Exporter Issue 12

ISSUE 12 SEPTEMBER QUARTER 2009

ISSUE 12 SEPTEMBER QUARTER 2009

EXPORT OPPORTUNITIES ON EVERY PAGE

Untangling the Chinese puzzle Beating the Chinese at negotiations • • • • •

Cash strapped? Hang onto the house Along came Twitter & Facebook Search engine optimisation 101 Eye on exports: Rugby World Cup Kiwi exporters lack ambition

Starboard

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That’s why it makes sense to choose Vero Marine. We are New Zealand’s largest specialist commercial cargo insurer, providing tailored policies and exceptional claims service for businesses of every size.

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Port

Our innovative products, such as E-certs (instant insurance certificates available online) are created especially to make life easier for exporters. Add to that best of breed marine policies written to fit your business and it’s easy to see why so many exporters enjoy smoother sailing with Vero Marine.

For more information, contact your insurance broker or adviser, or visit www.veromarine.co.nz

ISSUE 12 SEPTEMBER QUARTER 2009

COVER STORY GOING TO CHINA Untangling the Chinese puzzle: Beating the Chinese at negotiations

06

FEATURES TECHNOLOGY One seamless story for search engines understanding how they work

12

EYE ON IP Battling copycats in foreign turf Is it worth protecting your IP?

16

EXPORTER EDUCATION BUSTED: Recession training myths Are companies spending on training?

20

BANKING/FINANCE Keep afloat, keep the house how businesses are coping with tight liquidity

24

LOGISTICS Journey of a green carrier Moving goods to market in a green way

26

MANAGING CUSTOMERS Gold mining for customer information how CRMs can help

28

FOREIGN EXCHANGE Tracking the whimsical kiwi Managing your currency exposures

30

MANAGING EXPENSES Opportunities for travel savings using travel agents to find the best deals

54

PROFILE Cathay Pacific: No more rattles on your food tray from reclining seats

57

PROFILE EverEdge IP IP protection – Look before you leap

58

LOGISTICS Lock in those rates now Planning for year-end cargo

60

REGULARS PUBLISHER’S VIEW / SAY IT LIKE IT IS Mike Taillie

02

VIEWPOINT Murray Denyer Free trade agreements

18

36

PRODUCTS Global Stage Innovative NZ products seeking a worldwide audience

MARKETING Facebooking, tweeting as a way of life Marketing tools

41

MARKETING World Cup export opportunities Marketing NZ during World Cup fever

66

TRADE FAIRS Clear goals, sharp focus can lift trade fair success

64

32

38

42

INSURANCE Insurance risks lurk round every corner What needs to change to protect your trades

44

PROFILE Virtual Expos New Zealand Ltd going virtual

47

MANAGING EXPENSES Money in the door first Ways to cut hidden costs from your business

48

EYE ON EXPORTERS No ambition, no go New Zealand is still slow to address the challenges of growing the export economy

50

Jens Madsen NZ’s inter-modal infrastructure challenge

Exporters’ Toolkit Products & services you should know about

DIRECTORY Useful Websites Information for travellers and exporters EDITOR: Yoke har Lee, (E) yokeharlee@exportermagazine.co.nz COPY EDITOR: Anthony Doesburg ADVERTISING: Rosie Payne (M) 021-683-432 email: rosie@exportermagazine.co.nz P.O. Box 7070, Wellesley street, Auckland, New Zealand (t) 09.366.6879 (F) 09.366.6838 www.exportermagazine.co.nz DESIGN: Craig haythornthwaite / uRBAN_i, Phone: +64.9.631.1400 PUBLISHER: PEOPLE PuBLIshINg, www.peoplepublishing.co.nz ground Floor, 26 Albert street, Auckland, New Zealand.

P.O.Box 7070, Wellesley street, Auckland, New Zealand. (t) +64.9.366.6879 (F) +64.9.366.6838 Copyright©exporter your

Member of the Audit Bureau of Circulations (ABC) New Zealand.

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EXPORTER 1

> PuBLIshER’s VIEW

Say it like it is MiKe Taillie EXPORTER MAGAZINE / publisher@exportermagazine.co.nz

The president and I – Yes we can!

New Zealand has some outstanding companies that testify to the fact that manufacturing here, and succeeding is real possibility.

R

ecently I accepted an invitation to be one of three judges for the Auckland Export Awards organised by Export New Zealand. In the past, I have avoided such roles due to the belief that I would not get a return on the time I have to invest in.

I was wrong! I now regret not taking up past opportunities.

Part of the judging process is to receive and read a number of written applications. From these, we narrow the list down to whom we choose to visit and later ask more in depth questions around the criteria defined

by Export New Zealand.

New Zealand has some outstanding companies. We have some companies that are selling products on the international stage that New Zealand as a country should be very proud of.

I visited companies that have huge manufacturing operations. they manufacture large bulky items that are exported all around the world. temperzone employ some 480 people, manufacturing air

2 EXPORTER

conditioning equipment that is exported to Australia, New Zealand, China/hong Kong, singapore, Indonesia, Vietnam, south Pacific Islands, sri Lanka, Cambodia, Bangladesh, and Mauritius. From the street you can its massive factory – it must be well over 100,000 square feet.

I also had the privilege to visit Douglas Pharmaceuticals. Douglas Pharmaceuticals is one of the fastest growing pharmaceutical companies in Australasia. We were shown the company’s state-of-the-art facilities. If I had seen this on television, I would have sworn it was located in another country.

We also visited Emerald Foods which manufactures premium ice cream including Mövenpick, Killinchy gold, heavenly treats, and exports to Asia Pacific.

In the technology area, we also had an hour or so with Endace. Endace is a global business, selling products in over 30 countries, with regional sales, marketing and support operations in Chantilly in the us, Reading in the uK and singapore.

Endace designs, develops, sells and supports high-speed packet capture technology, open development environments and multi-function network monitoring appliances. the growth rate of almost all of these companies has been huge over the last few years. Just as important is this: their growth prospect appears to be massive. so “yes we can”. New Zealand can do it. We can foot it on the international stage. We can manufacture in New Zealand – well, not everything, but a lot can be.

It is spring! While walking over the weekend I noticed a lot of white spring flowers. It is no longer green shots in the economy. It has moved onto the white flowers of spring perhaps. housing seems to be off the bottom, tourism numbers have held up well, milk auction prices have had a couple of rises and more people are wanting to live here than those leaving. things are a tad more cheerful, I hope. [eNd]

To all the finalists of the New Zealand International Business Awards, we say ‘thank you’.

Thank you for showing the world what New Zealand can do. For being a role model to other New Zealand businesses. And for helping New Zealand succeed.

New Zealand needs exporters who can identify growth markets, supply innovative products and services and adapt their business models to suit changing markets. The finalists of the New Zealand International Business Awards represent just some of the companies who are actively contributing to the success of our country.

ANZ is proud to be the Strategic Partner of the New Zealand International Business Awards.

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We congratulate all the finalists and look forward to sharing more success stories in the future.

ANZ, part of ANZ National Bank Limited

New Zealand Trade Centre Function, 6th August 2009

Harvie Graham (Lifestream), Steve Habersham (Premier Plastics), Steve Morrison (LinkPlas)

Clare Fletcher (NZ Post), Jennifer McBrearty (Essence of NZ), Daniel Brunton (Kiwibank) Anette Sleep (Oneil), Jolen Reid (Oneil), Carol Dunn (Iron Mountain)

Sarah Gibbs (Trilogy), Pam Ford (Ford Thinking), Mark Matthews (MOL)

Keith Beatson (Space Dome), Frances Manwaring (Virtual Expos)

4 EXPORTER

Reg Gray (Kiwibank), Mike Taillie (Exporter Magazine)

Simon Hayes (NZ Post), Travis Field (Exporter Magazine)

Wynnis & Wolf Schmal (Masport New Zealand)

Richard Kavanagh (Richard Kavanagh), Gavin Hyde (Kiwibank)

Richard Kavanagh (Richard Kavanagh), Pam Ford (Ford Thinking)

Reinhold Goeschl, Heather Baigent, John Waugh

John Dare (GBAFOMAT), Ken Stevens (Glidepath), David Catty (NZ China Trade Assoc)

Iain Leech (ANZ National Bank), Reg Gray (Kiwibank)

Tony Head (Kea Trailers), Mike Taillie (Exporter Magazine)

Laurie Witham (NZ Trade Centre), Graeme Hill (Lock Finance)

Maureen Cooney, Rosie Payne (Exporter Magazine), Rachel Starr (City Central Magazine), Becky McEwen (People Publishing)

Elizabeth Tan (Deep Waters), Marcel Lee (Deep Waters)

EXPORTER 5

6 EXPORTER

> g O I N g tO C h I N A

Untangling the Chinese puzzle Kiwis are culturally weak at negotiating. Having a contract prepared by a Chinese legal expert and overseen by a Kiwi lawyer can help protect your interest.

F

BY YO KE h AR L E E

or those who have nightmares to share, negotiating with the Chinese can be frustrating and infuriating. After all, Chinese militarist sun Zhi’s Art of War dictates that deception, or subduing the enemy without fighting, is the most potent battle strategy. the Chinese hold their cards close to their chests while Kiwis tend to do the opposite. this is one of the most common mistakes Kiwis make when they sit down to negotiate a deal.

“One of the things about us Kiwis is we tend to put all our cards on the table, rather than hold them close to our chest,” says Pat English, New Zealand trade and Enterprise’s trade commissioner in guangzhou. this was echoed by Paul O’Brien, chief executive of good health Products, who says: “Kiwis need to be aware that culturally, we are weak negotiators. the Chinese negotiate everything. they are by nature savvy negotiators.”

Photo: istockphoto

MiSTaKeS Another common mistake Kiwis make is being under-prepared against the Chinese in the negotiating ring. the Chinese are meticulous in laying the groundwork and doing their homework.

KEY TAKEAWAYS > Remember, the Chinese negotiate everything. > Often a deal begins when the contract has been signed. > Don’t show all your cards; the Chinese never do. > Be prepared. Do your groundwork before business dealings. > Remember to give “face” to the Chinese; they will do the same for you. > Remember to build a good relationship before a business. > Dinners are an important part of the business relationship.

they spend an inordinate amount of time working their relationships, pushing boundaries every step of the way.

English says there are companies that show up for talks with Chinese unprepared. And although Kiwis lack

understanding of China, they don’t necessarily invest time and money to build capability about how to do business with Chinese.

“Negotiations with the Chinese, especially with state-owned enterprises, often take longer than usual as bureaucracy is the norm. unless you have established the right guanxi (relationships), you will need lots of patience in dealing with different departments and getting the responses you desire,” says teik hock see, a project manager who spent six months in Xian, China last year, working on a power plant project undertaken by an Asian consulting engineering firm. eXPeCT VariaTioNS For a successful or viable deal, be it commercial or engineering, he recommends building in allowances for contract variations in scope, prices and schedules.

“Written contracts are not necessarily 100% safe and solid. translations (Chinese to English and vice versa) of documents, especially involving

wHeN You are STruCTuriNG a deal iN CHiNa – aNd THiNGS do TurN Pear-SHaPed – MaKe Sure You are NoT oVerlY eXPoSed. doN’T HaVe a riGid doCuMeNT, HaVe oNe THaT CaN Be adaPTed To a CHaNGiNG BuSiNeSS eNViroNMeNT.” PAT E NG LIS H , NZTE’S TRADE CO M M ISSIO NER , GUANGZHO U

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lessons in negotiating with the Chinese 1. Appreciate that culture influences negotiating power, tactics and outcomes.

One cannot become an expert on Chinese culture overnight. however, one can familiarise oneself with well known concepts such as yi (concern for one’s friends), which is the foundation of guanxi and ren qing (mutual exchange embedded in social relationships), as well as face and harmony. these may play no overt role in negotiations, but they will be part of the context through in which a Chinese counterparty is likely to approach their business and other relationships.

New Zealand Trade and Enterprise’s trade commissioner, Pat English.

2. A recent study (Liu et al, 2005) has found that, perhaps because negotiations are viewed within the context of a broader relationship, Chinese parties tend to be more susceptible than us parties to the influence of an opening offer – that is, less likely to dismiss it as mere positional bargaining. this may be worth bearing in mind (although we are not aware of any research that has specifically addressed the approach of NZ parties).

3. Know who you are contracting with. Verify their legal existence and powers to enter into and perform the contract – including the need for local and state approvals, if any, required for them to perform their side of the bargain.

4. Ensure your agreement includes appropriate mechanisms – such as hardship or force majeure clauses – to address contingencies if circumstances change.

Paul O’Brien, chief executive of Good Health Products.

5. Ensure you have legal protection in the event of a dispute. Always think: what will I do if things go horribly wrong? Well written international dispute resolution clauses, specifying both a governing law and a disputes process, are a must. For foreign direct investors in China, gaining the protection of a bilateral investment treaty (such as that contained in the NZ/China FtA) is also critical. seeking legal advice at the outset can save much time and stress later. Major project investors should also consider obtaining political risk insurance, such as that available through the World Bank’s Multilateral Investment guarantee Agency.

By daniel Kalderimis, principal with Chapman Tripp

technical and legal jargon, may give rise to ambiguities which are often used by the Chinese as grounds for concessions.

Even if there is no ambiguity, the Chinese may still ask for concessions, solely on the grounds of guanxi,” see says.

O’Brien’s experience tells him that Chinese don’t necessarily see the contract as a legally binding document.

“Around Asia, Chinese from other Asian countries are themselves suspicious of the Chinese and have different mindsets.” he says to “never get complacent” as one can never truly understand the complexities of working within China. “It’s a jungle there – I’m still learning, I never let my guard down. the real deal-making begins after your contract’s been signed,” he says. uSe CHiNeSe leGal eXPerTS this is why it is crucial for Kiwi companies to seal contracts based on Chinese law, using a local Chinese legal expert and, later, having contracts reviewed by a New Zealand legal adviser, NZtE’s English says.

8 EXPORTER

he says it is a myth that contracts cannot be enforced in China. “sure if you use a template format – and I have seen people presenting what looks more like an invoice than a legal document – then it is hard to enforce,” English says. “When you are structuring a deal in China – and things do turn pear-shaped – make sure you are not overly exposed. Don’t have a rigid document. have one that can be adapted to a changing business environment,” he adds. diNNer aNd NiGHTCluBS Your business negotiations practically start from the time you arrive, around the dinner table, the drinking and the night-clubbing that often happens.

“You are expected to wine and dine with the Chinese, who are often good hosts. It is rude to decline drinking with the Chinese unless you have valid medical reasons. Joining in the drinking and, better still, toasting the senior officers, will quickly strengthen your guanxi with them,” says see.

In fact, it is just as important to read between the lines during these dinner or social sessions, English says. “Kiwis get swept away by the generosity of the Chinese. they make you feel welcome and special, giving you gifts and dinners.

A lavish meal can mean one of many things – that we are going to do business, we are just trying to be polite or, sorry, we don’t want to deal with you. Over time, you develop intuition about this.”

For a SuCCeSSFul or ViaBle deal wiTH THe CHiNeSe, Be iT CoMMerCial or eNGiNeeriNG, Build iN allowaNCeS For CoNTraCT VariaTioNS iN SCoPe, PriCeS aNd SCHeduleS.” T E IK HOC K S EE, FR EELANCE PR OJECT M ANAGER JUST R ETUR NED FR O M CHINA

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For more information call Adrian Lodge 09 373 9859 or email international@kiwibank.co.nz.

Kiwibank Limited.

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Cash in on Lock’s key goals.

11903_Lock_Cash_Flow_217x275_AW.Page 1

11/05/2007

Established since 1889 and proudly 100 per cent New Zealand owned and operated Lock Finance’s goal is to help New Zealand businesses grow. As New Zealand’s leading independent business finance and factoring provider the company sets itself apart through three key factors – ownership, people and product portfolio.

The company’s prime goal is to help New Zealand businesses grow. It knows there is no one product that will meet all your funding needs. That’s why it combines products, flexible funding terms and individual expertise to deliver you the right overall funding solution. This combination of attributes has enabled hundreds of New Zealand companies to realize their growth potential.

11:14:24 AM

number for customers were also part of the re-branding strategy. Lock Finance wanted its identity to more accurately reflect the company’s current product and service proposition and highlight the development that has been made since the current ownership began in 2002 when Amalgamated Dairies Limited and the Goodfellow family purchased the business from ASB Bank.

The only finance company in the New Zealand offering four products in a fully integrated way means individual solutions can be found to benefit your business.

Working Capital Finance The biggest obstacle to business success is not poor product development or lack of management control. In simple terms, it is a shortage of cash. Whether it is due to rapid growth, seasonality or lack of time to chase debtors or a long business cycle, the end results are the same pressure, under performance and the inability to grow. This option is ideal for companies who require immediate

access to cash and do not want to use personal property as security.

Trade Finance This is great for companies who need to smooth out fluctuations in cash flow after paying offshore suppliers and before receiving funds from local customers.

Debtor Finance This product is perfect for more established companies who are experiencing growth or seasonal constraints and want to maximize the amount of cash they can borrow against their business assets.

Factoring Imagine how much easier life would be if most of your business sales were in cash. Its Factoring product can provide immediate access to cash tied up in the debtor’s ledger. In addition, it looks after the day to day management of the debtors ledger, so precious time is not wasted chasing customer payments.

CASH LOW CASH LOW

Formerly S H Lock, Lock Finance launched the re-branding of its company look and feel in August 2006. This incorporated the name change and a move to new premises in downtown Auckland. A new website and a new convenient 0800

Lock Finance is New Zealand’s leading independent trade and business finance company offering a fully integrated combination of trade finance, working capital, debtor finance and factoring. freephone 0800 ASK LOCK (0800 275 562) www.lockfinance.co.nz Lock Finance (formerly SH Lock) has been providing New Zealand businesses with financial services since 1889

SDC18848

all aBouT FaCe-SaViNG China is deeply rooted in Confucianism and visitors tend to get treated with great respect. “the Chinese tend to give ‘face’ to visitors so they would avoid asking questions that might embarrass visitors. they tend not to give ‘negative’ answers even around the negotiating table,” see says, adding that it is important to tactfully verify the discussions after the official meetings to avoid misunderstandings.

Chinese also hate to “lose face” (show their weakness), O’ Brien says. “there is the tendency to not tell the truth or to withhold information.” he cites a case of a distributor who signed a deal way out of his league, knowing full well he had no hope of fulfilling it. “he had three or four shops … and led me to believe he had 50 or 100. that’s partly my fault – part of my learning. It has made me tough, more resilient and, also, less accepting.”

3 ports close to Izone. 2 sea, and 1 air. These

PORTS are easy

TO access by road and rail. Izone has land to

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Trinity Hill Wine’s John Hancock.

John hancock, from trinity hill Wine, which exports to 22 countries, has been learning the ropes about how Chinese work. “there is a lot of interest in wines from China. We’re getting visitors, calls, emails, but 99% of those are not viable.

We are trying to sort out who’s serious and who’s not. Many like to be involved but some of them know nothing about wine.” [eNd] YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

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EXPORTER 11

> t E C h N O LO gY

12 EXPORTER

One seamless story for search engines Keeping your website friendly for search engines to crawl is a full-time endeavour which needs a professional eye.

T

BY st E V E h ARt

he business of websites has changed dramatically from when they first started appearing on our computer screens a short 15 years or so ago. In the beginning it was enough to have your own domain name and a page or two about your company in cyberspace. Design came a distant second and visitor interaction was non-existent. As website numbers started to grow from a few thousand to more than 100 million today, the issue of being found by potential customers started to become a business in it own right. how can you get people to find your site and what you offer when they are surfing? search engines came along to help and looked for hidden words inside web pages called metatags. In simplistic terms, if you sold cars, your web designer might include the word “cars” as a metatag. You can’t see these words on the screen, but search engines used them when returning results.

But then people started to abuse the system. For example, some would use metatag words such as a dominant rival’s trade name. so someone searching for McDonald’s could find a rival’s fast food joint.

SMarT SearCH eNGiNeS Web page designer Maak Bow says search engines – such as google and Yahoo – are working far more intelligently. Metatags, while still used, are not relied on that much, he says.

Instead, search engine “spiders” crawl over websites “reading” the text like users do. so if you sell medium-sized

KEY TAKEAWAYS > Using effective keywords in your content for search engine recognition. > Best keywords are the domain of specialists who work on this full time. > Build your site in a way that is friendly for Google or Yahoo to crawl. > Search engines offer tips for optimising your site but competitors also have the same access. > Animated websites are not necessarily search engine-friendly.

blue widgets, you’d need to use those words prominently in your web page text and headlines.

Bow, who works for BKA Interactive, says finding the best keywords is an art in itself and the domain of writers who specialise in search engine optimisation (sEO). sEO writers don’t actually optimise the search engine, but ensure that keywords feature seamlessly in

your online stories and sales blurbs. these writers specialise in not only integrating relevant search terms into your copy, but pick the words people are likely to use when searching for your goods and services. It is not always as clear-cut as you may think.

For example, someone with a broken window might search for; glazers, glazier, glass, windows, window repairs,

PrioriTiSe To oPTiMiSe wHaT iS Seo? sEO stands for search engine optimisation. It is the practice of using carefully selected key words in your website’s sales pitches and stories to help your site rate higher in search engine results. oPTiMiSaTioN google.com allows anyone to create an account and get access to powerful tools to help you measure your site’s rating when it comes to searches and visitor behaviour. With a free google Analytics account you’ll find out which search words people use to find your site, what pages they visited as well as how long they stayed. see: www.google.com/analytics TeST Your SiTe For Free users of the free Firefox web browser can install a range of plug-ins that give them critical information about their, and their competitors’, websites. see: https://addons.mozilla.org

EXPORTER 13

glass companies, window glazing, laminated glass … the list is endless.

Deciding on a shortlist, and placing them in your online copy so it still flows and reads well, is a real skill.

“You should be using words that you think people will be looking for, so a headline saying ‘new in today’ won’t cut it,” says Bow. “You have to be more specific.” however, content is only a part of the story. Bow says the key to ensuring a website is found at all is to build it in the correct way.

“A website needs to be built in a way that google can crawl it,” he says. “Most websites built today will do this by default, but some older ones – particularly those created in the tables style – are really sEO-unfriendly. “unfortunately, some content management systems still use this technique. so it is really important that your website is built – or rebuilt – in a compliant way.” to help themselves, Bow recommends site owners use the Firefox web browser along with a range of free plug-ins to analyse their competitors’ web pages.“It will help you find out what words people are searching for to get to their website,”

14 EXPORTER

Seo wriTerS doN’T aCTuallY oPTiMiSe THe SearCH eNGiNe, BuT eNSure THaT KeY wordS FeaTure SeaMleSSlY iN Your oNliNe STorieS aNd SaleS BlurBS. THeSe wriTerS SPeCialiSe iN NoT oNlY iNTeGraTiNG releVaNT SearCH TerMS iN Your CoPY, BuT PiCK THe wordS PeoPle are liKelY To uSe wHeN SearCHiNG For Your GoodS aNd SerViCeS. iT iS NoT alwaYS aS Clear-CuT aS You MaY THiNK.

he says, adding: “then you use those words in your own site.” dowNFall oF aNiMaTed SiTeS Bow cautions against websites that use lots of Flash coding, such as that used to create highly animated sites. they can look great but are not search engine-friendly. he says search engines have trouble when they see lots of graphics and animations. “the way around it is to build the Flash site and then build it a second time in traditional htML coding and then have the htML site hidden away from viewers – but available to search engines. It can get very complicated and expensive,” he says. ultimately, says Bow, search engines like busy sites. A crowd draws a crowd. so the more traffic your site gets, the more likely google is to push it to the

top of search requests. Bow agrees that by following google’s search engine rules, anyone can increase their website’s ranking. unfortunately, everyone has access to the same rulebook. “It is getting tougher as everyone lifts their game,” he says.

“You have really got to be onto it and that could mean a full-time job for someone in even the smallest of companies as the firm’s website is tweaked and refined to perfection and then tweaked some more. It’s an ongoing job if you want to stay at the top.” [eNd] STEVE HART / WRITER Steve has been working as a news reporter and journalist for more than 20 years. He left APN in 2007 to work as a freelance reporter covering employment, careers, business, technology and digital photography.

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> EYE ON IP

Battling copycats in foreign turf Exporters need to be aware of the time, finances and will power needed to fight intellectual property thieves who have the potential to bankrupt a business.

BY V I Rg I N I A MC MI L L A N

R

ob Miller knows what it’s like to face an intellectual property threat so severe 20 years’ business success is put at risk.

Miller is managing director of Klipon, the firm that makes and sells the iconic Kiwi clip used on kiwifruit vines throughout New Zealand and internationally.

By the early 2000s, Miller’s copyright and patent protection had expired.

When an almost identical copy hit the market, IP law firm James & Wells suggested trademarking the Klipon

16 EXPORTER

vine-tie’s swan-neck shape. says Miller: “I’m the first [NZ] person to have got a trademark for a shape, and it cost a small fortune. Now we’ve got that trademark, it can tend to scare people off quickly.” the shape trademark held up under legal scrutiny to Appeal Court level in a dispute between Miller and a Katikati man with Asian connections who was bringing in copycat ties.“It was the biggest threat we have had,” says Mt Maunganui-based Miller. “It could have wiped us out of business.”

James & Wells partner Ian Finch says an advantage of trademarks is that as long as a company continues to use them, they are perpetually renewable for 10-year terms. “Essentially Klipon is pure IP and, without [the trademark], there would be open slather on copying.”

Value oF ProTeCTioN the potential brand damage from inferior copies is so great that Miller

KEY TAKEAWAYS > Have copyright protection as a back-up before unveiling your products overseas. > State your brand ownership and territorial ownership. > Beware of distributors who may end up stealing your IP. > Consider if you have the finances, will and time to pursue infringements. > Highlight copyright symbols prominently so there is no doubt about ownership. is in no doubt about the value of IP protection. In the past three years, IP investment has run to $150,000$200,000.he says: “We keep everything up to date in our IP portfolio.”

At Auckland natural products exporter good health, $20,000-

our distributors to get them shut down, because they are passionate about their exclusive territory.” some exporters find their rights abused by the very people they trust to distribute their product or act for them offshore.

CHaSiNG aN eMPTY SHell Nelson-based Ifor Ffowcs-Williams owns and manages a training and development organisation, Cluster Navigators, and works in several European countries.

In Finland, he appointed an agent and provided her with materials for courses he was to run with her assistance. he was never paid and she used them to make money herself.

A Finnish court awarded $150,000 in costs to Ffowcs-Williams, but he says the woman’s original company is bankrupt so is unlikely to pay. “I am chasing an empty shell.” the lost income is bad enough but worse, the matter has consumed huge amounts of

individual briefs, despite the risk, carry no registered protection. It’s a business cost and time decision.

Leaked briefs sometimes end up in rival hands but the company feels it has more productive things to do than investigate them. Mchaffie suggests at least creating agreements that cover IP, with anyone a business deals with.

“Make it clear you assert the right so that no one can be in any doubt.”

Wallis says exporters intending to show materials to another party in China or the us would want copyright registration in those countries as back-up. Wherever you are trading, if it is your original written material, “have the copyright symbol reasonably prominently displayed”, she says.

Beware oF NaTural adaPTerS In China and other parts of Asia, “natural adapters” aplenty may well look at your ideas, product specs or materials and immediately set about

iN THe eVeNT oF a BreaCH, MaTerial wiTH a New ZealaNd CoPYriGHT (NoT reGiSTered BuT eXiSTiNG auToMaTiCallY) CaN Be deFeNded iN MoST oFFSHore TerriTorieS.” KATE MCHAFFIE, SENIOR ASSOCIATE, AJ PARK

$30,000 is spent each year registering and updating trademarks in the correct categories in every country where the company trades, says CEO Paul O’Brien. “We pay for it, we own it,” he says. “Our agreements with distributors make it clear we own the brand and they have an exclusive territory.” the name good health is broadly descriptive, making it more likely that others will try to use it, and more difficult to defend should it ever end up in court.

But that’s no excuse for the many infringers O’Brien has spotted or been advised of, who use the company’s name, or similar sub-brand names or packaging, to market a product copy cheaply. he says they are often tiny, home-office operations that last no more than a few weeks. A grumpy letter deters many. “We tend to [chase them] ourselves — we make minimal use of lawyers,” says O’Brien. “If it was big, I’d use a lawyer … Offshore, we get

time and energy. Don’t be too trusting, Ffowcs-Williams advises.

Baldwins partner Rosemary Wallis cautions that before deciding on an associate to work with offshore, exporters must do extensive research, including networking, using NZtE contacts, and talking things through with other traders.

In the event of a breach, AJ Park senior associate Kate Mchaffie says material with a New Zealand copyright (not registered but existing automatically) can be defended in most offshore territories. “You can enforce it but you must decide whether you have the will, the time and the money to do it. I would be lying if I said litigation was either cheap or easy.”

At James & Wells, partner simon Rowell says an offshore court action is costly and risky – “but it might be just as risky to let [the infringer] destroy your market”.

Exporter magazine talked to one medium-sized company producing numerous design briefs for offshore tender bids on a daily basis, often for areas it sees as high risk, such as the united states, China and the Middle East.

Major technology is patented but

using them. “In some countries, don’t talk to people if you haven’t applied for a trademark, copyright or design registration before you left.”

Mchaffie notes that showing a product confidentially to a potential offshore customer may be enough to preclude applying for a patent – which must be novel.

As Wallis points out, exporters are advised to plan well ahead and register in markets where they expect eventually to do business.

When a brand, product or idea is stolen or imitated, Rowell says options include a letter of demand (“cease and desist”) and follow-up negotiation on possible damages or costs to be paid; or filing court proceedings — often, an interim injunction, which can “stop them in their tracks almost immediately”. Most disputes do not go to court, he says.“But you need to have the protection, otherwise you haven’t got the argument.” [eNd] VIRGINIA McMILLAN / WRITER Virginia is a freelance journalist specialising in business and health stories. She has worked as a reporter, sub-editor and editor and as assistant editor at The Independent.

EXPORTER 17

> gutsY PEOPLE

Viewpoint MurraY deNYer CONSULTANT, COONEY LEES MORGAN

Free trade agreements: Current and future export prospects Exporters have potential to explore new markets as Kiwi deal-makers seal more access for our exports at the free trade negotiating table.

N

ew Zealand exporters should keep a close eye on the government’s progress with Free trade Agreement (FtA) negotiations.

Recently concluded FtAs with China and southeast Asia are delivering significant new opportunities and several more FtA deals are in the pipeline.

In contrast with (and partly because of) slow progress at the World trade Organisation, bilateral and regional FtAs have proliferated in recent years. the New Zealand government has been very active, as seen in the conclusion of FtAs with China,

18 EXPORTER

the Association of southeast Asian Nations (AsEAN) and, most recently, with Malaysia. Negotiations are also under way with Korea, the six countries of the gulf Cooperation Council and hong Kong. Further prospects exist from preparatory work on a possible FtA with India, as well as on expansion of the existing trans-Pacific Economic Partnership Agreement (tPP) to include the us, Vietnam and Peru.

It’s hard to keep up with where New Zealand fits into the “spaghetti bowl” of FtA agreements. A good place to start is in the trade agreements section of the New Zealand Ministry of Foreign Affairs website (www.mfat.govt.nz).

this site provides a pretty easy to follow overview of what’s going on. there are links to dedicated China and AsEAN FtA sites, where exporters can also find useful practical information about doing business in those markets and searchable “tariff finders” that show for any product what the relevant duty will be in current and future years.

FTaS wiTH aSeaN New Zealand negotiators have secured significant tariff reductions in both the China and AsEAN FtAs. FtAs provide many benefits, but tariff reductions tend to be the biggest

prize for New Zealand exporters.

In the case of China – currently a $1.6 billion export market for New Zealand goods – tariffs on 96% of our exports will be eliminated over coming years, delivering savings of over $100 million a year based on current trade. Chinese import duties on a wide range of New Zealand exports have already been through two rounds of reductions since the FtA came into force last October, and some have already been reduced to zero. Almost all others will progressively reach zero over the next 10 years.

As a region, southeast Asia is New Zealand’s third largest export market, and has grown 110% since 2003. under the AsEAN, Australia and New Zealand FtA signed in February this year, significant tariff reductions come into effect in 2010, and tariffs on practically all New Zealand exports to the growing markets of Indonesia, Vietnam, the Philippines and Malaysia will be eliminated by 2020. Negotiations have also been concluded on a

separate FtA between New Zealand and Malaysia. While details are not yet available, this deal will deliver even faster tariff reductions for New Zealand exports to Malaysia.

For many exporters, high duties may have previously made the Chinese and AsEAN markets uneconomic or only marginally profitable – that may no longer be the case now, or in the near future. With tariff reductions “locked in” over the coming years, exporters should be identifying the opportunities that are, or will be, opening up in their sectors. the “tariff finders” on the MFAt website are a fantastic planning tool in this regard.

NorTH aSia aNd THe GulF Very significant opportunities are also likely to be had from current FtA negotiations with Korea and the six-nation gulf Cooperation Council (united Arab Emirates, Bahrain, saudi Arabia, Oman, Qatar and Kuwait). good progress has already been made on the Korea FtA. A second round of negotiations will take place in the third quarter of this year. It is hoped that the

gulf FtA talks will conclude in a sixth round this October.

Preparations are also in train for FtA negotiations with India and, while there is something of a hiatus at present, the us announced in 2008 that it wished to negotiate joining the existing trans-Pacific strategic Economic Partnership Agreement (tPP) between New Zealand, Chile, singapore and Brunei. Vietnam and Peru also intend to participate.

Exporters who face prohibitive tariffs at present in Korea, the gulf, the us or Vietnam should be following progress closely, talking to their trade associations or directly to officials (who are contactable through the MFAt website), and factoring the possibility of improved access to these markets into their medium to longer term planning. [eNd] Murray Denyer is a consultant with Tauranga law firm Cooney Lees Morgan. Before that he was general counsel at Zespri, where for five years he led Zespri’s trade policy and government relations strategy in addition to his legal role.

Murray also spent eight years in the diplomatic service and was part of the Ministry of Foreign Affairs and Trade’s international trade law team.

Editor’s note: The views expressed above may not necessarily reflect the view of this magazine but we are happy to provide the space for gutsy opinion.

Taking your IP to the world It’s your intellectual property that makes your business unique and stand out on the world stage. To grow your business internationally you need to profit from your IP. As New Zealand’s leading intellectual property firm, we specialise in developing strategies to protect, enforce and commercialise your IP rights in New Zealand, Australia and throughout the world.

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A J Park is the trading name of the two partnerships of A J Park Law and A J Park Patent Attorneys.

EXPORTER 19

> E X P O R t E R E D u C At I O N

BUSTED: Recession training myths

Murray Painter – Chief executive of the Academy and Go Group,

The recession has cut into training budgets but some companies are still investing in strategic education of their star employees.

BY M A RY M AC K I N V E N

T

he common perception that businesses are sending their staff off for training while there’s a lull in work during the global economic downturn is something of a myth. the Export Academy, owned by the go Educate Foundation (part of the go group NZ Ltd), has been experiencing a downturn of its own. Chief executive of both the Academy and go group, Murray Painter, says people are cutting costs and training is one of the first things to go, along with research and development. so the academy is trying something different: offering 67 one-hour modules for export retraining or a refresher for business people, at its havelock North premises, from October 1.“Previously – and long-term — people studied at a higher academic level for our NZQAaccredited, 12-month certificate or two-year diploma. But I think there’s demand for shorter courses right now,

20 EXPORTER

KEY TAKEAWAYS > The first half of the year was flat to quiet in all executive education. > MBA uptake has increased. > Shorter courses have been less popular. > Providers are working to make courses more relevant. > Spending on training has targeted higher management for strategic business development; organisations are taking a more strategic and targeted approach to learning.

starting at about 6.30am to be in the office by 10am.” the Export New Zealand division of the Employers and Manufacturers Association (Northern) Inc (EMA) began offering specialist export courses in the upper North Island

in August, based on a survey of its members that identified the need for training for emerging exporters in particular. eXPorT eduCaTioN droPS But David Foley, EMA manager of learning, has noticed a drop-off in demand for other business courses this year. A pick-up is noticed in tailored training for staff groups of 12 to 20, and for the graduate Diploma in Business, that tends to focus on strategic business development for higher level managers, rather than general staff. the recession has also hit student numbers at the New Zealand school of Export in Palmerston North, that offers New Zealand’s only internationally accredited professional qualification for export, the Diploma of International trade. Marketing director Alison Vickers says about 30 students are on the 17-month, part-time programme but more would be enrolled in better

Survey findings: Exporter asked a sample of businesses in export fields if this recession was a good time to train or upskill themselves or staff.

New Zealand School of Export Marketing director Alison Vickers (above) and University of Auckland Business School director of executive development, Darren Levy.

• Responses of the 76 were mixed – as reflected in the training providers’ reports of their course uptake.

• some exporters agreed this was the perfect time to upskill and they have been spending more than ever on human resources.

• One has limited training to essential staff. One noted course prices were more negotiable.

• “During a recession it is even more important to be on top of your game and retraining and upskilling are very necessary. Obviously costs are important but a good manager will be able to get the best bang for his buck,” one said.

• But on the contrary, others said they were too busy with growth to stop and train; or they couldn’t afford it; it was too expensive at any time; or there was nothing special about an economic crisis – you trained when your staff needed it; or they were still looking for trained people rather than training options.

BuSiNeSSeS are THiNKiNG, do i TraiN oNe PerSoN or PaY FiVe SalarieS For aNoTHer Few MoNTHS? iT’S oBViouS wHaT You do.”

A LISON VIC KER S, M AR K ETING DIR ECTO R , NEW ZEALAND SCHO O L O F EX PO RT

economic times. “Businesses are thinking, do I train one person or pay five salaries for another few months?

It’s obvious what you do.” the university of Auckland Business school director of executive development, Darren Levy, says the key shift that has taken place during the

recession is that organisations are taking a more strategic and targeted approach to learning. “You could say pre-recession we were seeing ‘shot-guns’, [aiming at studying a range of courses] and now ‘rifles’ [courses for a specific outcome or purpose] are the hR and development weapon of choice,” Levy says. (cont.)

EXPORTER 21

Auckland University of Technology (AUT) MBA director Ken Lee.

MBaS STill iN deMaNd the take-up of executive education in mid-year has been marked, according to Ian Lafferty, director of executive programmes at Otago university school of Business.“the numbers are up by a strong measure. the first half of the year was flat to quiet in all executive education. Maybe the corner

has been turned or our marketing efforts are working. “We will end his year slightly up on last year and have far greater numbers for the MBA [Master of Business Administration].”

Because of the recession Otago has been promoting the MBA overseas: 65% of places will be filled by international students next year.

“And quite a few Kiwis are coming home – we are paying their air ticket if they sign up to an MBA.” MBA fees are around $30,000.

Finding enough local companies to take on students for project secondments has also been quite challenging, Lafferty says.

Auckland university of technology (Aut) MBA director Ken Lee says studying is “absolutely happening”. the MBA, a generic management qualification, has seen 25% growth a year for the past several years: from 137 in 2007 to 172 a year ago and 225 now. he has also seen a high level of interest from international students; up 50% on a year ago.

Lee says: “Mostly people study for career enhancement but in this climate there is more for job change too.” he says another trend is the shift to parttime study while staying in the job, for career enhancement, rather than fulltime study, which is more risky. [eNd] MARY MacKINVEN / WRITER Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.

WANT TO BECOME A BETTER EXPORTER? Then enrol now in the distance learning

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22 EXPORTER

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> BANKINg/FINANCE

Keep afloat, keep the house Business owners should keep their financing options open rather than rushing into remortgaging their homes.

I

BY VA L L E V E s O N

n these recessionary times, some businesses are finding they need extra funding to keep afloat, driving some to remortgage their homes. this is something the experts say is not a great idea, especially not when there are other options.

Westpac head of international business Barry squires says New Zealand banks are open for business.

“We have money to lend for good deals.” he says remortgaging the house is not a good idea – but the bank may expect you to have your house as security for a deal. “Our perspective is for businesses not to remortgage their houses, although there are a number of small enterprises that are doing it that way. the bank does take a mortgage as security, not to finance the business.

When we lend money, we like to see a personal guarantee from the directors – it’s too easy for business owners to

24 EXPORTER

KEY TAKEAWAYS > Remortgaging a home isn’t necessarily the best option for small businesses trying to keep their business afloat. > Talk to your bankers early if your business is faced with cash flow problems. > There is expectation that New Zealand will be out of the recession by the December quarter. > Factoring is a useful way to get funding against accounts receivable. > It is possible to get bank funding for pre- and postshipment orders.

walk away if things go badly, otherwise.

We don’t actually want to realise the home.” squires advises business owners to talk to the bank early. “that way you can get good advice, and the bank can know what’s really happening.” eYe oN aCCouNTS he advises that company directors keep strict management of all accounts, and be aware of forecasts. “We ask for monthly accounts – by doing that we keep a finger on the pulse of the business. Company directors should not be taken by surprise when they get into trouble. they need to look at their debtors and follow up rigorously.” squires says we have a robust banking system that can lead. he acknowledges that exporter customers are having problems. “they are being

we looK aT THe deBTorS, aNd oFTeN CaN PuT Forward 80-90% oF wHaT THeY owe So You CaN uSe iT Now.” S IMON T HOMPSO N, GENERAL M ANAGER O PERATIO NS, LO CK FINANCE, O N THE BENEFITS O F FACTO R ING

Westpac head of international business Barry Squires.

“If it’s a company like sainsburys in Britain, the decision is easy – there’s not much credit risk.” he says the risk would be that the quality of goods are not up to scratch and this is where it’s a good idea for a company to have insurance, as if there’s a commercial dispute it’s likely the bank will pass on the receivables back to you. there is more risk with pre-shipment funding as it’s hard for the bank to take security over stock. “If the stock’s in New Zealand it’s easier – but it’s harder if it’s offshore.” things to consider on the pre-shipment side are procurement,

our PerSPeCTiVe iS For BuSiNeSSeS NoT To reMorTGaGe THeir HouSeS, alTHouGH THere are a NuMBer oF SMall eNTerPriSeS THaT are doiNG iT THaT waY.” BA R RY SQU I RES , H EA D OF I N T ERNAT IONA L BU S INE SS AT WE ST PAC

affected by what’s happening in other countries – some importers can’t get funding to buy our exporters’ goods. they go back to the supplier and ask for longer financing terms, which can be difficult for exporters.” he says the bank needs customers to have firm orders when applying for funding. “the past 18 months have been tough for a lot of customers going through the downturn. If orders are going down, the directors can’t drive the company to grow. the timber industry, in particular, has had a hard time – there have been no orders for construction-grade timber to the united states. “It’s important to look down the supply chain – you may not want to close a factory or take away jobs – but that may be the best way to keep things going. some of these things are not the end of the world – things do pick up. the thinking is that by the December quarter New Zealand will be out of the recession. things have already stopped getting worse.”

FiVe QueSTioNS squires says that in these times businesses need to be manufacturing for orders, not stock. “Ask five questions: who are you buying from, when do you need to pay, how long will you hold inventory, who will you sell to and how will you be paid.” the key is to unlock the working capital cycle. It is possible to get funding for pre- and post-shipment orders. Post-shipment orders are easier – the bank researches the buyer’s credit rating and looks at the receivables.

and trade finance factoring. On the post-shipment side, letters of credit and open account receivable purchases are to be considered.

FaCToriNG Lock Finance has started an export factoring product. “up until now we have mainly dealt with domestic factoring,” says simon thompson, general manager operations.

Factoring is allowing funding against accounts receivable. “We look at the debtors, and often can put forward 80-90% of what they owe so you can use it now.” thompson says: “Most factoring is done on a recourse basis – if the debtor doesn’t pay, the client must buy the debt back.” As far as export factoring is concerned, Lock Finance networks with companies that can collect debts in other countries. he suggests that exporters should not sell overseas without letters of credit. he says: “We underwrite through International Factors group – if we have invoices and sales orders that have been accepted by other parties, we can supply funding. We can do foreign exchange services and forward money to the exporter in whatever currency they will be paid. What we’re offering is a straight forward product.” [eNd] * VAL ForLEVESON more ways of achieving extra funding for your / WRITER business, see the New Zealand Trade and Enterprise website on: www.nzte.govt.nz/fi nd-fundingVal is an Auckland-land based sub-editor assistance/Pages/Find-Funding-Assistance.aspx and freelance writer who covers career

issues, technology and business trends.

She has worked at the Northern Advocate in Whangarei, the Manawatu Evening Standard in Palmerston North and The New Zealand Herald in Auckland.

we ask exporters how they have coped with the tight credit market.

• “(We) Raised a mortgage on other properties.”

• “Priced below cost to turn slow stock into cash.”

•“sold investment property and reinvested it in our business and got rid of our bank overdraft.”

• “Raising money seems almost a dirty phrase. Input of personal funds has been the only option.”

• “used friends to help with funding as banks sit on their fat arses.”

• “Well, I don’t know if it’s radical, but I have added extra staff in their own business units and incentivised them to generate income - with the incentive the more they generate, the more they earn (and so does the company).”

• “We are fortunate that we haven’t had to raise more cash. But we are encouraging prompt payment, and better cash flow, by offering cheaper prices for 14-day payment. those who stick to the 20th of the following month generally convert to 14 days, depending on the incentive.”

• “Actually tried to lift deposit levels so that projects and export orders stay cashpositive.”

• “We’ve sold equipment we no longer use on trade Me. We recycle like maniacs (for example, use both sides of the paper/turn it into notepads) and have moved to JIt (just in time) with our training materials instead of keeping a lot of stock.”

EXPORTER 25

> LO g I st I C s

Journey of a green carrier It may be a long journey ahead but Maersk has taken on some real targets to be a “green” carrier.

T

BY YO KE h A R L E E

he dust has yet to settle on Julian Bevis’ desk. the new managing director of Maersk New Zealand has barely had time to register how clean and crisp the New Zealand air is compared to his last posting, India.

But Bevis is keen to send this message to Kiwi exporters – those who ship goods to foreign markets have to handle the concerns of global warming and environmental costs.

It is not easy selling this sort of inconvenient truth to clients – that Maersk is serious about carbon emissions (CO2) and is spending time and money on reaching some milestones in reducing its carbon footprint.

It is even less easy trying to tell exporters that at some stage, when green shipping gains momentum, exporters deemed to be conducting business in a non-sustainable way may risk not being able to ship via Maersk.

Food eXPorTerS In mid-July, Bevis made delivered his message to the sustainable Food Exports group (a government

26 EXPORTER

KEY TAKEAWAYS > Kiwi exporters need to consider how they move their goods to market. > Seafood exporters are under scrutiny on the sustainability of their business. > Maersk can help exporters measure their carbon footprint. > Maersk has pledged to within 10 years trim its vessels’ CO2 emissions (both owned and charter) by 20% per twenty foot equivalent. initiative formed in 2005 under the Ministry of Foreign Affairs and trade), whose aim is to reduce emissions and environmental impact from New Zealand’s food industries. the group was formerly known as the Food Miles group.

“AP-Moeller group made a key policy to operate all of its business in a sustainable and environmental way,” he says. At the meeting, he showed industry and government what Maersk’s green initiatives were.

As part of its green plan, Maersk Line

pledged to within 10 years (2007 to 2017) trim its vessels’ COÐ emissions (both owned and charter) by 20% per twenty foot equivalent.

By investing in technologies that enable vessels to operate smarter and therefore reduce CO2, Maersk is hoping it will be at the forefront of helping exporters meet the need to present a sustainable business case. iNTelliGeNT reeFerS In 2007, Maersk began to introduce QuEst— software for air sensing technology to help vary the temperature of a reefer (refrigerated container) according to need rather than full-blast cooling. this cooling control system also helps reduce damage caused to containerised commodities.

Based on this system, Maersk has been able to show a reduced CO2 emission of 30 kg per day for a QuEstcontrolled reefer. “these initiatives make a lot of sense. For example, we have a system for heat-waste recovery so you are not polluting,” Bevis says. the heat-waste recovery system captures heat from exhaust gas and uses it to provide energy for propulsion as well as onboard

electricity. this typically saves 10% in fuel consumption.

From the caverns of the engine room to ballast water, down to the paint used on a ship, many parts of a Maersk vessel are under scrutiny to help reduce carbon footprints.

In the past, a vessel’s main aim was to sail from port A to port B as fast as possible. But this is no longer kosher. speed has to be matched by economics. so Maersk’s Voyage Efficiency system (VEs) calculates the optimal average speed based on the data of vessels already arrived at the next port. this has the potential to reduce fuel consumption and air emissions by around 1%. sailing at a slower speed and using lower engine loads, Maersk found, can also help save fuel.

Bevis says although the Kyoto Protocol did not cover emissions caused by shipping, shipping lines are engaged with industries and governments to help deliver an industry solution to meet future emission standards. Maersk is able to help calculate CO2 emissions for its customers for a given port-to-port ocean corridor, and inland haulage.

Bevis reckons although these initiatives add costs to the shipping line

Managing director of Maersk New Zealand, Julian Bevis.

and, as a result, the shippers, over time there will be paybacks.

Maersk is also actively engaged with non-government organisations, such as the World Wildlife Fund (WWF), to ensure seafood exporters operate by standards that are deemed sustainable. the message, specifically for seafood exporters, is: “If we think you need to change, we put pressure on you.

If you persist, we may not carry your products,” Bevis says. this, Bevis says, is not a fad or public relations exercise. “We are trying to

bring about change although we can’t be judge and jury for all industries.”

Countries that support sustainable business may have a cargo policy on what is legally acceptable, he adds. the choices New Zealand makes as an exporter – in the way the country moves cargo around the world — will therefore determine how acceptable the exports are being shipped to consumers, Bevis adds. these decisions involve dialogue with different stakeholders on what questions need to be addressed on how New Zealand moves goods to market, he says.

As a small country a long way from anywhere, it makes sense for stakeholders to participate in voicing out – from a legislative standpoint – what is sustainable for New Zealand businesses, he says.

Maersk was in July named sustainable shipping Operator of the Year at the sustainable shipping Awards in London. [eNd] YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

www.maerskline.com

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With our complete range of cold chain solutions, our dedicated reefer specialists take care of your perishables from pick-up to delivery. And with our truly global reach, we ensure your products arrive in the best possible condition – anywhere in the world.

Maersk New Zealand Ltd The CPO. Level 3, 12 Queen Street Auckland, New Zealand T 0800 MAERSK (623775) F +64 9 359 3488 E NEZSALINS@maersk.com

June 09.indd 1

22/04/2009 12:24:37 p.m.

EXPORTER 27

> M A N Ag I N g C u stO M E R s

Gold mining

for customer information Costs may be off-putting but exporters with a large client database can access crucial information with an effective CRM tool.

28 EXPORTER

BY LOuI sE B LO C K L E Y

R

ecent advances in customer relationship management (CRM) technology mean Microsoft’s Dynamics CRM software can now analyse customers’ real-time conversations on twitter’s social networking site.

If cyber-snooping leaves you cold you may still warm to one of the off-the-shelf CRM systems or web-hosted solutions now available.

But first you must wade through a swamp of options from shiny-shod salespeople (real or virtual) to decide how much to spend and which bells and whistles fulfil your needs.

Alex van Dijk, sales and marketing manager for exporter rml Engineering Ltd, rigorously researched his company’s CRM purchase. On advice from a consultant familiar with several systems, he bought a single-user ACt licence for $200 and tried it out it for six months. he decided it would suit and went ahead with installation for about $6,000 a year ago. he says the system works well, particularly for the price. Previously rml used a Microsoft Access database which wasn’t regularly updated and was only available on the company’s hamilton server, so staff in Australia and the uK had separate databases.

Although he avoided ACt’s web-hosted version because of security fears and slow internet speeds, rml’s system can be used remotely.

MuST-HaVeS iN CrMS Van Dijk used six criteria to choose the best system – price, portability, local support, security, Outlook integration and self-configurability. “I personally use the ACt database as my address book for Outlook, which is really handy, so there is no double-entering.”

Alistair Innes, tropex Exports Ltd marketing manager, agrees the ability to manage staff calendars with goldmine CRM software is invaluable. scheduling conflicts can be ironed out before causing a problem. With 30 staff the system tracks all emails and contacts with customers and suppliers. several people may be in contact with customers at various times – goldmine allows Innes and others to easily see who has done what and when.

“Client contact is the number one thing we use it for – just keeping in touch with what the clients are

SaleSForCe.CoM iS THe CurreNT BriGHT STar iN THe CrM SKY For SMall BuSiNeSSeS. iT iS a HoSTed or weB-BaSed SYSTeM wHiCH SToreS eVerYTHiNG oNliNe raTHer THaN oN Your SerVer.

actually doing. Rather than having that information locked away in individual computers, it is all on the server,” says Innes. Wary of ending up with too much information eating into storage space, van Dijk switches off functionality for storing emails.

HoSTed, weB-BaSed oPTioNS the basic CRM system requirement is contact-management – a database of company, contact person(s), communication details and notes.

Other desirable functionality includes

KEY TAKEAWAYS > Basic CRM systems can be installed for less than $10,000. > Web-based or hosted CRM systems fit well with some business models meaning less investment in software and IT infrastructure. > Salesforce.com is a popular CRM solution among New Zealand SMEs. > Other recommended solutions include Goldmine and ACT. > In tough economic times CRM is being heralded as an important investment to retain customers.

the ability to do email campaigns, mail blasts, letter labels and mail merges. the CRM may include lead management and opportunity management – showing sales managers what account executives are doing and what is in the sales pipeline. Internet sales and other features can be included.

Once a company’s size and complexity becomes too much for the more basic systems, larger more expensive integrated systems become necessary.

Van Dijk prints off sales pipeline reports once or twice a week showing opportunities and what stage they are at. the same information is available once an opportunity becomes a project.

Both Innes and van Dijk would like mobile devices such as PDAs or smartphones integrated with their CRM system. they forsee mobile devices overtaking laptops on the road

although these are now prohibitive due to cost concerns. salesforce.com is the current bright star in the CRM sky for small businesses.

It is a hosted or web-based system which stores everything online rather than on your server. Many It solutions now provide a hosted system as well as software that runs on in-house hardware. the salesforce.com sales pitch refers to “old-fashioned” traditional client/ server CRM software as a “dying breed”.

Web-based software is heralded as the new approach, doing away with large capital investment for It. Like van Dijk, many are concerned about security of information stored on the web. But others argue specialist It companies are more efficient at storing information securely than most businesses.

Whatever solution you choose it is important to find a local agent who will sell it, install it and provide efficient backup. Innes says tropex Ltd eventually found an outside consultant who was proficient in the system and could do all the engineering and training. “the company that sold it to us is pretty much a retailer – it likes to think of itself as a solution provider but it very clearly showed it is trying to make big money out of a small amount of work. Of the system I would give it a seven or eight out of ten but, of the back up, I would be dropping that to a four or a five,” Innes says.

In a recent Exporter reader survey many small exporters reported they used a manual customer relationship management system - phone calls and visits. Others use Access or something similar, citing cost as prohibiting a dedicated CRM system. With basic systems installed with training for less than $10,000 coupled with the need for retaining customers in tough economic times, it seems a CRM is an essential item on any business wish-list. [eNd] LOUISE BLOCKLEY / WRITER Louise is an Auckland-based freelance writer who has recently completed an AUT Bachelor of Communication Studies in journalism. She has worked in the travel industry and for publications such as The New Zealand Herald and New Zealand News UK, London, in advertising sales.

EXPORTER 29

> F O R E I g N E XC h A N g E

Tracking the whimsical kiwi The New Zealand dollar is getting fundamental support from an improved economic outlook but remains prone to shocks from any bad news.

KEY TAKEAWAYS > The kiwi is on a winning streak but sharp upswings are unlikely. > Look for opportunities to cover when it looks like the kiwi is faltering. > There is a risk of bad global economic news blunting the kiwi’s rise. > Keep receipts in foreign currency accounts and remit when in favour.

T

BY YOKE h A R L E E

he whacky New Zealand dollar is unlikely to make a straight breakaway from 67c to head towards the 80c level against the greenback but a crash back to the 50c level is also unlikely, currency watchers and business leaders say. several global factors will continue to provide underlying support for the us currency which is seen making a recovery from its anemic former self. A stronger us currency will help rein in persistent gains by the kiwi. “the base story (for the kiwi) is that the economic fundamentals have improved over the past four to five months, past the deep dark tunnel.

In a general sense, the New Zealand recession is starting to bottom out.

Against this, the global backdrop is also improving,” says Danica hampton, currency strategist at BNZ Capital Ltd.

30 EXPORTER

> Don’t be fixated on being cheap; focus on creating winning products.

however, the kiwi is also strongly influenced by the global economy which is still likely to be spooked by signs of the global recovery being less than what the market expects. “the kiwi won’t see a smooth path up. there is a risk of correction (from the current 68c level as at August 31). We’ll see patches of weakness for Kiwi exporters to take opportunity,” hampton says. wHiMSiCal MoVeS Bob Fenwick, founder of Planhorse systems, which makes filing systems for plans and drafts, says the whimsical moves of the kiwi make it hard for larger exporters with fixed operating costs offshore to forecast.

“For those exporters who did their costings based on the NZ dollar being

at 60-62c this year – and we are now 12% or so more than that (in NovemberDecember) when last year we were at 55c – the situation is tough.” the kiwi’s volatility also makes it hard to price products. “When you have to quote your prices 12 months ahead — required in many cases — or if you want your products to go into a trade catalogue, you would shudder at the vagaries of the movement of the New Zealand dollar,” Fenwick says.

Fenwick’s company exports over 90% of its products and receipts come in six to seven different currencies.

A strategy that has worked for him is holding the different currencies in foreign currency accounts and remitting back to New Zealand dollars only when the rate is in his favour. “But in this economic climate, this (keeping

money in foreign currency accounts) is not easy to do as most companies need their cash,” he says.

Fenwick reckons the aussie is overvalued against the us dollar and when the aussie makes a correction against the us, it will correct against the kiwi.

But on balance, the Australian currency will hold better than the kiwi as the former has a bigger economy that is more diversified and less reliant on agriculture, he says.

Design and engineering consultancy rml Engineering’s managing director, Larry greene, says his company has recently taken cover on its aussie dollar needs as he fears the NZ dollar may rise further against the Australian. his view is that finding a comfortable level to go with and then eliminating as much risk as possible is a good policy to adhere to. “Our view has been that the level is about 85c to (the) Australian dollar and if it gets above that we are looking for downward movements and, if it gets too far below, it is not permanent.”

FoCuS oN ProduCT From healthcare product company good health New Zealand, the advice is not to be fixated on the currency but focus on creating a premium product that will hold its own even though the product will cost a little more.

Its chief executive, Paul O’Brien, says: “We have some natural hedging around our us dollars as our plastic resins (input) are bought offshore and priced in us dollars. I think the noise we hear from exporters is more about the volatility of the swings – which makes it hard to plan purchasing and promotion – rather than the strength of the New Zealand dollar per se. “If I know the kiwi is going to be 72c to the us for the next three years, I would say, I can live with that, and get on with my business.”

Neven Fisher, corporate foreign exchange dealer at Latitudegt, says: “For those exporters or importers out there looking to mitigate any currency exposure, the only real course of action is to take advantage of swings to historic highs or lows, depending on the exchange rate that you are exposed to.

“Many of Latitude’s clients work on low margin and turnover in order to make money. As an example, the 40% appreciation we have seen in the NZD/usD since March has had very material bottom line-effects on companies. the ability to manage these risks and take advantage of favorable market moves is paramount to staying competitive and, more importantly, staying in business.

“And for those exposed to the NZD/AuD cross, at current levels of 81.50c, this has represented value to some of the client base looking to gain some levels of cover,” Fisher says. the NZD/AuD cross has ranged between 85.10c in January to a low of 77.35 in April 09. [eNd]

YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

BNZ 2856 EXM 38x3 I_02.indd 1

7/9/09 9:31:37 AM

EXPORTER 31

> MARKEtINg

32 EXPORTER

Facebooking, tweeting as a way of life Kiwi exporters who are not leveraging the power of social media are losing out on a potent global channel for their products.

BY sA N g EE tA ANAND

N

ew Zealand exporters who have yet to embrace the powerful marketing reach provided by social media should quickly learn how to leverage these social media sites as a way to reach a global audience. there is no doubt social media will play a key role in the export-driven growth of the New Zealand economy.

With Facebook users exceeding 250

export industry, says Alister gates, partner at Kauri Point. “social media will allow New Zealand exporters entry into many more stages of the world’s export market.”

But most exporters have done their business well with traditional marketing all these years. Why should they bother about new media? “It is more a case of why wouldn’t the New Zealand export industry use these tools,” says Daniel thurston, creative strategist at brand design company 4i’s.

KEY TAKEAWAYS > Social media are particularly relevant to the export industry as a channel to connect with target markets and maintain valued relationships. > Social media tools are free; their penetration is worldwide. > LinkedIn is an useful resource for finding business contacts in other countries. > Export companies can engage freely in real-time dialogue. > Social media can help form powerful “affinity networks”. > Use social networks to canvass opinions, access expertise, run real-time research and test products. > Transparency and sincerity are important aspects of social media. > Social media use is a long-term strategy and can pay dividends.

million, LinkedIn 43 million and twitter 8 million, the tools are already serving as an effective marketing channel. these tools cannot be ignored Creating export blogs and twitter streams, adding customised pages on Facebook or creating videos on Youtube are all transforming the export process. these web 2.0 applications are here to stay and the export industry in New Zealand should use them effectively. social media are particularly relevant to New Zealand, as the address the country’s geographic isolation. If any industry stands to benefit, it is the

“social media tools are free; their penetration is worldwide; microblogging sites such as twitter provide an opportunity to listen to customers and consumers. twitter is a great source of market research: ask your customers

and consumers direct and engage in conversation with them about product development, demand and pricing — then make informed decisions.”

SHorT urlS In fact, tweeting (or twittering) is a very effective way to build the profile of a business, which in turn can open doors with distributors or other international intermediaries. Also, by using short uRLs you can use twitter to point followers to blog posts, third-party information/endorsements and send them to Facebook events and updates: a complete e-marketing campaign proposition.

While Facebook, Myspace and Bebo help to create a branding platform, LinkedIn is an amazing resource for finding business contacts in other countries. Export companies can engage freely in real-time dialogue in a way that’s more meaningful than any other tools. Exporters who use Youtube and ustream.tv receive fantastic opportunities for exposure, or webinartype training delivery. “these tools are developing and evolving exponentially.

If exporters don’t get used to them now, they’ll be left behind,” says thurston. this explains why New Zealand’s largest exporter is keen to use social media. Fonterra is already exploring opportunities in this area, says a spokesperson. seresin Wine is using social media

TweeTiNG (or TwiTTeriNG) iS a VerY eFFeCTiVe waY To Build THe ProFile oF a BuSiNeSS, wHiCH iN TurN CaN oPeN doorS wiTH diSTriBuTorS or oTHer iNTerNaTioNal iNTerMediarieS. alSo, BY uSiNG SHorT urlS You CaN uSe TwiTTer To PoiNT FollowerS To BloG PoSTS, THird-ParTY iNForMaTioN/eNdorSeMeNTS aNd SeNd THeM To FaCeBooK eVeNTS aNd uPdaTeS: a CoMPleTe e-MarKeTiNG CaMPaiGN ProPoSiTioN.

EXPORTER 33

Alister Gates, partner at Kauri Point.

Daniel Thurston, from 4i’s.

Tim Lightbourne and Winemaker Rob Cameron of Invivo at the New York Wine Expo 2009.

to connect directly with customers and sales representatives who sell and consume wine. Wine is a product people are passionate about, says MJ Loza, general manager. “We have people who are interested in seresin and want information about the brand. tools like twitter, Facebook and our blog have enabled them to follow us and to receive regular updates about what we are doing. It helps to keep seresin front of mind when they are making purchasing decisions.” aFFiNiTY NeTworKS, BraNd awareNeSS Epic Brewing Company has gone a step further and is using social media as the only form of marketing to communicate its brand. the company relies only on online media and social networks. “this is supported by

tastings so people have a chance to try the beer before buying it. this has also meant that the brand is more personal and engaging for those interested in drinking the beer,” says Luke Nicolas, general manager. the power of social media is the ability to form powerful “affinity networks” with people who share common interests.

Exporters can be actively involved with communities of people engaged in similar activity, research and non-competitive trading on a daily basis, says gates. social networks can be used to canvass opinions, access expertise, run real-time research (globally) and test product development. “the benefits of these networks also include sourcing potential business partners, supply chains, distribution

“SoCial Media ToolS are Free; THeir PeNeTraTioN iS worldwide; MiCroBloGGiNG SiTeS SuCH aS TwiTTer ProVide aN oPPorTuNiTY To liSTeN To CuSToMerS aNd CoNSuMerS…” DA N I E L T H U R STO N , C R E AT I V E ST RATEGIST AT BRAND DESIGN COMPANY 4I’S

34 EXPORTER

and manufacturing solutions. think of this as an extended set of business collaborators.”

But for Invivo Wines New Zealand, social media offer more than networking. they provide a way to connect with wine lovers, artists, designers and their communities in New Zealand and internationally. says Invivo marketing director tim Lightbourne: “social media are a way for members of your community to connect with your brand and for them to add their experiences to its story, creating a sense of belonging and a sense of participation that they are proud of. We see social media as a way to connect with people and maintain valued relationships and dialogue that fits with today’s lifestyles, anywhere in the world.”

In fact, some marketers can’t imagine running a business without social media. Yumiko grayston, who owns Kidsgear in New Zealand, recommends that the child/parent export industry in New Zealand should use social media to promote exports. “Without connections made on Facebook, it would be impossible to develop base customers.” however, social media are an interactive channel, and have rules that are different from traditional marketing. the channel calls for a paradigm shift for many marketers.

If you’re not prepared to be transparent and sincere, avoid these tools, says thurston. “If you can’t take criticism, be wary. social media are all about letting go of the control and inviting conversation — for better or for worse. You have to be prepared to hear negatives as well as positives,” he adds.

But they need time, commitment and a long-term strategy. “If all you do is spout off sales messages no one will stay long. Be helpful, a good listener and sales will follow.

“Also, social media are two-way – allow comments on your blogs and sites,” says thurston. Don’t quantify your return on investment on social media. the reach of your message knows no bounds and brand-building cannot be measured. [eNd] SANGEETA ANAND / WRITER Sangeeta Anand, is an international writer specialising in business, supply-chain and technology. She has written for several publications in New Zealand and overseas.

Clever Kiwi exporters need clever solutions CRICKET

gear to the english

Natura remedi l to Asia es

TO TH E AU ST RA LIA NS

And that’s where we can help.

Rugby jerseys to Australia, cricket gear to the English, natural remedies to Asia: these are just three Kiwi export success stories that New Zealand Post has played a part in. Whatever your business wants to send, and in what quantity, it’s more than likely we’ll have a solution for you. We have the products, services, expertise and advice to ensure nothing blocks your path to export success.

We have a range of international solutions to help you export your products to over 220 destinations around the world.

For more information, visit www.nzpost.co.nz/export

> gutsY PEOPLE

Viewpoint JeNS MadSeN CEO, PORTS OF AUCKLAND

NZ’s inter-modal infrastructure challenge Kiwi exporters risk being exposed to longer transit times and excessive cargo handling that will result in greater risks and higher costs unless the nation makes wise infrastructure decisions.

T

he global economic downturn has brought protracted changes to New Zealand’s export markets. As the world talks about the spectre of recovery, we know that it will take some time for the resurgence to be felt in New Zealand. the flipside of any crisis is that of new opportunities. As the country’s most significant port, and therefore, an important key player in the New Zealand supply chain, Ports of Auckland is responsible for contributing and developing new and more efficient supply chains.

In the immediate term, we want to support the recovery of the export trades with the best customer service and productivity. Over the longer-term, we want to expand

36 EXPORTER

our means to deliver greater benefits through more effective supply chains.

Overall – our purpose is to help improve New Zealand’s ability to compete successfully in global markets.

Already, Ports of Auckland is in a prime position to have a major impact on the country’s trading future. We are ready to cater to the next generation of larger container ships with a deep shipping lane and increased capacity. the presence of these ships in our waters will no doubt herald an improved supply chain service for exporters, with the goal being a series of welltimed spoke services calling around the country and ending in major hubs for trans-shipment. that said, for New Zealand to reap the benefits of this proposed future,

we have to be ready both inside and outside the port gates.

Ports of Auckland is actively playing its part with a range of initiatives. Our vision is to be the best port company in Australasia, with world-class performance, and in a major step towards this goal, we have recently consolidated our container operations over the Fergusson container terminal. dealiNG wiTH PeaK, ProduCTiViTY With all stevedoring staff now based at the Fergusson terminal, we are better equipped to deliver to our customers, and are better placed to resource peak periods. We are also looking forward to the efficiency and productivity improvements the

change will bring over the coming months.

A series of productivity initiatives have also made a mark on key measurements such as crane rate and staff hours per container – with respective improvements of 8.6% and 7.0% for the 2009 half Year (January to June) compared to the same period last year. several key initiatives including dual cycling (where vessels are being unloaded and loaded in the same cycle rather than sequentially); the twin-lifting of containers; and the dual-direction straddle driving have all helped lifted productivity to new highs almost monthly. the introduction of new Business Rules in conjunction with a new online shipment Management system is also enabling us to greatly reduce the number of internal ‘wasted’ container moves. With better information prior to container delivery, we’re able to position containers optimally and plan our wharf space more intelligently

– ultimately generating more capacity and the ability to service vessels and trucks quicker.

Outside the port gates, the Ports of Auckland is also making headway in ensuring the region’s future container transport capabilities are up to scratch. the development of a railsiding at our Wiri Inland Port is due for completion at the end of this year, and the resulting connection with the Waitemata seaport will allow exporters to enjoy greater use of the increased service options available at the inland port facility. so, the opportunity exists for New Zealand, as a nation, to capitalise on such initiatives and investments with strategic decisions that can cater to our long-term business growth.

While Australian ports are currently investing hundreds of millions on infrastructure, there is an ongoing risk that New Zealand could become a spoke off the major hub routes of international shipping. this would leave exporters with increased transit times, further handling of cargo and therefore increased risks and costs.

CoMPleMeNTarY SerViCeS the country needs a complementary, efficient, multi-modal transport network outside port gates to ensure we can efficiently deal with the changes ahead – more specifically the larger influx of volumes that larger ships will bring and take away.

I think, as a country, we need a greater insight into the intricacies and peculiarities of the New Zealand supply chain and current freight task through ongoing data collection.

From this, we will be able to make better-informed and better-coordinated decisions about infrastructure, strategy and investment to both prepare ourselves for the coming changes and challenges, and to ensure we are supporting the vital export markets as best possible.

In the meantime, Ports of Auckland will continue to work to provide a world-class service to meet the needs of our exporters, and contribute to an efficient and effective supply-chain to protect and enhance New Zealand’s ability to trade. [eNd]

Editor’s note: The views expressed above may not necessarily reflect the view of this magazine but we are happy to provide the space for gutsy opinion.

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EXPORTER 37

> MARKEtINg

Auckland RWC 2011 spokesman Michael Barnett (right) and NZRu Chairman Jock hobbs with the Webb Ellis Cup.

World Cup export opportunities AucklandPlus and NZTE will be spearheading export promotions and opportunities that come with New Zealand hosting the Rugby World Cup in 2011.

38 EXPORTER

BY M A RY M AC K I N V E N

H

elp for New Zealand businesses to take advantage of the Rugby World Cup tournament in 2011 nationwide was kickstarted this month with the launch of the guide to Opportunities. the detailed guide describes the tournament and its strict prohibitions on non-approved businesses claiming an association with events, as well as practical matters such as visitor profiles and needs, how to become a licenceholder or sponsor, and how to supply goods to the public and the teams.

It can be downloaded from www. auckland2011.com/business, which is also to be the single point of contact for tendering for projects nationwide in connection with the tournament, says tracy Moyes, manager of strategic projects at AucklandPlus (Auckland’s regional economic development agency). AucklandPlus has developed the tools in association with New Zealand trade and Enterprise (NZtE). group manager Clyde Rogers says AucklandPlus is preparing for the tournament in four ways: • making international linkages to attract investors; for example, through an investor forum; • producing guidelines and the tender website; • aiding business networking and sector showcasing; for example, through a thrive International event staged during the Rugby World Cup (Cup); and • getting businesses ready for an influx of visitors.

International activities are the focus of NZtE, which is holding events in association with All Blacks games overseas to raise awareness of

KEY TAKEAWAYS > Keep an eye on the official website, www.rugbyworldcup.com. > See the Guide to Opportunities on www.auckland2011.com/business > The opening and closing games of the Rugby World Cup are in Auckland (September 9 and October 23, 2011) and the other 46 games of the tournament will be held in 13 centres around the country. > New Zealand will be beamed to an estimated television audience of more than four billion. > At least 60,000 international visitors are expected. > Hosting Rugby World Cup 2011 is expected to pump more than $500 million into the New Zealand economy, with $112 million as tax revenue. > Contact NZTE project director Jo Parker at email jo.parker@nzte.govt.nz for opportunities to link your products to NZTE’s event tied to the RWC.

New Zealand hosting the cup, says Cheryl Crooks, AucklandPlus strategy and capability group general manager.

New Zealand Week in Milan leading up to the test match on November 14 includes a televised cooking show with 120 invited guests watching the All Blacks prepare meals with New Zealand ingredients whose suppliers will be named. An associated recipe book will be produced, detailing where in Italy to buy those ingredients.

MarSeilleS Food FoCuS On November 17, in London, there will be a business networking function for a targeted group of New Zealand companies and potential trading partners. A similar function will take place in Marseilles on November 28 with

a food and beverage business focus.

“People who are not our clients,” Crooks answers, “can still get in touch for procurement and networking.

All New Zealand businesses can be involved.” Crooks says there will be ongoing activities and she is looking at cup promotion opportunities at offshore trade events such as the 2010 World Expo in shanghai.

Rugby New Zealand 2011 Ltd, that plans and delivers the tournament, is leaving it to AucklandPlus and NZtE to manage business opportunities, says general manager of marketing and communications shane harmon. But he says despite the implications of the Major Events Management Act for association with the tournament (for example, using the term “Rugby World Cup” and the official logo without approval),

New ZealaNd weeK iN MilaN leadiNG uP To THe TeST MaTCH oN NoVeMBer 14 iNCludeS a TeleViSed CooKiNG SHow wiTH 120 iNViTed GueSTS waTCHiNG THe all BlaCKS PrePare MealS wiTH New ZealaNd iNGredieNTS wHoSe SuPPlierS will Be NaMed.

From left to right: Shane Harmon – Rugby New Zealand 2011 Ltd, general manager of marketing and communications, Clyde Rogers – AucklandPlus manager, Tracy Moyes – AucklandPlus manager of strategic projects and Cheryl Crooks, – AucklandPlus strategy and capability group general manager.

EXPORTER 39

THe MaSTer liCeNSor oF MerCHaNdiSe, liCeNSiNG iN MoTioN NZ lTd, GiVeS MarKeTiNG oPPorTuNiTieS To New ZealaNd CoMPaNieS wiTH aPProPriaTe CredeNTialS.

it’s “business as usual” for companies wanting to maximise opportunities from the event. A lot of companies will ramp up their marketing at this time.

MerCHaNdiSe harmon says the master licensor of merchandise, Licensing in Motion NZ Ltd, gives opportunities to New Zealand companies with appropriate credentials, before looking overseas. harmon expects there will be a second tier of sponsorship offered next year, below that of Emirates, heineken and Master Card. tickets go on sale in the second quarter of next year, and travel packages with licensed accommodation providers go on sale early next year through official travel agents.

Official New Zealand merchandisers include Yetimo, that designs branded promotional products — think pens, car covers, cricket bats … anything a company logo will go on. Exporters could provide branded gifts with purchases. general manager troy

Little says being licensed allows Yetimo to make connections that would not normally be possible, and likely double its staff to 10.“there’s no way you would get a foot in the door to these people [global sponsors] if you were the man in the street. And they will probably end up being a client of ours.”

Every item Yetimo makes has to be approved by the International Rugby Board team based in New Zealand (which takes about a week), and Yetimo pays a licence fee. “It’s a lot of money. But we will lift our profile and the value is substantial.

Little says: “It’s a huge opportunity for New Zealand business and government. What a thing to be gifted in a recession!” [eNd] MARY MacKINVEN / WRITER Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.

Survey Exporter asked a sample of export businesses if their organisation would benefit from the rugby world Cup 2011.

• the 76 respondents mostly said “no”. A number were not sure.

• One said he was disappointed that there had not been incentives to procure New Zealand products and services for the event.

• Among the hopefuls, one said some of his suppliers had benefited from being infrastructure suppliers when otherwise they may have pulled out of New Zealand due to the recession – which benefited him.

• Being close to the Viaduct Basin is expected to benefit a retailer due to increased foot traffic in the area. there is hope an influx of tourists will mean more product sales in New Zealand, generally. Others see opportunities to invite major overseas customers to visit them during the tournament.

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40 EXPORTER

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JEAN huNtER AND JENNY PIKE designed these practical yet stylish wallets out of frustration at not being able to find what they wanted for themselves – a hands-free, wearable purse to sling over your shoulder when popping into a shop or for a night out without the worry of a bulky handbag. the range of wallets became so popular they soon gave up their jobs to design, manufacture and market them.

Able to be opened and used while still over your shoulder, the design has hit a chord with women of all ages, from young night-clubbers to mums with full hands. With a purpose-built workshop in Northland and a growing international customer base via their website, hunter and Pike will soon be targeting northern European trade shows.

thIs INtERACtIVE 4D sPACE craft simulator has innovation stamped all over it. More than four years and several million dollars of research and development in the making, with audio visual and motion technology to blow your mind, this flying saucer is unique. You step into the 16m-diameter 64-seater craft and strap yourself in for the ride of your life. With a spherical movie screen, seats that travel up to 2m without jolting, complete with g-force acceleration, holograms and interactive buttons on the armrest, this technology is lightyears ahead of any competition. space Dome technologies Ltd founder Dennis hyde says there is nothing like it in the world. taking his craft to the 2008 International Association of Amusement Parks and Attractions Expo in Florida created a lot of international attention, new partnerships, shareholders and potential orders.

After feedback from interested parties the design was revised to use lighter materials and a third less power. the flagship craft is going into skyline’s Rotorua site mid-2010 with another planned for the south Island. Potential international buyers are keen to see these up and running but there are several sites waiting for lift off. this is certainly one to watch.

FOR MORE INFO SEE WWW.HUNTERANDPIKE.CO.NZ

FOR MORE INFORMATION: HTTP://WWW.SPACEDOME.CO.NZ/

The Zorb thE guYs At KIWI COMPANY ZORB invented a 3.3m-diameter inflatable, transparent sphere 14 years ago then decided it was a good idea to roll down a hill inside it. And what an idea it was – the sport of globe riding was born. the Zorb family began in Rotorua, which is still the flagship site, with over 50,000 people a year walking through its doors and rolling down its hill. there are two types of rides – wet or dry. In the Zydro ride cool water is added in summer and warm in winter so you can run, tumble, flip or slide inside, as the globe hurtles downhill at speeds of up to 30 km/h. In the dry Zorbit you are harnessed inside the globe riding head over heels downhill. You watch the ground and sky go spinning past at speed for more of a physical challenge than the Zydro.

Zorb smoky Mountains is the latest addition and is currently the only official site in the united states. With tracks almost twice as long as Rotorua the adrenalin really pumps on this one.

With several locations throughout the world already, the company is on the lookout for new sites and people to establish official Zorb franchise operations.

FOR MORE INFORMATION: WWW.ZORB.COM

Wearable Wallets

EXPORTER 41

> t R A D E FA I R s

Clear goals, sharp focus can lift trade fair success Don’t land last minute at a trade fair. Be clear about why you are there and understand how to deliver the story for your products.

I

BY sA N g EE tA ANAND

n these difficult economic times, international trade shows offer a cost-effective channel not only for business research but also for business development. But exporters, especially those with limited resources, must plan well to get the most benefits, and such planning should include factors to consider before, during and after the event.

42 EXPORTER

BeFore THe Fair this is the most important part. this is where you’ll define budget and identify the right event to attend, confirm staffing needs, plan promotional material, get operational details from organisers and plan your pre-event marketing. start with the end in mind. Why are you participating? “My experience is that you have to be focused about what you hope to achieve and target the whole experience at that outcome,”

says Brian Willoughby, managing director of Christchurch-based Plinius Audio Ltd. “Are you hoping to grow more distributors for a variety of territories, or get some retailers in one or two particular territories, or reach the end user, or simply raise brand awareness? Are you hoping to have meetings with existing distributors at a convenient assembly point, thus saving you a lot of travel? Maybe you have a new product to launch.” Answering

KEY TAKEAWAYS > Ask why you are at the fair — is it to raise market share or introduce new products/services? > Understand your host country’s culture, economy and business climate. > Make your exhibit a standout with an eye-catching, welcoming stand. > Book space using a modular stand design for cost-effectiveness. > Know the stand specifications: size, flooring and lighting. > Ensure staff arrive early at the location. > Recognise your visitors’ profiles and limit the time spent with prospects. > Gather leads, save the selling for later; follow leads within a week.

(Source: New Zealand Trade and Enterprise)

those questions will help with the major decision of whether to have a booth or not. “Maybe you only have a hotel room at the same or nearby venue where you invite people for a formal one-onone meetings. Occupying a booth at a trade show is a poor venue for detailed discussions about performance in a

Brian Willoughby, managing director of Christchurch-based Plinius Audio Ltd.

particular territory, but a hotel room near the show is no good if you are fishing for general exposure,” Willoughby says.

Once you know your objective, identify the right trade show. try to stick with industry-specific shows where customers are genuine buyers.

Reduce costs on trade stands.

While considering staffing needs, it is easy to overlook local culture. “In our case a local person is invaluable,” says Willoughby. “Local customs, local information about dealers and some decision influencers are critical to us. Our misunderstanding of local language and different behaviour patterns would wreck any attempt if we tried on our own,” he adds.

Also, organise all your marketing materials beforehand and have a contingency plan in case any material doesn’t arrive on time.

duriNG THe eVeNT While it is tempting to save costs, don’t rely on your distributor to sell your products.

“Letting your distributor or an agent man the stand results in your information being second-hand and possibly clouded. Who better to sell your story than you? It’s a Kiwi story that should be delivered by a Kiwi,” says sally symes, trading manager of New Zealand Winetraders Ltd. “Also if the stand belongs to your agent he may represent several products. he will then be spreading his focus,” she adds.

Don’t handle the show on your own.

Work with a colleague and take lots of breaks, so you can stay fresh, says Alison Vickers, marketing director of the New Zealand school of Export. “having someone alongside can perk you up, and it also means you still have enough energy for meetings with prospective clients.”

And never go the night before in the hope that you will get a good night’s sleep, says Dr Romuald Rudzki, director of the school. “You’ll look and feel dreadful the next day.”

Don’t forget the presentation

of your booth. It’s important to professionally present products and company brochures, set up tV presentation and hire locals, says Dehua Pan, Asia business development manager for Mathias Meats (NZ) Ltd. “Demonstrate how to use the product. For example, if selling meat, hire a chef to demonstrate cooking and encourage visitors to try.” get customers involved. Offer samples, two-for-one deals and halfprice offers. If selling food products, for example, get your product into customer kitchens.

Dehua Pan, Asia business development manager for Mathias Meats (NZ) Ltd.

Keep a notebook to record feedback or inquiries. Collect email addresses to send your email newsletters. talk to as many participants as possible. use customer enquiry forms and get visitors’ business cards.

Walk around to learn from competitors. get the exhibition participants’ book for follow up.

If you’re just a visitor, spend time at the booths of big suppliers. Ask and listen — don’t window-shop, says Pan. “Attend topic-specific seminars; don’t waste time at seminars for general industrial promotion.”

PoST Fair “Allow some free time after the show to follow through on any leads that might eventuate that are completely unforeseen,” says Willoughby.

Evaluate your participation. Measure achievements against objectives, effectiveness and performance, and costs and sales, noting what worked and what didn’t for future events. [eNd] SANGEETA ANAND / WRITER Sangeeta Anand, is an international writer specialising in business, supply-chain and technology. She has written for several publications in New Zealand and overseas.

Dr Romuald Rudzki and Alison Vickers from the New Zealand School of Export.

EXPORTER 43

> INsuRANCE

Insurance risks lurk round every corner Shippers should review the value of cargo insured and limit reckless trade exposure in this uncertain economic environment.

44 EXPORTER

the global credit crisis is over and the economy is now in recession/depression,

Carrier riSK there is a greater risk of carrier bankruptcy, so an exporter needs to be on the ball with perishable product to move it on to market at additional cost on another carrier. Delay is not usually an insured risk. ship values have decreased and thereby increased the proportion of salvage and general average costs allocated to cargo insurers. “this is likely to continue for at least the next 18 months,” says McKelvie.

“Exporters who charter vessels present a greater general average and salvage risk as theirs is often the only cargo on board.”

SHiFT iN CarGo Value shipping companies have cut the number of vessels on their scheduled services so more containers will be loaded into vessels. “therefore per vessel [insurance] limits need to be re-examined. Cargo policy limits may have been set when the exchange rate was around NZ$1 to us80c, whereas now it might be us65c. For example, a shipment might have risen in value from NZ$937,500 to NZ$1,154,000. should the policy have a per vessel limit of NZ$1m and there was a total loss … watch those limits,” McKelvie says.

Costs have certainly increased in the area of trade credit insurance, due to the economic environment, increased claims activity and pressure from re-insurers. Premiums have increased a minimum of 40% at all insurers, says Mike Kayes, QBE Insurance trade credit manager for New Zealand.

Kayes says prices will keep increasing but he’s expecting stabilisation through 2010.

Claims are more frequent overall, and particularly in the wool industry that QBE Insurance recently exited altogether.

Kayes says even fruit and vegetable exports have suffered payment hiccups, despite terms of trade being in place. “the importer says ‘the market has shifted and I can’t pay you anymore’. When he is 6,000 miles away and then says I will pay you less [than agreed] …“It’s just supply and demand and it can happen overnight.

If it takes five or six weeks to get to market, your product might be on the water when [your importer goes out of business]. “Exporters who have never looked at trade credit before are now,” he adds.

David Huey, managing director of Atradius Credit Insurance.

John McKelvie, Vero Marine underwriting and risk manager.

Mike Kayes, QBE Insurance trade credit manager for New Zealand.

BY M A RY M AC K I N V E N

T

he rate of company insolvencies has steeply increased in nearly all markets and greater caution is required before goods are despatched or services are provided, warns managing director of Atradius Credit Insurance for Australia and New Zealand, David huey.

“Finance support and insurance cover are important pieces of the transaction but the exporter needs to be diligent even with these facilities in place.”

His insurance tips in these times are: • Review terms of trade to make sure they are relevant and not extending the risk date out unnecessarily. While open credit terms are designed to facilitate trade, they should not be exposing the exporter to more risk than necessary.

• Contracts should be reviewed to ensure terms are clear and the possibility of disputes minimised.

• Different countries can have wildly different responses to the global financial crisis. gather as much information on target countries and individual customers as you can before agreeing to terms. trading history is no longer a strong enough reason on its own to offer open terms.

• Credit insurance should be used as a back up, not a reason to trade recklessly. Information about the markets you are dealing with is critical and a credit insurer provides valuable market intelligence when approving or denying limits. Make good use of all resources available to avoid loss through non-payment.

KEY TAKEAWAYS > Due to fluctuating exchange rates, a shipment might have risen in value from NZ$937,500 to NZ$1,154,000 … watch those [insurance] limits. > Those who have nurtured a good distribution network overseas – and selected a quality marine insurer here in New Zealand – will fare relatively well. > Exporters who have never looked at trade credit before are now. > Check out the New Zealand Export Credit Office credit guarantee products at www.nzeco.govt.nz or phone 04-917 6060. > Make good use of all resources available to avoid loss through non-payment. according to Vero Marine underwriting and risk manager John McKelvie. this has to be good news for cargo insurers, but there are still warnings to heed.

EXPORTER 45

Survey Exporter asked a number of companies if their insurance policies had to change in any way because of the recession; and what changes they have had to make.

• Of the 76 who responded, most have yet to take action to deal with the changing environment.

• A few mentioned shipping costs had lowered due to decreased freight volumes but they did not alter their insurance cover. One noted several third-party partners had gained export credit, to his advantage.

• however, some had cut back on cargo cover and one had increased income protection. Another increased the company’s excesses while one exporter secured an improved premium through a broker. One company stopped indexing for inflation.

eXPorT CrediT oPTioN If private insurers cannot help, exporters can talk to the government’s New Zealand Export Credit Office (NZECO). the NZECO provides guarantees to traders and/or their banks, traditionally for exporters’ long-term contracts with clients. It also began offering the short term trade credit guarantee this year as a response to the global financial crisis. the NZECO recently entered into a “top-up cover” arrangement with Euler hermes trade Credit. under this arrangement administered by Euler

Carmen Moana, manager of the NZECO.

hermes, the NZECO may underwrite an excess layer of cover that replaces primary cover that Euler hermes has partially withdrawn on an exporter’s buyer. the NZECO may also be able to offer a top-up layer of cover where Euler hermes has only partially approved the buyer limit that has been requested by the exporter.

A similar reinsurance arrangement is being negotiated with Atradius Credit Insurance.

A range of companies is using the short-term guarantee, such as those in the pip fruit industry, manufacturing, wine, timber and

CHOOSE RED_

primary commodities, including those new to exporting.

NZECO manager Carmen Moana says product applications close in June 2011 – though the guarantee stands for shipments for a year after that. to apply, go to www.nzeco.govt.nz Moana suggests exporters phone the office and discuss their needs first. [eNd] MARY MacKINVEN / WRITER Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.

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46 EXPORTER

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> PROFILE

Going virtual

L

et’s face it – websites are necessary but old hat. they no longer say you are cutting edge, that you are an innovative company or a trailblazer; or that you use technology to its best potential. so how do you move forward with your online presence and supplement your trade show attendance by accessing a much larger audience than the one that walks past your booth?

Recently published research by Event Marketer Magazine suggests that there will be more than 100,000 virtual events – trade shows, job fairs, conferences and online seminars – a year by 2011.

Frances Manwaring, chief executive of Virtual Expos New Zealand, says going virtual makes good business sense. “It should be an integral part of any company’s marketing mix. In conjunction with a physical presence at, say, a trade show, you can have a virtual shadow – where you do pre-event marketing, have video discussions with customers and follow up online. At the trade show you can invite people to attend your broader event online.” the fact is

that technology has reached a level of sophistication that makes such virtual expos a genuine alternative, or complement to physical events.

Manwaring says that such events are taking off “like a rollercoaster” in the united states.

“We have set up a national virtual expo — ExpoNZ — where we run a range of differently themed expos.

Companies wishing to engage with international audiences can set up virtual booths with integrated video chat features via a simple admin panel.

As an exhibitor, you can involve as many or as few booth staff as you want, particularly during `live phases’ where you are interacting directly with potential customers, as you would at a physical trade show.”

Manwaring says the benefits of Virtual Expo are: increased productivity – staff manning the booths have no travel time to consider; reduced marketing costs and a good return on investment; brand publicity; leads; and enhanced profile and networking. “going virtual can achieve really good leads for less money than ever before.”

Manwaring says pricing depends

on how long you want to be online and what conference event you are wanting to join. “For example, the cost of participating in a particular event starts from $3,000 and includes full training, technical and design support for booth set up, rental of an online booth for a month, participation in two short conference-style events, as well as benefiting from our targeted marketing programme. Companies can also take an annual presence at a cost of $12,000,” he adds. [eNd]

Virtual expos New Zealand ltd Runs virtual events that showcase and sell the best of New Zealand to global audiences, and enable people everywhere to get a taste of New Zealand. The virtual environment includes exhibition halls, trade booths, a career fair and a conference centre where live conference style presentations are streamed to national and international audiences.

Chief executive: Frances Manwaring email: frances@virtualexpos.co.nz Telephone: +64 27 208 8515

EXPORTER 47

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> M A N Ag I N g E X P E N s E s

Money in the door ďŹ rst Knowing what your big spend is can go a long way towards helping you slash and burn the hidden costs in your business.

EXPORTER 49

BY st E V E h ARt

W

hile the green shoots of economic recovery may be about to sprout, plenty of business owners are still struggling to make ends meet. Wielding the blunt instrument of redundancies is one way of making savings, but business adviser Paul Wilton says managers need to take a careful approach to costs so they will be in a strong position when the upturn gathers momentum.

Wilton is CEO of business information and support service Financial & Business Advisor. he says that before cutting expenditure, efforts should be directed at bringing money in the door. “the best way to improve your bottom line is to improve sales,” he says. “Even a small percentage increase in sales will have a much higher proportional impact on your bottom line than cutting costs. that is the first thing a business owner should look to do.”

Wilton, whose firm has been advising business owners since 1995 via its annual subscription service to a bank of business specialists, says when it comes to cutting costs, business owners should only reduce their advertising spend as a last resort.

“Once a firm has done everything it can to increase sales then you can start looking at what you are spending,” he says. “One of the big mistakes firms tend to make during hard times is to reduce their advertising. But the things you don’t want to cut are those that bring in revenue. If an advertising campaign is working then the last thing in the world you want to do is cut it back.”

KNow eVerYTHiNG Before making any cuts, Wilton says business owners need to know everything about every cent they are spending and understand what they are paying for. he recommends a twice-yearly or ongoing review of all costs – especially big-ticket items such as manufacturing materials, office accommodation, transport and staff.

“Many businesses tend to do the

KEY TAKEAWAYS > Refinance your loans to get a better rate. > Look at renting cheaper premises. > Trim your added value components to save money. > Use contractors or outsource work at busy times instead of taking on more staff. > Sell unwanted machinery and use the cash to reduce your debt. > Keep on top of late payers – keep the cash rolling in. > Restrict business travel. Ask staff to do more by phone or to roll trips together. > Have clear rules about private mobile phone calls and internet usage. > Block data-hungry sites such as YouTube to reduce your internet bills. > Skype – use the free computerbased phone system to make calls (www.skype.com). > Software – consider using free open source software (http://directory.fsf.org/). > Ask staff for their cost-cutting ideas – you never know what they might suggest.

same thing over and over again – even if it is not working,” says Wilton. “What one needs to do is to continually analyse all aspects of the business and ask ‘why are we doing this’ and ‘is it delivering value for money’. And if you don’t know why you are spending money on a particular service or if you are not getting good value for money, then stop it. “the key is to start by looking at the larger costs first. For example, phone companies are becoming more competitive – particularly in the mobile phone market – so perhaps now is the time to look at those costs. “Once the large costs have been fully reviewed then start to look at smaller, more frequent ones – to see what can be

wHaT oNe NeedS To do iS To CoNTiNuallY aNalYSe all aSPeCTS oF THe BuSiNeSS aNd aSK ‘wHY are we doiNG THiS’ aNd ‘iS iT deliVeriNG Value For MoNeY’. aNd iF You doN’T KNow wHY You are SPeNdiNG MoNeY oN a ParTiCular SerViCe or iF You are NoT GeTTiNG Good Value For MoNeY, THeN SToP iT.” PAU L W I LTON , C EO OF F I N AN C I A L & BU S INE SS A DVISOR

50 EXPORTER

trimmed or cut. It is a good time to shop around.” Wilton says having premises is a big expense that all business owners should review. he says that while some businesses could be run from home, many managers could probably run their operations from less expensive locations.

THe real Killer It is a view shared by Marcus Moufarrige, CIO of serviced office company servcorp, that has been operating in New Zealand since 1989. he says sharing office space can help firms reduce accommodation costs and remove layers of problems – such as cleaning, providing refreshments, front of house and buying complex phone systems. Not only that, businesses can rent space from servcorp for a month at a time. “the most expensive part of running a business is setting up a professional office,” says Moufarrige.

“With serviced office accommodation you can rent what you need and expand and contract as required.

For example, you may only need a meeting room once a month. With us, you’d book the room and pay for what you need.”

As an example, Moufarrige says a firm renting a building to service four executives can typically reduce its office rental costs buy up to 50% by going with servcorp, when compared to doing everything itself. “I have done a lot of analysis on total cost of ownership and running an office,” he says. “And we can provide what businesses need for between 30 to 50% cheaper than the cheapest way of doing it. “there are a lot of hidden costs in setting up an office that many people don’t think about – from the newspapers that get delivered every day, to electricity and security. they are all part of the service in servcorp buildings. What we call rent is pretty much everything a business could need to operate.” [eNd] oN THe weB: www.businessadvisor.co.nz www.servcorp.co.nz STEVE HART / WRITER Steve has been working as a news reporter and journalist for more than 20 years. He left APN in 2007 to work as a freelance reporter covering employment, careers, business, technology and digital photography.

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> EYE ON EXPORtERs

No ambition, no go New Zealand’s ability to raise its export profile is limited by a lack of government vision and a lack of willingness among many SMEs to take the road less travelled.

BY YO KE h AR L E E

D

o Kiwi exporters lack ambition to push for the big deals or are they simply intimidated by the task of doing the hard yards to tackle global

markets? the answer lies somewhere in between, business observers say. some Kiwis have low aspirations while those with big goals have little experience to tackle the globe. to compound the problem, New Zealand is stuck in a generational time warp where baby boomers – who make

52 EXPORTER

KEY TAKEAWAYS > Exporters with ambition often lack know-how. > Many business owners don’t want to travel far. > National-led government has been “slow” in driving exports. > New Zealand’s education system does nothing for exporters. > New Zealand still lacks an export growth strategy.

up the current generation of business owners – are still waking up to the fact that many travelling hours are required to build a successful exporting nation.

Alasdair thompson, chief executive of the Employers and Manufacturers Association (Northern), maintains that many small- and medium-scale enterprises (sMEs) are happy with the status quo although they could be doing better. “they are quite happy to stay at that level rather than export – and as business owners, they have the right to set the pace they want to go.”

New Zealand ranks 24 out of 134 countries on the 2008 global

competitiveness index. Kiwi business sophistication is also lower, in 34th place, against Australia at 26 and Norway’s at 15.

New Zealand needs to be more ambitious in building international companies, industry leaders say.

Andy hamilton, chief executive of ICEhOusE, an incubator for growing Kiwi companies, says: “this is the dichotomy. there is a group who need more aspirations. then there is a group with aspirations who need help.” “We could be more effective in providing the help,” hamilton says, although he is of the view that the government is on the right track with its programmes for building capability and reaching new markets.

ParalYSiS But nine years under the Labour-led government has built paralysis into the system and National hasn’t shown speed

i aM 40. wHeN i weNT THrouGH SCHool THere waSN’T THiS awareNeSS THaT BuildiNG aN eXPorT eCoNoMY waS iMPorTaNT. THaT’S CHaNGiNG. we HaVeN’T Had eNouGH PeoPle wHo HaVe BuilT iNTerNaTioNal BuSiNeSSeS BuT we Now HaVe a MiNoriTY oF BuSiNeSSeS THaT waNT To Build aN iNTerNaTioNal BuSiNeSS THaT we Need To FoCuS More oN.” A NDY HA MILTO N, CEO ICEHO USE

MiNdSeT CHaNGe It takes at least a generation to acquire a mindset tuned into exporting, the ICEhOusE’s hamilton says. “I am 40.

When I went through school, there wasn’t this awareness that building an export economy was important. that’s changing. We haven’t had enough people who have built international businesses but we now have a minority of businesses that want to build an international business that we need to focus more on.” thompson, from the EMA, says there are exceptions, such as Bob Fenwick

From left to right: Alasdair Thompson – chief executive of the EMA (Northern), Andy Hamilton, – chief executive of ICEHOUSE and Software entrepreneur John Blackham.

in putting its plans in actions either. “the Labour Party, when you really expose them, there are individuals who are deeply suspicious of business. As for National, nine years in opposition didn’t really do anything for them when they became government,” thompson says.

While Prime Minister John Key’s six-point policy initiative (improving regulatory reform, investment in infrastructure, better public services, education and skills, innovation and business assistance, and a world-class tax system) have highlighted areas that need improvement, implementation has been slow, he says.

New Zealand’s export as a percentage of gross domestic production is less than what smaller OECD countries achieve. the prime minister highlighted this aberration in June – the export contribution to gDP has been slow to grow. Over the past 30 years, 90% of our exports come from just under 5% of our exporters.

of Planhorse systems. he represents an older business generation whose marketing odyssey takes him around the world. “Around 90% of what he produces is for the export market. how many guys in his age group (50-70 years old) who run their business are willing to be constantly travelling?”

Planhorse exports filing systems for oversized plans to over 60 countries.

Fenwick, Planhorse’s managing director, blames lack of export willingness on the education system, which he says does nothing to imbue students with interest in international trade. “the biggest frustration for sMEs is the lack of a ready pool of young talent — people are prepared to be away from family and be disrupted from nice easy weekends – to do the marketing.” software entrepreneur John Blackham thinks Kiwis have ambition but lack know-how to tackle the global market. Innovators tend to reinvent the wheel and lack a mechanism to

assess whether their innovation is new at all and, if so, whether there is a global market, he says. “We do not have the mechanisms in place to overcome the ‘proximity to customers’ issue that would make us successful,” Blackham says. he sits on the APEC Business Advisory Council advising the government on policy matters. he highlights the success of a company like Procter and gamble which in 2005 introduced an innovation programme that sources 50% of its R&D from 15 innovation centres around the world. that has helped it reduce its R&D costs by 25% and increased revenue and margins. “the problem with our innovators is that 30% of government funding actually goes into research that reinvents the wheel.”

Failures Kiwis have experienced have also been a deterrent for others with global ambitions, Blackham says. the government’s Beachhead programme is half-way to what’s being required.

But Blackham notes that the name itself sends a wrong message – that of invading a territory – rather than building relationships with people in the target markets.

An approach the APEC Business Advisory Council is working on is helping member countries promote the concept of linking innovation to an existing distribution plan or network.

Blackham says going global is tough.

“It is how we go about climbing Mt Everest. It is a very big mountain to climb, you have to leave the nest, and so far, we have a poor strategy to help exporters fulfil their ambition. that creates failures and deters people from trying.” [eNd] (Note: As this magazine was being put to bed in September, The World Economic Forum’s latest 2009 ranking saw New Zealand move up four places to rank 20th in global competitiveness.)

YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

EXPORTER 53

> MANAgINg EXPENsEs

Opportunities for travel savings It doesn’t have to be that hard. Planning company travel in advance can help trim travel expenditure.

F

BY VA L L E V E s O N

or any exporting business, travel is a necessity. It’s about going to trade fairs, being in the markets you’re targeting, meeting distributors and finding new opportunities. travel is a cost of doing business – but how you go about booking your travel can make a big difference.

What serves you better – organising your travel through an agent or looking for deals yourself? steve Ovens, sales and marketing manager of Carlson Wagonlit travel, says agents offer many opportunities for savings. “there would be an expectation of saving at least 20% of travel costs. “I’m saying that, of course, without knowing the size of a given company’s travel programme.”

PoliCY a MuST Ovens, and Chris Paykel, Wagonlit travel’s head of programme management, say the most important thing for a company to do is establish a travel policy and make all staff aware of it. “We have a policy-builder programme

54 EXPORTER

KEY TAKEAWAYS > Save time better spent on core business by getting an agent to organise your travel. > A proper travel policy is vital. > Agents often group their smaller clients together to create bulk negotiating power. > Booking international flights ahead can save a lot of money.

that has been worked out with looking at like-sized clients and putting together best-practice solutions. We then focus on our particular client and see what works best.” the travel policy looks at who needs to travel and when, and highlights exceptions to the policy. In this way it’s easy to see if there are people in the business not going through the correct processes and perhaps overspending. It highlights non-compliance, they say. grant Bevin, managing director of Business World travel, says smaller companies may not think they need

to go through a travel management company, but it can be very advantageous whatever your size. “there are benefits for our small- and mid-sized New Zealand clients and international companies because going through us gives them more buying power than their size would usually allow. “how it works is we collect our smaller clients together and co-ordinate them as a collective. For international travel, we work with international partners and use our and

Steve Ovens, sales and marketing manager of Carlson Wagonlit Travel

their purchasing power to negotiate as if we were dealing with larger accounts. through combining our clients, the little guys get access to similar buying power as larger companies.”

Bevin says ways of negotiating with hotels change regularly – an agent keeps in touch with the best deals.

“We look for the best available rate.

We use the global Distribution system (gDs), which is quick and fast. Rates can change every day and sometimes we can achieve 50 to 60% off,” he says.

Because of bulk buying power, clients are not restricted to a minimum room nights.

“We can access good deals for rental cars by negotiating on our client’s behalf. We do look at best value rather than rate, and what sort of car is required,” he adds.

Bevin says using the internet yourself to make travel plans is fine for leisurebased travel. More knowledge and buying power is required for business travel. “Also, if you’re trawling the web finding travel deals, you’re taking time away from your core business. that can be costly too.”

Websites are like brochures, he says, in that they don’t always give a true reflection of what a hotel or car company is like. Agents, however,

usually have a good idea of what’s available and what’s best for your needs. “We have a network around the world and check hotels. We know if there’s mould in the bathroom!”

Bevin says booking ahead can save costs when doing international travel – and that can mean catching “deep discounts” for business class tickets.

“We do encourage our clients to set their dates, even if it means paying a small fee to change the flight – doing this can save thousands.”

BooK aHead Nicole Manilal, sales and marketing executive of Executive travel group, says: “We recognise that booking in advance is not always possible. however, in by far the majority of companies we have gone through this process with, we identify a level of change that can easily be made, with significant results. “For instance, we recently suggested to a medium-sized travel account [about $300,000 a year] that they reduce their use of flexible fares for domestic and transtasman travel by just 12.5%, and this resulted in a saving of about $10,000 a year.”

Zeacom, an exporter of unified communication technology, uses Business World travel.

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Bevin says: “Zeacom has adopted our serko Online Booking tool to help streamline its domestic and tasman travel authorisation and booking processes for the travelling employees of Zeacom. We analyse travel spend and booking patterns for Zeacom’s management through regular reporting, which assists in budgeting, establishing emerging travel patterns and cost containment.

“Longhaul international travel is booked by Zeacom travellers themselves, directly with our team.”

Zeacom CEO Miles Valentine says: “the relationship our company has with its agent works, and I don’t have to think about it much. We’ve been dealing with them for about 10 years and through them we get the best prices. “I see them as being good value and we get as competitive deals as we can get. the service fee we pay is offset by what we save in travel costs and efficiency,” he says. [eNd] VAL LEVESON / WRITER Val is an Auckland-land based sub-editor and freelance writer who covers career issues, technology and business trends.

She has worked at the Northern Advocate in Whangarei, the Manawatu Evening Standard in Palmerston North and The New Zealand Herald in Auckland.

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EXPORTER 55

TOOLKIT

E X P O R T E R ’S

usE usE FuL tOO Ls EXP ORt ERs CAN lou iSe Blo CKl eY LOO Ks At

Are you ready to export guides?

FOR BusINEssEs contemplating exporting and looking for help to ascertain their readiness, NZtE has a range of “starting to Export” guides. With topics such as market feasibility research, how to prepare an export plan, sWOt analysis worksheets and advice on export marketing, these guides offer practical advice for companies finding their way beyond the domestic market.

For more info: http://www.nzte. govt.nz/get-ready-to-export/ Starting-to-export/Pages/ Starting-to-export-guides.aspx

Go Global International Business Forum A FuLL-DAY CONFERENCE will be held in Auckland on september 30, 2009 at the hyatt hotel for members of the export/international business industry. the focus is helping New Zealand business to succeed on the world stage.

It is a partnership between government and business providing workshops and submissions to ministers aiming to create a meaningful and ongoing international business networking forum.

For more info: www.nzgoglobal.co.nz

Trade credit insurance thE NEW ZEALAND EXPORt CREDIt OFFICE (NZECO) and Euler hermes trade Credit have announced a joint top-up cover arrangement for New Zealand exporters. the arrangement is part of the government’s extension of NZECO’s mandate to support private sector provision of short-term trade credit assistance.

Exporters can get an excess layer of trade credit insurance underwritten by the NZECO. It may either replace primary cover that Euler hermes has partially withdrawn on an exporter’s buyer or provide a top-up layer of cover where Euler hermes has only partially approved the buyer limit requested by an exporter. the top-up cover complements NZECO’s short-term trade credit guarantee which provides trade credit insurance on creditworthy buyers direct to the exporter where the private sector is unable to provide any cover.

For more info: www.nzeco.govt.nz

WIth CORPORAtE tRAVEL budgets being slashed in recessionary times Business Week has created a list of the 20 Bestdesigned Budget Business hotels at various global destinations. While the nightly room rate criteria of less than usD200 (NZD300) may not be seen as “budget” by all companies, several of the hotels are well under usD100 ($150). some of the photos are worth a look just to see how small a hotel room can get!

For more info: http:// images.businessweek.com/ ss/09/07/0720_budget_lodging/

56 EXPORTER

Traca tRACA Is A sYstEM that reunites owners with lost items – luggage, keys electronic goods and even pets. the traca tag has a unique reference number and instructions for use. there are different sizes and shapes for bags, keys and laptops, among others. the user simply logs in to the traca website, records their email address, cellphone number and the tag’s unique reference number, then attaches the tag to the item they wish to protect.

If that item is lost, the finder follows instructions on the tag and enters their contact details and the item’s reference number in exchange for a reward. the system then texts and emails the registered owner to arrange collection. the traca operator sends the finder a reward and thank you. the New Zealand-developed system and website is mainly used as a low-cost, promotional tool for a range of businesses. the tags can be customised with a business logo. It is also available to individuals who want to make sure they don’t lose their luggage or other important items. traca makes an excellent fundraiser for clubs, charities and schools.

For more info: www.traca.co.nz

Photo: mychillybin / Blair Walker

Best budget business hotels

> PROFILE

Cathay Pacific No more rattles on your food tray from reclining seats

T

ravelling in economy class? If you fly Cathay Pacific you will not have to put up with the passenger in front slamming his seat onto your food tray again.

Cathay Pacific’s refurbished long-haul flight seats have a unique design that contains seat movements within a protected personal space. seat adjustments are kept within a “shell” that doesn’t move whether you’re sitting upright or sleeping, so everyone has a protected personal space. And with the LEAP® Live Back™ upholstered seat, it’s a very comfortable space, with smooth reclining and an adjustable headrest.

According to Cathay Pacific, this is a world first and a big advance for economy class comfort. Over the years, airlines have been placing emphasis on the comforts of business and first class seating while not much has changed for economy class passengers. Even the airlines that

have introduced new A380 aircraft have not catered to the comforts of economy class passengers.

Refurbished Cathay Pacific business class seats are also something to write home about. Passengers can pamper themselves with the seats’ massage function. the seats can be transformed into a 78-81-inch flat bed at the touch of a button. In the mood for a movie? Flick on the mood lights, flip through a menu of 100 movies or 350 tV programmes and stay cloistered in privacy thanks to the herringbone layout.

Cathay Pacific says the fully reclining business class seats are unmatched by competitors who only have partially reclining seats.

What’s more, passengers don’t have to get out of their seats to convert them to a flat bed.

Cathay Pacific has been refurbishing about 40 aircraft with the new seats. All its long-haul planes will be refitted by October.

Long-haul flights go between hong Kong and New Zealand/ Australia, Europe, south Africa and North America. some flights to the Middle East will also feature the new seats. [eNd]

Cathay Pacific Cathay Pacific offers a twice-daily service from Auckland to Hong Kong. website: Full details on fares and schedules can be found at www.cathaypacific.co.nz

EXPORTER 57

> PROFILE

IP protection: Look before you leap

N

ew Zealand businesses are great at coming up with innovative ideas and solutions but not great, unfortunately, at making money from (i.e. “commercialising”) these ideas, especially overseas.

Part of the problem is a lack of experience in how to commercialise and a misunderstanding of what is and is not important. For instance, many companies that come up with great ideas believe that the first step on the road to riches is to file a patent to “protect their idea” and certainly if you approach most patent attorneys that is the advice you’ll get. there are many companies out there, big and small, that have spent many hundreds of thousands of dollars on “IP protection” but have seen little, if any, return on that investment.

Paul Adams, CEO of EverEdgeIP, a company specialising in helping New Zealand businesses commercialise ideas says, many companies equate “patents” with intellectual property (IP).

“Well that’s simply not true: there are many different types of intellectual property - patents are just one of a number of tools in the tool box. When all you know about is a hammer, everything looks like a nail!” he notes that a business can in some circumstances diminish the worth of its most valuable IP, which

58 EXPORTER

is its know-how and confidential information, by patenting it. It is quite easy to get a patent, Adams says, but a lot harder to get a commercially useful patent that will actually add value to a business. “Many of our clients approach us having spent (or are about to spend)

commercialisation”. “It seems obvious but protecting the idea is just one small step in the process of going from idea to money. unfortunately too much emphasis goes on the protection and too little on successfully getting that idea

MaNY oF our ClieNTS aPProaCH uS HaViNG SPeNT (or are aBouT To SPeNd) TeNS oF THouSaNdS oF dollarS oN PaTeNT ProTeCTioN BuT THeY SiMPlY doN’T KNow iF THe PaTeNT iS liKelY To aCTuallY Be CoMMerCiallY uSeFul – we HelP THeM FiGure THaT ouT” PAU L A DA MS , CEO, EV ER EDGE IP

tens of thousands of dollars on patent protection but they simply don’t know if the patent is likely to actually be commercially useful – we help them figure that out”. there is often no correlation between the money spent on patent protection and the strength of the patent that is ultimately granted.

In other words a weak patent will cost you just as much as a strong one.

And although a strong patent can be extremely valuable, it pays to know if the investment in IP protection or R&D will yield any commercial value. “unfortunately this isn’t the kind of answer you can get from a patent attorney as, firstly, it is primarily a technical and commercial analysis, and secondly, most patent attorneys won’t discourage you from filing patents.” the second and more critical mistake a business makes is to believe that “protecting an idea =

or technology into export markets because ultimately that’s where the dollars are made.” the maximum return on investment occurs when Kiwi companies’ innovative ideas find a home in major overseas markets. understanding the best way to achieve positive commercialisation outcomes is going to be more and more important to New Zealand business success in future years. [eNd] .

everedge iP Paul Adams will be presenting on this topic at Enterprising Manukau on the 29th September and the Auckland Chamber of Commerce on 20th of October.

Contact Paul for further details: Telephone: 09-489 2331 Email: p.adams@everedgeip.com

> LO g I st I C s

Lock in those rates now Freight rates are starting to creep up a little ahead of year end but ample capacity is allowing shippers to pick up some good rates along the way.

BY M A RY M AC K I N V E N

L

ock in freight rates and exchange rates now, says Vince hattie, principal of Freight services Ltd. “Rates are starting to increase a little.” there will be less available space on fewer, bigger ships. his advice: “service is the name of the game. to appease your customer be as efficient as ever, be on the ball and don’t delay or leave room for the competition. “We’re still staring at peaks around July to september and in the Pacific Islands October-November and the Christmas season. “But markets are still markets with high and low times around the end of financial years, budgets and Christmas, among others.”

Slow GriNd hattie says the first half of this year was pretty horrible for the logistics sector. “But I feel this Christmas things are already improving but it’s a slow grind. A lot of manufacturers and importers worldwide have stock on hand; it’s slow for exporters to get rid of inventory because of slow orders, but it’s picking up.” however, freight space is still available because of the economic downturn, so it’s a good time to

60 EXPORTER

KEY TAKEAWAYS > Do costings carefully to get a profit. > Comply with all legislation and official requirements. > Have adequate insurance cover. > Manage terms of trade (duties of seller and buyer) – know your Incoterms for contracts.

Visit iccwbo.org. > It’s a good time to negotiate a good freight rate.

negotiate a very good freight rate, says Murray Painter, chief executive of go group NZ Ltd, that includes go Reefer refrigerated logistics company and go Cargo dry cargo specialists.

Prices, which have not necessarily gone down, might fall because New Zealand is heading into a quieter shipping season (following the meat and apple peaks), as a matter of supply

and demand. Furthermore, the uK and Europe shut down over Christmas, as does New Zealand, so goods don’t move on that route.

But the us keeps going, and so does Asia, where we have free trade agreements. they continue to need manufactured goods in our holiday period.

Airfreight, suffering from the economic crisis, will have unused capacity for strawberries, fish and stone fruit coming on stream. Painter warns: “Your entire supply chain needs to be run well or your marketing is ruined.”

HoMeworK TiMe Noel thompson, managing director of Cargo Coordinators shipping Agencies Ltd, echoes Painter.

“A beginner exporter often fails to do his homework, at his peril, especially when there are language differences.” his key planning advice is: Do costings carefully to get a profit – allowing for some things beyond your

i Feel THiS CHriSTMaS THiNGS are alreadY iMProViNG BuT iT’S a Slow GriNd. a loT oF MaNuFaCTurerS aNd iMPorTerS worldwide HaVe SToCK oN HaNd; iT’S Slow For eXPorTerS To GeT rid oF iNVeNTorY BeCauSe oF Slow orderS, BuT iT’S PiCKiNG uP.” VINC E HAT T IE, PR INCIPAL O F FR EIGHT SERV ICES LTD

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control such as the exchange rate, fuel costs and fuel factor (thompson’s firm supplies templates to help plan).

Comply with all legislative and official requirements — for example, bio-security, quality and safety standards — which might require an export licence. have insurance cover for loss of profit or “container overboard”; you don’t want to find your importer is not actually licensed to import.

Manage terms of trade (duties of seller and buyer) – know your Incoterms, the standard trade definitions most commonly used in international sales contracts; for example, EXW (ex works), FOB (free on board) and CIF (cost, insurance and freight). Find them at the International Chamber of Commerce site iccwbo.org. some banks do not have confidence in certain banks in other countries – a letter of credit in this credit crisis might not count for much.

“It’s important exporters start planning shipments heading into the new year,” says hamburg sud New Zealand general manager simon Edwards. his company and other shipping lines begin to negotiate their major sea freight contracts - mainly

Survey: Exporter asked businesses how they were coping with planning and booking freight space in such an unpredictable economy.

• Most of the 76 respondents say they did not have problems booking the space they need, including those who need higher volumes. they say the global downturn in shipping has freed up space and reduced prices. Freight space is in abundance and, in some instances, for large movements, good discounts are available.

• some exporters say sailings have been inadequate and prices have increased.

• Others are actively consolidating where possible to keep costs down and are seeking out the best deals; looking at alternatives like NZ Post where there is no fuel surcharge. agricultural - in October-November. he says: “2009 has been a strong year for the export peak season but some trade lanes are experiencing a decline in import volumes as a result of the global economic climate. Consolidation of most services in and out of New Zealand over the last 18 months has been the result.

“While there may be sufficient space available presently during the off-season, we do expect a bounce back in November when export markets pick up, driven by the new meat and dairy seasons and both pre-Christmas deliveries and clear-outs. “start thinking about the shipping

equation – ‘price-service-commitment’ — and covering space through contracting or agreements with your preferred carrier.

“Come November-December space will start to tighten in all trade lanes, but particularly in the southeast and North Asian trades because they are hub services catering for global markets.” [eNd] MARY MacKINVEN / WRITER Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.

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62 EXPORTER

Next training weekend 16-18th October 2009, Auckland

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Unprocessed boxes are about to go out the door. Does your storeperson know what to do?

A trained storeperson knows.

Well-trained storemen and storewomen are an asset to your business. They have better skills, so they’re safer and more efficient at doing their job. Quality training means better employees, which means better business. It’s an investment you won’t regret. Talk to Tranzqual about the best training programme for your company. Call 0800 4QUALS (478257).

EXPORTER 63

Useful Websites for Exporters GOVERNMENT-RELATED SITES

CUSTOMS TARIFF AND FREIGHT CONSULTANTS

www.mfat.govt.nz Ministry of Foreign Affairs and trade website. trade and economic relations information.

www.aironaut.co.nz Aironaut Customs is a highly motivated, privately owned, independant customs broker.

RECRUITMENT

www.nzte.govt.nz New Zealand trade and Enterprise. Agency for New Zealand economic development.

www.logisticsrecruit.co.nz We supply experienced export & import staff, with or without PIN numbers. temp, contract or permanent roles. Qualified & guaranteed.

www.maf.govt.nz Ministry of Agriculture and Forestry.

MATERIALS HANDLING

www.customs.govt.nz/exporters Customs regulations for exporters.

www.viscountplastics.co.nz Viscount – NZs leading materials handling solutions provider.

www.nzeco.govt.nz New Zealand Export Credit Office.

Provides export credit guarantees to support the export activity of New Zealand businesses.

NEW ZEALAND / INTERNATIONAL ASSOCIATIONS www.aucklandchamber.co.nz the Auckland Chamber of Commerce encourages and supports sustainable, profitable business growth. the Chamber does this by positively influencing the environment in which businesses operate and through training, advisory services and international trade support.

www.secureaload.co.nz secureaload your cargo securement and protection specialists. www.yale.co.nz For the total materials handling solution – Yale Lift trucks.

EDUCATION AND TRAINING www.export.ac.nz (New Zealand School of export) New Zealand’s only Internationally accredited (IAttO) professional qualifications and business development in import/export; Export Library & Information service. www.scm.massey.ac.nz We provide programmes for postgraduate levels and graduate levels. In addition we can provide consultancy and in-house programmes in Logistics and sCM.

www.uktradeinvest.gov.uk uKtI is able to help companies interested in setting up in the uK by introducing them to agencies and support programmes designed to assist them.

www.getexporting.co.nz WhK Business growth offer practical export training to both new and experienced exporters. From international sales and tax through to market entry strategies and more – we will help you grow and expand your business offshore.

TRADE SERVICES www.jacanna.co.nz International Logistics Company

FOREIGN EXCHANGE

www.sharkpatrol.co.nz shark Patrol is an exciting new online credit referral network designed to protect its Members from problem payers. www.tollpriority.co.nz International Express Courier Nationwide Courier Door to Door Airfreight International. Airport to Airport Airfreight International Domestic Air cargo via Pacific Blue. www.jonesfee.com Pauline Barratt of Jones Fee solicitors, specialises in maritime, admiralty and marine insurance law including: • the international carriage and sales of goods • the law relating to freight forwarders.

www.currencyonline.com Your online currency exchange and transfer service, making moving money easy.

TRAVEL CONSULTANTS www.voyage.co.nz / www.voyage.net.au Founded in 1987, Voyage Affaires is an innovative international travel management company with offices in both sydney and Auckland and clients that span the globe. www.chinatravel.co.nz Asia’s 1-stop travel shop China wholesaler. www.bwt.co.nz Our website features Business travel information, as well as an up to date list of International trade Fairs from our trade Fairs department.

www.regus.co.nz Provider of serviced offices, meeting rooms, virtual offices, conference rooms, and business lounges across New Zealand, Australia and worldwide.

INSURANCE BROKERS

www.redwoodcredit.co.nz specialist trade credit insurance (cover against the failure of a buyer to pay) Broker and consultant.

www.tasmaninsbrokers.co.nz Marine Insurance, Liability Insurance, and other commercial insurances as required.

SUBSCRIBE TO EXPORTER MAGAZINE 4 iSSueS New ZealaNd deliVerY $35

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Post this to: exporter Magazine, P.o. Box 7070, wellesley Street, auckland, New Zealand or subscribe online at www.exportermagazine.co.nz

64 EXPORTER

and when it does you want QBE on your side Imagine: fruit destined for markets overseas ruined when an unexpected visitor boards ship.

The first financial bite is felt by local distributors, left with inferior product to deliver. Additional pesticide spraying is required before the product is allowed on shore. Retailers need to display special advertising acknowledging this. Which cuts into their margins – and their sales. And ultimately all look for someone to blame. Someone to pay compensation.

QBE has more than 200 different business insurance policies working to help protect New Zealand businesses on land and at sea - including Liability, Trade Credit and Marine Cargo. So when it hits the fan, you want QBE on your side.

Talk to your insurance broker about QBE before the financial worm turns on your business. www.qbe.co.nz

QBE-019 Exporter Rapport

e h t f o t s e r When the . e l b a t s n u t i b a s m e e s d worl

e world be thinking th ld u o c u o y , ied orting e you’re worr rting or exp b o y p a M im . e w o ’r n u t o If y cky righ y used to be. e is a little ro e d a th tr s a l a le n b o a ti li a e as re of intern ow buyers won’t b d n a rs e li changes in h p c p ti u a s m n ig ra d re g fo that seein s we means you’re r a ll o d age these risk le n ti a la m o v lp e e h th o r T O . e paid. ange products r expect to b h o c , x e e w n o ig u o re y fo much de and ort or histicated tra p o s f o eep your imp k e g lp n e ra h a n a e c v a ts h ecialis al business sp n o ti a rn te in r So ou round. s on steady g s e in s u b rt o p ex

WPT 4733

2 to speak 3 3 0 0 3 0 0 8 Call 0 rnational e t in r u o f o to one ecialists. business sp

No member of the Westpac group accepts liability for losses suffered as a result of it converting currencies and any exchange risks from the conversion of currencies is the responsibility of the account/deposit holder. Some services may be provided by Westpac New Zealand Limited. You can get a copy of the current disclosure statement for Westpac New Zealand Limited or Westpac Banking Corporation and a copy of the investment statement for any securities for which an investment statement is required from any Westpac branch in New Zealand free of charge or visit www.westpac.co.nz. Westpac Banking Corporation ABN 33 007 457 141, incorporated in Australia (New Zealand division).