Consumer Lifestyles in Italy

CONSUMER LIFESTYLES IN ITALY
Euromonitor International August 2012
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LIST OF CONTENTS AND TABLES

Consumer Habits in Context......................................................................................................... 1 Current Behaviour Within the Broader Economic Climate ........................................................ 1 Consumer Confidence .............................................................................................................. 2 Misery Index ............................................................................................................................. 2 Chart 1 Chart 2 Consumer Confidence Index 2006-2011 ...................................................... 2 Misery Index 2006-2011 ............................................................................... 3
Learning ....................................................................................................................................... 4 School Life ................................................................................................................................ 4 University Life ........................................................................................................................... 5 Adult Learning .......................................................................................................................... 7 Chart 3 Chart 4 Number of Students in Higher Education and Expenditure per Student in PPP Terms 2006-2011 ............................................................................. 7 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 Chart 6 Chart 7 Employed and Unemployed Population and Labour Force Participation Rate 2006-2011 ..................................................................... 12 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 .................................................................................................. 13 Regional Ranking of Female Employment Rate 2011 ................................ 13
Eating Habits .............................................................................................................................. 14 Dining in.................................................................................................................................. 14 Dining Out ............................................................................................................................... 16 Caf Culture ........................................................................................................................... 17 Snacking Habits ...................................................................................................................... 17 Attitudes Towards Food Trends .............................................................................................. 18 Chart 8 Chart 9 Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011 ...................................................................................... 18 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 Chart 11 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011............................................................................................ 21 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs Ontrade 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 Chart 13 Value Sales of Beauty and Personal Care Key Categories 2006-2011 ...... 26 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 Chart 15 Consumer Expenditure on Clothing and Footwear 2006-2011................... 29 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 Chart 17 Growth in Public and OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011 ..................... 34 Regional Ranking of Obese and Overweight Population 2011 ................... 34
Smoking Habits .......................................................................................................................... 35 Smoking Prevalence ............................................................................................................... 35 Attitudes To Smoking.............................................................................................................. 36 Chart 18 Chart 19 Smoking Prevalence amongst Men and Women 2006-2011 ..................... 36 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 Chart 21 Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011 .............................................................................. 41 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 Chart 23 Cinema Attendances 2006-2011 ................................................................ 45 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 Chart 25 Number of Home Owners and New Dwellings Completed 2006-2011 ....... 47 Regional Ranking of Home Owners as a Proportion of Total Households 2011 ....................................................................................... 48
Pet Ownership Habits ................................................................................................................. 48 Attitudes To Pet Ownership .................................................................................................... 49 Chart 26 Chart 27 Pet Population and Sales of Pet Food 2006-2011 ..................................... 49 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 Passengers Carried 2006-2011 ..................................................................................... 53 Regional Ranking of Possession of Passenger Cars 2011 ........................ 54
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Vacation Habits .......................................................................................................................... 55 Attitudes To Taking Holidays .................................................................................................. 55 Main Holiday-taking Trends .................................................................................................... 55 Domestic Versus Foreign Holidays ......................................................................................... 56 Preferred Travel Methods ....................................................................................................... 57 Chart 30 Chart 31 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011 ............ 58 Regional Ranking of Holiday Departures 2011 .......................................... 59
Financial Habits .......................................................................................................................... 60 Attitudes Toward Payment Methods ....................................................................................... 60 Savings ................................................................................................................................... 61 Loans and Mortgages ............................................................................................................. 61 Chart 32 Chart 33 Consumer Lending Compared with Savings and Savings Ratio 20062011 ........................................................................................................... 62 Regional Ranking of Financial Cards in Circulation 2011 ........................... 63
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CONSUMER HABITS IN CONTEXT Current Behaviour Within the Broader Economic Climate
Italy suffered a recession in 2008, and the negative effects of the economic and financial crisis further damaged the countrys structural deficiencies in terms of economic performance, causing a fall in consumer confidence and giving rise to a loss in global competitiveness and stagnant productivity levels. The main factors affecting Italys performance are a lack in innovation in producti on, a lack of overall competition in the service sector, inefficiency in the public services and an inadequately skilled workforce. These factors make Italy one of the slowest growing European countries and at the same time one of the most affected by the current economic and financial crisis. Given such negative economic conditions, rising unemployment and uncertainly about future economic recovery, the consumer confidence index reached 98.4 in 2011, a decrease of 5.6% compared to 2006. In November 2011, highly criticized Prime Minister Silvio Berlusconi finally resigned after years of scandals. A new technocrat government headed by Mario Monti was appointed until new elections in April 2013 with the mission of leading the country out of the crisis by implementing structural economic reforms. Italy continues to be characterized by deteriorating growth prospects, low productivity performance and declining competitiveness since the adoption of the euro, resulting in a reduction in the countrys export share in world markets. The country has still also a huge public debt. Unemployment remains high, and the labour market is uncompetitive. Foreign direct investment remains low, and corruption and organised crime are still problematic, mainly in South of Italy, which continues to lag far behind in economic development. 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 order to reduce the national deficit in line with EU requirements and avoid a potential collapse of the economy. The measures required by the new bill tend to exacerbate the difficult situation already faced by Italian households since the economic crisis that started in 2008. In 2012, Italy is expected to enter its fourth recession since 2001. The countrys poor economic performance is linked to several factors, including the ongoing austerity programme and exporters' dependence on other European markets. Italy's real GDP grew by just 1.5% in 2010 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, the inflation rate was 2.8%. Italy currently has the third oldest population in the world, and the rate of economic growth could slip further as the population ages. The ageing population will create fiscal problems in the long run. Annual spending on pensions is expected to rise by at least 2% of GDP over the next 20 years. The fiscal deficit for 2010 was reduced to 4.5% of GDP. It fell to 3.9% in 2011, and a deficit of 2.7% is expected in 2012. According to the Italian National Institute for Statistics (ISTAT), the fiscal burden in 2010 was 42.3%. Tax evasion remains very high, particularly as the economy of Italy is based on many micro, small and medium-size enterprises that base part of their revenues on evasion. In terms of the tax burden, Italy is one of the EU countries with the highest rates of taxation, and Italians continue to be unsatisfied that the level of public services provided does not reflect such high rates.
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The level of GDP growth, together with inflation and unemployment levels, continues to affect consumer confidence and therefore consumer spending. In addition, the risk of contagion from the sovereign debt crises in other European countries will remain high and may require the government to implement stricter austerity measures to maintain investor confidence. At the same time, declining economic competitiveness in Italy in the long term means that structural reforms will be needed in order to promote economic growth.
Consumer Confidence
Due 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. (The Institutes calculations for consumer confidence are based on the reading for the year 1980 and thus that year equals 100.) In 2006 and 2007, consumer confidence readings averaged 104 but dropped to 96.5 in 2008, slowly increasing to 103.3 in 2009 and 102.7 in 2010. However, at the end of 2011 there was another decline, to 98.4. Since then, consumer confidence has fluctuated, increasing in the early 2012 as a result of relief that economic reforms were introduced by the government in December 2011. However, in recent months consumer confidence has declined again. The eurozone debt crisis has had a significant impact on consumers confidence and a return to optimism could be sluggish, affecting consumer spending. As well, Italian consumers are not enamoured with many of the recent austerity measures, including a rise in value-added tax that increased the price of fuel.
Misery Index
In line with the poor economic recovery, readings on Italys Misery Index (calculated by adding the inflation rate and the unemployment rate) averaged 11.2% in 2011, the result of an average unemployment rate of 8.4% and an average inflation rate of 2.8%. This was up from 9.9% in 2010 (8.4% unemployment and 1.5% inflation rate). Inflation has remained stubbornly high in Italy in recent months, boosted in part by rising prices resulting from recently introduced austerity measures. For example, the increase in VAT has boosted the price of petrol. According to an article from Bloomberg in the spring of 2012, Montis austerity measures [have] deepened the recession...Rising crude prices and the governments increase of value-added taxes led to a jump in gasoline costs that neared 2 a litre last week, crimping domestic demand. Unemployment in Italy is expected to continue to rise in 2012, boosted by general unemployment throughout the eurozone as well as Italian firms choosing not to hire in the midst of the recession. The unemployment rate in Italy came close to its highest level in 13 years when it hit 10.8% in June 2012. Chart 1 Consumer Confidence Index 2006-2011
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Source: Note:
Istituto di Studi e Analisi Economica (Isae) Consumer Confidence Index measures consumers' levels of optimism regarding current economic conditions and the direction of the economy.
Chart 2
Misery Index 2006-2011
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Source: Note:
Euromonitor International Ccalculated by adding the countrys unemployment rate to its inflation rate.
LEARNING School Life

The Italian education system comprises kindergarten, primary school, middle school, secondary school and tertiary school. Children aged three to six might attend kindergarten, but compulsory education starts at the age of six and continues until the age of 16. This period includes five years of primary school, three years of middle school and two years of secondary education. After that, students can either continue with three years of high school or attend a professional school. According to a report by Eurostat entitled Labour Market Statistics 2011, the average age of students leaving primary and lower secondary education in 2009 was 16 years of age, while for upper secondary and post-secondary non-tertiary education it was 20 years of age, and for tertiary education it was 25 years of age. There are three types of school operating in Italy, according to the Italian constitution. State schools are managed directly by the state. Paritarie schools are run by organizations of private citizens and are officially authorized by the State to provide certificates with legal value. Finally, there are private schools not authorised to provide recognized certificates. Italian families can choose among public schools, as funding follows students when they leave for another school. Paritarie and private schools also compete for students, and tuition tax credits are available in order to help families offset the costs of private schooling. The school system is administered at national level by the Ministry of Education, University and Research (MIUR). At regional level, the MIUR works through regional school offices that are organized at local level by provincial school offices. According to ISTAT, the public expenditure on education in 2009 was 4.8% of GDP, while EU countries spent an average of 5.6%. According to a 2008 OECD report Education at a Glance 2011, some 8.6% of Italys total expenditure on educational institutions came from private sources, this figure being well below the OECD average of 16.5%. Between 2000 and 2008, expenditure per primary, secondary and post-secondary non-tertiary student by educational institutions increased by only 6% in Italy, while the OECD average was 34%. Expenditure per student at the tertiary level of education increased by 8%, compared with the OECD average of 14%. School terms in general start about September 1 and finish on June 30, but there can be differences in the starting date depending on the type of school as well as on the region. Therefore, Italian students have more than two months of holidays in the summer, about three weeks during Christmas and about one week during Easter. In addition, school children enjoy public holidays, such as April 25, November 1 and December 8. According to the OECD report Education at a Glance 2011, on average in OECD countries, there are 16 students for every teacher in primary schools, while in Italy on average they are fewer than 11. In addition, the average instruction time for students between the ages of 7 and 14 in OECD countries is about 6,732 hours, while in Italy the formal teaching-time requirements are up to 8,316 hours. The compulsory foreign language is English, although some schools can offer also an additional foreign language that in general is either German, French or Spanish. Italy has national examinations for students finishing the lower- and upper-secondary levels. Such examinations are compulsory in all schools, both public and private, and no student is exempt from taking them. National assessments, used to provide formative feedback to improve instruction, were implemented only recently (in 2008 at the primary and lower secondary levels). The results from national assessments are directly shared with school administrators and education authorities, but not with teachers, parents, students or the media.
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Italian students in general do not wear any uniform, but during primary and secondary school children are requested to wear a smock. The number of higher-education students (including university students) was 1.99 million in 2011, registering a decrease of 1.5% from 2006. The expenditure 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 average of 81.5%. However, in Italy the number of 25-34 year-olds who have an upper-secondary or higher education is at least 30% greater than the number of 55-64 year-olds with similar levels of education, indicating that access to upper-secondary education has expanded considerably over the past 30 years. According to the OECD report, Italy has one of the lowest tertiary attainment rates among OECD countries: 20.2% of people aged 25 to 34 years old in Italy attain this level of education compared to the OECD average of 37.1%. Graduation rates for both upper secondary and tertiary education is below the OECD average (80.8% compared with 82.2% 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 of the Pedibus, a bus that collects children so that they can join the walk to school accompanied by adults, generally volunteering grandparents, parents or teachers. In general, Italian parents start back-to-school shopping around the months of July, August and September each year. The shopping is done in specialized stores as well as in supermarkets and malls. However, according to eBay in September 2011, there is an increasing trend in purchasing back-to-school products online. In fact, in July 2011, the company registered an increase of about 45% in the back-to-school products bought online compared to the year before. The majority of products bought were related to football teams, Hello Kitty and the brands 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 into three sectors: university tertiary education, non-university tertiary education (such as the higher level 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 the European model. It consists of two training cycles: First Degree Courses (Corsi di Laurea) that last three years and Specialized Degree Courses (Corsi di Laurea Specialistica) that last two years. In the publication Grande Guida Universit 2011-2012, prepared by Repubblica and Censis, Italian universities are ranked according to their size, services offered, scholarships, state of the buildings, web and internationalization. Bologna and Padova were rated among the best Italian universities. The academic year is made up of two semesters and starts in general at the beginning of October, ending in July. The start and finish dates depend on each university, but in general semesters are made up of 20 weeks, 14 weeks being a teaching period and 6 weeks being an exam period. Exams are graded from 0 to 30, with 18 being the pass mark. A cum laude is awarded when reaching the highest mark (30 e lode) as a mention of special distinction. The overall degree is marked on a scale from zero to 110, with 66 being the pass mark and a summa cum laude being awarded when reaching the maximum grade (110 e lode). The final result is awarded based on exam results as well as a dissertation presented in front of a board of examiners.
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Ente per il Diritto allo Studio Universitario (EDISU) offices are regional agencies that run student-welfare services. Such services are divided into two categories, one targeting all students and dealing with canteens, access to libraries, access to university sport centres, and reduction 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 students in 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 Erasmus Programmes as well as other bilateral programmes with universities all around the world. Usually universities have an international relations office that is responsible for such programmes. State university fees vary between 800 to 1,000 per year depending on the course of study and on the university. According to the OEDC report Education at a Glance 2010, university fees in Italy were about US$1,195 per year in 2010. Private universities in general charge higher fees. Student grants are usually funded by the State, and students receive a scholarship evaluated under certain criteria, including academic achievement and income. In 2011, the number of university students in Italy was 32.1 per thousand people, registering a decrease of 4.6% compared to 2006. According to the report ''Social and economic conditions of student in life Europe - Eurostudent IV 2008 - 2011, about 40% of Italian university students work. About 23.2% of students have an occasional job, while about 16.4% have a stable job. About 41.7% of students who work in general come from lower-income families, while 29.8% of students who work come from high-income families. Therefore, finding a job is done not only due to economic reasons. According to the OECD report Education at a Glance 2011, Italians with a tertiary education aged 55 to 64 years old earn considerably more than similarly educated 25 to 64 year-olds, with a difference of about 46%. This compares to an OECD average difference of 13%. Over their lifetimes, Italian men with a tertiary education can earn more than US$ 300,000 compared to men without that level of education, while the average earnings premium for men with a thirdlevel education in OECD countries is about US$175,000. In addition, some 79% of tertiaryeducated adults in Italy are employed, compared with the OECD average of 84%. Employment rates are more than 28% higher for those with a tertiary education than for those who have not completed an upper-secondary education in Italy, while the average difference is 27% among OECD countries. According to ISTAT, Italian students decide not to continue to study if they come from poorer areas, 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% of students aged 18 to 24 left their studies after middle school and before completion of compulsory education. The EU average is about 14.1%. About 81.8% of Italians aged 15 to 19 years were students in 2009, as were 21.3% of Italians aged 20 to 29 years old, while the EU average 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, about 22.1% of the population aged 15 to 29 years old, were not studying nor working. Such percentages were even higher among women compared to men (24.9% versus 19.3%), while the EU average was about 15.3%. The higher levels of NEET registered in Italy is linked to lower participation of young people in the job market as well as stronger inactivity (as opposed to unemployment) compared to other European countries. In 2010, there was also an increase in NEET living in the centre-north of the country (16.1%), as the economic crisis decreased the
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number of available jobs. The percentage of NEET was up to 30.9% in the south of Italy, as it is more difficult to access jobs for young Italians living there.
Adult Learning
During the middle of the 20th century, Italy started tackling its high illiteracy levels with the introduction of the Societ di Mutuo Soccorso and the Camere del Lavoro with the objective of teaching 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 institutes introduced evening classes for students and workers, and in the 1970s, classes were also offered in vocational institutes. The beginning of the 1990s saw the creation of the Centri Territoriali Permanenti (CTP) and adult training started also to be provided during the evening in secondary schools with the objective of providing adults with knowledge in areas ranging from cultural and relational skills to language skills. In addition, the objective of evening classes is to improve and strengthen adults basic skills in order to qualify them for secondary-school certificates, which can be a determining factor in securing a job, as well as developing their professional and personal lives though a lifelong learning. According to the latest research published on the INDIRE website, Monitoraggio nazionale dellofferta formativa per adulti erogata dalle istituzioni scolastiche nellanno scolastico 2007 2008 and made by the Agenzia Nazionale per lo Sviluppo dellAutonom ia Scolastica on behalf of MIUR, during 2007/08 in Italy there were about 1,740 CTP offices and about 894 secondary schools providing evening courses for adults. According to the report, about 17.79% of adult students in 2007/2008 attended primary and middle school, including reading and writing courses. About 16.53% were foreign immigrants studying Italian language and culture. The number of foreign immigrants attending adult learning courses 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 year 2007/08, there were also 248 adult learning centers in prisons, which mainly provided primary and middle education as well as short courses. According to the OECD report Education at a Glance 2011, workers in Italy invest less than half the amount of time in non-formal education during their working lives compared to the OECD average. In fact in Italy, this amounts to 353 hours of non-formal education for adults aged 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 learning activities, while the EU average was 9.1%. Of those, about 40% was involved in a school or university education, and 4% was studying a professional course organised or recognised by the region. About 20% of studying adults attended a professional training course with their company, and the rest studied such subjects as IT or foreign languages. Chart 3 Number of Students in Higher Education and Expenditure per Student in PPP Terms 2006-2011
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Regional Ranking of Number of University Students 2011
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WORKING HABITS
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Working Conditions
In 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 23 million people in 2011, an increase of 0.2% compared to 2006. The unemployed population was 2.1 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 the type of contract, there can be variations in this working week, but the maximum number of hours worked cannot exceed 48 including overtime. According to the Eurostat report Labour Market Statistics 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 a rest 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 cases were extended with one or two days of holiday to get a longer break. For example, Thursday January 6, Thursday March 17 (celebrating 150 years of the Italian Republic), Thursday June 2 and Tuesday November 2 represented opportunities for Italians to take Monday or Friday off to extend their weekend. According to the OECD report Education at a Glance 2011, employers pay an additional premium 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 recent graduate. 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 in 2009 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 about 14%. 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 casual look in the office that reflects strong attention to detail and clothes combinations. The casual look is preferred by 63% of women and 37% of men. About 9% of Italian consumers are obliged to wear formal clothing, 78% of whom are men, and in most cases, they must wear a suit. About 20% of Italian consumers wear jeans, mainly during Casual Fridays. In addition, the economic and financial crisis is prompting Italian consumers to change their habits regarding the work environment. For example, about 70% of Italians prefer to have a low-cost lunch instead of going to a restaurant. Some 30% of Italian consumers go home for lunch, 22% eat at their desk in 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 strong technological trend called consumerizzazione, which involves using personal smartphones or laptops for work purposes. The use of personal devices for working activities allows gives increased flexibility to workers, improving productivity and work-life balance. However, such practices can represent a threat to data protection. About 59% of big companies in Italy allow employees 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, while the others are employees own devices. Italian workers are positive about this new trend, as most 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 personal purposes (40%).
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Women in the Workplace

In 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 and insufficient government policies to help working women. Italian women continue to be mainly employed in sectors perceived as being suited to women, such as education, healthcare and social services. According to the Eurostat report Labour Market Statistics 2011, 2.8% of Italian women in 2010 were working in agriculture, 14.1% in industry and 83.1% in services sectors. In addition, women working in Italy tend to have a higher level of education compared to men. In fact, in 2010, about 28% of working women had a primary or lower-secondary education compared to 41% of men, 50% women had a secondary and post-secondary non-tertiary education compared to 45% men and 23% women had a tertiary education compared to 14% of men. According to research by the Istituto di Studi Politici Economici e Sociali, Italy dedicates only 0.9% of GDP to family policies, well below the EU average of 2.3%. The average number of babies per woman in Italy is only 1.2, the lowest in Europe, and this low fertility rate is linked to the costs associated with children as well as the low level of subsidies and fiscal incentives for Italian families. Italy has few services available for mothers and small babies. One out of five nurseries schools is private, and these are considerably more expensive compared to public ones 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 to families, and women therefore do not enter the job market or they exit it after the birth of the first child or to assist older family members. In the case of Italian women aged 25 to 45 years, after the birth of a first child, the workforce occupancy rate decreases by about 13%, and it falls again after the birth of the second child. In particular, working women would appreciate an increase in services for families such as nursery schools as well as policies that give women more incentive to go back to work. According to research by CNEL from October 2011, women in Italy have a salary gap of about 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 gap also in sectors such as financial services and company services, with differences of 22.4% and 26.1% respectively compared to men. In the education and health services, the gap is about 21.6%, 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 less of 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 to the office, with 67% of them wearing jeans. About 13% of Italians (mainly women) declare that they 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 mainly women (93%). This trend is mainly influenced by the current economic and financial crisis, with people 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 and save 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.
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About 73.6% of students and 87.7% of workers use a means of transport to commute. In particular, 41.4% of students and 75.5% of workers travel by car. About 34.1% of students and 10.3% 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 the south of Italy by workers, while motorcycles, scooters and bicycles are mostly used in the northeast 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 months of 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 save money 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 several regions in Italy and a 7.8% increase in the number of users in the last two years. The decrease has 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 Italian consumers who need to go to work or school every day. There has been an increase in ticket prices by about 23.4% in Lombardy, 25% in Abruzzo and 20% in Liguria. In addition, Italian commuter 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 compared to the rest of Europe with only 176 kilometres of line. In addition, the suburban rail network has only 595.7 kilometres of line. According to research from the Centro Studi e Documentazione Direct Line, about 66% of Italian 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 car their preferred vehicle, followed by 34.3% that prefer public transport, 17.9% motorcycles and scooters 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 fuel costs, which reached almost 2 per litre in April 2012. In Rome, Milan, Turin and Florence, there was 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 of yearly passes for the public transport, while in Milan the increase was roughly 20%. These increases 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 ns bike-sharing scheme in February 2012 registered an increase of 45% of yearly subscriptions compared to the previous year. Such schemes have been introduced in Milan, Turin and Rome as well as in some smaller cities. Milan has about 120 bike stations, and there was an increase of 25% in bike usage in February 2012 compared to the previous year. In addition, Milan adopted the service GuidaMi for its car-sharing scheme, which in February 2012 counted three times more subscribers compared 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 were working part-time in 2010 compared to 3.7% in 2000. Such figures represent a positive trend,
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but flexible working conditions still represent a developing sector in Italy. Italian women are more likely to work part-time compared to men, partly due to the Italian culture of women being expected 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 increase in workers working part-time because they could not find a full-time occupation. According to the Eurostat report Labour Market Statistics 2011, about 22.7% of Italian workers 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 on many micro, small and medium-sized enterprises. Most entrepreneurs are men (27.5% compared to 15.8% women).
Retirement
In 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 is expected 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 legge 201/2011 (law 214). According to the new law, pensions are calculated with respect to contributions made as opposed to the level of last salary earned. The minimum age for retirement will be 66 years for men, and for women it will be 62, 63 or 66 years (depending from the 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 must have contributed to the pension for at least 20 years in order to be eligible. The law allows for early retirement for women who have worked at least 41 years and a month and for men that have worked 42 years and a month as of 2012. Such minimum periods will be increased in 2013 and 2014. In addition, the law allows for a more flexible retirement period, with the calculation of pension contributions made accordingly. According to ISTAT, Italy in 2009 paid 23.8 million pensions amounting to about 253. 5 billion, equal to 16.7% of GDP. The average pension was 10,634. Pensions are higher in the northwest of Italy (11,805) and in the central part of the country (11,317) as salaries and living costs tend to be higher there. According to a 2012 INPS report, 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 a lower salary. About 30.5% of women earn pensions between 500 and 1,000 compared to 24.9% of men, while 18.9% of men earn pensions between 1,000 and 1,500 compared to 5.6% of women. And 20.2% of men receive pensions above 1,500 compared to 2.6% of women. Chart 5 Employed and Unemployed Population and Labour Force Participation Rate 2006-2011
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Chart 6
Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020
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Chart 7
Regional Ranking of Female Employment Rate 2011
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EATING HABITS Dining in

Italian 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 home regularly. 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 the behaviour of many Italians, who now more and more often choose to eat a quick meal instead of spending time preparing a traditional meal. The Osservatorio ADI-Nestl, a collaboration between the Associazione Italiana di Dietetica e Nutrizione Clinica and the company Nestl, made a study on the Mediterranean lifestyle. Italian eating habits follow the so-called Mediterranean diet and were given the title World Immaterial Heritage by UNESCO in 2010. The Mediterranean diet comprises also a lifestyle or a philosophy. However, over of the years, Italian consumers have changed their habits and now only a few follow the principles of the Mediterranean diet, which is rich in cereal, pulses, fruit and vegetables. According to Osservatorio ADI-Nestl, about 41% of Italian consumers do not eat fruit daily, while 54% do not eat vegetables daily. In addition, 71% of the Italian population do not 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 per week; and rice, fish and dessert two times per week. For dinner, Italian consumers in general eat fruit, bread and vegetables five times per week; pasta 2.5 times per week; meat 2.8 times per week, and rice, fish and dessert less than two times per week. In addition, about 25% of Italian consumers admitted they would eat more fruit if the price were lower, and about 20% of them would do the same in the case of vegetables.
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According to the Istituto Nazionale di Ricerca per gli Alimenti e la Nutrizione, Italian consumers now eat much more animal proteins and fat and less carbohydrates, which account for only for 45% of the daily intake (down from 59% according to the Mediterranean diet). In addition, 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. Northern regions have more recipes that include meat, and they make also strong use of potatoes and polenta. In southern regions, there is a stronger culture of eating fish as well as fresh vegetables and cheeses such as mozzarella. Italian consumers also very much enjoy pizza, which is typically eaten out at pizzeria, where it is 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, the rising level of immigration has increased the number of restaurants and take-aways serving foreign 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, in particular Chinese (77.9%), Japanese (8.1%), Brazilian (2.5%), and African (2.4%). About 26.2% of Italian consumers enjoys eating foreign food. However, Italian consumers in general do not prepare ethnic food at home, as these new cultures are not yet so widespread among Italians, Generally, there are three primary meals for Italian consumers: breakfast in the morning from about 7:00 to 9:00, lunch at mid-day from about 12:30 to 14:00 and dinner in the evening from about 19:30 to 21:30, depending on personal preferences. In addition, the Mediterranean diet allows for two snacks during the day, one in the morning and one in the afternoon. However according to the Osservatorio ADI-Nestl, nowadays only 16% of the Italian population eats five times a day, some 10% of the population eats only meals which are fast to prepare daily, while 49% 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 to coffee (espresso or cappuccino) and a brioche. Traditionally, Italians have lunch and dinner at home, and dining in helps Italians to know exactly what they eat, eat healthier and at the same time save money. However, having lunch at home is linked to type of job, length of lunch break as well as the distance of the workplace from home, which would need to be a maximum of about 20 minutes away in order to allow workers to go home in their lunch breaks. Families with children 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 are increasing their preference for home-made lunches as opposed to eating in bars and restaurants. Such behaviour is linked to the economic and financial crisis but also to health and wellbeing, with more attention paid to the variety and quality of food. Therefore, fish, meat and vegetables are increasing in popularity at the expense of sandwiches and pizzas. According to the 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 eating in the office, 31% eat in meeting rooms and open spaces, 22% at a desk, 19% at the bar and 16% at self-service corners. About 33% of Italian consumers that have lunch in the office prefer to 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 has increased 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 average price 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%.
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In addition, when eating at home, the convivial nature of meals, which is one of the pillars of the national food culture, is more and more being replaced by watching television. According to the Osservatorio ADI-Nestl, 60% of Italian consumers watch television while eating at least twice 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 a premium on convenience and saving time, and this has driven demand for take-aways or homedelivered meals as well as ready-to-eat food from supermarkets, in particular for those people who want to eat at home but are short of time. Some consumers will buy one part of their meal already prepared from a supermarket and add something to it at home, such as a salad or vegetables. There are many occasions when a celebratory meal is prepared for the family. Sunday, for example, is considered by most Italian consumers to be a day to eat at home with the family. On such occasions, the typical meal consists of a starter, a first main course, a second main course and dessert. The choice of food varies by the region and season.
Dining Out
According to the Osservatorio Adi-Nestl 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. This trend is common among all age group, as well as for couples, group of friends and families. The most popular occasions for dining out are birthdays, anniversaries and other religious celebrations. According to a report from FIPE on Italians eating habits, about 21 million people have lunch outside during the week, while 3 million also eat dinner out. However, the situation changes during the weekend when the number of Italians that dine out reaches almost 20 million. In response to the economic downturn, Italian consumers dined out at restaurants less often in recent years, and when they did, they went more often to informal dining venues such as pizzerias in order to save money. According to a report from Coldiretti/Censis, about 80% of Italian consumers eat outside at least 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 other people. However, some Italians eat out also as a way to skip the healthy diet that people tend to follow at home. Italian consumers place lots more importance on what they eat and the nutritional 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 restaurants as well as informal dining restaurants and pizzerias, which are very common in Italy. Fast-food outlets are still marginalized, and they do not represent one of the first choices for Italians. They are, 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 and comprises burgers with fries or fried chicken. Street vendors are not very common in Italy, and they are usually limited to local celebrations and manifestations. Street vendors in general sell candyfloss, sweets, sandwiches and other types of fast food. Italian customers in general choose a dining venue in relation to the type of occasion, their budget, the type of food offered, and the location of the venue. The most typical dishes ordered depend on the type of venue. For example, in full-service restaurants, Italian customers usually order a full menu: starter, first and second main courses and dessert. In more informal restaurants, 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 that dine out choose at least once per month to dine in a club, and they stay in the same place for
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dancing after dinner. Such behaviour is also linked to the lower purchasing power of Italian consumers, who now prefer to concentrate all the activities of the night in one place. The average expenditure for the dinner in a club varies between 15 and 23.
Caf Culture
Italian 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 home or outside, in the middle of the morning, after all their meals, as well as during the day as a way of 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 population drinks coffee, and Italian consumers drink about 3.4 billion espressos per year in about 200,000 bars located around the country. Italian men drink more coffee than women (1.7 cups versus 1.5 cups), and 81.1% of coffee drinkers, drink up to three coffees per day. About 22% of Italian consumers drink at least one espresso in the bar daily. About 57% of coffee is drunk for breakfast, 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 an espresso macchiato (with cold or hot milk depending on tastes) or an alcoholic drink called an espresso corretto. Consumers also drink cappuccino or latte but mainly for breakfast. Other coffee beverages such as frozen/iced coffee or Americano coffee (the typical international coffee) are not very common in Italy. According to Coffee Experience 2010, the largest coffee tasting event in the world, about 70 million cups of espresso are served in Italy every day. In addition, the percentage of consumers that reads a coffee shops sign and look for a specific brand has increased from 3% in 2009 to 4.6% in 2010. At the same time, the number of consumers who claim to choose coffee based on their own personal tastes increased from 35.2% in 2009 to 37.4% in 2010. Furthermore, the number of people consuming coffee without sugar increased from 30% in 2009 to 32.4% in 2010, 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 their houses during the day using a traditional coffee pot as well as the recently introduced single-cup brewing machines such as the Nestl 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 principally prefer espresso and no other type of coffee beverages. For the same reasons, take-away coffee is not common in Italy. However, some independent cafes offer free delivery to local shops or offices for workers. Coffee shops are considered social venues, particularly by workers, housewives and pensioners.
Snacking Habits
The 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 have a snack in the morning, 63.8% in the afternoon and 52.2% at both times. Snacks are mainly eaten by women, younger people, and single people. The main foods eaten as a snack are fruit, yoghurt, crackers and, in the morning, brioche and confectionary. In Italy, there are no typical traditional snacks, but there are many international snacks such as crisps, tortilla chips, cereal snacks, pretzels, popcorn, cheese snacks, crackers, meat snacks, nuts, corn snacks, fruit snacks, chocolate bars, granola, cakes, cookies and yoghurts. Younger consumers tend to eat crackers, biscuits or confectionery as a snack in the morning or during the day. In general, domestic brands such as Mulino Bianco or Ferrero are preferred among Italian consumers. Fruit is eaten as a snack mainly by adult consumers,
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particularly apples and bananas, which are available all year round and are easy to carry and eat. 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 before lunch 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 Trends

Italian 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 themselves to be very informed about the nutritional value, calories and fat of various foods. Italian consumers are very concerned with having a healthy diet, as in 2011, some 11.2% of the population 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 share of overweight children in Europe. In order to educate the new generation about healthy eating, a new 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$2.3 per person per year. This trend is mainly due to low information and awarness among Italian consumers about such products. On the other hand, Italian consumers are increasingly interested in farmers markets, which sell 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 2011 compared to the same month in 2010. At the same time, there has been an increase of 53% in direct purchases of products from producers, and this trend was followed by about 9.2 million Italian consumers. Italian consumers prefer to buy in farmers markets as they are increasingly interested in purchasing km zero products as well as healthy and seasonal products, and they also want to help local farmers. According to research by Swg/Coldiretti, Italian consumers choose farmers markets for the quality of the products (71%), to save money (40%) and for the better taste of the products (26%). Italian consumers consider organic food to be healthier and of greater quality, and the consumption 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. In general, the main factor influencing the likelihood of a consumer buying organic products is level of education. However, for many Italian consumers, food choices are linked to household budget. Although organic food is perceived as being healthier, it is more expensive, so many households 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 February 2012, the Italian government is against the use of genetic modification in the production of food in Italy. Chart 8 Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011
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Chart 9
Regional Ranking of Availability of Fresh Fruit and Vegetables 2011
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DRINKING HABITS Attitudes Towards Drinking

Bottled 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 be healthier and to taste better than tap water. However, even bottled water suffered a sales
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reduction of 3.3% between 2006 and 2011 due to the introduction of substitute products such as water filters for the home. The most common brands of bottled water are San Pellegrino, Acqua Panna, 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 all meals. Italian drinkers in general choose locally produced wines, as each Italian region produces 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 to protect their health as well as because of new lifestyles. In 2011, Italian consumers drank a total volume 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, especially the biological ones, that contain less sulphites, less alcohol and are more digestible. Such consumers in general drink more often outside the house in restaurants and wine-bars, whereas people 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 to drink less but better quality wines. In addition, consumers are appreciating many different styles of beers, wines and spirits imported from other countries. In particular, there is an increasing presence in Italy of international wines, coming mainly from France, as well as beers, with Belgian beers being the most popular. Cocktails and beers are more common amongst younger customers, 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 consumed during the day or during special occasions such as birthdays, and they are more popular amongst children and young people. With meals, Italian consumers prefer to drink water or wine. The most common carbonated drinks are made by international brands such as CocaCola, but orange- and lemon-flavoured carbonated drinks produced in Italy by the San Pellegrino 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 consumers have brought their drinking habits home. Italian consumers in general do not wait for special occasions in order to enjoy drinking at home, and they normally have a glass of wine during lunch 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 is consumed five times as much as beer with meals at home. However, there are also a number of celebrations and small events that are frequently hosted at home and at which alcoholic drinks are served. In addition to bigger celebrations such as Christmas 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 or sport events such as football matches, providing their guests with food and alcoholic drinks. It is also 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 (by 62.9% of Italian consumers according to a report from Veronafiere). Shoppers are attracted not only by the lower prices, wide selection and in some cases discounts offered by grocery retailers, but they also like the convenience that comes with completing all of their shopping in a single trip. Some 25% of Italian consumers prefer to buy wine directly from the producer, while and 7.3% prefer to get wine in wine bars. The majority of Italian consumers that purchase wine
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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 supermarkets in 2011 were good quality wines denominated as DOC, DOCH or IGT as a guarantee of their production and quality. In response to the greater number of Italian consumers drinking beer, beer manufacturers have promoted such products as home mini-keg systems that make enjoying draught beer at home easier. Italians do not usually opt for wine in boxes, which is perceived as low quality and is in general used only for cooking purposes.
Drinking Outside the Home

Italian 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 and financial crisis. Italian adult consumers of any background tend to go out almost daily but mainly on the weekend for a drink, usually meeting in bars. The smoking ban introduced in Italy in 2005 did not impact the drinking habits of Italian consumers, who go outside the bar or restaurant if they want to smoke. The culture of drinking an aperitif is strong in Italy. It is seen as a way to socialise and mingle with friends while having a drink and a small snack before lunch or dinner. The aperitif culture is strongly rooted, with many bars offering happy-hour discounts on drinks bought during certain hours. Italian consumers tend to order wine by the glass, a beer or a cocktail as an aperitif. One very common aperitif is the Spritz, which is made with Prosecco, sparkling water and Aperol. In large cities, some bars provide an aperitif with a buffet included in the cost of the drink during certain hours (mainly from 18:00 to 21:00), therefore attracting many consumers who can enjoy the 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 people drinking beer in Italy in 2011, reaching a total of 36 million people (72.4% of Italian adults). Of this total, 16 million are women. Italian consumers like beer because it is trendy, not very alcoholic and refreshing. Beer is usually drunk by adults below 44 years old, in general with meals eaten outside the house in restaurants. Italian consumers that drink beer less than once per week increased in number by about 40% in 2011 (from 26.3% to 35.3%), while there has been 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 Category 2011
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Chart 11
Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade 2011
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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 a decrease of 3.1% compared to 2006. According to research by Demoskopea on behalf of Palmolive, 92% of Italian consumers see in personal hygiene a source of wellbeing, vitality and pleasure. In particular, 41.4% of Italians wash themselves well and often and do not like to interact with dirty people. Such consumers prefer to use liquid soaps and products that protect the skin. About 16% of Italians consider hygiene a duty, washing often and critical of people that do not take care of themselves. Some 13.5% of Italians take care of their personal hygiene but do not give a predominant role to hygiene. Some 12.9% of Italian consumers think that hygiene is 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 for the 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 as washing, hair styling, shaving, applying make-up, brushing teeth and applying deodorant and lotions. In addition, as the Italian population is ageing, more consumers are looking for products and treatments to look younger, turning to a wide range of anti-ageing beauty and personal care products. For example, in the skin care segment, women in their 50s and 60s are looking for anti-aging products in order to hide the signs of age, while women in their 20s and 30s use antiaging products to prevent the sign of age from appearing. In colour cosmetics, many products
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promise to deliver anti-ageing benefits thanks to the ingredients they use. Demand for natural and organic ingredients has increased among Italian consumers in line with stronger consumer awareness of environmental issues. For example, Italians pay greater care in choosing products that 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 is becoming 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 toothwhitening treatments per year. About 50,000 treatments are done per year by non-qualified people under poor hygienic conditions and using inappropriate instruments. This behaviour can create dangerous risks for patients, but Italian consumers are not well informed and choose also non-qualified people if less expensive. Other popular dental procedures to correct problems with teeth include repairing teeth with white fillings and wearing braces. The latter in particular is increasing its importance among Italian adult consumers, and Invisalign, which offers an invisible 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 the dangers that the sun has on the skin, including ageing and skin cancer, and are using proper sun-screen products.
Attitudes Towards Beauty

Beauty 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 confidence amongst others. Incidents of anorexia and bulimia are increasing among young girls, who want to obtain the sort of slim body shown in the media. In Italy, attractiveness in women is seen as conforming to the Mediterranean look, comprising a slim body with some curves and long hair. A man is deemed attractive when he has a muscular body, dark hair and skin and a macho character. As the Italian population is ageing, more consumers, both men and women, are looking for products and treatments to look younger, and they are turning to a wide range of anti-aging beauty and personal care products. According to research by Somatoline Cosmetic, 68% of Italian women aged between 30 and 60 buy anti-aging products, while the percentage increases to 92% for people aged 46 to 60. The majority of Italian women are worried about the aging of the face, eyes, hands and dcolletage. In addition, 40% of women buy anti-ageing products for the body. From the study it emerges that 75% of Italian women are scared by ageing because it creates discomfort and 56% would like to look younger in order to feel better. Some 54% of Italian women use cosmetic products to fight the ageing of the skin, while a smaller percentage does so by means of a healthy diet and sport. About 51% of Italian women aged 30 to 45 use anti-age products regularly, as do 63% of those aged 46 to 60. Among them, 95% buy products for 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. According to the results of a survey by the Osservatorio Nazionale sulla Chirurgia Estetica, sponsored by Fondazione Italiana per la Medicina e Chirurgia Estetica, Italian consumers (61% of women and 54% of men) are becoming more aware of the existence of specialized institutes of cosmetic surgery. Some 86% of Italian consumers think there is not enough information to help in choosing the correct plastic surgeon, and this was one of the reasons for the creation of specialized institutes of cosmetic surgery. When choosing esthetic surgery, Italian consumers look for professionalism (87%), experience (79%) and updated knowledge (41%).
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According to the survey, only 5% of Italian women are against cosmetic surgery (and 4% of men), while 28% are fully favorable to such treatments (29% of men). In addition, 7% of Italian women admit to having already had cosmetic surgery (6% of men), while 43% are considering the 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 not convinced about the surgery and scared about the pain (28%). Among men, 33% are not convinced about the surgery and 31% think the surgeries are too expensive. The main reasons why 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 for the breast or nose as well as liposuction and fillers.
Male Grooming
Italian 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 basic grooming products as necessities. Products such as shavers, shaving products, hair care products, deodorant, cologne and bath and shower products are considered essentials, and most Italian men would feel uncomfortable not having them in their grooming kits. Many Italian men buy additional products, including skin care and anti-ageing products. In 2011, Italian consumers spent on average 12.1 per capita on mens 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 beauty 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. In addition, men in general consult a dermatologist in order to choose the right product. It is estimated that the average Italian man now spends 26% more time on grooming compared to 10 years ago and 7% more time on improving appearance. Italian men are taking more care of their bodies, the way they dress and everything that can improve the way they look. There has been also an increase in cosmetic surgeries for men, mainly procedures for the nose and skin lifting. According to the study, 67% of Italian men use face lotion, and only 10% consider it to be a practice for women only. In addition, Italian men are increasingly interested in make-up products, such as bronzer or self-tanning creams, as an alternative to the solarium. They are also 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 a negative impact on the business of hair care salons, spas, and nail and beauty parlours. In 2011, 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 brands and opt instead for less expensive products. According to a study by the Associazione Italiana delle Imprese Cosmetiche, Italian consumers in 2011 are also increasing their purchases of beauty products in pharmacies and perfumeries at the expenses of supermarkets. They are also increasing their purchases of beauty products in herbalist shops thanks to their growing interest in environmental issues as well as the competitive prices available in such specialised shops. According to research by Gruppo Key-Stone in collaboration with the Associazione Italiana delle Imprese Cosmetiche, about 70% of beauty centres in Italy do not have a sauna, hammam or jacuzzi. About 15% of beauty salons clients are men, and they account for 24% of treatments.
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Massage remained the most common treatment, but Italian consumers were keen also on other treatments, such as specific body and face treatments. According to a study by Centro Studi UNIPRO, there was a decrease in hair colouring in 2011, 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 offering new products. One such product is lunch therapy, whereby clients are provided with a taxi to get to and from the beauty salon, where they receive a treatment and a take-away lunch. The popularity of deal-of-the-day websites such as Groupon is now positively influencing the sale of products related to beauty and hair care salons. Many outlets have been making offers on such websites 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 tanned all year round. According to data from Confestetica, an association of about 4,600 beauty centres 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, and new 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 must also leave a break of 48 hours between two solarium sessions. Chart 12 Value Sales of Beauty and Personal Care Key Categories 2006-2011
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Chart 13
Regional Ranking of Per Capita Sales of Men's Grooming Products 2011
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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 the best in the world in terms of fashion as well as elegance. Italian consumers tend to be passionate about fashion, and clothing is so important culturally that Italians tend to judge each other by what they wear. Italian teenagers choose to wear similar clothes and brands, mainly to show they belong to a certain group. Italian consumers therefore pay great attention to their clothing, and in 2011, about 7.5% of consumer expenditure went on clothing and footwear, a decrease of 5.3% compared to 2006. This decrease was mainly due to the economic and financial crisis. However, Italys percentage of total consumer expenditure on clothing and footwear 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 that reflects 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 formal clothing, 78% of whom are men, who in most cases must wear a suit. About 20% of Italian consumers wear jeans, mostly women (67%), while men (33%) mainly wear them during Casual Fridays. About 13% of Italians declare that they want to be noticed in the office and choose their clothing accordingly, for example preferring high heels. The remaining 2%, mainly men, prefer to feel 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 mainly women (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 a way of being trendy, saving some money in times of crisis and being environmentally friendly.
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Social changes such as busier lifestyles and the ageing of the population continue to impact the attitudes of Italian consumers towards clothing. In particular, busy consumers are expected to increase their online purchases of clothing, attracted by the ability to save time and money. In addition, convenience and comfortable features will become very important in fashion for elderly people.
Attitudes Towards Footwear

For 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 boots for women and leather shoes with laces for men. Loafers are not very common in Italy and are considered old fashioned. In addition, Italians wear informal footwear during the weekend or for recreation. For informal occasions Italians wear a lot shoes made by Superga, an Italian brand that is very common in the country. Due to the economic and financial crisis, Italians reduced the percentage of total consumer expenditure on clothing and footwear. Italian men are traditionally less interested in footwear and therefore tend to buy less shoes when cutting down on expenses. According to Confcommercio, the footwear industry in Italy is suffering a declining trend that does not improve even during sales periods. According to an article published in La Repubblica, Italian consumers are increasingly buying imported shoes, mainly those that are made in China, which are in general a lot cheaper. In 2010, almost 50% of imported shoes came from China, an increase of almost 13.4% compared to the previous year.
Attitudes Towards Personal Adornment

In 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 latest fashion 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 chains in Italy, 40% of Italian consumers buy sunglasses that follow fashion trends, 20% buy a new pair of 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 the remaining 7% have more than five pairs. The amount spent on sunglasses by 77% of Italian consumers is between 50 and 150, while 11% of Italians tend to spend less than 50, and 12% spend more than 200. In general, about 90% of Italian consumers buy sunglasses in eyewear shops, 8% choose a non-specialized shop, and only 2% buys sunglasses at street stalls. According to the study, 69% of Italian consumers decide directly in the shop which kind of sunglasses 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 the remaining 2% buy after seeing sunglasses on TV or at the cinema. About 68% of Italian consumers buy sunglasses for their shape, 13% buy for the brand, and the remaining 8% are influenced by whatever sunglasses are currently in vogue. Finally, 47% of Italian consumers buy sunglasses 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 stay in the sun without protection for their eyes. In addition, 83% of Italian consumers do not protect the eyes of their children. Only 6 out of 10 Italian consumers use sunglasses in the snow, and
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only 52% above 14 years of age think that dark lenses protect the eyes and are not aware of the fact that sunglasses are as important as sunscreen when going in the sun. Unfortunately, young consumers are victims of the behaviour of their parents, as only 17% of consumers think it is important 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, more than 97% of young Italian consumers aged 18 to 34 use sunglasses only as a fashion accessory and are not aware of the risks of UV rays. Italian consumers are increasingly interested in tattoos and piercings. According to a study by Camera di Commercio di Monza e Brianza using data provided by Registro Imprese, there were about 1,000 companies specializing in tattoos and piercings in Italy in 2009. The trend of getting tattoos and piercings is stronger in the countrys main cities, with Rome accounting for 8.1% of the total, Milan for 5.3%, Turin for 4.9% and Naples for 4.2%. There are also an increasing number of illegal tattoo parlours that offer tattoos at cheaper prices but are more dangerous with regard to hygiene. There is also an increasing trend among Italian consumers to try to remove tattoos by means of laser treatment, and specialised centers for this are on the increase. This treatment is expensive and painful.
Attitudes Towards Accessories/luxury Goods

Italian 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 luxury something related to well-being and an increase in quality of life and personal satisfaction. This new attitude makes luxury more a personal experience than a social one, and luxury items are becoming more and more accessible. Online commerce is increasing the number of consumers who are attracted by luxury products and accessories. The market for luxury items represents a very diverse group of consumers in terms of age, occupation, education and income. The internet is now an important channel for 44% of Italian consumers interested in purchasing luxury 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, consumers concentrated on purchasing luxury clothing (23.5%), goods and services related to travel and leisure (22%), with a particular increase in the purchase of tailor-made trips Consumers were interested in the purchase of jewellery (16.5%), which corresponds also to an investment in times of crisis. In terms of purchasing a new car in 2011, 4% of Italians living in Rome would like to change their car, as would 13% of people living in Milan. In addition, 8% of people living in Milan 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
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Chart 15
Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011
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HEALTH AND WELLNESS HABITS Public Versus Private Healthcare

The 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. The regions also set the criteria for finaning local health units and hospitals. Public healthcare in Italy
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is available to all Italian citizens, however there is a considerable difference in the quality of health care provided between North and South of Italy. The National Health System is funded by income from the local health units and by two regional taxes: the IRAP (Imposta Regionale Attivit 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 Italys health care system. According to a report from the Associazione Italiana Ospedalit Privat, about 72.5% of accredited private hospitals in 2011 have been negatively affected by the economic crisis, with 29.4% negatively impacted by Italian consumers decreasing the number of visits and examinations. About 17% of hospitals registered a decrease in hospitalizations, and 13.8% registered difficulties with collecting payment from patients. About 50.3% of hospitals want to react by implementing new organizational and managerial processes: 45.9% by increasing in size, 44.7% by getting more employees and equipment, 44% by partnering with other hospitals, 43.4% by introducing innovative 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 supplementary insurance allowed patients to choose their health care providers and to be seen promptly by doctors. According to research published on Test Salute, Italian consumers need to wait very long periods in order to be able to do an examination (for example, a gastroscopy or an ultrasound) 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 more rapidly. Public health expenditure is a big problem in Italy, and almost all of the countrys regions, especially the ones located in the south, have a large public deficit that needs to be reduced in order to comply with EU requirements. This has contributed to additional pressure to control health care expenditure. For example, public expenditure on pharmaceuticals and other medical non-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 many mistakes, waste and inefficiencies that strongly impact Italian consumers right to receive public health care. There is a need to reorganize the health service through new rules in accordance with Patto per la Salute 2013-2015. The Patto per la Salute is an agreement between the State and the regions with respect to the expenses and the programming of the service to guarantee economic and financial stability as well as improve the quality of the services offered within a universal public health system. Under the new agreement, there will be a reorganisation of primary care and of the hospital network. In addition, patient will pay more of the costs of the services provided. Out-of-pocket expenditure refers to people paying for over-the-counter (OTC) drugs, paying for private health insurance, contributing to the payment of certain diagnostic procedures, medicines and doctors. According to research from CENSIS, out-of-pocket expenditure increased by 8% from 2007 to 2010, reaching 30.6 billion and penalising mainly consumers with lower incomes. In fact, the reduction of public services in order to control public health care expenditure forced Italian citizens to choose private health care solutions. There is an increasing trend in Italian consumers to look for offers and low-cost treatments, which undermine the quality 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 means eating a variety of food in an equilibrated way, while 17% think of a diet with low fat. About 67%
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say that they follow a healthy diet daily. Some 70% eat homemade food daily, and 50% pay attention to their daily quantity of beverages. In addition, 28% pay attention to the amount of calories consumed, 40% pay attention to information from the media regarding eating, and 48% consider a specialist doctor the most important source of information on healthy eating. Italian consumers are increasingly demanding organic and naturally healthy food. Italians are very interested in improving their health in order to reduce the risk of disease, both though prevention as well as by undertaking healthier eating and lifestyle habits, including increasing sport activities and reducing smoking. Healthy life expectancy at birth is 60.5 years in 2011, a decrease of 6.2% compared to 2006. According to a survey by IPSOS in February 2012, 85.6% of Italian consumers are against the introduction of a new tax on food and beverages proposed by the ministry of health, which wants Italians to eat less junk food. In March 2012, The Lombardy region (Assessorato allo Sport e Giovani), CONI (Comitato Olimpico Nazionale Italiano) and AVIS (Associazione Volontari Italiani Sangue) signed an agreement to promote healthy living in the form of balanced eating, sport, limited usage of alcohol and tobacco, and increased awareness of the importance of donating blood, bone marrow, stem cells and blood products.
Over-the-counter Versus Prescription-only Medicines (otc Vs Pom)

Annual per capita consumer spending on OTC medicines reached 42 in 2011, a decline of 2.4% from 2006. In the first nine months of 2011, about 29% of the OTC market in Italy consisted of drugs for respiratory diseases that are predominantly bought in pharmacies, 20.8% consisted of analgesics and 20.3% of drugs for the digestive system mainly purchased in other stores and supermarkets. Of the remaining drugs, the market share of dermatological drugs is 10.6%. According to research by the Universit Politecnica delle Marche and the Universit di Urbino, 14.4% of Italians use alternative medicine. In particular, 7.6% of Italians choose osteopathy, 7% homeopathy, 4.1% herbal shop remedies and 2.1% acupuncture. Vitamins and dietary supplements are considered very important by Italian consumers. According to an article published in La Repubblica in August 2011, Italian consumers increase their spending on food supplements (vitamins and minerals) by 10% every year, with a spend of about 1.7 billion by the middle of 2011. Italians choose to buy food supplements to feel better, keep well and overcome a period of weakness. Natural supplements are very appreciated by Italian consumers because they are perceived to be natural and without side effects. According to research by Eurisko on behalf of Anifa-Federchimica, about 70% of Italian consumers would like additional information on OTC medicines. In particular, six out of ten consumers would like more information about the correct use of OTC medicines. OTC medicines are mainly used by consumers aged 18 to 44. According to a report from Caritas/Migrantes, there are currently about 4 million immigrants in Italy, which accounts for 6.7% of the population. About 52% are European, 23.2% African, 16.1% Asian and 8.6% American. To benefit all consumers in Italy, Anifa-Federchimica, Unione Nazionale Consumatori and Federfarma prepared a leaflet in seven languages, available for free in all pharmacies, in order to help all people recognise and use OTC medicines. To purchase POM medicines in Italy, consumers need a prescription that is obtained from a doctor. The consumers go to the pharmacy with the prescription, and depending on the type of prescription and the type of medicine, they need to pay the full price of the drug, a reduced price or nothing. From September 2011, the doctor must indicate in the prescription (through the codes E01, E03, E04) if the patient benefits from free medicines and/or exams and visits. As the liberalization of OTC medicines gave very good results, including the introduction of para-pharmacies and a reduction in drug prices, the Italian Government proposed a new law in January 2012 in order to liberalize the sale of POM medicines. It is expected that if that sale of
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POM medicines is liberalised, Italian consumers will save about 40 per year per household, according to Federconsumatori.
Sport and Fitness

Sport 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 TV programmes focusing on sport, the most popular being La Domenica Sportiva. Italian consumers, mainly man, are very passionate about football, and they tend to follow the matches of their preferred football team regularly on TV or at the stadium. Cycling is also very popular in Italy, with the most famous event being the Giro d'Italia, a ride all around the country that attracts 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 on TV. Italians like also to follow skiing, basketball, volleyball and tennis. According to an article published in La Stampa in March 2010, research from Eurobarometro shows that only 3% of Italian consumers practise sport regularly during the year. The rate of participation in sport is very low especially among young Italians, as only 2% of boys and 4% of girls aged 14 to 25 practise sport regularly. Italians over 70 years old tend not practise any sport. The reasons for such low involvement in sport activities are for 50% of Italians the lack of time, while 15% of them do not like sport in general. About 6% of Italians think that practise a sport is too expensive. Only 18% of people involved in any sporting activity in Italy do it in a fitness club, while the rest play in parks, schools or universities. Italian consumers have an increased interest in low-cost fitness. Many international and domestic fitness brands opened low-cost gyms across Italy, offering monthly subscriptions at a price of about 20. These clubs also offer premium subscriptions, where with a slightly increase in price Italian consumers can benefit from unlimited additional services such as drinks, solarium and 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-old were obese, an increase of 9.5% compared to 2006. Italy has the largest share of obese children in Europe. Such figures are a result of the poor eating habits that are increasing among Italian consumers given faster lifestyles together with the effects of the economic and financial crisis, which made Italians more willing to eat fast food instead of the traditional Mediterranean diet. 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, that tried Alli, the first non-prescription obesity product available in Italy, were not satisfied with it because 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 Sanit, 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 the problem or tend to underestimate the gravity and the effects. Efforts are being made at a national level to solve the problem. For example, the programmes Piano Nazionale della Prevenzione and Guadagnare Salute: Rendere Facili le Scelte Salutari are implementing many initiatives in order to reduce child obesity. In 2011, the project Mi Voglio Bene, promoted by the Department of Health and the Societ Italiana di Pediatria, involved paediatricians and parents working together to promote breast feeding up to six months of age, control of proteins up to two
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years of age, bottle feeding up to two years old, no juices and teas, limited TV, the use of the stroller up to three years old, and participation in active games. In addition, the Department of Agricultures programme Frutta Nelle Scuole aims at increasing the consumption of fruit and vegetables 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 in secondary schools the department promoted the project Frutta Snack, which provided automatic vending machines selling snacks made with fresh fruit. Chart 16 Growth in Public and OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011
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Chart 17
Regional Ranking of Obese and Overweight Population 2011
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SMOKING HABITS Smoking Prevalence

In 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 was about 19.1%, a decrease 8.2% compared to 2006. According to a research by Doxa on behalf of Istituto Superiore di Sanit in collaboration with Lega Italiana per la Lotta Contro i Tumori and Istituto 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 public finances and employs more than 200,000 people. In 2011, about 51% of Italian consumers thought that smoking is an individual choice and that smokers are aware of the consequences. Some 49% think that the risks of smoking are not properly taken into account by smokers, 44.5% are happy with the health messages 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 in Italy in 2005, 14% would like to enlarge the scope of the ban while 6% consider it already too stringent. About 54% of consumers think that to reduce smoking among young people, it is necessary to stop the illegal trade in tobacco products, while 51% would introduce more controls and fines for vendors that do not check the age of buyers. In addition, 49.5% of Italians would like to increase the minimum legal smoking age to 18 years.
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Attitudes To Smoking
In 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 March 2012 are introducing fines for Italian consumers who throw cigarette butts on the ground. According to the report Attivit per la Prevenzione del Tabagimo 2011 by the Department of Health, 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-own tobacco. 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 smoking for those under 18 years of age and requiring cigarette packs to contain a leaflet listing their dangerous ingredients. According to February 2012 research by Fondazione Umberto Veronesi and Fondazione Pfizer with regard to the initiative No Smoking Be Happy, only about 22.2% of Italian smokers managed to quit smoking, while 54.5% were not able to quit and the remaining 23.3% did not even try to quit. The main reason for such low results is low will power (58.2%), followed by psychological-physical dependence (22.9%). Some 37.3% of Italians did not have any interest in quitting smoking, and 27.9% would not like to give up the pleasure of smoking. About 62.1% of Italian consumers tried to quit smoking to improve their health and 48.8% to improve social relations. About 32.6% of Italian smokers quit due to concern over the health of their families and 33% wanted to improve their performance in sport. Finally, 51% of Italian consumers think that anti-smoking campaigns are not effective because they give information about the problem but do they do not provide any concrete aid to give up. Chart 18 Smoking Prevalence amongst Men and Women 2006-2011
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Chart 19
Regional Ranking of Smoking Prevalence 2011
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SHOPPING HABITS Attitudes To Shopping

Shopping 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. In addition, 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 economic downturn has made consumers more sensitive to price and has increased their willingness to find the best deal. This trend had prompted the success of daily deal and coupon websites such as Groupon. There has been also an increasing trend of developing outlet villages all around the country, which represent a way of finding good deals on fashion shopping and at the same time a 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, about 67% of purchases are made in normal shops rather than on the web. Although one out of five Italian consumers said they made a purchase on the web in the course of 2011, visits to online stores 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. About 35% of Italian consumers said they were attracted to making purchases in bricks-and-mortar stores by promotions, while 33% buy online due to free home-delivery services. About 63.7% of Italian consumers like to receive information about offers and promotions on the products they typically purchase, while 54% like to receive information about new products and 37% about preferred 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 lowcost 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. Only about 9.4% of Italian consumers continued to give importance to brand, 38.6% were willing to
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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 Italian consumers bought quality low-cost clothes, 53.1% bought big-ticket household items, and 38.5% 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 and 30.5% 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 assurance services, 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 of consumers, while 27.3% consider them only for young consumers and 17.5% only for lowerincome households. About 66% of Italian consumers buy quality low-cost products due to the price 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 in prices 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 spend less on food but try not to reduce the quality of the food they eat. Consumers pay strong attention to the quality of food and to limiting the food miles of products. Consumers are therefore shopping more in local markets, which in general guarantee fresh products and traditional local products. About 70% of consumers prefer to buy food in supermarkets than in small shops because of lower prices. According to October 2011 research by Coldiretti-Swg, 57% of Italian consumers reduced their food wastage due to the economic and financial crisis. Out of these people, 47% paid more attention to their shopping, 31% reduced the quantities purchased, 24% used left overs to prepare other meals and 18% paid more attention to the expiry date of products. Some 55% of Italian consumers spent more time doing their shopping, out of which 72% paid more attention when doing household shopping compared to the past. About 61% of consumers checked prices 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 in discount stores, while 38% reduced their purchases in traditional stores, and the level of purchases 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 for 8% 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 is an increasing trend of GAS, Gruppi di Acquisto Solidale, which are groups of families created in order to get discounted prices on products thanks to the purchase of big quantities. Such initiatives are followed more by those with lower incomes who pay stronger attention to the price than to the quality of products. According to February 2011 research by FoodSaver, a company specialising in vacuum packaging systems, about 47.7% of Italian consumers go grocery shopping only once or twice per week, while 1% go every 15 days and spend in general about 40 minutes in the supermarket, increasing to 56 minutes during weekends. Consumers prefer to do household shopping 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
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above 50,000 prefer supermarkets and small shops close to the house, while people with a salary of about 20,000 to 35,000 prefer to shop in markets. According to an April 2011 article by Federconsumatori, sales of household non-consumable products 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 packaging allows consumers to save money and create less rubbish. In Italy, there are about 1,250 shops that sell packaging-free products, located in about 107 provinces.
Top-up Food Shopping

Italian 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 stores and purchasing items where they are cheaper. Some consumers return to purchase items that they have forgotten during their primary food shop or to buy fresh products such as bread. This type of top-up food shopping is often done in small, specialised local stores (including bakeries and butchers), in general chosen for their convenient location. According to February 2011 research from FoodSaver, a company specialising in vacuum packaging systems, only about 11% of Italian consumers buy food every day. This is due to the faster pace of life and the fact that many women work and have less time available for the shopping. 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 are stored up for one or two days or maximum for one week. Only consumers with lower incomes tend to store food for longer periods, as they tend to buy bigger quantities due to promotions and 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 products benefited from incentives during 2010 that were stopped in 2011. Italian consumers also decreased their purchases of brown appliances in 2011, including video and audio gear, by about 17.2%. This downward trend has been driven by lower disposable income among Italian households and an increased uncertainty that induced consumers to postpone purchases that were not strictly necessary. Consumers also decreased their purchases of vehicles in 2011, with the exception of used cars, which in general benefit in periods of crisis. In 2011, the total retail value of motor vehicles decreased by 7.8% compared to 2010. Italian consumers also spent less on furniture in 2011, with a decrease in volume sales of 3.1% and a decrease in sales value of 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 do research before spending a large amount of money on products such as cars, TVs, white goods and furniture, and now they tend to compare the different options online on shopping sites and product review sites. In addition, the deals offered daily by websites such as Groupon are now providing coupons with discounts for big-ticket items. According to Findomestic, Italian consumers do not differentiate among the various big-ticket items in terms of necessity, but in terms of desirability, they prefer IT items to video and audio goods. Consumers pay strong attention to the quality of the goods (71%, mainly women),
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followed by the price (10%, mainly younger people), and for 10% of Italians (mainly men), it is really important to have information on the product before purchasing it. Brand name is important for 5% of consumers, and owning a fidelity card for 2%. Consumers are also interested in competent staff and fair prices when choosing a shop, and most Italians still prefer a specialized shop. Most consumers prefer to check the product in the store (67%, mainly women and older consumers) than on the internet (20%, mainly younger consumers with a higher disposable income).
Personal Shopping
In 2011, Italian consumers usually purchased their clothes at clothing and footwear specialists. However, the negative effects of the economic and financial crisis forced many Italians to change their approach to shopping, reducing their purchases and waiting for sales before buying or going more often to outlets and discount stores. According to Confcommercio, Italian households spent on average 400 during the January 2012 sales. According to a study by IULM University, there are various reasons why Italian consumers decide to purchase ethical clothes. Almost 80% of consumers buy fair-trade fashion because they share fair-trade ethics, almost 75% of consumers buy eco-friendly clothes to better protect their skin, and 62% do so because they think the products are of a greater quality. In case of recycled fashion, 70% of Italians like the creativity linked to such products, while 45% Italian visit used-clothes shops because they do not like to throw away things. Some 38% of consumers go to charity shops to help charities, while 42% consider vintage clothes of better quality, and 35% think it is fun way of shopping. According to a report from Centro Studi UNIPRO (Associazione Italiana delle Imprese Cosmetiche), at the end of 2011, Italian consumers increased their spending on cosmetics and perfumes by 1.2%, buying more at such chains as Limoni, Sephora, Douglas, and La Gardenia due to promotions and discounts offered and at the expense of traditional perfume stores. Sales in herbalist shops increased by 4.5% in the second quarter of 2011, catering to consumers who care about natural products that respect the environment. Pharmacies increased value sales by 2.5% in the same period, thanks to the perceived offer of quality, healthy products. Supermarkets continue to be the main channel for purchasing cosmetics in Italy, and their promotional activities boost sales. In addition, many supermarkets are creating specialised corners for beauty products. Italian consumers are limiting their expenditure at hairdressers and buying hair products in supermarkets. According to research by Expo Luxe in collaboration with the magazine World & Pleasure, Italian consumers are attracted by luxury goods such as clothes, bags, shoes (21%), followed by jewellery and watches (20%), and lifestyle, wellness and travel goods (15%). There is an increasing trend of purchasing luxury goods online in order to find greater variety and better prices, as luxury products are not confined anymore only to wealthy people. Large Italian cities have streets of shops selling luxury items, the most famous being Via della Spiga and Via Montenapoleone in Milan and Via del Corso and Via del Babuino in Rome.
E-commerce and M-commerce

The retail value of internet retailing in 2011 was 3.1 billion, an increase of 142% compared to 2006. Online commerce is a very popular shopping channel in Italy. According to a research from Osservatorio eCommerce B2C Netcomm Politecnico di Milano, e-commerce increased by 20% in 2011 and by 17% in 2010. During 2011, there has been an increase in the sale of products (+24%), and services (+18%), and one out of three users makes regular purchases online. There is a total of about 9.2 million online buyers. The average amount spent per year by Italian online consumers rose from 960 in 2010 to 1,050 in 2011, an increase of about 9%.
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Italian consumers are increasingly paying more attention to websites that sell coupons, such as Groupon, Glamoo, Groupalia, LetsBonus, Jumpin, Poinx, Prezzo Felice and Amazon. During 2011, there was an increase in the sales of all products, from fashion (+38%), thanks to the good 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%), IT and electronics (+22%), and grocery (+17%). This trend is due also to the increased usage of laptops and smartphones among Italian consumers. In 2011, the value of m-commerce increased by 210% compared to 2010, reaching a value above 80 million, corresponding to about 1% of online sales. According to a research from Human Highway in collaboration with Netcomm (Consorzio del Commercio Elettronico Italiano), about 41.5% of Italian consumers reduced their spend on Christmas 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 to NetComm data, from September to November 2011, about 19.5% of online buyers made only one purchase, 21.5% made two purchases, 22.6% made three purchases, 16.1% made four or five purchases, and 20.4% made more than five purchases. According to research by GFKEurisko 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 to home-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 to save money on the same products available also in shops. About 36% buy products that they cannot 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 to promotions (42%) or bids (34%). In addition there is an increasing trend in the usage of websites 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 Italian women, mainly buying accessories or clothes for themselves. According to a research by Osservatorio 7Pixel, over the course of 2011 more than 94% of Italian online consumers were satisfied with the purchases they made online and with the online shop, mainly thanks to fast delivery (more than 60%) and the efficient information provided (51%). Negative experiences on online purchases amount to less than 6%, and these relate mainly to the unavailability of the ordered 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
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Chart 21
Regional Ranking of Sales through Internet Retailing 2011
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LEISURE HABITS Staying in

When 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 in front of the TV when at home, and reading and listening to music are the next most popular activities. There is an increasing trend also amongst Italian men of spending time in the kitchen and cooking. According to a report from CENSIS/UCSI, about 53.1% of Italian consumers in 2011 were using the internet. This percentage included 87.4% of people aged 14 to 29, 15.1% of people aged 65 to 80, 72.2% of people with a high level of education, and 37.7% of those with a lower level of education. Consumers spent 51.5 per capita on internet retailing in 2011, an increase of 19.2% over 2010. In 2011, about 97.4% of Italian consumers watched TV regularly, with 76.4% of the population watching 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 the radio in 2011. According to ISTAT, about 45.3% of Italian consumers read a book in 2011, and readers are mainly women. About 54% of Italians read a newspaper at least once per week, and out of them, 39% were regular readers, reading at least five days per week. The low newspaper readership is linked to the low number of copies of newspapers in Italy compared to the population. 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 the web. The main readers of news on the web were people aged 15 to 54 years old.
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Going Out
Consumer expenditure on leisure and recreation accounted for 6.8% of total consumer expenditure in 2011. Per capita spending was 1,104 in 2011 down by 2.8% since 2008. Italian consumers enjoy going out often to relax and enjoy themselves. The main activities include dining out, going out for an aperitif or a drink, clubbing, going to the cinema or theatre, attending sport 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% compared to 2006. On average, Italian consumers made two annual cinema trips per capita in 2011, an increase of 1.8% compared to 2006. According to ISTAT, 53.7% of Italian population went to the cinema at least once in 2011. According to ISTAT, about 29.7% of Italian consumers visited museums and temporary exhibitions in 2011. About 28.4% of Italians attended sport events (mainly men). About 22.9% of Italian consumers visited archeological sites and monuments, 22.6% went clubbing, 21.9% went to the theater (mainly women) and 20.8% to music concerts. Only about 10.8% of consumers attended classical music concerts in 2011. According to Confcommercio, there has been an increase in the leisure expenditures of Italian consumers. In particular, there has been an increase in gambling and buying lottery tickets. According to data from the Amministrazione Autonoma dei Monopoli di Stato, gambling increased by 43% from January 2011 to January 2012. In January 2012, Italian consumers spent about 8.34 billion on gambling, out of which about 80% was returned to them in the form of prizes and the rest was kept by the State.
Public Holidays, Celebrations and Gift-giving

The 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 includes Christmas Day on the 25th of December, Saint Stephens Day on the 26th of December, New Years 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 a public holiday and the day when in general the ski season starts. Italian consumers tend to celebrate Christmas on Christmas Day rather than on Christmas Eve, with abundant food and typical desserts that include panettone, pandoro and torrone. During Christmas celebration, Italian adults exchange presents. Children generally also receive presents for Christmas, but depending on the region, these presents can be brought also by San Nicol (on the 6th of December), Santa Lucia (on the 13th of December) or Befana (on the 6th of January). During the Christmas season, Italys markets are full of typical seasonal food products. Very popular are the OBei OBei, Milans Saint Ambrogio fair, as well as Christmas Markets in Alto Adige. Easter is the second most important religious public holiday in Italy. During Easter, children receive 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, and it is celebrated by almost everyone, with parades, masquerade balls, music and parties. The most important celebrations for Carnevale are held in Venice, Viareggio and Putignano. Other celebrated public holidays are Ferragosto (or Assumption of the Virgin Mary, on the 15th of August) when all Italy shuts down and there are celebrations in the streets, and All Saints 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.
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Culture
Italian 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 fact Italian culture, which also includes festivals, traditions, cultura l activities and the countrys rich food 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 were the most visited tourist attraction in Italy in 2010. The Coliseum in Rome accounted for more than 5.1 million visitors, Pompei had almost 2.3 million visitors, and Galleria degli Uffizi in Florence counted more than 1.6 million visitors in 2010. According to ISTAT, about 29.7% of Italian consumers enjoyed visiting museums and temporary exhibitions in 2011. About 22.9% of Italian consumers visited archeological sites and monuments, 21.9% went to the theater, and 20.8% went to music concerts. Only about 10.8% of Italian consumers attended classical music concerts in 2011. In April 2012, the Italian Ministry of Cultural Heritage ran the Week of Culture, giving nine days of free access to museums, villas, monuments, archaeological sites, archives and libraries all around Italy. The initiative aims to spread knowledge of Italian heritage among Italian consumers and tourists. After success in 2011, the Italian Ministry of Cultural Heritage reorganised in 2012 an initiative to give visitors free entrance to state art venues on their birthdays. Chart 22 Cinema Attendances 2006-2011
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Chart 23
Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011
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DIY AND GARDENING HABITS Attitudes To DIY

Italian 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 when possible. 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 like creative home decorating, an activity that allows them to express themselves at the same time as doing something useful for their homes. According to an article published on trendonline.com, the economic and financial crisis has made Italians more careful about spending but has 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 in DIY stores or ironmonger shops. The main DIY chain shops are Self and OBI. According to a study 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 12 months, with an average expenditure of about 216, and the buyers were mainly men. About 56% of buyers made purchases at ironmonger shops, which are perceived more familiar and professional by Italians, while 53% made purchases in malls, which are seen as more convenient 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 specialized knowledge and expertise and lower prices offered. According to an article published in 2011 on Tuttogratis.it, about 67% of Italian consumers think they can renovate their homes at a low cost. In 2011, about 50% of Italians said they would like to renovate their home, and, mainly for economic reasons, 68% said they would decorate themselves in order to save money. The decisions in terms of colours and finishing are mainly made by women (61% of cases), and 20% of Italians tend to follow the advices of a partner, family or friends when making decisions.
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The number of new dwellings completed in 2011 was 252,000, a decrease of 5.2% compared to 2006. In Italy, home owners make up about 73% of total households, an increase of 5.9% compared to 2006.
Attitudes To Gardening
Italian 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 practise gardening in order to grow food. The most common vegetables grown in vegetable gardens are tomatoes, 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 their home, and they spend much time outside eating and entertaining. Favourable weather conditions in Italy make this possible. According to an article published on Panorama.it in March 2011, Italian consumers are becoming more and more interested in flowers and plants, and about a million Italian people are now gardening. In 2011, the first fair for hobby gardeners was organized in Brescia: La Fiera di Vita in Campagna which had about 25,000 visitors. In 2012, the event attracted more than 27,000 visitors. According to the March 2011 edition of Vivi in Campagna, maintaining patio and balcony gardens are the main gardening trend in Italy, with young Italians primarily growing tomatoes and aromatic herbs. Garden centres saw an increase in demand of about 30% in 2011 mainly due to consumers aged 35 to 40. In addition many Italians have decided to rent a small piece of land to grow vegetables. The availability 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 verdure del Mio Orto allows consumers to choose the vegetables they want grown then delivers to them once a week. Prices starts from 18 per week for 30 square metres of land and three to four kilos of vegetables. According to an article published in La Repubblica in March 2012, about 1.2 million Italians are enjoying hobby farming as a way of eliminating stress, being in contact with nature, and having a hobby. About 36% of hobby farmers are pensioners, 19% work in offices, 14% are manual 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 18,000 visitors and 223 exhibitors. The event presented various events and workshops. Chart 24 Number of Home Owners and New Dwellings Completed 2006-2011
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Chart 25
Regional Ranking of Home Owners as a Proportion of Total Households 2011
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PET OWNERSHIP HABITS
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Attitudes To Pet Ownership

The 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 Animali dAffezione) to register dogs, cats and ferrets that are microchipped in order to more easily identify 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 to 2006. Dogs represented 11.5% of the total pet population, a decrease of 1.3% from 2006, while cats 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, a decrease of 3.6% compared to 2006. According to data by Rapporto Italia 2012 reported by Eurispes, about 51.3% of Italian consumers feel affection for pets, 35.9% respect them and 42% have one or more pets in their house. 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 percentage is 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 single people had a pet in 2011 while in 2008 the percentage was 46.2%. About 50% of single, mainly older and younger people, preferred small dogs, while 35% preferred cats, mainly women or people who work all day outside the house. Fish and birds are also common, and there is an increasing preference for rabbits and small turtles. About 20% of Italian single people owned more than one pet. During the week, single people dedicated about two hours per day to the care of their pets, while that time increased to six or seven hours during weekends. Pensioners tended to care for their pets for about four hours per day. Women tended to prefer cats and rabbits, while men preferred dog and cats. Older people preferred birds and fish because they are easier to look after. In general, Italian pets are kept in the home, but if people have a private garden, they tend to keep the dog or cat outside. Chart 26 Pet Population and Sales of Pet Food 2006-2011
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Chart 27
Regional Ranking of Pet Ownership 2011
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TRAVEL HABITS Getting Around

Most 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 to bring 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 to match more closely vehicle attributes with the purpose and duration of a trip. In addition, the different fuel usage of the various vehicles allows consumers to have more flexibility with regard to volatile fuel prices, and the availability of more vehicles accommodates scheduling of household 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, the same 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 were more inclined to hold on to their current car in the downturn. According to research by Centro Studi e Documentazione Direct Line, about 66% of Italian consumers 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 preferred vehicle, followed by 34.3% who prefer public transport, 17.9% who prefer motorcycles and scooters, 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% to use a bicycle. However, as a result of the economic crisis, especially the increased cost of fuel, Italian consumers living in big cities are starting to use their cars mainly at the weekend, opting for using public transport for commuting during the week. According to data from Unione Petrolifera, there was a decrease of almost 20% in the usage of fuel at the start of 2012. The increased 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
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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 most common new cars purchased in Italy in March 2012 were Fiat Panda, Fiat Punto, Ford Fiesta and Volkswagen Golf. According to the Ministry of Infrastructure and Transport, there was been a decrease of about 26.7% in the registration of new cars in March 2012 compared to the same period in the previous year. The economic and financial crisis and the increase in fuel prices and insurance costs are some of the factors linked to this negative performance. Therefore, in such an uncertain economic environment, Italian consumers reconsidered their car purchasing decisions, postponing them or opting for purchasing used cars. In terms of used cars, the certificates 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 in the previous year. In such an uncertain environment, and with rising petrol prices, consumers have been buying more LPG and methane cars, which, according to UNRAE, registered an increase of 2.3% and 1.3% in March 2012. Sales of cars running on petrol decreased by about 4% in the same period, 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 the reason why many consumers have turned to hybrid cars. In 2011, the price per 10 litres of premium unleaded petrol was 15, an increase of 5.7% compared to 2006.
Use of Public Transport

Italian 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 litre in April 2012. Rome, Milan, Turin and Florence marked increases in public transport subscriptions of an average of about 30% in 2011 compared to 2010. During the first two months of 2012, there was an increase of 6% in the number annual passes sold for public transport in Rome, while in Milan the increase was roughly 20%. These increases are also linked to the increased price of the single ticket (on average about 1.5), and Italian consumers in time of crisis opted to try to save money in the long run. An annual pass costs about 300. Italian consumers in 2011 preferred to use buses and underground trains, although customer satisfaction 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 households accounts on average for less than 2% of disposable income, remaining therefore very accessible compared to other European countries. The increased usage of public transport at the 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, Milans bike sharing scheme in February 2012 registered an increase of 45% in annual subscriptions compared to the previous year. Bike sharing schemes have been introduced in Milan, Turin and Rome as well as in some smaller cities. Milan has about 120 bike stations, and there was an increase of 25% in bike usage in
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February 2012 compared to the previous year. Milan adopted the service GuidaMi for a car sharing scheme that in February 2012 had three times more subscribers compared to the same period 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 100km of land in June 2011. Italian consumers use the train especially when travelling outside the city, both for leisure as well as for business travel and for commuting. In 2011, Italian consumers travelled about 742km per capita by rail, a decrease of 13% compared to 2006. The number of passengers carried by rail was 621 million in 2011, a decrease of 17.5% compared to 2006. Italian consumers sometimes complain about the state of the trains in the country. Italian trains are famous for being late, dirty and offering a poor service.
Air Travel
Italian 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-cost carriers 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 in demand for flights in recent years. In 2011, the number of scheduled airlines passengers carried in Italy was 35.7 million, a decrease of 0.4% compared to 2006. Scheduled flights remain the most important type of air travel in Italy, while charter flights registered a decrease of about 14.5% in the number of passengers carried compared to 2010, according to Ente Nazionale per lAviazione Civile (ENAC). Italy has two international airport hubs, Fiumicino in Rome and Malpens in Milan. These airports connect about 46 small and medium sized airports located all around the country. The development of low-cost carriers has had an impact mainly on smaller airports, which increased their capacity and improved their facilities to cater to a growing number of passengers. According to a report from ENAC, Romes Fiumicino, Milans Malpensa, Milans Linate and Venices Marco Polo were the most important airports in 2011 in terms of number o f passengers, 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 has merged 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 connections to 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 new routes and the negative effects of the economic and financial crisis, which has prompted consumers to try to save money. The development of low-cost air transport in Italy has made Italian consumers more willing to travel to Italian and European destinations and has allowed them to take more weekend breaks, sometimes with a view to limiting expenditures but without having to give up flying. Short-haul flights accounted for the majority of air travel in 2011. This trend is due to the negative effects of the economic and financial crisis, which limits Italians disposable income and forces them to travel locally rather than to remote destinations. Chart 28 Kilometres Travelled by Road, Rail and Air Compared with Motorway Intensity, Petrol Prices and Number of Scheduled Airline Passengers Carried 2006-2011
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Source:
Chart 29
Regional Ranking of Possession of Passenger Cars 2011
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Source:
VACATION HABITS Attitudes To Taking Holidays

Italy 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 age group, 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 more freedom to decide when to take their holidays, which in general amount to about 22-30 days per year. Taking holidays out of the busy month of August has allowed consumers to save money and to avoid the crowds and high peak-season prices. An increasing trend has been also detected in combining short holidays with bank holidays in order to benefit from short breaks throughout the year. This is also partially linked to the negative effects of the economic and financial crisis, which made Italian consumers more willing to decrease their average stay in order to control their budgets.
Main Holiday-taking Trends

The 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 length stay 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 stays due to the financial and economic crisis, about 50.2% of the total population took holidays. In addition, level of income is a factor impacting the holiday trends of Italian consumers. Some 41% 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 taking holidays, and there was a 14.7% growth in the number of people taking holidays from 2006 to 2011. Consumers now take shorter breaks throughout the year instead of a longer holiday in order to limit their budgetary expenditures. Some 16.6% of Italian families that went on holiday in 2011 looked for promotions and discounts, and 16.2% reduced their average stay. As a
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consequence, the demand for holiday taking is expected to increase in the coming years, as Italian consumers are expected to take holidays more often but for shorter periods. The vacation activities that generate the greatest interest among Italian consumers are: visiting friends and relatives; 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, particularly couples 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 increasing their interest in wellness and thermal venues. According to a study by the Osservatorio Nazionale del Turismo, 76% of Italian families went on holiday in 2011, and some families had more than one holiday during the year. This is the case for families with medium-high salaries and for parents older than 40 years old. Italian families continue to maintain the same holidaymaking 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 12 years old usually start sending their kids alone on holiday. Family holidays are very common in Italy, with many consumers spending in general one or two 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 tour holiday. 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 activities done by families on holiday are linked to location. During the holiday season, many families spend a few days visiting themed parks, zoos and aquariums. In 2011, about 16.5% of people below the age of 18 went on holiday alone in trips organised by religious, secular or sport associations. 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, and this 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. In recent years, to cope with the economic downturn, there has been an increased interest in letting 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, and 13.6% 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% of travellers booking their trip online in 2011. Other Italian consumers followed the advice of families and friends (21%) and travel agencies and tour operators (15%).
Domestic Versus Foreign Holidays

Italians 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 the ease 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 number of 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 travelling within Italy. Italian domestic tourism expenditure was 63.1 billion in 2011, registering a decrease of 13.8% compared to 2006. The biggest decrease in expenditure was on shopping
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(6.9 billion, which is 17.7% less than in 2006), and the amount spent on travelling within the country decreased to 7.7 billion (-13.1% compared to 2006). Expenditure on accommodation accounted for 21.9 billion, a decrease of 12.1% over the same period. Italian consumers spend on food was 12.5 billion (-12.0% compared to 2006), entertainment accounted for 8.5 billion (-10.4% compared to 2006) and expenditure on excursions was 4.2 billion in 2011, 5.7% lower than in 2006. Other tourist expenditures were 1.4 billion, registering a decrease of 51.1% compared to 2006. Domestic tourism continues to be driven by major art cities and beach destinations, but local festivals and traditions, wine and food tourism, and cultural activities are more and more driving Italians to discover their country. In this respect, there has been an increasing trend of visiting cultural cities such as Rome, Venice, and Florence. At the same time, there has been a growing trend of tourism directed at beach destinations that ensure a nice holiday at an affordable price. According to a study by ISTAT, about 81.7% of Italians remained in Italy for their holidays, while 18.3% travelled abroad. The preferred Italian regions for Italian families on holiday are Emilia Romagna, Tuscany, Liguria, Sardinia and Veneto. Such regions accounted for 42% of the total. Italian families in general decide to travel within Italy because they find it more convenient in terms of services offered and activities specifically designed for children. Italians are expected to increase their travel within Italy in the coming years, as economic and working conditions make it easier for people to take more frequent short breaks than longer holidays. In addition, the further development of low-cost air travel together with the introduction of new routes will facilitate domestic trips. Not all Italians spend their holiday within Italy, and according to ISTAT, Italians in 2011 when travelling abroad went to Spain (13.4%), France (17.1%) and the UK (7.4%). In general, the length of the average stay has decreased due to the negative effects of the economic crisis. According to ISTAT, trips abroad fell by 16.6% in 2011, with the decrease comprising mainly trips to non-European countries. The US remains the country most visited outside Europe, and it continues to be attractive due to favourable currency exchange rates. Travellers to the US tend to spend more there compared to other destinations, but this is linked also to the fact that the trip requires a longer stay compared to European destinations and travellers allow for a higher budget. According to a report by the Osservatorio Nazionale del Turismo, Italian families travelling abroad prefer beach destinations (46%), visiting historical cities (16.8%) and holiday tours (20.4%). In 2011, families with children started to travel abroad with a child of at least two years old, one year earlier compared to 2010. The main purpose of Italians traveling abroad in 2011 was leisure, with a share of 86.9% of total travel, according to ISTAT. Top leisure activities for Italians traveling abroad were dining in restaurants, shopping, visiting cities, visiting small towns and villages, sightseeing, visiting cultural heritage sites and touring the countryside.
Preferred Travel Methods

The main mode of transport used by Italian consumers in 2011 was the car, which according to ISTAT data accounts for 62.9% of trips (down from 64% in 2010). The car is used for reaching neighbourhood countries, as it represents an efficient mode of transport that guarantees flexibility and cost saving, in particular when travelling with more people. Traveling by car is perceived by the majority of Italians as the best way to reach destinations, having both flexibility and convenience in term of costs, although the latter depends mostly on the distance to be travelled, the number of passenger carried and the price of the fuel. Therefore, depending on the particular circumstances of a trip, travellers may see their car as convenient or as trouble due to parking, fuel and toll costs and traffic jams. Consumers experienced a further increase in fuel prices in April 2012. This is linked to the Financial Law of 2012, which established an increase in the taxes on fuel.
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Italian consumers have benefited from the growth of low-cost airlines that have increased the number 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 to ISTAT, 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 made Italian consumers more keen to save on transport costs by travelling to closer regions or using alternative methods of transport such as low-cost airlines. In addition, the further development of a high-speed train network is making it easier and faster for Italians to travel around Italy. The Treni ad Alta Velocit (TAV) network allows for fast and convenient city centre connections and is seen as a valuable substitute for the plane. In 2011, in order to boost demand among Italian leisure travellers, TAV launched several promotions, one of which allowed two people to travel for the cost of one on Saturdays. Such promotions are appreciated by Italian consumers, who are very keen on saving money when travelling. According to ISTAT, the train was used by about 8.1% of Italian travellers in 2011 (up from 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 when travelling to small and remote places. Trenitalia, the national rail company, offers lower ticket prices if the booking is made in advance. This is highly appreciated by Italian consumers. who now 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 considered to be a step below other modes of travel. However, the bus provides a particularly affordable option for travellers on a budget or for those traveling with organised group vacations in Italy or in Europe. Chart 30 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011
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Source:
Chart 31
Regional Ranking of Holiday Departures 2011
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Source:
FINANCIAL HABITS Attitudes Toward Payment Methods

The 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. This is partly linked to the large size of the countrys black economy. According to research by Doxa on behalf of Wincor Nixdorf, 60% of Italian consumers would not go out of their house without any 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 once or twice a week. Italians start using credit or debit cards for payment above 143. Usage of cash and financial cards remains equal, with 44% of Italians continuing to use both payment methods. The number of financial cards increased by 34.8% compared to 2006, reaching 86.3 million cards in circulation in 2011. Italian consumers use of prepaid cards a lot because these are considered a safe way of making purchases online and in stores. On the other hand, Italian consumers have always been particularly reluctant to get into debt and therefore have always been very prudent regarding the usage of credit cards. When using financial cards, Italian consumers prefer to use a debit or prepaid card, especially when making purchases over the internet, as they are particularly scared of 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 all sums above 1,000. In addition, banks are limiting the usage of cash: For cash withdrawals of less t han 2,000, a fee of from 1 to 3 is now applied. Such measures are expected to have a strong impact in changing attitudes regarding payment methods during 2012. The most popular credit cards with Italian consumers are Visa and MasterCard. Banks are amongst the largest issuers of general-purpose credit cards. However, Italian consumers are more inclined to use pre-paid cards, with the most popular amongst consumers being Poste Pay, the pre-paid card issued by Poste Italiane S.p.A. These pre-paid cards are popular
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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 avoid fees from traditional banking services. The demand for pre-paid cards has been driven by the same cultural factors that made prepaid cards for mobile phones so popular in past years: a distrust of hidden bank fees and a desire to keep track on spending.
Savings
Historically, 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 job losses and rising unemployment. Italians savings ratio was about 11.4% of disposable income in 2011, a decrease of about 19.9% compared to 2006. The saving ratio was about 14.2% of disposable income in 2006, and it has been continuously decreasing to reach 11.4% in 2011 due to the negative effects of the economic and financial crisis. The average level of savings in 2011 was 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 are keen to save, particularly during the current difficult economic environment and even of it is more 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 to save in 2011 given the tougher economic conditions. Also, 29% of Italian households need more resources, and 42% of consumers are negative about the future as they think they will not be able to save the same level of money in 2012 and 2013 as they did in the past. The main reasons behind the Italians willingness to save are: having a secure income for the future, worsening economic conditions, and income during retirement. In addition, Italian consumers believe that saving helps people to have a responsible and sustainable way of spending. 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 interest rate of government bonds, which are a low-risk investment. The share of Italian consumers who keep their savings in a savings account decreased in 2011 to 64% compared to 68% in 2010.
Loans and Mortgages

The 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 to rise and income levels are decreasing due to a heavier fiscal burden that aims at reducing Italian public debt. Italian consumers have now been forced to increase their level of borrowing in order to be able to cope with important day-to-day expenditures such as paying for home improvements, housing appliances, education and medical expenses. The level of consumer lending in Italy in 2011 was on average 19,779 per household, an increase of 18.6% compared to 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 the car-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 to investing in renewable energy technologies linked to wind power and solar energy. This is due to public incentives such as the Nuovo Conto Energia approved by the Italian Ministry for Economic Development in May 2011, which aims to expand the production of renewable energy.
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Mortgages and home lending is the main driver of consumer lending in Italy. Consumers in general 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. Demand for 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 investments remaining somewhat secure. Even though the Italian market is facing high unemployment and an increased level of interest rates, mortgage lending is expected to continue to account for a very large part of consumer lending in the coming years. The level of outstanding debt on mortgages is expected to continue growing in coming years. Chart 32 Consumer Lending Compared with Savings and Savings Ratio 2006-2011
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Source:
Chart 33
Regional Ranking of Financial Cards in Circulation 2011
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Consumer Lifestyles in Italy

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Consumer Lifestyles in Italy

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CONSUMER LIFESTYLES IN ITALY

Euromonitor International August 2012