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Business

  Milan, Business

Business Profile: Milan is unique among Italy’s major cities for being predominantly a business rather than a tourist city. In an increasingly global market, the large international companies usually choose Milan over Rome for their Italian headquarters. Not only is the city well located (closer to the heart of Europe) but it also enjoys a temperate climate, has a modern infrastructure, efficient transport network and offers a well‐educated, dynamic labour force. Unemployment figures in 2002 were 6.5%, considerably less than the national average of 9.1%. However, with the problems after September 2001, the global collapse of the telecommunications companies and the current serious downward revision of the world’s stock markets, this rate is bound to rise over the next year. The workforce is young (40% are under 35) and intellectual. Milan’s five universities contribute heavily to research, innovation and the supply of bright youth into the workforce. Since 1998, far more women than men have entered the workplace. This is partly due to younger women ignoring the traditional Italian stereotypes and partly because women account for more of the temporary and contract jobs. Despite problems since the telecommunications crash of 2001, there is still an acute shortage of trained workers in construction, information and communication technology; in that same year the Italian government was still forced to establish special immigration quotas for these fields.

Milan’s economic success in the early 20th century was based on manufacturing, particularly in the automobile industry. Pirelli and Alfa Romeo remain intrinsic symbols of the city and have been joined by textile manufacturers like Aurelio Valentino and the pharmaceutical industry, such as Unilever, Panexport Italia and European Generics Vanderval Group. The Italian giant Marzotto, which own Calvin Klein, also has their retail headquarters here. Increasingly, however, Milan’s success has been in the service sector, where 63.5% of the labour force is employed.

Armani, Versace and Valentino may hog the limelight but the increasing diversity in and the growth of the finance, media, publishing, fashion, design and communications sectors underpins the city’s prosperity. The Italian headquarters of most major international banks, such as Citicorp, can be found close to Italy’s stock market in Piazza Affare. Both the state‐owned television company, RAI, and Mediaset, the media empire of Silvio Berlusconi (the Italian Prime Minister), are based here, as is the Italian publishing giant Arnolfo Mondadori.

Recent investment in the city’s international trade forums has been extensive. State‐of‐the‐art conference facilities have opened at Filaforum in the Milanofiori district, Palazzo Affari in the financial centre, and three new pavilions in the Fiera district, Milan’s dedicated trade fair. The Fiera ( ) will move to new headquarters in Rho‐Pero probably by March 2004. The present site will become a huge park with cultural facilities, museums and possibly the new home of RAI, Italian state television. The new Fiera will be equipped with high‐tech communications‐oriented facilities. Designed by architect Massimiliano Fuksas, the new site will be 2 million square metres (about the size of 57 football stadiums), the largest trade fair site in Europe.

Milan’s economic future still looks bright. The city continues not only to exploit the strength of its financial markets and its fashion fairs in February and September but also new revenue sources from the rapid growth of investment in Internet technology. The technology fair in October, hosted by SNAU, has become one of the largest of the year, with over half a million visitors and 2,900 exhibitors. Internet companies Lycos, Yahoo and Altavista have all based their Italian operations in Milan, along with homegrown Internet providers Arianna and Virgilio. The result is a mecca for business travellers who annually spend over 100 billion Euros in the city.

The introduction of the Euro has already brought mixed blessings. Rounding up prices has meant that the Italian cost of living has risen by approximately &Euro;550 per year (the equivalent of around £350 or US$535) although some prices are now falling due both to competition and reaction to overpricing. However, centralised economic control may very well stabilise the economy to a level previously unimaginable.

Business Etiquette: In general, the Italian laid‐back attitude to life does not extend to their working day, and their approach to business is fairly formal. Appointments for meetings should be made in advance and punctuality is respected. Business cards are commonly exchanged by way of introduction. Smart dress is always appropriate – in keeping with the city’s stylish reputation, the Milanesi dress up at every occasion. Most executives will speak English but appreciate a visitor who makes a formal effort to speak their language. Italian associates should always be addressed as Lei (the polite form of tu) unless otherwise indicated. Normal business hours are 0900‐1700, but executives often put in much longer hours.

A world away from the languor and dust of southern Italy, Milan’s pace is fast and more akin to London than Rome, and things like long, leisurely lunches are much less common. Invitations to the homes of Milanesi are rare, as many live a considerable distance from where they work, commuting into the centre from the suburbs. In spite of the pressures at work, the Milanesi like to enjoy life and there is a lot of after‐work unwinding in bars. If concluding a business deal, rather than long lunches or protracted meetings in the afternoons, discussions are likely to continue after working hours in the bars or gastronomic haunts of the city’s top hotels. Business is indeed the raison d’être for the city, and the pace of the creative, thoroughly modern and well‐informed Milanesi’s working life may well surprise visitors.