, whilethe others are employees own devices. Italian workers are posit ive about this new trend, asmost of them appreciate the convenience (55%), the possibility of working from home (43%)and the possibility of having a double usage of the device, both for work as well as for personalpurposes (40%).





Women in the WorkplaceIn 2011, the female employment rate in Italy was 46.8%, an increase of 0.5% from 2006. The

low female participation rate is the result in part of few childcare services available andinsufficient government policies to help working women. Italian women continue to be mainlyemployed in sectors perceived as being „suited to women, such as education, healthcare andsocial services. According to the Eurostat report “Labour Market Statistics 2011,” 2.8% of Italianwomen in 2010 were working in agriculture, 14.1% in industry and 83.1% in services sectors. Inaddition, women working in Italy tend to have a higher level of education compared to men. Infact, in 2010, about 28% of working women had a primary or lower-secondary educationcompared to 41% of men, 50% women had a secondary and post-secondary non-tertiaryeducation compared to 45% men and 23% women had a tertiary education compared to 14% ofmen.

According to research by the Istituto di Studi Politici Economici e Sociali, Italy dedicates only0.9% of GDP to family policies, well below the EU average of 2.3%. The average number ofbabies per woman in Italy is only 1.2, the lowest in Europe, and this low fertility rate is linked tothe costs associated with children as well as the low level of subsidies and fiscal incentives forItalian families. Italy has few services available for mothers and small babies. One out of fivenurseries schools is private, and these are considerably more expensive compared to publicones and therefore do not represent a valid alternative for families in need.

According to a February 2012 convention run by the Comitato Nazionale Economia e Lavoro(CNEL), “Stati Generali sul Lavoro delle donne," Italy does not provide sufficient services tofamilies, and women therefore do not enter the job market or they exit it after the birth of the firstchild or to assist older family members. In the case of Italian women aged 25 to 45 years, afterthe birth of a first child, the workforce occupancy rate decreases by about 13%, and it falls againafter the birth of the second child. In particular, working women would appreciate an increase inservices for families such as nursery schools as well as policies that give women more incentiveto go back to work.

According to research by CNEL from October 2011, women in Italy have a salary gap ofabout 10% to 18% less compared to men. The average hourly salary of women is about 7.2%less than that of men. However, for women with a lower education level, the gap rises to 20%,and it is as high as 15% for women with a middle-school education. There is a large salary gapalso in sectors such as financial services and company services, with differences of 22.4% and26.1% respectively compared to men. In the education and health services, the gap is about21.6%, while in the manufacturing sector the gap is 18.4%. According to the OECD report“Education at a Glance 2011,” women who have obtained a third -level degree earn 65% or lessof what similarly educated men earn, while the average in the OECD countries is around 72%.

According to research from Euroffice.it, about 63% of Italian women dress casually to go tothe office, with 67% of them wearing jeans. About 13% of Italians (mainly women) declare thatthey want to be noticed in the office and choose their clothing accordingly.

Only 3% of Italian consumers go shopping during their lunch break, and these are mainlywomen (93%). This trend is mainly influenced by the current economic and financial crisis, withpeople refraining from shopping at lunch time in order to save money. On the other hand,Italians are increasing online shopping during breaks from work in order to find better offers andsave money.

Commuting According to ISTAT, more than 30 million Italians commute every day to work or to school, out

of which more than 11 million are children and students and more than 20 million are workers.





About 73.6% of students and 87.7% of workers use a means of transport to commute. Inparticular, 41.4% of students and 75.5% of workers travel by car. About 34.1% of students and10.3% of workers use public transport. Italian consumers walk mainly in the south of Italy(32.8% of students and 14.6% of workers), while public transport is more popular in the

northwest of the country. The car is mostly used in the center of Italy by students and in thesouth of Italy by workers, while motorcycles, scooters and bicycles are mostly used in thenortheast of the country.

According to the report “Outlook dei consumi 2012” by CENSIS/Confcommercio, about 74.5%of Italian consumers increased their expenditure on petrol and parking in the first three monthsof 2012, mainly due to an increase in fuel prices. However, in order to limit their spending,63.6% of Italians declared that they try to limit their use of cars and scooters in order to savemoney on fuel costs.

According to a report published by environmental association Legambiente entitled“Pendolaria 2011,” there has been a reduction in the number of trains for commuters in severalregions in Italy and a 7.8% increase in the number of users in the last two years. The decreasehas been about 20% in the Veneto region, 13% in Marche, 12% in Liguria and 10%

in Abruzzo and Campania. Such changes resulted in more difficult commuting for Italianconsumers who need to go to work or school every day. There has been an increase in ticketprices by about 23.4% in Lombardy, 25% in Abruzzo and 20% in Liguria. In addition, Italiancommuter trains are often delayed, dirty, old and offer bad service.

Commuting is made more difficult by the subway network, as in Italy it is very small comparedto the rest of Europe with only 176 kilometres of line. In addition, the suburban rail network hasonly 595.7 kilometres of line.

According to research from the Centro Studi e Documentazione Direct Line, about 66% ofItalian consumers in 2010 used the car for any journey, while 34% used the car only for leisure.In addition, according the report ACI/CENSIS 2010, about 90.4% of Italians consider the cartheir preferred vehicle, followed by 34.3% that prefer public transport, 17.9% motorcycles andscooters and the remaining 13.4% prefer the train or bus for travel outside the city. About 35.5%

of Italian consumers prefer to walk and 18.7% prefer to use a bicycle. According to an article published on www.dirittodicritica.com, Italian consumers increased

their use of public transport in 2012 mainly in the bigger cities due to a large increase in fuelcosts, which reached almost €2 per litre in April 2012. In Rome, Milan, Turin and Florence, therewas an increase in the use of public transport of about 30% in 2011 compared to 2010.

During the first two months of 2012, Rome saw a 6% increase in the sale of the number ofyearly passes for the public transport, while in Milan the increase was roughly 20%. Theseincreases are also linked to the increased price of a single ticket (on average about €1.5),prompting consumers to save money in the long-term by buying a yearly pass costing about

€300. According to data from the Azienda Trasporti Milanesi, Mila n s bike -sharing scheme in

February 2012 registered an increase of 45% of yearly subscriptions compared to the previousyear. Such schemes have been introduced in Milan, Turin and Rome as well as in some smallercities. Milan has about 120 bike stations, and there was an increase of 25% in bike usage inFebruary 2012 compared to the previous year. In addition, Milan adopted the service GuidaMifor its car-sharing scheme, which in February 2012 counted three times more subscriberscompared to 2011, increasing to a total of about 5,000 people registered.

Alternative Work Options According to the Eurostat report “Labour Market Statistics 2011,” the percentage of women

working part-time in 2010 was 29% compared to 16.5% in 2000, while 5.5% of men wereworking part-time in 2010 compared to 3.7% in 2000. Such figures represent a positive trend,





but flexible working conditions still represent a developing sector in Italy. Italian women aremore likely to work part-time compared to men, partly due to the Italian culture of women beingexpected to take care of children, older members of the family and household duties. In 2010,men in part-time employment worked on average 21.6 hours per week, while women worked

about 21.5 hours per week.In 2011 the share of part-time workers was 15% of the total, corresponding to about 3.8

million people. From 2005, due to the economic and financial crisis, there has been an increasein workers working part-time because they could not find a full-time occupation.

According to the E urostat report “Labour Market Statistics 2011,” about 22.7% of Italianworkers in 2010 were employers or self-employed, a lot higher than the EU average of 14.5%,mainly due to Italy being characterised by strong entrepreneurship and an economy based onmany micro, small and medium-sized enterprises. Most entrepreneurs are men (27.5%compared to 15.8% women).

RetirementIn January 1, 2020, it is expected that the population aged 15 to 64 years will reach 39.34

million, an increase of 2.3% compared to 2000. In 2020 the old-age dependency ratio isexpected to be 35.9%, a growth of 33.8% compared to 2000.

The pension sector in Italy was reformed on January 1, 2012, in line with the decreto legge201/2011 (law 214). According to the new law, pensions are calculated with respect tocontributions made as opposed to the level of last salary earned. The minimum age forretirement will be 66 years for men, and for women it will be 62, 63 or 66 years (depending fromthe type of contract) until 2018, when the minimum age will be 66 years for everyone.Retirement age will be 67 years for everyone starting from 2022. Both men and women musthave contributed to the pension for at least 20 years in order to be eligible. The law allows forearly retirement for women who have worked at least 41 years and a month and for men thathave worked 42 years and a month as of 2012. Such minimum periods will be increased in 2013and 2014. In addition, the law allows for a more flexible retirement period, with the calculation ofpension contributions made accordingly.

According to ISTAT, Italy in 2009 paid 23.8 million pensions amounting to about €253. 5billion, equal to 16.7% of GDP. The average pension was €10,634. Pensions are higher in thenorthwest of Italy (€11,805) and in the central part of the country (€11,317) as salaries and livingcosts tend to be higher there.

According to a 2012 INPS rep ort, about 50.8% of the pensions are below €500 per month,while of the remaining, 79% reach €1,000, 11.1% are between €1,000 and €1,500, and 9.9%are over €1,500. Women earn less than men because they work fewer years and receive alower salary. About 30. 5% of women earn pensions between €500 and €1,000 compared to24.9% of men, while 18.9% of men earn pensions between €1,000 and €1,500 compared to5.6% of women. And 20.2% of men receive pensions above €1,500 compared to 2.6% ofwomen.

Chart 5 Employed and Unemployed Population and Labour Force Participation Rate2006-2011






Chart 6 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020


Chart 7 Regional Ranking of Female Employment Rate 2011






EATING HABITS

Dining inItalian culture is strongly attached to food and dining, and for Italian consumers, eating is a

pleasure to be shared with others. About one in three Italians invites friends for dinner at homeregularly. The majority of Italian consumers are interested in eating a fresh meal of good quality,and most Italians are able to cook typical Italian meals at home. Most Italian consumers shop,prepare, serve and eat their own meals. However, a faster peace life has changed thebehaviour of many Italians, who now more and more often choose to eat a quick meal instead ofspending time preparing a traditional meal.

The Osservatorio ADI-Nestlé, a collaboration between the Associazione Italiana di Dietetica eNutrizione Clinica and the company Nestlé, made a study on the Mediterranean lifestyle. Italianeating habits follow the so-called Mediterranean diet and were given the title World ImmaterialHeritage by UNESCO in 2010. The Mediterranean diet comprises also a lifestyle or aphilosophy. However, over of the years, Italian consumers have changed their habits and nowonly a few follow the principles of the Mediterranean diet, which is rich in cereal, pulses, fruit and

vegetables. According to Osservatorio ADI-Nestlé, about 41% of Italian consumers do not eatfruit daily, while 54% do not eat vegetables daily. In addition, 71% of the Italian population donot eat pulses at least twice per week as required by the Mediterranean diet.

According to research by Coldiretti/Censis, Italians consumers in general for lunch eat fruit,bread and vegetables five times per week; pasta 4.6 times per week, meat three times perweek; and rice, fish and dessert two times per week. For dinner, Italian consumers in generaleat fruit, bread and vegetables five times per week; pasta 2.5 times per week; meat 2.8 timesper week, and rice, fish and dessert less than two times per week. In addition, about 25% ofItalian consumers admitted they would eat more fruit if the price were lower, and about 20% ofthem would do the same in the case of vegetables.





According to the Istituto Nazionale di Ricerca per gli Alimenti e la Nutrizione, Italianconsumers now eat much more animal proteins and fat and less carbohydrates, which accountfor only for 45% of the daily intake (down from 59% according to the Mediterranean diet). Inaddition, the availability of fruit and vegetables in 2011 was 251kg per capita, a reduction of

18.6% compared to 2006.Typical Italian cuisine includes lots of fresh vegetables, pulses, meat and fish, pasta dishes,

fruit and desserts. Typical dishes present many differences according to the region. Northernregions have more recipes that include meat, and they make also strong use of potatoes andpolenta. In southern regions, there is a stronger culture of eating fish as well as fresh vegetablesand cheeses such as mozzarella.

Italian consumers also very much enjoy pizza, which is typically eaten out at pizzeria, where itis prepared according to the original recipe and cooked in a wooden oven. Many Italians do,however, know how to prepare pizza at home in an electric oven.

Although Italians are very attached to their food traditions and the Mediterranean diet, therising level of immigration has increased the number of restaurants and take-aways servingforeign cuisine. According to a report from Federazione Italiana Pubblici Esercizi (FIPE) on

Italians eating habits, there are about 4,000 restaurants offering foreign cuisine in Italy, inparticular Chinese (77.9%), Japanese (8.1%), Brazilian (2.5%), and African (2.4%). About26.2% of Italian consumers enjoys eating foreign food. However, Italian consumers in generaldo not prepare ethnic food at home, as these new cultures are not yet so widespread amongItalians,

Generally, there are three primary meals for Italian consumers: breakfast in the morning fromabout 7:00 to 9:00, lunch at mid-day from about 12:30 to 14:00 and dinner in the evening fromabout 19:30 to 21:30, depending on personal preferences. In addition, the Mediterranean dietallows for two snacks during the day, one in the morning and one in the afternoon. Howeveraccording to the Osservatorio ADI-Nestlé, nowadays only 16% of the Italian population eats fivetimes a day, some 10% of the population eats only meals which are fast to prepare daily, while49% of Italians eat meals that are fast to prepare at least twice per week.

Italian consumers in general have breakfast outside, and they limit their typical breakfast tocoffee (espresso or cappuccino) and a brioche. Traditionally, Italians have lunch and dinner athome, and dining in helps Italians to know exactly what they eat, eat healthier and at the sametime save money. However, having lunch at home is linked to type of job, length of lunch breakas well as the distance of the workplace from home, which would need to be a maximum ofabout 20 minutes away in order to allow workers to go home in their lunch breaks. Families withchildren of a school-going age tend in general to eat more meals at home.

According to March 2012 research from the website “Occhio al Trend,” Italian consumers areincreasing their preference for home-made lunches as opposed to eating in bars andrestaurants. Such behaviour is linked to the economic and financial crisis but also to health andwellbeing, with more attention paid to the variety and quality of food. Therefore, fish, meat andvegetables are increasing in popularity at the expense of sandwiches and pizzas. According tothe data, about 53% of Italian consumers eat a home-made lunch. The main reasons are:saving money (46%), desire to eat healthier (29%) and greater variety (19%). Of people eatingin the office, 31% eat in meeting rooms and open spaces, 22% at a desk, 19% at the bar and16% at self-service corners. About 33% of Italian consumers that have lunch in the office preferto eat pasta or rice, 26% prefer canned products and 18% prefer yogurts and fresh fruits.

According to data from Adusbef and Federconsumatori, the cost of a lunch break hasincreased sharply in recent years. In particular, the price of a bottle of water increased by 217%over the last ten years and the price of a small pizza by 199%. Therefore, in 2012, the averageprice of a lunch break can vary from €5 to €12 per day, and it can be up to €150 per month.Home-made food can allow for a reduction in costs of 30% to 50%.





In addition, when eating at home, the convivial nature of meals, which is one of the pillars ofthe national food culture, is more and more being replaced by watching television. According tothe Osservatorio ADI-Nestlé, 60% of Italian consumers watch television while eating at leasttwice per week, while about 30% of them does it daily. The rising pattern among Italian

households of longer working hours, managing households and fast-paced lives, puts apremium on convenience and saving time, and this has driven demand for take-aways or home-delivered meals as well as ready-to-eat food from supermarkets, in particular for those peoplewho want to eat at home but are short of time. Some consumers will buy one part of their mealalready prepared from a supermarket and add something to it at home, such as a salad orvegetables.

There are many occasions when a celebratory meal is prepared for the family. Sunday, forexample, is considered by most Italian consumers to be a day to eat at home with the family. Onsuch occasions, the typical meal consists of a starter, a first main course, a second main courseand dessert. The choice of food varies by the region and season.

Dining Out According to the Osservatorio “Adi -Nestlé” 10% of Italians lost the habit of eating with the

family and eat outside the house daily, while 42% eat outside at least twice per week and 80%of Italian consumers eat outside at least once per week, in particular during the weekend. Thistrend is common among all age group, as well as for couples, group of friends and families. Themost popular occasions for dining out are birthdays, anniversaries and other religiouscelebrations.

According to a report from FIPE on Italians eating habits, about 21 million people have lunchoutside during the week, while 3 million also eat dinner out. However, the situation changesduring the weekend when the number of Italians that dine out reaches almost 20 million. Inresponse to the economic downturn, Italian consumers dined out at restaurants less often inrecent years, and when they did, they went more often to informal dining venues such aspizzerias in order to save money.

According to a report from Coldiretti/Censis, about 80% of Italian consumers eat outside atleast once a week, and they are mainly young men (93%) living in the northeast of the country(88.3%). The main reasons are work obligations as well as the conviviality of being with otherpeople. However, some Italians eat out also as a way to skip the healthy diet that people tend tofollow at home. Italian consumers place lots more importance on what they eat and thenutritional values where they are at home (29.7%) as opposed to when they eat out (14.9%).

The most popular out-of-home dining venues for Italian consumers are full-service restaurantsas well as informal dining restaurants and pizzerias, which are very common in Italy. Fast-foodoutlets are still marginalized, and they do not represent one of the first choices for Italians. Theyare, however, increasing their popularity in bigger cities, particularly among younger people,students and foreign visitors. In general, fast food in Italy is sold by international chains andcomprises burgers with fries or fried chicken. Street vendors are not very common in Italy, andthey are usually limited to local celebrations and manifestations. Street vendors in general sellcandyfloss, sweets, sandwiches and other types of fast food.

Italian customers in general choose a dining venue in relation to the type of occasion, theirbudget, the type of food offered, and the location of the venue. The most typical dishes ordereddepend on the type of venue. For example, in full-service restaurants, Italian customers usuallyorder a full menu: starter, first and second main courses and dessert. In more informalrestaurants, consumers in general order only a main course together with an starter or dessert,and in pizzeria they order a pizza, salad or pasta, possibly also with a dessert.

According to a research from TradeLab on behalf of Silb, about 18% of Italians in 2012 thatdine out choose at least once per month to dine in a club, and they stay in the same place for





dancing after dinner. Such behaviour is also linked to the lower purchasing power of Italianconsumers, who now prefer to concentrate all the activities of the night in one place. Theaverage expenditure for the dinner in a club varies between €15 and €23.

Café CultureItalian consumers enjoy drinking coffee, and a strong cafe culture exists. Italian espresso is

famous all around the world. Italian consumers drink coffee all day long: for breakfast at homeor outside, in the middle of the morning, after all their meals, as well as during the day as a wayof socialising and mingling with people. Italians also offer a coffee as a sign of hospitality.

According to an article published on caffeamodomio.com, about 49% of the Italian populationdrinks coffee, and Italian consumers drink about 3.4 billion espressos per year in about 200,000bars located around the country. Italian men drink more coffee than women (1.7 cups versus 1.5cups), and 81.1% of coffee drinkers, drink up to three coffees per day. About 22% of Italianconsumers drink at least one espresso in the bar daily. About 57% of coffee is drunk forbreakfast, 34% between meals and 13% during the day far from meals.

About 37% of Italian consumers drink straight espresso, while the rest add milk to create anespresso macchiato (with cold or hot milk depending on tastes) or an alcoholic drink called anespresso corretto. Consumers also drink cappuccino or latte but mainly for breakfast. Othercoffee beverages such as frozen/iced coffee or Americano coffee (the typical internationalcoffee) are not very common in Italy.

According to Coffee Experience 2010, the largest coffee tasting event in the world, about 70million cups of espresso are served in Italy every day. In addition, the percentage of consumersthat reads a coffee shop s sign and look for a specific brand has increased from 3% in 2009 to4.6% in 2010. At the same time, the number of consumers who claim to choose coffee based ontheir own personal tastes increased from 35.2% in 2009 to 37.4% in 2010. Furthermore, thenumber of people consuming coffee without sugar increased from 30% in 2009 to 32.4% in2010, and the number of people drinking a macchiato rose from 16.6% in 2009 to 18% in 2010.

The majority of Italians drink coffee outside their homes, but they often prepare coffee in theirhouses during the day using a traditional coffee pot as well as the recently introduced single-cupbrewing machines such as the Nestlè Nespresso.

Coffee shops are very popular venues for drinking coffee. These are all independent shops,and there are no international chains in the country, mainly because Italians like principallyprefer espresso and no other type of coffee beverages. For the same reasons, take-away coffeeis not common in Italy. However, some independent cafes offer free delivery to local shops oroffices for workers. Coffee shops are considered social venues, particularly by workers,housewives and pensioners.

Snacking HabitsThe Mediterranean diet indicates that it is important to eat five times a day, snacking between

main meals. According to the report by Coldiretti/Censis, about 62.3% of Italian consumers havea snack in the morning, 63.8% in the afternoon and 52.2% at both times. Snacks are mainlyeaten by women, younger people, and single people.

The main foods eaten as a snack are fruit, yoghurt, crackers and, in the morning, brioche andconfectionary. In Italy, there are no typical traditional snacks, but there are many internationalsnacks such as crisps, tortilla chips, cereal snacks, pretzels, popcorn, cheese snacks, crackers,meat snacks, nuts, corn snacks, fruit snacks, chocolate bars, granola, cakes, cookies andyoghurts. Younger consumers tend to eat crackers, biscuits or confectionery as a snack in themorning or during the day. In general, domestic brands such as Mulino Bianco or Ferrero arepreferred among Italian consumers. Fruit is eaten as a snack mainly by adult consumers,





particularly apples and bananas, which are available all year round and are easy to carry andeat. However, many other fruits are also eaten according to the season.

Italians also snack when drinking an aperitif (aperitivo). People may meet in a bar beforelunch or dinner and socialize in front of a drink and a small snack usually prepared by the bar.

Typical aperitif snacks are chips and nuts as well as small sandwiches or small pizzas.

Attitudes Towards Food TrendsItalian consumers are more and more aware of and concerned about problems related to

food, and according to a 2012 Coldiretti/Censis report, about 62% of them declare themselvesto be very informed about the nutritional value, calories and fat of various foods. Italianconsumers are very concerned with having a healthy diet, as in 2011, some 11.2% of thepopulation above the age of 15 is obese (an increase of 9.5% compared to 2006) and 36.4%are overweight (an increase of 3.9% compared to 2006). The country has also the highest shareof overweight children in Europe. In order to educate the new generation about healthy eating, anew subject is being introduced in 2012 in schools called Food Education.

Italy is one of the countries with the lowest per-capita spend on fair trade products: US$2.3per person per year. This trend is mainly due to low information and awarness among Italianconsumers about such products.

On the other hand, Italian consumers are increasingly interested in farmers markets, whichsell locally produced food, because they want to buy fresh food and support local producers.

According to ISTAT, there was a decrease of 4.4% in sales at supermarkets in December 2011compared to the same month in 2010. At the same time, there has been an increase of 53% indirect purchases of products from producers, and this trend was followed by about 9.2 millionItalian consumers. Italian consumers prefer to buy in farmers markets as they are increasinglyinterested in purchasing “km zero” products as well as healthy and seasonal prod ucts, and theyalso want to help local farmers. According to research by Swg/Coldiretti, Italian consumerschoose farmers markets for the quality of the products (71%), to save money (40%) and for thebetter taste of the products (26%).

Italian consumers consider organic food to be healthier and of greater quality, and theconsumption of organic products increased by 11.5% in 2011. According to Altroconsumo,Italian consumers are willing to spend almost 80% more in order to buy organic products. Ingeneral, the main factor influencing the likelihood of a consumer buying organic products is levelof education. However, for many Italian consumers, food choices are linked to householdbudget. Although organic food is perceived as being healthier, it is more expensive, so manyhouseholds tend to buy private label products in order to keep their bills lower.

Italian consumers are still very sceptical about genetically modified foods. As of February2012, the Italian government is against the use of genetic modification in the production of foodin Italy.

Chart 8 Per Capita Expenditure on Consumer Foodservice by Chained andIndependent 2011






Chart 9 Regional Ranking of Availability of Fresh Fruit and Vegetables 2011


DRINKING HABITS

Attitudes Towards DrinkingBottled water is the most widespread drink amongst Italian consumers, amounting to 173

litres per capita in 2011. Consumers choose to buy bottled water because it is perceived to behealthier and to taste better than tap water. However, even bottled water suffered a sales





reduction of 3.3% between 2006 and 2011 due to the introduction of substitute products such aswater filters for the home. The most common brands of bottled water are San Pellegrino, AcquaPanna, Ferrarelle.

Wine is the preferred alcoholic beverage in Italy, followed by beer and spirits. Wine culture

amongst Italian consumers is very strong, with the majority of Italians drinking wine with allmeals. Italian drinkers in general choose locally produced wines, as each Italian regionproduces typical wines: For example, Prosecco in Veneto and Chianti in Tuscany. However,Italian consumers are reducing their intake of wine and other alcoholic beverages in order toprotect their health as well as because of new lifestyles. In 2011, Italian consumers drank a totalvolume of 71.4 litres of alcoholic drinks per capita, a reduction of 11.5% compared to 2006.

According to a study by Vinitaly and Unicab, a new group of Italian consumers now exists,comprising mainly young people below the age of 35 with a strong interest in wines, especiallythe biological ones, that contain less sulphites, less alcohol and are more digestible. Suchconsumers in general drink more often outside the house in restaurants and wine-bars, whereaspeople above the age of 35 tend to drink wine at home.

Drinkers in Italy have become more educated and sophisticated about flavours, and this has

led to increased demand for better quality wines, as now the tendency of Italian consumers is todrink less but better quality wines. In addition, consumers are appreciating many different stylesof beers, wines and spirits imported from other countries. In particular, there is an increasingpresence in Italy of international wines, coming mainly from France, as well as beers, withBelgian beers being the most popular. Cocktails and beers are more common amongst youngercustomers, and the former are mainly consumed in the evening in bars or clubs.

Soft drinks are also popular amongst Italian consumers. Soft drinks are in general consumedduring the day or during special occasions such as birthdays, and they are more popularamongst children and young people. With meals, Italian consumers prefer to drink water orwine. The most common carbonated drinks are made by international brands such as Coca-Cola, but orange- and lemon-flavoured carbonated drinks produced in Italy by the SanPellegrino brand are also popular. In 2011, the total volume of soft drinks consumed was 244

litres per capita, a decrease of 2% compared to 2006.

Drinking Inside the Home As a result of the recent economic and financial crisis, many Italian consumers have retreated

to their homes for relaxation and entertainment, and attracted by lower prices, many consumershave brought their drinking habits home. Italian consumers in general do not wait for specialoccasions in order to enjoy drinking at home, and they normally have a glass of wine duringlunch and dinner. According to research by Vinitaly/Confcommercio, wine is preferred by 79.5%of the adult Italian population and is in general consumed at home with meals. Wine isconsumed five times as much as beer with meals at home.

However, there are also a number of celebrations and small events that are frequently hostedat home and at which alcoholic drinks are served. In addition to bigger celebrations such asChristmas and New Year, these events include birthdays, cocktail parties and small receptions.On a more informal basis, Italian consumers invite friends at home to watch special TV shows orsport events such as football matches, providing their guests with food and alcoholic drinks. It isalso estimated that about one out of three Italians invites friends for dinner at home regularly.

Wines are often purchased as a part of the grocery list in supermarkets and grocery shops (by62.9% of Italian consumers according to a report from Veronafiere). Shoppers are attracted notonly by the lower prices, wide selection and in some cases discounts offered by groceryretailers, but they also like the convenience that comes with completing all of their shopping in asingle trip. Some 25% of Italian consumers prefer to buy wine directly from the producer, whileand 7.3% prefer to get wine in wine bars. The majority of Italian consumers that purchase wine





in supermarkets buy a 750ml bottle (78.3% of consumers), followed by litre bottles (13%),cartons (12.1%) and the rest buy bigger bottles. Some 55.6% of wines bought in supermarketsin 2011 were good quality wines denominated as DOC, DOCH or IGT as a guarantee of theirproduction and quality.

In response to the greater number of Italian consumers drinking beer, beer manufacturershave promoted such products as home mini-keg systems that make enjoying draught beer athome easier. Italians do not usually opt for wine in boxes, which is perceived as low quality andis in general used only for cooking purposes.

Drinking Outside the HomeItalian consumers enjoy going out for a drink, although in recent years they have cut back a

bit due to the higher uncertainty and unemployment levels brought by the economic andfinancial crisis. Italian adult consumers of any background tend to go out almost daily but mainlyon the weekend for a drink, usually meeting in bars. The smoking ban introduced in Italy in 2005did not impact the drinking habits of Italian consumers, who go outside the bar or restaurant ifthey want to smoke.

The culture of drinking an aperitif is strong in Italy. It is seen as a way to socialise and minglewith friends while having a drink and a small snack before lunch or dinner. The aperitif culture isstrongly rooted, with many bars offering happy-hour discounts on drinks bought during certainhours. Italian consumers tend to order wine by the glass, a beer or a cocktail as an aperitif. Onevery common aperitif is the Spritz, which is made with Prosecco, sparkling water and Aperol. Inlarge cities, some bars provide an aperitif with a buffet included in the cost of the drink duringcertain hours (mainly from 18:00 to 21:00), therefore attracting many consumers who can enjoythe company of friends while having a drink and light dinner.

According to data from ISPO on behalf of AssoBirra, there was an increase of 7 million peopledrinking beer in Italy in 2011, reaching a total of 36 million people (72.4% of Italian adults). Ofthis total, 16 million are women. Italian consumers like beer because it is trendy, not veryalcoholic and refreshing. Beer is usually drunk by adults below 44 years old, in general withmeals eaten outside the house in restaurants. Italian consumers that drink beer less than onceper week increased in number by about 40% in 2011 (from 26.3% to 35.3%), while there hasbeen an increase of 20% in consumers who drink a least once per week (from 24.6% to 29.9%).There was a slight reduction (-0.4%) in the percentage of consumers that drink beer daily(7.2%).

Chart 10 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category2011






Chart 11 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade2011






GROOMING HABITS

Attitudes Towards Personal Care As with most Western consumers, Italians take a great interest in their personal appearance.

In 2011, the retail value of beauty and personal care products was €9 billion, registering adecrease of 3.1% compared to 2006. According to research by Demoskopea on behalf ofPalmolive, 92% of Italian consumers see in personal hygiene a source of wellbeing, vitality andpleasure. In particular, 41.4% of Italians wash themselves well and often and do not like tointeract with dirty people. Such consumers prefer to use liquid soaps and products that protectthe skin. About 16% of Italians consider hygiene a duty, washing often and critical of people thatdo not take care of themselves. Some 13.5% of Italians take care of their personal hygiene butdo not give a predominant role to hygiene. Some 12.9% of Italian consumers think that hygieneis related to health and relaxation but do not have any prejudice about people that do not wash

regularly. The remaining 16% of Italians wash themselves less than the average consumer.Italian consumers choose hygiene products not only for their ingredients and origin but also forthe packaging (30%), colours (28%), or because they match the rest of the bathroom (31%).

Italian consumers use a wide range of products when undertaking grooming tasks such aswashing, hair styling, shaving, applying make-up, brushing teeth and applying deodorant andlotions. In addition, as the Italian population is ageing, more consumers are looking for productsand treatments to look younger, turning to a wide range of anti-ageing beauty and personal careproducts. For example, in the skin care segment, women in their 50s and 60s are looking foranti-aging products in order to hide the signs of age, while women in their 20s and 30s use anti-aging products to prevent the sign of age from appearing. In colour cosmetics, many products





promise to deliver anti-ageing benefits thanks to the ingredients they use. Demand for naturaland organic ingredients has increased among Italian consumers in line with stronger consumerawareness of environmental issues. For example, Italians pay greater care in choosing productsthat are made with natural ingredients and that are supposed to be very good for the care of the

body as well as environmentally friendly.Italian consumers are also strongly concerned with their oral care, and they consider it very

important to brush their teeth and use mouth wash at least twice a day. Tooth whitening isbecoming very popular among Italian consumers, and many dental practices are now offering it.

According to the Associazione Igienisti Dentali Italiani, Italian dentists do about 45,000 tooth-whitening treatments per year. About 50,000 treatments are done per year by non-qualifiedpeople under poor hygienic conditions and using inappropriate instruments. This behaviour cancreate dangerous risks for patients, but Italian consumers are not well informed and choose alsonon-qualified people if less expensive. Other popular dental procedures to correct problems withteeth include repairing teeth with white fillings and wearing braces. The latter in particular isincreasing its importance among Italian adult consumers, and Invisalign, which offers aninvisible braces system, is becoming more and more popular among consumers, mainly with

Italian adults.Italy has very hot and sunny summers, and Italian consumers tend to get tanned during the

summer months. However, Italian consumers are becoming more and more aware of thedangers that the sun has on the skin, including ageing and skin cancer, and are using propersun-screen products.

Attitudes Towards BeautyBeauty and physical attractiveness have always been very important in Italy among both men

and women, and while this has been a boon for many, it has also led to a crisis of confidenceamongst others. Incidents of anorexia and bulimia are increasing among young girls, who wantto obtain the sort of slim body shown in the media. In Italy, attractiveness in women is seen asconforming to the Mediterranean look, comprising a slim body with some curves and long hair. Aman is deemed attractive when he has a muscular body, dark hair and skin and a machocharacter.

As the Italian population is ageing, more consumers, both men and women, are looking forproducts and treatments to look younger, and they are turning to a wide range of anti-agingbeauty and personal care products. According to research by Somatoline Cosmetic, 68% ofItalian women aged between 30 and 60 buy anti-aging products, while the percentage increasesto 92% for people aged 46 to 60. The majority of Italian women are worried about the aging ofthe face, eyes, hands and décolletage. In addition, 40% of women buy anti-ageing products forthe body. From the study it emerges that 75% of Italian women are scared by ageing because itcreates discomfort and 56% would like to look younger in order to feel better. Some 54% ofItalian women use cosmetic products to fight the ageing of the skin, while a smaller percentagedoes so by means of a healthy diet and sport. About 51% of Italian women aged 30 to 45 useanti-age products regularly, as do 63% of those aged 46 to 60. Among them, 95% buy productsfor the face, 53% for the eyes, 40% for the body and 28% for the neck.

In addition, cosmetic surgery is increasing in importance among Italian consumers. Accordingto the results of a survey by the Osservatorio Nazionale sulla Chirurgia Estetica, sponsored byFondazione Italiana per la Medicina e Chirurgia Estetica, Italian consumers (61% of women and54% of men) are becoming more aware of the existence of specialized institutes of cosmeticsurgery. Some 86% of Italian consumers think there is not enough information to help inchoosing the correct plastic surgeon, and this was one of the reasons for the creation ofspecialized institutes of cosmetic surgery. When choosing esthetic surgery, Italian consumerslook for professionalism (87%), experience (79%) and updated knowledge (41%).





According to the survey, only 5% of Italian women are against cosmetic surgery (and 4% ofmen), while 28% are fully favorable to such treatments (29% of men). In addition, 7% of Italianwomen admit to having already had cosmetic surgery (6% of men), while 43% are consideringthe possibility of having it (40% of men) and only 27% have never thought about having surgery

(38% of men). Overall, some 70% of Italian consumers have not visited a cosmetic surgeon.The main reasons for women are that the treatments are too expensive (40%) or they are notconvinced about the surgery and scared about the pain (28%). Among men, 33% are notconvinced about the surgery and 31% think the surgeries are too expensive. The main reasonswhy Italian consumers decide to have plastic surgery are to feel better (89%), to look better(87%) and to feel more self-confident (83%). Italian women are more interested in surgery forthe breast or nose as well as liposuction and fillers.

Male GroomingItalian men take care of their appearance and are often defined as metrosexual due to their

very strong image-consciousness. Italian male consumers have always considered basicgrooming products as necessities. Products such as shavers, shaving products, hair careproducts, deodorant, cologne and bath and shower products are considered essentials, andmost Italian men would feel uncomfortable not having them in their grooming kits. Many Italianmen buy additional products, including skin care and anti -ageing products. In 2011, Italianconsumers spent on average €12.1 per capita on men s grooming, a decrease of 0.9%compared to 2006.

According to a study by the Istituto Directa about the grooming habits of Italian men, some €250 million is spent per year on b eauty products. About 21% of Italian men use skin products,and the typical consumer is aged between 25 and 44 and has a medium to high salary. Inaddition, men in general consult a dermatologist in order to choose the right product. It isestimated that the average Italian man now spends 26% more time on grooming compared to10 years ago and 7% more time on improving appearance. Italian men are taking more care oftheir bodies, the way they dress and everything that can improve the way they look. There hasbeen also an increase in cosmetic surgeries for men, mainly procedures for the nose and skinlifting. According to the study, 67% of Italian men use face lotion, and only 10% consider it to bea practice for women only. In addition, Italian men are increasingly interested in make-upproducts, such as bronzer or self-tanning creams, as an alternative to the solarium. They arealso increasing their use of foundations, pencils and eye-liners.

Use of Hair Care Salons, Spas, Nail and Beauty Parlours According to data from the Associazione Italiana Centri Benessere and Confesercenti, there

are about 21,000 beauty salons in Italy. However, the economic and financial crisis had anegative impact on the business of hair care salons, spas, and nail and beauty parlours. In2011, Italian consumers are going less to beauty salons, and they tend to buy long-lasting

products and applications. When they do go to salons, they buy fewer expensive salon brandsand opt instead for less expensive products.

According to a study by the Associazione Italiana delle Imprese Cosmetiche, Italianconsumers in 2011 are also increasing their purchases of beauty products in pharmacies andperfumeries at the expenses of supermarkets. They are also increasing their purchases ofbeauty products in herbalist shops thanks to their growing interest in environmental issues aswell as the competitive prices available in such specialised shops.

According to research by Gruppo Key-Stone in collaboration with the Associazione Italianadelle Imprese Cosmetiche, about 70% of beauty centres in Italy do not have a sauna, hammamor jacuzzi. About 15% of beauty salons clients are men, and they account for 24% of treatments.





Massage remained the most common treatment, but Italian consumers were keen also on othertreatments, such as specific body and face treatments.

According to a study by Centro Studi UNIPRO, there was a decrease in hair colouring in2011, substituted in most instances by alternatives that can be made at home, whereas sales of

curative products remained stable. As a consequence, hair care salons, of all types of salons,are registering the most negative trend in 2011.

Spas are trying to get a wider audience by offering customised products to consumers,including packages for couples, wedding parties and men. Some beauty salons are also offeringnew products. One such product is lunch therapy, whereby clients are provided with a taxi to getto and from the beauty salon, where they receive a treatment and a take-away lunch. Thepopularity of deal-of-the-day websites such as Groupon is now positively influencing the sale ofproducts related to beauty and hair care salons. Many outlets have been making offers on suchwebsites in order to increase sales and attract new customers.

Tanning salons continue to be very popular in Italy, where people are very keen to be tannedall year round. According to data from Confestetica, an association of about 4,600 beautycentres and solarium in Italy, 15% of Italian consumers go regularly to the solarium. About 10

million people, 70% of which are young consumers, go to the solarium year round. However,Italians are becoming more and more aware of the risks of being exposed to the solarium, andnew rules have been introduced to protect the health of Italian consumers. For example,solariums are out of bounds for people younger than 18 and pregnant women. Customers mustalso leave a break of 48 hours between two solarium sessions.

Chart 12 Value Sales of Beauty and Personal Care Key Categories 2006-2011






Chart 13 Regional Ranking of Per Capita Sales of Men's Grooming Products 2011


FASHION HABITS

Attitudes Towards Clothing

Italy is home to some of the most famous fashion brands in the world, including Armani,Gucci, Dolce e Gabbana, Prada, Valentino and Cavalli. Italian style is considered one of thebest in the world in terms of fashion as well as elegance. Italian consumers tend to bepassionate about fashion, and clothing is so important culturally that Italians tend to judge eachother by what they wear. Italian teenagers choose to wear similar clothes and brands, mainly toshow they belong to a certain group. Italian consumers therefore pay great attention to theirclothing, and in 2011, about 7.5% of consumer expenditure went on clothing and footwear, adecrease of 5.3% compared to 2006. This decrease was mainly due to the economic andfinancial crisis. However, Italy s percentage of total consumer expenditure on clothing andfootwear is higher than that of any other country in Europe.

According to research from Euroffice, 57% of Italians opt for a casual look in the office thatreflects strong attention to the detail and on clothes combinations. The casual look is chosen by

63% of women and 37% of men. About 9% of Italian consumers are obliged to wear formalclothing, 78% of whom are men, who in most cases must wear a suit. About 20% of Italianconsumers wear jeans, mostly women (67%), while men (33%) mainly wear them during CasualFridays. About 13% of Italians declare that they want to be noticed in the office and choose theirclothing accordingly, for example preferring high heels. The remaining 2%, mainly men, prefer tofeel comfortable and go to the work place with a track suit and gym shoes.

Only 3% of Italian consumers go shopping during their lunch break, and these are mainlywomen (93%). This trend is mainly influenced by the current economic and financial crisis.There is an increasing interest among Italian consumers in vintage shopping, which is seen as away of being trendy, saving some money in times of crisis and being environmentally friendly.





Social changes such as busier lifestyles and the ageing of the population continue to impactthe attitudes of Italian consumers towards clothing. In particular, busy consumers are expectedto increase their online purchases of clothing, attracted by the ability to save time and money. Inaddition, convenience and comfortable features will become very important in fashion for elderly

people.

Attitudes Towards FootwearFor Italian consumers, shoes are considered essential elements of a fashionable look. In

general, Italians wear formal shoes to go to work, for example flat or high heel shoes and bootsfor women and leather shoes with laces for men. Loafers are not very common in Italy and areconsidered old fashioned. In addition, Italians wear informal footwear during the weekend or forrecreation. For informal occasions Italians wear a lot shoes made by Superga, an Italian brandthat is very common in the country.

Due to the economic and financial crisis, Italians reduced the percentage of total consumerexpenditure on clothing and footwear. Italian men are traditionally less interested in footwearand therefore tend to buy less shoes when cutting down on expenses. According toConfcommercio, the footwear industry in Italy is suffering a declining trend that does notimprove even during sales periods.

According to an article published in La Repubblica, Italian consumers are increasingly buyingimported shoes, mainly those that are made in China, which are in general a lot cheaper. In2010, almost 50% of imported shoes came from China, an increase of almost 13.4% comparedto the previous year.

Attitudes Towards Personal AdornmentIn response to the economic and financial crisis, Italian consumers are becoming more

cautious about buying non-essential goods, and consumers wishing to keep up with the latestfashion trends turned from buying fine jewellery to buying less expensive costume jewelry.

Costume jewelry can be found in many retail shops as well as online. According to a research from Optissimo - Gruppo Randazzo, one of the main eyewear chainsin Italy, 40% of Italian consumers buy sunglasses that follow fashion trends, 20% buy a new pairof sunglasses every year, 39% buy a pair every two years and 30% every five years., while 10%have never changed sunglasses. About 6% of Italians do not have a pair of sunglasses, 36%have only one pair, 37% of them have two pairs, 14% have from three to five pairs and theremaining 7% have more than five pairs. The amount spent on sunglasses by 77% of Italianconsumers is between €50 and €150, while 11% of Italians tend to spend less than €50, and12% spend more than €200. In general, about 90% of Italian consumers buy sunglasses ineyewear shops, 8% choose a non-specialized shop, and only 2% buys sunglasses at streetstalls. According to the study, 69% of Italian consumers decide directly in the shop which kind ofsunglasses to buy, 18% are attracted by sunglasses displayed in the window of the shop, 7%

see the sunglasses they like in magazines, 4% buy after talking to family and friends, and theremaining 2% buy after seeing sunglasses on TV or at the cinema. About 68% of Italianconsumers buy sunglasses for their shape, 13% buy for the brand, and the remaining 8% areinfluenced by whatever sunglasses are currently in vogue. Finally, 47% of Italian consumers buysunglasses all year round, 40% tend to buy sunglasses when the summer is approaching, 8%buy during sales, and 4% buy in connection with promotions and offers.

According to research sponsored by the Commissione Difesa Vista and carried out by C.R.A.Customized Research & Analysis, 2 out of 5 Italian consumers do not use sunglasses and stayin the sun without protection for their eyes. In addition, 83% of Italian consumers do not protectthe eyes of their children. Only 6 out of 10 Italian consumers use sunglasses in the snow, and





only 52% above 14 years of age think that dark lenses protect the eyes and are not aware of thefact that sunglasses are as important as sunscreen when going in the sun. Unfortunately, youngconsumers are victims of the behaviour of their parents, as only 17% of consumers think it isimportant to teach children to wear sunglasses. According to a study by Piepoli & Associati in

partnership with the Istituto di Biometeorologia del Consiglio Nazionale delle Ricerche, morethan 97% of young Italian consumers aged 18 to 34 use sunglasses only as a fashion accessoryand are not aware of the risks of UV rays.

Italian consumers are increasingly interested in tattoos and piercings. According to a study byCamera di Commercio di Monza e Brianza using data provided by Registro Imprese, there wereabout 1,000 companies specializing in tattoos and piercings in Italy in 2009. The trend of gettingtattoos and piercings is stronger in the country s main cities, with Rome accounting for 8.1% ofthe total, Milan for 5.3%, Turin for 4.9% and Naples for 4.2%. There are also an increasingnumber of illegal tattoo parlours that offer tattoos at cheaper prices but are more dangerous withregard to hygiene. There is also an increasing trend among Italian consumers to try to removetattoos by means of laser treatment, and specialised centers for this are on the increase. Thistreatment is expensive and painful.

Attitudes Towards Accessories/luxury GoodsItalian consumers are changing their attitude with respect to luxury goods and accessories.

Once luxury items indicated a desire to show off, but Italian consumers now consider luxurysomething related to well-being and an increase in quality of life and personal satisfaction. Thisnew attitude makes luxury more a personal experience than a social one, and luxury items arebecoming more and more accessible. Online commerce is increasing the number of consumerswho are attracted by luxury products and accessories. The market for luxury items represents avery diverse group of consumers in terms of age, occupation, education and income. Theinternet is now an important channel for 44% of Italian consumers interested in purchasingluxury goods.

According to a study conducted by Expo Luxe in collaboration with the magazine World &Pleasure, Italian consumers had an increasing interest in luxury goods and accessories in 2011.Luxury products in Italy are now purchased by mass consumers. In 2011, consumersconcentrated on purchasing luxury clothing (23.5%), goods and services related to travel andleisure (22%), with a particular increase in the purchase of tailor-made trips Consumers wereinterested in the purchase of jewellery (16.5%), which corresponds also to an investment intimes of crisis. In terms of purchasing a new car in 2011, 4% of Italians living in Rome would liketo change their car, as would 13% of people living in Milan. In addition, 8% of people living inMilan are also very interested in purchasing art, while only 3% of people living in Rome are.Interest in spending on gourmet food is at 17% in Rome and 12% in Milan.

Chart 14 Consumer Expenditure on Clothing and Footwear 2006-2011






Chart 15 Regional Ranking of Consumer Expenditure on Clothing and Footwear as aProportion of Total Consumer Expenditure 2011


HEALTH AND WELLNESS HABITS

Public Versus Private HealthcareThe Italian National Health Service (Servizio Sanitario Nazionale) is responsible for the public

health system and the administration of such services is under the remit of each region. Theregions also set the criteria for finaning local health units and hospitals. Public healthcare in Italy





is available to all Italian citizens, however there is a considerable difference in the quality ofhealth care provided between North and South of Italy.

The National Health System is funded by income from the local health units and by tworegional taxes: the IRAP (Imposta Regionale Attività Produttive) is a regional production tax and

the IRPEF (Imposta sui Redditi delle Persone Fisiche) is a regional income tax.Due to the near universal coverage of the National Health System, private health insurance

does not play a significant role in contributing to Italy s health care system. According to a reportfrom the Associazione Italiana Ospedalità Privat, about 72.5% of accredited private hospitals in2011 have been negatively affected by the economic crisis, with 29.4% negatively impacted byItalian consumers decreasing the number of visits and examinations. About 17% of hospitalsregistered a decrease in hospitalizations, and 13.8% registered difficulties with collectingpayment from patients. About 50.3% of hospitals want to react by implementing neworganizational and managerial processes: 45.9% by increasing in size, 44.7% by getting moreemployees and equipment, 44% by partnering with other hospitals, 43.4% by introducinginnovative services for the patients and 37.7% by retraining employees.

When purchased, complementary insurance policies covered co-payments, non-reimbursed

services, dental care and the cost of staying in a private hospital room, while supplementaryinsurance allowed patients to choose their health care providers and to be seen promptly bydoctors. According to research published on Test Salute, Italian consumers need to wait verylong periods in order to be able to do an examination (for example, a gastroscopy or anultrasound) or a specialized visit (for example, ophthalmology and orthopaedic visits). Therefore,many Italian consumers are obliged to use private hospitals in order to get an appointment morerapidly.

Public health expenditure is a big problem in Italy, and almost all of the country s regions,especially the ones located in the south, have a large public deficit that needs to be reduced inorder to comply with EU requirements. This has contributed to additional pressure to controlhealth care expenditure. For example, public expenditure on pharmaceuticals and other medicalnon- durables in Italy was €194 per capita in 2011, a decrease of 22.7% compared to 2006.

According to Federconsumatori, the Italian national health service is experiencing manymistakes, waste and inefficiencies that strongly impact Italian consumers right to receive publichealth care. There is a need to reorganize the health service through new rules in accordancewith Patto per la Salute 2013-2015. The Patto per la Salute is an agreement between the Stateand the regions with respect to the expenses and the programming of the service to guaranteeeconomic and financial stability as well as improve the quality of the services offered within auniversal public health system. Under the new agreement, there will be a reorganisation ofprimary care and of the hospital network. In addition, patient will pay more of the costs of theservices provided.

Out-of-pocket expenditure refers to people paying for over-the-counter (OTC) drugs, payingfor private health insurance, contributing to the payment of certain diagnostic procedures,medicines and doctors. According to research from CENSIS, out-of-pocket expenditureincreased by 8% from 2007 to 2010, reaching €30.6 billion and penalising mainly consumerswith lower incomes. In fact, the reduction of public services in order to control public health careexpenditure forced Italian citizens to choose private health care solutions. There is an increasingtrend in Italian consumers to look for offers and low-cost treatments, which undermine thequality and professionalism of the service provided.

Attitudes To Health and Well-being According to a 2010 study by the Istituto per gli Studi sulla Pubblica Opinione (ISPO) on

behalf of Coca-Cola, about 21% of Italians think that a healthy and balanced eating meanseating a variety of food in an equilibrated way, while 17% think of a diet with low fat. About 67%





POM medicines is liberalised, Italian consumers will save about €40 per year per household,according to Federconsumatori.

Sport and FitnessSport is very popular in Italy, and there are three national newspapers that focus on sport: La

Gazzetta dello Sport, Il Corriere dello Sport and Tuttosport. There are also many TVprogrammes focusing on sport, the most popular being La Domenica Sportiva. Italianconsumers, mainly man, are very passionate about football, and they tend to follow the matchesof their preferred football team regularly on TV or at the stadium. Cycling is also very popular inItaly, with the most famous event being the Giro d'Italia, a ride all around the country thatattracts participants from around the world and takes place every year between May and June.Italians are also very passionate about motoring, and they usually follow Formula 1 racing onTV. Italians like also to follow skiing, basketball, volleyball and tennis.

According to an article published in La Stampa in March 2010, research from Eurobarometroshows that only 3% of Italian consumers practise sport regularly during the year. The rate ofparticipation in sport is very low especially among young Italians, as only 2% of boys and 4% ofgirls aged 14 to 25 practise sport regularly. Italians over 70 years old tend not practise anysport. The reasons for such low involvement in sport activities are for 50% of Italians the lack oftime, while 15% of them do not like sport in general. About 6% of Italians think that practise asport is too expensive. Only 18% of people involved in any sporting activity in Italy do it in afitness club, while the rest play in parks, schools or universities.

Italian consumers have an increased interest in low-cost fitness. Many international anddomestic fitness brands opened low-cost gyms across Italy, offering monthly subscriptions at aprice of about €20. These clubs also offer premiu m subscriptions, where with a slightly increasein price Italian consumers can benefit from unlimited additional services such as drinks, solariumand vibrating platforms.

Obesity About 36.4% of the Italian population older than 15 years was overweight in 2011, an

increase of 3.9% compared to 2006. In addition, 11.2% of the population older than 15 years-oldwere obese, an increase of 9.5% compared to 2006. Italy has the largest share of obesechildren in Europe. Such figures are a result of the poor eating habits that are increasing amongItalian consumers given faster lifestyles together with the effects of the economic and financialcrisis, which made Italians more willing to eat fast food instead of the traditional Mediterraneandiet. According to ISTAT, the majority of obese adults in 2010 were located in Basilicata(12.7%), Puglia (12.3%), Calabria and Abruzzo (both 11.7%) and Campania (11.6%).

According to a survey promoted by Altroconsumo, Italian consumers, mainly women, thattried Alli, the first non-prescription obesity product available in Italy, were not satisfied with itbecause of the risks associated with the product, including side effects, and because weight

loss was marginal. According to a 2008 study by the Istituto Superiore della Sanità, some 23% of Italian children

from 6 to 11 years are overweight, while 12% are obese. This is a result of low sporting activity,low intake of fruit and vegetables and a sedentary lifestyle. Many parents are not aware of theproblem or tend to underestimate the gravity and the effects. Efforts are being made at anational level to solve the problem. For example, the programmes Piano Nazionale dellaPrevenzione and Guadagnare Salute: Rendere Facili le Scelte Salutari are implementing manyinitiatives in order to reduce child obesity. In 2011, the project Mi Voglio Bene, promoted by theDepartment of Health and the Società Italiana di Pediatria, involved paediatricians and parentsworking together to promote breast feeding up to six months of age, control of proteins up to two





years of age, bottle feeding up to two years old, no juices and teas, limited TV, the use of thestroller up to three years old, and participation in active games. In addition, the Department of

Agriculture s programme Frutta Nelle Scu ole aims at increasing the consumption of fruit andvegetables in primary schools in Italy. The Department of Health distributed a multimedia kit in

primary schools promoting the importance of healthy eating and an active lifestyle; while insecondary schools the department promoted the project Frutta Snack, which provided automaticvending machines selling snacks made with fresh fruit.

Chart 16 Growth in Public and OTC Expenditure on Pharmaceuticals Compared withHealthy Life Expectancy at Birth 2006-2011


Chart 17 Regional Ranking of Obese and Overweight Population 2011






SMOKING HABITS

Smoking PrevalenceIn 2011, 21% of the Italian adult population smoked, a decrease of 15.8% compared to 2006.

Smoking prevalence among the male population was about 23.1% of the total Italian population,a decrease of 21.7% compared to 2006. Smoking prevalence among the female population wasabout 19.1%, a decrease 8.2% compared to 2006. According to a research by Doxa on behalf ofIstituto Superiore di Sanità in collaboration with Lega Italiana per la Lotta Contro i Tumori andIstituto Mario Negri, the majority of smokers in 2011 were aged between 25 and 44 years(28.3%), while 18.8% was aged from 15 to 24 years and 26% was aged from 45 to 64 years.

About 15.7% of Italians started smoking before the age of 15 (17.7% of boys and 13% of girls). According to research by CENSIS on behalf of British American Tobacco Italia, the sale of

tobacco products contributes €14 billion per year to pu blic finances and employs more than

200,000 people. In 2011, about 51% of Italian consumers thought that smoking is an individualchoice and that smokers are aware of the consequences. Some 49% think that the risks ofsmoking are not properly taken into account by smokers, 44.5% are happy with the healthmessages written on packets of cigarettes, 10% consider the messages too strong while 45.5%believe them too soft. About 80% of consumers are happy with the smoking ban introduced inItaly in 2005, 14% would like to enlarge the scope of the ban while 6% consider it already toostringent. About 54% of consumers think that to reduce smoking among young people, it isnecessary to stop the illegal trade in tobacco products, while 51% would introduce more controlsand fines for vendors that do not check the age of buyers. In addition, 49.5% of Italians wouldlike to increase the minimum legal smoking age to 18 years.





Attitudes To SmokingIn 2005, Italy became one of the first European countries to introduce a smoking ban in public

places. According to the Unione Nazionale Consumatori, several Italian municipalities in March2012 are introducing fines for Italian consumers who throw cigarette butts on the ground.

According to the report Attività per la Prevenzione del Tabagimo 2011 by the Department ofHealth, there was a decrease of about 12% in the sale of cigarettes in 2010 compared to 2004,while in the same period there was an increase of about 204% in the sale of roll -your-owntobacco. This tobacco is very common among younger consumers due to its lower price.

According to the report, the Italian government is studying the possibility of forbidding smokingfor those under 18 years of age and requiring cigarette packs to contain a leaflet listing theirdangerous ingredients.

According to February 2012 research by Fondazione Umberto Veronesi and FondazionePfizer with regard to the initiative “No Smoking Be Happy”, only about 22.2% of Italian smokersmanaged to quit smoking, while 54.5% were not able to quit and the remaining 23.3% did noteven try to quit. The main reason for such low results is low will power (58.2%), followed bypsychological-physical dependence (22.9%). Some 37.3% of Italians did not have any interest inquitting smoking, and 27.9% would not like to give up the pleasure of smoking. About 62.1% ofItalian consumers tried to quit smoking to improve their health and 48.8% to improve socialrelations. About 32.6% of Italian smokers quit due to concern over the health of their familiesand 33% wanted to improve their performance in sport. Finally, 51% of Italian consumers thinkthat anti-smoking campaigns are not effective because they give information about the problembut do they do not provide any concrete aid to give up.

Chart 18 Smoking Prevalence amongst Men and Women 2006-2011


Chart 19 Regional Ranking of Smoking Prevalence 2011






SHOPPING HABITS

Attitudes To ShoppingShopping is considered a leisure pursuit in Italy, with many Italian consumers spending their

time window shopping in high streets of city centers and malls, mainly during weekends. Inaddition, given the strong attention that most Italian consumers pay to choosing their clothing,shopping is perceived as an important activity for both women and men. However, the economicdownturn has made consumers more sensitive to price and has increased their willingness tofind the best deal. This trend had prompted the success of daily deal and coupon websites suchas Groupon. There has been also an increasing trend of developing outlet villages all around thecountry, which represent a way of finding good deals on fashion shopping and at the same timea way of spending a day out with the family.

According to an article in Il Sole 24 Ore, a study promoted by NCR showed that in Italy, about67% of purchases are made in normal shops rather than on the web. Although one out of fiveItalian consumers said they made a purchase on the web in the course of 2011, visits to onlinestores have been also the same of the visits to offline stores. In fact about 63% of Italian

consumers tend to search information on the web even before going to an offline store. About35% of Italian consumers said they were attracted to making purchases in bricks-and-mortarstores by promotions, while 33% buy online due to free home-delivery services. About 63.7% ofItalian consumers like to receive information about offers and promotions on the products theytypically purchase, while 54% like to receive information about new products and 37% aboutpreferred brands. The best means of communication is e-mail, according to 54% of Italians.

According to AssoLowcost, about 48.8% of Italian consumers in 2010 bought a quality low-cost product or service, 32.8% reduced their purchases because of the economic crisis, 23.3%bought products with a lower price and 42.9% maintained their normal spending habits. Onlyabout 9.4% of Italian consumers continued to give importance to brand, 38.6% were willing to





spend more for a product or service that is environmentally friendly or is social, while 33.8%were willing to spend more on a product with above-average quality. About 68.5% of Italianconsumers bought quality low-cost clothes, 53.1% bought big-ticket household items, and38.5% bought products or services related to travel and holidays. About 35.6% of consumers

bought quality low-cost transport products or services, 35.1% bought consumable goods and30.5% leisure goods. In addition, 21.5% bought quality low-cost technological goods, 9.5%bought products or services related to the health care sector, 7.4% bought bank and assuranceservices, 6.7% bought vehicles and 5.4% bought professional services.

About 49.6% of consumers think that low-cost products and services target all type ofconsumers, while 27.3% consider them only for young consumers and 17.5% only for lower-income households. About 66% of Italian consumers buy quality low-cost products due to theprice offer.

Main Household Food and Non-food Consumables Shop According to a January 2012 report by ISTAT, Italian consumers continue to decrease their

expenditure on food. There was a decrease in food spending of 4% in 2011. An increase inprices is expected to become an additional burden of about €392 per Italian household in 2012,according to Osservatorio Nazionale Federconsumatori.

According to a report by Coesis Research on behalf of Gruppo Pam, Italian consumers spendless on food but try not to reduce the quality of the food they eat. Consumers pay strongattention to the quality of food and to limiting the food miles of products. Consumers aretherefore shopping more in local markets, which in general guarantee fresh products andtraditional local products. About 70% of consumers prefer to buy food in supermarkets than insmall shops because of lower prices.

According to October 2011 research by Coldiretti-Swg, 57% of Italian consumers reducedtheir food wastage due to the economic and financial crisis. Out of these people, 47% paid moreattention to their shopping, 31% reduced the quantities purchased, 24% used left overs toprepare other meals and 18% paid more attention to the expiry date of products. Some 55% ofItalian consumers spent more time doing their shopping, out of which 72% paid more attentionwhen doing household shopping compared to the past. About 61% of consumers checkedprices more carefully, 59% looked out for offers and promotions, 43% checked quality and 43%checked the origin of the products. About 25% of consumers increased their purchases indiscount stores, while 38% reduced their purchases in traditional stores, and the level ofpurchases in supermarkets remained somewhat stable.

According to Findomestic, with regard to household consumable and non-consumable goods,Italian consumers pay attention to the quality of the products (56%) and to price (22%), and for8% of consumers, it is really important to have information on the product before purchasing it.The brand name count for 4% while the fidelity card for 3% of Italian consumers. In Italy there isan increasing trend of GAS, Gruppi di Acquisto Solidale, which are groups of families created inorder to get discounted prices on products thanks to the purchase of big quantities. Suchinitiatives are followed more by those with lower incomes who pay stronger attention to the pricethan to the quality of products.

According to February 2011 research by FoodSaver, a company specialising in vacuumpackaging systems, about 47.7% of Italian consumers go grocery shopping only once or twiceper week, while 1% go every 15 days and spend in general about 40 minutes in thesupermarket, increasing to 56 minutes during weekends. Consumers prefer to do householdshopping in supermarkets, although at the weekend many of them choose shopping malls,where they can do also other types of shopping. In addition, Italian consumers with a salary





above €50,000 prefer supermarkets and small shops close to the house, while people with asalary of about €20,000 to €35,000 prefer to shop in markets.

According to an April 2011 article by Federconsumatori, sales of household non-consumableproducts such as detergents and hygiene products are increasing in Italy, as are sales of

packaging-free household consumables such as pasta, milk, dried fruit. A lack of packagingallows consumers to save money and create less rubbish. In Italy, there are about 1,250 shopsthat sell packaging-free products, located in about 107 provinces.

Top-up Food ShoppingItalian consumers always do top-up food shopping, and given the negative effects of the

economic and financial crisis, many more Italians are comparing prices across different storesand purchasing items where they are cheaper. Some consumers return to purchase items thatthey have forgotten during their primary food shop or to buy fresh products such as bread. Thistype of top-up food shopping is often done in small, specialised local stores (including bakeriesand butchers), in general chosen for their convenient location.

According to February 2011 research from FoodSaver, a company specialising in vacuumpackaging systems, only about 11% of Italian consumers buy food every day. This is due to thefaster pace of life and the fact that many women work and have less time available for theshopping. The remainder of Italian households in general buys food for the whole week,especially when going food shopping during the weekend (74.7%). In general, fresh foods arestored up for one or two days or maximum for one week. Only consumers with lower incomestend to store food for longer periods, as they tend to buy bigger quantities due to promotionsand reduced prices in supermarkets.

Shopping for Big-ticket Items According to Osservatorio Findomestic 2012, consumers purchased fewer white goods in

2011 (by about 7%) despite a trend of decreasing prices (about -2.2% over the year). The most

negative trends have been registered by dishwashers and cooking appliances, as such productsbenefited from incentives during 2010 that were stopped in 2011. Italian consumers alsodecreased their purchases of brown appliances in 2011, including video and audio gear, byabout 17.2%. This downward trend has been driven by lower disposable income among Italianhouseholds and an increased uncertainty that induced consumers to postpone purchases thatwere not strictly necessary. Consumers also decreased their purchases of vehicles in 2011, withthe exception of used cars, which in general benefit in periods of crisis. In 2011, the total retailvalue of motor vehicles decreased by 7.8% compared to 2010. Italian consumers also spentless on furniture in 2011, with a decrease in volume sales of 3.1% and a decrease in sales valueof 1.3%.

When Italian consumers buy big-ticket items, they usually buy them in specialist retailers,such as furniture stores, bedding stores, white good and brown appliance specialist stores and

automobile dealerships, as well as mixed retail venues, such as malls and hypermarkets.The greater penetration of broadband internet and the need to save money have changed the

attitude of many Italian consumers towards shopping for big-ticket items. Most Italians doresearch before spending a large amount of money on products such as cars, TVs, white goodsand furniture, and now they tend to compare the different options online on shopping sites andproduct review sites. In addition, the deals offered daily by websites such as Groupon are nowproviding coupons with discounts for big-ticket items.

According to Findomestic, Italian consumers do not differentiate among the various big-ticketitems in terms of necessity, but in terms of desirability, they prefer IT items to video and audiogoods. Consumers pay strong attention to the quality of the goods (71%, mainly women),





Italian consumers are increasingly paying more attention to websites that sell coupons, suchas Groupon, Glamoo, Groupalia, LetsBonus, Jumpin, Poinx, Prezzo Felice and Amazon. During2011, there was an increase in the sales of all products, from fashion (+38%), thanks to thegood performance of Yoox.com, and private sales websites such as BuyVIP, Privalia and

Saldiprivati. There was an increase over 2010 in the sale of books, music and DVDs (+35%), ITand electronics (+22%), and grocery (+17%). This trend is due also to the increased usage oflaptops and smartphones among Italian consumers. In 2011, the value of m-commerceincreased by 210% compared to 2010, reaching a value above €80 million, corresponding toabout 1% of online sales.

According to a research from Human Highway in collaboration with Netcomm (Consorzio delCommercio Elettronico Italiano), about 41.5% of Italian consumers reduced their spend onChristmas shopping compared to 2010, and about five million Italians made purchases online.For about 1.5 million Italians, the web was the only or main shopping channel. According toNetComm data, from September to November 2011, about 19.5% of online buyers made onlyone purchase, 21.5% made two purchases, 22.6% made three purchases, 16.1% made four orfive purchases, and 20.4% made more than five purchases. According to research by GFK-

Eurisko on behalf of PayPal, about 70% of online buyers choose to buy online to save money,while 69% do so because they find the web easier and more convenient, especially due tohome-delivery services. The main products bought online were travel tickets, electronics,books, DVDs and clothes.

According to research by Nextplora, about 69% of Italian online buyers choose the internet tosave money on the same products available also in shops. About 36% buy products that theycannot find elsewhere, 23% purchase products only when finding discounts and promotions,while 21% makes purchases that they would not do in other conditions. In addition, about 64%of Italian consumers pay attention to the reviews of other consumers before making a purchase.Consumers prefer to buy online because they think it is possible to make savings thanks topromotions (42%) or bids (34%). In addition there is an increasing trend in the usage ofwebsites such as Groupon to make bookings for restaurants (25%), travel and holidays (23%)

and beauty treatments (22%). According to research by Private Outlet, the first private club for online shopping, Italian men

buy online more than other European men and on average they spend 10% more than Italianwomen, mainly buying accessories or clothes for themselves. According to a research byOsservatorio 7Pixel, over the course of 2011 more than 94% of Italian online consumers weresatisfied with the purchases they made online and with the online shop, mainly thanks to fastdelivery (more than 60%) and the efficient information provided (51%). Negative experiences ononline purchases amount to less than 6%, and these relate mainly to the unavailability of theordered product (33%), delay in the delivery (30%) and poor information provided by the vendor(39%).

Chart 20 Importance of Hypermarkets, Supermarkets and Discounters within Grocery

Retailing 2011






Chart 21 Regional Ranking of Sales through Internet Retailing 2011






LEISURE HABITS

Staying inWhen staying in, Italians tend to watch TV, read, listen to the radio and surf the internet, as

well as sharing time with family members or friends. According to a survey from Immobiliare,

leader in the Italian online market for real estate ads, 35% of Italian consumers spend time infront of the TV when at home, and reading and listening to music are the next most popularactivities. There is an increasing trend also amongst Italian men of spending time in the kitchenand cooking.

According to a report from CENSIS/UCSI, about 53.1% of Italian consumers in 2011 wereusing the internet. This percentage included 87.4% of people aged 14 to 29, 15.1% of peopleaged 65 to 80, 72.2% of people with a high level of education, and 37.7% of those with a lowerlevel of education. Consumers spent €51.5 per capita on internet retailing in 2011, an increaseof 19.2% over 2010.

In 2011, about 97.4% of Italian consumers watched TV regularly, with 76.4% of the populationwatching digital TV and 35.2% watching satellite TV. About 17.8% of Italians watched TV online,while only 0.9% watched mobile TV. About eight out of ten Italian consumers listened to theradio in 2011.

According to ISTAT, about 45.3% of Italian consumers read a book in 2011, and readers aremainly women. About 54% of Italians read a newspaper at least once per week, and out ofthem, 39% were regular readers, reading at least five days per week. The low newspaperreadership is linked to the low number of copies of newspapers in Italy compared to thepopulation. In 2009, there were about 168.8 copies of newspapers for every 1,000 inhabitants.In 2011, about 25.1% of the population said they read news or articles from magazines on theweb. The main readers of news on the web were people aged 15 to 54 years old.





Going OutConsumer expenditure on leisure and recreation accounted for 6.8% of total consumer

expenditure in 2011. Per c apita spending was €1,104 in 2011 down by 2.8% since 2008. Italianconsumers enjoy going out often to relax and enjoy themselves. The main activities includedining out, going out for an aperitif or a drink, clubbing, going to the cinema or theatre, attendingsport events, going to concerts and visiting museums and historical monuments.

The number of cinema attendances was 112 million in 2011, an increase of 5.1% comparedto 2006. On average, Italian consumers made two annual cinema trips per capita in 2011, anincrease of 1.8% compared to 2006. According to ISTAT, 53.7% of Italian population went to thecinema at least once in 2011.

According to ISTAT, about 29.7% of Italian consumers visited museums and temporaryexhibitions in 2011. About 28.4% of Italians attended sport events (mainly men). About 22.9% ofItalian consumers visited archeological sites and monuments, 22.6% went clubbing, 21.9% wentto the theater (mainly women) and 20.8% to music concerts. Only about 10.8% of consumersattended classical music concerts in 2011.

According to Confcommercio, there has been an increase in the leisure expenditures of Italianconsumers. In particular, there has been an increase in gambling and buying lottery tickets.

According to data from the Amministrazione Autonoma dei Monopoli di Stato, gamblingincreased by 43% from January 2011 to January 2012. In January 2012, Italian consumersspent about €8.34 billion on gambling, out of which about 80% was returned to them in the formof prizes and the rest was kept by the State.

Public Holidays, Celebrations and Gift-givingThe most important public holidays in Italy are Christmas holidays, and these run from

Christmas Eve on the 24th of December to Epiphany on the 6th of January. The period includesChristmas Day on the 25th of December, Saint Stephen s Day on the 26th of December, NewYear s Day on the 31st of December and 1st of January. It is very common amongst Italian

families to set up a nativity crib and Christmas tree on the 8th of December, which is also apublic holiday and the day when in general the ski season starts. Italian consumers tend tocelebrate Christmas on Christmas Day rather than on Christmas Eve, with abundant food andtypical desserts that include panettone, pandoro and torrone.

During Christmas celebration, Italian adults exchange presents. Children generally alsoreceive presents for Christmas, but depending on the region, these presents can be broughtalso by San Nicolò (on the 6th of December), Santa Lucia (on the 13th of December) or Befana(on the 6th of January). During the Christmas season, Italy s markets are full of typical seasonalfood products. Very popular are the O Bei O Bei, Milan s Saint Ambrogio fair, as well asChristmas Markets in Alto Adige.

Easter is the second most important religious public holiday in Italy. During Easter, childrenreceive chocolate eggs that contain a surprise. Easter is preceded by Quaresima, a period of 40

days of abstinence that starts after Carnevale. Carnevale is a very important festival in Italy, andit is celebrated by almost everyone, with parades, masquerade balls, music and parties. Themost important celebrations for Carnevale are held in Venice, Viareggio and Putignano.

Other celebrated public holidays are Ferragosto (or Assumption of the Virgin Mary, on the15th of August) when all Italy shuts down and there are celebrations in the streets, and AllSaints Day on the 1st of November. Other major holidays are Liberation Day on the 25th of

April, Labour Day on the 1st of May, and the Festival of the Republic on the 2nd of June.





CultureItalian consumers are very proud of their ancient history and culture, which is reflected in the

many archaeological sites, monuments, museums and buildings all around the Country. In factItalian culture, which also includes festivals, traditions, cultura l activities and the country s richfood and wine heritage, is one of the most important attractions for international tourists.

According to the Italian Ministry of Cultural Heritage, museums and archaeological sites werethe most visited tourist attraction in Italy in 2010. The Coliseum in Rome accounted for morethan 5.1 million visitors, Pompei had almost 2.3 million visitors, and Galleria degli Uffizi inFlorence counted more than 1.6 million visitors in 2010. According to ISTAT, about 29.7% ofItalian consumers enjoyed visiting museums and temporary exhibitions in 2011. About 22.9% ofItalian consumers visited archeological sites and monuments, 21.9% went to the theater, and20.8% went to music concerts. Only about 10.8% of Italian consumers attended classical musicconcerts in 2011.

In April 2012, the Italian Ministry of Cultural Heritage ran the Week of Culture, giving ninedays of free access to museums, villas, monuments, archaeological sites, archives and librariesall around Italy. The initiative aims to spread knowledge of Italian heritage among Italianconsumers and tourists. After success in 2011, the Italian Ministry of Cultural Heritagereorganised in 2012 an initiative to give visitors free entrance to state art venues on theirbirthdays.

Chart 22 Cinema Attendances 2006-2011


Chart 23 Regional Ranking of Consumer Expenditure on Leisure and Recreation as aProportion of Total Consumer Expenditure 2011






DIY AND GARDENING HABITS

Attitudes To DIYItalian consumers are becoming increasingly interested in DIY activities as a way of relaxing

as well as to save money. They therefore prefer to do home improvements themselves whenpossible. Italians are used to doing repairs on their own as well as foregoing the services of an

interior designer and reorganizing the space of their homes themselves. Italian women likecreative home decorating, an activity that allows them to express themselves at the same timeas doing something useful for their homes. According to an article published on trend-online.com, the economic and financial crisis has made Italians more careful about spending buthas not stopped them from making home improvements.

The essential tools that all Italians have in their houses are screwdrivers, hammers,drills, nails, screws, tape measures, pliers and wrenches. Such tools are in general bought inDIY stores or ironmonger shops. The main DIY chain shops are Self and OBI. According to astudy by Indicod-Ecr, about 37% of Italian households were involved in DIY activities in 2010.

About 22% of Italian households had made a purchase of DIY materials in the previous 12months, with an average expenditure of about €216, and the buyers were mainly men. About56% of buyers made purchases at ironmonger shops, which are perceived more familiar andprofessional by Italians, while 53% made purchases in malls, which are seen as moreconvenient in terms of variety and prices. About 54% bought tools and materials in large,specialised stores, as they were more attracted by the greater variety, the specializedknowledge and expertise and lower prices offered.

According to an article published in 2011 on Tuttogratis.it, about 67% of Italian consumersthink they can renovate their homes at a low cost. In 2011, about 50% of Italians said theywould like to renovate their home, and, mainly for economic reasons, 68% said they woulddecorate themselves in order to save money. The decisions in terms of colours and finishing aremainly made by women (61% of cases), and 20% of Italians tend to follow the advices of apartner, family or friends when making decisions.





The number of new dwellings completed in 2011 was 252,000, a decrease of 5.2% comparedto 2006. In Italy, home owners make up about 73% of total households, an increase of 5.9%compared to 2006.

Attitudes To GardeningItalian consumers are increasing their interest in gardening as a hobby and a way to relax. In

the countryside it is still common, and in cities it is becoming more and more popular, to practisegardening in order to grow food. The most common vegetables grown in vegetable gardens aretomatoes, pumpkin, onion, basil, cucumber, parsley, asparagus, carrots, cabbage, beans,lettuce, potatoes, peas and chicory.

Italian consumers who have a private garden tend to consider it as an extension of theirhome, and they spend much time outside eating and entertaining. Favourable weatherconditions in Italy make this possible.

According to an article published on Panorama.it in March 2011, Italian consumers arebecoming more and more interested in flowers and plants, and about a million Italian people arenow gardening. In 2011, the first fair for hobby gardeners was organized in Brescia: La Fiera diVita in Campagna which had about 25,000 visitors. In 2012, the event attracted more than27,000 visitors. According to the March 2011 edition of Vivi in Campagna, maintaining patio andbalcony gardens are the main gardening trend in Italy, with young Italians primarily growingtomatoes and aromatic herbs. Garden centres saw an increase in demand of about 30% in 2011mainly due to consumers aged 35 to 40.

In addition many Italians have decided to rent a small piece of land to grow vegetables. Theavailability of garden plots in the Rome and Milan can be checked on the Ortodiffuso website,and individuals are starting to rent out their land to interested gardeners and smallholders.

Another recent trend is having a garden at a distance. For example, the company Le verduredel Mio Orto allows consumers to choose the vegetables they want grown then delivers to themonce a week. Pr ices starts from €18 per week for 30 square metres of land and three to fourkilos of vegetables.

According to an article published in La Repubblica in March 2012, about 1.2 million Italiansare enjoying hobby farming as a way of eliminating stress, being in contact with nature, andhaving a hobby. About 36% of hobby farmers are pensioners, 19% work in offices, 14% aremanual workers, 6.3% are housewives, 4.3% are public employees and 4.3% are freelancers.

In 2011, the third Orticolario, a fair dedicated to flowers and gardens, had more than 18,000visitors and 223 exhibitors. The event presented various events and workshops.

Chart 24 Number of Home Owners and New Dwellings Completed 2006-2011






Chart 25 Regional Ranking of Home Owners as a Proportion of Total Households 2011


PET OWNERSHIP HABITS





Attitudes To Pet OwnershipThe Italian Ministry of Health is promoting good practices among Italian consumers in order to

limit the number of stray animals. There is a pet registry office (Anagrafe degli Animalid Affezione) to register dogs, cats and ferrets that are microchipped i n order to more easilyidentify the owner. There is also a private registry office for cats (Anagrafe Nazionale Felina)and one for rabbits (Anagrafe dei Conigli).

The pet population in Italy in 2011 was 60.5 million animals, an increase of 1% compared to2006. Dogs represented 11.5% of the total pet population, a decrease of 1.3% from 2006, whilecats were 12.4% of the total population, a decrease of 1.2% from 2006. The remaining 76.1%were other animals such as birds, fish, reptiles and small mammals, which increased by 0.4%compared to 2006. The number of animals per thousand households was 2,447 in 2011, adecrease of 3.6% compared to 2006.

According to data by Rapporto Italia 2012 reported by Eurispes, about 51.3% of Italianconsumers feel affection for pets, 35.9% respect them and 42% have one or more pets in theirhouse. The love Italians have for animals is reflected also in their negative judgment of hunting,with about 76.4% of them being against hunting and only 21.4% in favour. The latter percentageis expected to decrease in the coming years due to the activity of pro-animal organisations.

According to an article published on tuttozampe.com in February 2011, research from the Associazione Italiana Difesa Animali ed Ambiente states that about 58.8% of Italian singlepeople had a pet in 2011 while in 2008 the percentage was 46.2%. About 50% of single, mainlyolder and younger people, preferred small dogs, while 35% preferred cats, mainly women orpeople who work all day outside the house. Fish and birds are also common, and there is anincreasing preference for rabbits and small turtles. About 20% of Italian single people ownedmore than one pet. During the week, single people dedicated about two hours per day to thecare of their pets, while that time increased to six or seven hours during weekends. Pensionerstended to care for their pets for about four hours per day. Women tended to prefer cats andrabbits, while men preferred dog and cats. Older people preferred birds and fish because theyare easier to look after. In general, Italian pets are kept in the home, but if people have a privategarden, they tend to keep the dog or cat outside.

Chart 26 Pet Population and Sales of Pet Food 2006-2011






Chart 27 Regional Ranking of Pet Ownership 2011






TRAVEL HABITS

Getting AroundMost of Italian households own at least one car. Owing a vehicle is linked to necessity and is

not seen as a luxury as, especially outside big cities, consumers need a car to go to work or tobring children to school or to afternoon activities. Households with more than one vehicle enjoy

various benefits, including a mix of vehicles types and sizes that allows household members tomatch more closely vehicle attributes with the purpose and duration of a trip. In addition, thedifferent fuel usage of the various vehicles allows consumers to have more flexibility with regardto volatile fuel prices, and the availability of more vehicles accommodates scheduling ofhousehold members activities and travels.

In 2011, Italian consumers travelled about 6,637km per capita by road, an increase of 2.3%compared to 2006. The percentage of the total road network remained at 1.3% in 2011, thesame level as 2006, but the motorway intensity decreased by 0.8% during that same period.New registrations of cars declined by 27.2% over the period 2006-2011 as car owners weremore inclined to hold on to their current car in the downturn.

According to research by Centro Studi e Documentazione Direct Line, about 66% of Italianconsumers in 2010 used a car for every trip, while 34% used a car only for leisure. In addition,according the report ACI/CENSIS 2010, about 90.4% of Italians consider the car their preferredvehicle, followed by 34.3% who prefer public transport, 17.9% who prefer motorcycles andscooters, and the remaining 13.4% prefer the train or bus for travel outside the city. About35.5% of Italian consumers prefer to walk and 18.7% to use a bicycle.

However, as a result of the economic crisis, especially the increased cost of fuel, Italianconsumers living in big cities are starting to use their cars mainly at the weekend, opting forusing public transport for commuting during the week. According to data from UnionePetrolifera, there was a decrease of almost 20% in the usage of fuel at the start of 2012. Theincreased cost of fuel has increased the monthly budget of Italian households by about €120,and there are also all the other costs related to owing a car, including insurance, which is on





average about €500 per year, plus taxes and maintenance. Mainly due to the economic crisi s,there has been an increase in 2011 among unemployed people walking or using a bike (+1.5%)in order to save money. According to Postoinauto, an Italian website specialising in car-pooling,there has been an increase in car pooling so far in 2012, mainly amongst consumers living in

southern regions. There is a stronger preference of car-pooling among younger consumers:about 26% of users are aged between 25 and 34, while 24% are between 18 and 24 years old.

According to Unione Nazionale Rappresentanti Autoveicoli Esteri (UNRAE), the mostcommon new cars purchased in Italy in March 2012 were Fiat Panda, Fiat Punto, Ford Fiestaand Volkswagen Golf.

According to the Ministry of Infrastructure and Transport, there was been a decrease of about26.7% in the registration of new cars in March 2012 compared to the same period in theprevious year. The economic and financial crisis and the increase in fuel prices and insurancecosts are some of the factors linked to this negative performance. Therefore, in such anuncertain economic environment, Italian consumers reconsidered their car purchasingdecisions, postponing them or opting for purchasing used cars. In terms of used cars, thecertificates for the transfer of property in March 2012 decreased by 8.2% compared to the

previous year. In addition, according to UNRAE, there has also been a decrease of about 47%in the registration of new commercial vehicles in March 2012 compared to the same period inthe previous year.

In such an uncertain environment, and with rising petrol prices, consumers have been buyingmore LPG and methane cars, which, according to UNRAE, registered an increase of 2.3% and1.3% in March 2012. Sales of cars running on petrol decreased by about 4% in the sameperiod, while sales of diesel cars remained somewhat stable. Diesel is a bit cheaper than petrol,any consumers that switch to diesel are also looking for better fuel efficiency. This is also thereason why many consumers have turned to hybrid cars. In 2011, the price per 10 litres ofpremium unleaded petrol was €15, an increase of 5.7% compared to 2006.

Use of Public TransportItalian consumers use public transport to commute to and from work as well as for going and

returning to school, shopping and leisure activities. According to an article published online by Diritto di Critica, Italian consumers increased their

use of public transport in 2012 mainly in bigger cities due to a strong increase in fuel costs,which reached almost €2 per litr e in April 2012. Rome, Milan, Turin and Florence markedincreases in public transport subscriptions of an average of about 30% in 2011 compared to2010. During the first two months of 2012, there was an increase of 6% in the number annualpasses sold for public transport in Rome, while in Milan the increase was roughly 20%. Theseincreases are also linked to the increased price of the single ticket (on average about €1.5), andItalian consumers in time of crisis opted to try to save money in the long run. An annual passcosts about €300.

Italian consumers in 2011 preferred to use buses and underground trains, although customersatisfaction with these services remains low as public transport in Italy is generally dirty,delayed, and not very frequent. However, the cost of public transport for Italian householdsaccounts on average for less than 2% of disposable income, remaining therefore veryaccessible compared to other European countries. The increased usage of public transport atthe expenses of the car in 2011 has been driven by women (+1.5%), people under 30s (+4.1%)and students (+4.5%)

According to data from Azienda Trasporti Milanesi, Milan s bike sharing scheme in February2012 registered an increase of 45% in annual subscriptions compared to the previous year. Bikesharing schemes have been introduced in Milan, Turin and Rome as well as in some smallercities. Milan has about 120 bike stations, and there was an increase of 25% in bike usage in





February 2012 compared to the previous year. Milan adopted the service GuidaMi for a carsharing scheme that in February 2012 had three times more subscribers compared to the sameperiod in 2011, with a total of about 5,000 people registered.

The rail network is well developed in Italy, with regional and local links connecting most small

cities, and intercity and high-speed services connecting the major cities. According to ISTAT,the Italian rail network accounted for 5.5km every 100km² of land in June 2011. Italianconsumers use the train especially when travelling outside the city, both for leisure as well as forbusiness travel and for commuting. In 2011, Italian consumers travelled about 742km per capitaby rail, a decrease of 13% compared to 2006. The number of passengers carried by rail was621 million in 2011, a decrease of 17.5% compared to 2006. Italian consumers sometimescomplain about the state of the trains in the country. Italian trains are famous for being late, dirtyand offering a poor service.

Air TravelItalian consumers use air travel for business and for leisure and vacation purposes. Growth in

air travel for leisure purposes is linked to the increased popularity among consumers of low-costcarriers which have increased their routes within Italy and to other European countries.

Due to the negative effects of the economic and financial crisis, there has been a decrease indemand for flights in recent years. In 2011, the number of scheduled airlines passengers carriedin Italy was 35.7 million, a decrease of 0.4% compared to 2006. Scheduled flights remain themost important type of air travel in Italy, while charter flights registered a decrease of about14.5% in the number of passengers carried compared to 2010, according to Ente Nazionale perl Aviazione Civile (ENAC).

Italy has two international airport hubs, Fiumicino in Rome and Malpens in Milan. Theseairports connect about 46 small and medium sized airports located all around the country. Thedevelopment of low-cost carriers has had an impact mainly on smaller airports, which increasedtheir capacity and improved their facilities to cater to a growing number of passengers.

According to a report from ENAC, Rome s Fiumicino, Milan s Malpensa, Milan s Linate andVenice s Marco Polo were the most important airports in 2011 in terms of number o fpassengers, accounting for about 50% of the total. Alitalia is the most popular airline in Italy,providing national as well as international and intercontinental flight connections. Alitalia hasmerged with AirOne, which offers low-cost fairs mainly from Milan, Pisa and Venice airports.Other very popular airlines are Ryanair, Easyjet, Lufthansa and Meridiana, offering connectionsto many European destinations.

Italian low-cost air transport registered an increase of about 24% in 2011 compared to 2010,reaching 39% of demand according to ENAC data. This increase was due to the offer of newroutes and the negative effects of the economic and financial crisis, which has promptedconsumers to try to save money. The development of low-cost air transport in Italy has madeItalian consumers more willing to travel to Italian and European destinations and has allowedthem to take more weekend breaks, sometimes with a view to limiting expenditures but withouthaving to give up flying. Short-haul flights accounted for the majority of air travel in 2011. Thistrend is due to the negative effects of the economic and financial crisis, which limits Italiansdisposable income and forces them to travel locally rather than to remote destinations.

Chart 28 Kilometres Travelled by Road, Rail and Air Compared with MotorwayIntensity, Petrol Prices and Number of Scheduled Airline Passengers Carried2006-2011






Chart 29 Regional Ranking of Possession of Passenger Cars 2011






VACATION HABITS

Attitudes To Taking HolidaysItaly holiday calendar is centred on religious political national holidays, as well as school

holidays . Italian consumers habits with regard to taking holidays vary in accordance with agegroup, income, marital status, and whether or not they have children. It is common practise that

businesses close in summer, mainly in August. However, employees are now being given morefreedom to decide when to take their holidays, which in general amount to about 22-30 days peryear. Taking holidays out of the busy month of August has allowed consumers to save moneyand to avoid the crowds and high peak-season prices.

An increasing trend has been also detected in combining short holidays with bank holidays inorder to benefit from short breaks throughout the year. This is also partially linked to thenegative effects of the economic and financial crisis, which made Italian consumers more willingto decrease their average stay in order to control their budgets.

Main Holiday-taking TrendsThe attitude of Italians towards taking holidays is in general a reflection of the state of the

economy and the overall consumer confidence in the country. Therefore, the average lengthstay has been decreasing recently as people seek to control their budgets. According to ISTAT,after a reduction in holiday trips in 2011 of 17% and a reduction of 15.6% in the number of staysdue to the financial and economic crisis, about 50.2% of the total population took holidays. Inaddition, level of income is a factor impacting the holiday trends of Italian consumers. Some41% of families with a low income did not go on holiday in 2011.

However, even in such an uncertain environment, Italian consumers did not stop takingholidays, and there was a 14.7% growth in the number of people taking holidays from 2006 to2011. Consumers now take shorter breaks throughout the year instead of a longer holiday inorder to limit their budgetary expenditures. Some 16.6% of Italian families that went on holidayin 2011 looked for promotions and discounts, and 16.2% reduced their average stay. As a





consequence, the demand for holiday taking is expected to increase in the coming years, asItalian consumers are expected to take holidays more often but for shorter periods. The vacationactivities that generate the greatest interest among Italian consumers are: visiting friends andrelatives; visiting cities; visiting beaches, waterfronts and lakes; visiting mountains; visiting

museums; going on cruises and visiting themed parks, zoos and aquariums.The majority of Italian consumers travelled within Italy, and the most popular regions in 2011

were Tuscany, Latium, Lombardy, Veneto and Emilia Romagna. Historical cities such as Rome,Florence, Venice, and Naples continue to attract a large number of Italian tourists, particularlycouples as well as families and older travellers.

Older Italian consumers in general prefer to travel to wellness and thermal establishments,which are concentrated in the Veneto and Tuscany regions. Overall, consumers are increasingtheir interest in wellness and thermal venues. According to a study by the OsservatorioNazionale del Turismo, 76% of Italian families went on holiday in 2011, and some families hadmore than one holiday during the year. This is the case for families with medium-high salariesand for parents older than 40 years old. Italian families continue to maintain the same holiday-making trends of previous years: families with children below 1 year tend not to travel, families

with children from 2 to 10 years tend to travel together, while families with children older than 12years old usually start sending their kids alone on holiday.

Family holidays are very common in Italy, with many consumers spending in general one ortwo weeks during the summer months at beach locations (64% of families), in the mountains(20%) or in historical cities (9%), with the remaining share going to lakes or hills or on a tourholiday. In addition, 55% of families returned to a location visited in the previous two years.

About 56% of the families that went on holiday looked to relax and rest during their holiday,while 30.5% preferred to do excursions and walks and 15% to do sightseeing. Other activitiesdone by families on holiday are linked to location. During the holiday season, many familiesspend a few days visiting themed parks, zoos and aquariums. In 2011, about 16.5% of peoplebelow the age of 18 went on holiday alone in trips organised by religious, secular or sportassociations. Study holidays increased during 2011, but they are still a niche activity for about

only 3% of under 18s. It is also very common for children to visit their grandparents house, andthis allows parents to send their children on holiday in a safe place at a low cost.

Many accommodation outlets offer preferential rates and offers to families with children. Inrecent years, to cope with the economic downturn, there has been an increased interest inletting holiday homes and camping holidays. In 2011, some 33.1% of families stayed in hotels,24.9% in rented holiday homes, 19.4% in personal holiday homes or with family and friends, and13.6% went camping. Families pay close attention to budget when booking a holiday.

The internet continues to play a very important role in trip planning, with some 45% oftravellers booking their trip online in 2011. Other Italian consumers followed the advice offamilies and friends (21%) and travel agencies and tour operators (15%).

Domestic Versus Foreign HolidaysItalians tend to travel domestically or in neighbourhood countries, with Italy, Spain, France

and the UK accounting for the majority of Italian holidaymakers. This tendency is linked to theease of traveling close by as well as the lower expenditure required.

The majority of Italian domestic tourism is concentrated in five regions: Tuscany, Latium,Lombardy, Veneto and Emilia Romagna, which accounted for roughly 48% of the total numberof domestic trips for 2011. However, the number of domestic trip decreased by 16.5% in 2011,and the decrease is stronger for regions in the south of Italy (-25.6%)

In terms of average length of stay, 51% of Italians spend less than three days on travellingwithin Italy. Italian domestic tourism expenditure was €63.1 billion in 2011, registering adecrease of 13.8% compared to 2006. The biggest decrease in expenditure was on shopping





Italian consumers have benefited from the growth of low-cost airlines that have increased thenumber of routes to European and North African destinations. Italians now travel more by plane,as they considered it a convenient and efficient way to reach holiday destinations. According toISTAT, the plane was used by 19.4% of Italian travellers in 2011 (up from 17% in 2010). There

was a 25% decrease in the number of holiday trips to regions in the South of Italy in 2011,whereas northern regions and European countries fared better. The increase in fuel costs madeItalian consumers more keen to save on transport costs by travelling to closer regions or usingalternative methods of transport such as low-cost airlines.

In addition, the further development of a high-speed train network is making it easier andfaster for Italians to travel around Italy. The Treni ad Alta Velocità (TAV) network allows for fastand convenient city centre connections and is seen as a valuable substitute for the plane. In2011, in order to boost demand among Italian leisure travellers, TAV launched severalpromotions, one of which allowed two people to travel for the cost of one on Saturdays. Suchpromotions are appreciated by Italian consumers, who are very keen on saving money whentravelling. According to ISTAT, the train was used by about 8.1% of Italian travellers in 2011 (upfrom 7.8% the previous year). However, the growth in TAV passengers is also linked to the price

of the tickets as well as the ease of reaching the final destination by train, especially whentravelling to small and remote places. Trenitalia, the national rail company, offers lower ticketprices if the booking is made in advance. This is highly appreciated by Italian consumers. whonow try to plan and organise their trips earlier in order to benefit from better prices.

Another option for Italian travellers is inter-city or international bus travel, which is consideredto be a step below other modes of travel. However, the bus provides a particularly affordableoption for travellers on a budget or for those traveling with organised group vacations in Italy orin Europe.

Chart 30 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011






Chart 31 Regional Ranking of Holiday Departures 2011






FINANCIAL HABITS

Attitudes Toward Payment MethodsThe recent financial and economic crisis did not have a strong impact on the payment

methods of Italian consumers, as in Italy cash has always been the main mode of payment. Thisis partly linked to the large size of the country s black economy. According to research by Doxa

on behalf of Wincor Nixdorf, 60% of Italian consumers would not go out of their house withoutany cash, while 39% would not go out without a credit or debit card.

On average Italian consumers carry around about €65 and withdraw an average of €136 onceor twice a week. Italians start usi ng credit or debit cards for payment above €143. Usage of cashand financial cards remains equal, with 44% of Italians continuing to use both paymentmethods. The number of financial cards increased by 34.8% compared to 2006, reaching 86.3million cards in circulation in 2011.

Italian consumers use of prepaid cards a lot because these are considered a safe way ofmaking purchases online and in stores. On the other hand, Italian consumers have always beenparticularly reluctant to get into debt and therefore have always been very prudent regarding theusage of credit cards. When using financial cards, Italian consumers prefer to use a debit or pre-paid card, especially when making purchases over the internet, as they are particularly scaredof fraud.

A new law introduced in 2012 outlines measures to reduce the black economy in the country.Italian consumers are now required to avoid cash payment for al l sums above €1,000. Inaddition, banks are limiting the usage of cash: For cash withdrawals of less t han €2,000, a fee offrom €1 to €3 is now applied. Such measures are expected to have a strong impact in changingattitudes regarding payment methods during 2012.

The most popular credit cards with Italian consumers are Visa and MasterCard. Banks areamongst the largest issuers of general-purpose credit cards. However, Italian consumers aremore inclined to use pre-paid cards, with the most popular amongst consumers being PostePay, the pre-paid card issued by Poste Italiane S.p.A. These pre-paid cards are popular





because of their convenience and security, especially when making purchases on the internet.Pre-paid cards allow Italian consumers to better control and monitor their spending and avoidfees from traditional banking services.

The demand for pre-paid cards has been driven by the same cultural factors that made pre-

paid cards for mobile phones so popular in past years: a distrust of hidden bank fees and adesire to keep track on spending.

SavingsHistorically, Italian consumers have always been savers, but during the recent economic and

financial crises they have been saving less. This is linked to the uncertainty brought by joblosses and rising unemployment. Italians savings ratio was about 11.4% of disposable incomein 2011, a decrease of about 19.9% compared to 2006. The saving ratio was about 14.2% ofdisposable income in 2006, and it has been continuously decreasing to reach 11.4% in 2011due to the negative effects of the economic and financial crisis. The average level of savings in2011 w as €5,006 per household, a decrease of 26.6% in the period from 2006 to 2011.

According to a report by the Associazione di Fondazioni e di Casse di Risparmio, Italians arekeen to save, particularly during the current difficult economic environment and even of it ismore difficult for them to do so. There has been an increase in Italian consumers keen to save(44% in 2011 compared to 41% in 2010), but only about 35% of them managed effectively tosave in 2011 given the tougher economic conditions. Also, 29% of Italian households need moreresources, and 42% of consumers are negative about the future as they think they will not beable to save the same level of money in 2012 and 2013 as they did in the past.

The main reasons behind the Italians willingnes s to save are: having a secure income for thefuture, worsening economic conditions, and income during retirement. In addition, Italianconsumers believe that saving helps people to have a responsible and sustainable way ofspending. In 2011, there was an increase in Italian consumers that prefer to invest their savings(24% compared to 21% in 2010), and this phenomenon could be linked to the increased interestrate of government bonds, which are a low-risk investment. The share of Italian consumers whokeep their savings in a savings account decreased in 2011 to 64% compared to 68% in 2010.

Loans and MortgagesThe negative effects of the economic and financial crisis have strongly affected the consumer

lending sector in Italy, as consumer confidence levels are very low, unemployment continues torise and income levels are decreasing due to a heavier fiscal burden that aims at reducingItalian public debt. Italian consumers have now been forced to increase their level of borrowingin order to be able to cope with important day-to-day expenditures such as paying for homeimprovements, housing appliances, education and medical expenses. The level of consumerlending in Italy in 2011 was on average €19,779 per household, an increase of 18.6% comparedto 2006. Consumer credit accounts for about 20.4% of total lending in Italy, and the level of

borrowing is on average €4,039 per household, an increase of 4.1% compared to 2006. The economic and financial crisis has strongly impacted the purchase of new and used

vehicles. The trend has been influenced mainly by the end of government incentives such as thecar-scrappage schemes that helped families substitute new cars for old cars in previous years.This measure expired in 2009, leading to a decrease in auto sales from 2010 onwards.

A segment that showed good performance in terms of consumer lending is the one related toinvesting in renewable energy technologies linked to wind power and solar energy. This is dueto public incentives such as the Nuovo Conto Energia approved by the Italian Ministry forEconomic Development in May 2011, which aims to expand the production of renewableenergy.





Mortgages and home lending is the main driver of consumer lending in Italy. Consumers ingeneral get mortgage and housing loans, and the share of such loans is 79.6% of total loans.The average loan is €15,740 per household, an increase of 22.9% compared to 2006. Demandfor mortgages and housing loans registered a good demand in 2011, mainly because in times of

uncertainty Italian consumers continue to see in real estate one of the few investmentsremaining somewhat secure. Even though the Italian market is facing high unemployment andan increased level of interest rates, mortgage lending is expected to continue to account for avery large part of consumer lending in the coming years. The level of outstanding debt onmortgages is expected to continue growing in coming years.

Chart 32 Consumer Lending Compared with Savings and Savings Ratio 2006-2011






Chart 33 Regional Ranking of Financial Cards in Circulation 2011

consumer lifestyles in italy (2)

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