Exporter Issue 18

issue 18 APRIL quARteR 2011

issue 18 APRIL quARteR 2011

export opportunities on every page

Step on it:

Growing SMEs This issue ComplimenTs of www.newzealandTradeCenTre.Com om

• • • •

The new international currency Pumping up your cashflow iPhone vs Android Social media 101

SOCIAL

MEDIA

Starboard

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ISSUE 18 APRIL QUARTER 2011

COVER STORY maNaGiNG GROWtH A prescription for growing pain From good to great

04

FEATURES

REGULARS

FiNaNCe Dealing with the new international currency Do you know your Renmenbi

10

PUBliSHeR’S VieW / SaY it like it iS Mike Taillie The lightning does strike twice

lOGiStiCS Shipping Lines’ holding all the cards Cargo planning

VieWPOiNtS Alister Gates Of IndyCar races and exports

COmmUNiCatiONS Mastering social media Tweeting to success

PRODUCtS Global Stage Innovative NZ products seeking a worldwide audience

FiNaNCe Factoring: Pipeline to quick cash flow Turning receivables into cash

61

14 18

22

COmmUNiCatiONS Clash of the Titans: iPhone vs. Android Choosing your smart phone

26

02 22

58

Export Opportunities New contacts from the New Zealand Trade Centre

DiReCtORY Useful Websites Information for travellers and exporters

62

iNSURaNCe Protecting smart phones What’s insured, what’s not

28

EXPORT Your export market is coming to town Catching business on the side

32

MARKETING Gold is beautiful, bare arms are not Packaging for offshore

36

teCHNOlOGY From webinars to the world Reaching global consumers

40

Cover photography: istockphoto

EDITOR: Yoke Har Lee, (E) yokeharlee@exportermagazine.co.nz COPY EDITOR: Anthony Doesburg

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EXPORTER 1

> PUBLISHER’S VIEW

Say it like it is mike taillie EXPORTER MAGAZINE / publisher@exportermagazine.co.nz

The lightning does strike twice

I

f events from the last few months have not shaken you physically then they should have given you some food for thought about updating your disaster recovery plan. All of you may be thinking that disaster recovery plans are only for the big boys. You are very wrong if you think so.

A disaster recovery plan is not just about the massive events of Christchurch and Japan. The phrase above about the lightning striking twice refers to the probability of two major disasters happening to your business. In preparing my thoughts for this comment I did a quick mind-map with my own

2 EXPORTER

business in mind. It did not take me long (about 5 minutes) to prepare the following list of things that could turn my business upside down: They are: an earthquake, a major leak in the building; the landlord not renewing the lease; key team members dying or leaving; hard-drive failures, an internet breakdown; a fire, a major customer going broke, and a major supplier going out of business.

Now I am sure I have missed a few things but the above are likely to happen and may happen a number of times. One example in mind is APN Print – a major supplier for a couple of our magazines – which closed its doors without huge notice. So what’s

your plan? Most companies I talk to tend to “wait until the shit hits the fan” before sorting things out. While the Kiwi way of being relaxed is an endearing quality most of the time, when it comes to protecting the value of the entity you work for or own, I suggest this is a matter that requires immediate attention.

If ever the “gods” have spoken, they have spoken now. Get a single sheet of paper and in the middle write “Disaster”. Start, perhaps, with some of my headings and hey, I hope when shit really hits the fence, you don’t ever need to grab your files in a hurry. [eND]

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> M A N AG I N G G R OW T H

A prescription for growing pains Kiwi companies face multiple challenges growing from good to great. Incubation, operational clean-ups and business re-engineering are among the strategies adopted by some.

BY V I RG I NI A Mc MI L L AN

F

ast-growing Aucklandheadquartered film production company The Sweet Shop has encountered new challenges with every growth spurt.

“Each stage seems to occupy more of your time and, though it seems it will make things easier, things get more complex,” says Paul Prince, one of three directors.

The Sweet Shop is one of many Kiwi export companies emphasising the importance of good processes in the push for growth.

4 EXPORTER

KEY TAKEAWAYS When charting a course from small to medium size, an exporter should: > Consider a switch from distributors/agents to having its own offshore subsidiaries or offices. > Streamline key processes to minimise waste of time and resources. > Recruit and/or organise training to fill gaps in the skills of staff and directors. Check whether New Zealand Trade & Enterprise can help with courses, offshore contacts, research or advice. > Be sure all team members understand and support the company’s vision and fit in its culture. > Be connected to a network of advisers, investors and successful larger businesses.

EXPORTER 5

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Several exporters spoken to by Exporter have taken part in business support and training programmes. Most attribute their success largely to having a full range of expertise across staff and directors.

The Sweet Shop started in 2001 as a commercial production company run from home. It’s now increasingly a global services exporter with 62 staff, developing its own intellectual property and content, including social media campaign design, short films and, in the near future, feature films.

Commercials will increasingly be made offshore as the exchange rate is no longer an advantage, says Prince, head of marketing.

ReFORmS Reforming into a larger-company structure was a turning point. No longer was it possible to be “marketdriven”; the company had to be

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“organisation-driven”.

Part of this meant embedding the shareholders’ vision and core principles.

The company upskilled via a New Zealand Trade & Enterprise Lean Business programme, focused on reducing processes, lead times and inventories, and waste of money and space.

The programme also aims to boost staff skills and morale. Senior managers at The Sweet Shop took part, as did Prince.

NZTE has helped with PR, events and market research, says Prince. There has been a mix of paid-for and free assistance.

The Sweet Shop was a finalist last

EXPORTER 7

year in the New Zealand International Business Awards’ $10 million-$50 million turnover category and is chasing the top figure in that range.

Prince says most years the company has grown 30-40%.

PReSeNCe OFFSHORe One key to growth was quitting distributor partnerships offshore.

This meant setting up offices in Australia, the United States and the United Kingdom and staffing them with locals. Though recruiting was fraught with difficulty, having dedicated people with local knowledge has made a big difference.

Marine consultants ASR and bus manufacturer DesignLine are just two

The company is “proudly Kiwi”.

Ownership by internationally experienced New Zealanders has proven its worth at animal health company Simcro, a finalist in the same award category as The Sweet Shop and growing at a similar rate.

Managing director Will Rouse had been a banker in London and Sydney and run his own business. Another shareholder’s background was investment banking; a third brought the engineering expertise required to oversee development of innovative drug delivery systems.

OPeRatiONal CleaN-UP In their first year of owning the business, “we cleaned things up”

StaRt-UPS NURtUReD iNtO liFe BY a BUSiNeSS iNCUBatOR DON’t alWaYS Get tHe SORt OF iNVeStmeNt tHat DRiVeS a mOUtON NOiR OR a SimCRO.

examples of New Zealand-founded companies achieving strong growth after being bought by foreign investors.

Would The Sweet Shop’s directors/ founders sell to an overseas player?

Prince says there is a lot more to do yet, although “you can never say never”.

operationally, says Rouse.

That meant sorting out IP, the supply chain, procurement and logistics, and internal operations.

Rouse says: “There were a lot of agency relationships overseas that we terminated because they were

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8 EXPORTER

tHeRe WeRe a lOt OF aGeNCY RelatiONSHiPS OVeRSeaS tHat We teRmiNateD BeCaUSe tHeY WeRe eXPeNSiVe … aND We PUt OUR OWN PeOPle iN tHe maRket.”

W ILL R O USE, M ANAGING DIR ECTO R , SI MC R O

expensive… and we put our own people in the market.”

In the past four years there has been solid investment in scientists, engineers and salespeople with relevant backgrounds.

Simcro rebranded when it went through NZTE’s Better By Design programme. There has also been a marketing grant and, more recently, a government research and development grant of close to $1 million over three years.

With a network of contacts in larger businesses and banks, it’s not hard to get strategic advice, says Rouse, whose sights are on a $50 million turnover in five years’ time.

Four years ago, Mouton Noir – listed by Deloitte as one of New Zealand’s fastest-growing retail businesses of 2010 – was just three directors and an idea.

After acquiring outdoors company Macpac in 2008, the company set about changing the focus to retailer rather than wholesaler and has opened 25 stores in Australasia. It exports to its Australian subsidiary and to Japan, Europe and the UK. The company is run by the three directors as hands-on divisional leaders, but none of them is CEO. “They pass a lot of autonomy to the divisions,” says financial director David Keen. The need to fit the culture is a huge part of staff selection.

There is still a frugal start-up mentality (“every cent counts”, “stick to the basics”).

INCUBATORS Start-ups nurtured into life by a business incubator don’t always get the sort of investment that drives a Mouton Noir or a Simcro.

Exporter found disillusionment in a couple of companies a few years out of incubation.

Advice born out of economic good times was not necessarily helping in a recession. One businessman, who asked not to be named, says some start-ups do not get the right

FOR THE SWEET SHOP, REFORMING INTO A LARGER-COMPANY STRUCTURE WAS A TURNING POINT. NO LONGER WAS IT POSSIBLE TO BE “MARKETDRIVEN”; THE COMPANY HAD TO BE “ORGANISATION-DRIVEN”.

W

organisational processes (highlighted

by The Sweet Shop and others above), or strategic and compliance advice out of the incubator experience.

Another dislikes the additional governance complication that comes when an incubator takes a small percentage stake in a start-up, in recognition of its services.

NZTE part-funds seven incubator organisations and estimates they have provided a total return on investment of $470 million.

The agency spent $8.7 million on these and other regional supports in the past financial year. Only 10 companies with growth potential came out of incubation in the year but graduate firms earned $127 million, says the NZTE 2009-10

annual report.

An NZTE international growth fund assists a dozen or so companies considered likely to generate a return for the New Zealand economy.

Denis O’Shea spent two years at Auckland incubator Icehouse, on his own at first. Exiting two years later (October 2006) his company, Mobile Mentor, employed 30 people.

Icehouse’s network of supportive experts helped him find investors, board members and staff, he says.

One component of the company’s 30-40% annual growth has been its Brazilian operation, with its own president originally located through a Kiwi contact in Brazil and now heading a team of 100.

Five years out of Icehouse, O’Shea says he’s still leveraging his contacts there. [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.

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> FINANCE

Dealing with the new international currency New Zealand exporters can minimise their exchange rate risk as well as improve price competitiveness by transacting directly in the Chinese yuan (renmenbi).

M

BY BO B E DL I N

ore favourable terms with Chinese clients could be within grasp of New Zealand traders who are paid or pay in renminbi – or RMB – potentially widening the number of Chinese companies with which they do business.

New opportunities are available for managing RMB currency exposure, too.

Until mid-2010 international trade deals with Chinese clients had to be transacted in foreign currency, mostly US dollars, although Hong Kong banks have been allowed to conduct some limited personal Chinese RMB business since 2003.

But in June last year RMB transactions were allowed beyond China, albeit via Hong Kong.

10 EXPORTER

KEY TAKEAWAYS > Make sure the firm you are dealing with in China can accept RMB - anybody trading in foreign currency in China needs to be approved by the state. > Choose a bank with a wide distribution network in China. Dealing with a bank with no presence probably won’t give you the security you need. > Check out the third party’s banking arrangements. Ensure small local banks will accept payment instructions in English. > Understand your terms of trade finance and payment options. > Be aware that Chinese customers are likely to prefer trading in RMB rather than USD, potentially giving you a competitive advantage. > Put a risk mitigation strategy in place for managing the exchange from RMB to NZD.

RMB ACCOUNTS Currency advisers say this significant development should help firms hedge their exchange rate risk and allow importers and exporters to find “natural

hedges” in their balance sheets if they hold RMB accounts.

The change followed a trial of RMB cross-border flows in some Chinese regions.

EXPORTER 11

RMB transactions have quickly caught on. In just six months, crossborder trade settlements between Hong Kong and China increased 10-fold to be worth nearly $20 billion by December.

At the same time trade between China and New Zealand has been growing rapidly. China last year displaced the United States as our second largest trading partner and our second largest export market after Australia.

The RMB previously had been pegged to the US dollar. It is now pegged to a basket of fixed currencies, although Chinese authorities won’t identify the six currencies or what portion each accounts for in the basket.

The conversion of RMB into other currencies is still strictly controlled by the Chinese central bank, Bank of China.

But the process doesn’t need to be too daunting for exporters.

RMB TRANSACTIONS HAVE QUICKLY CAUGHT ON. IN JUST SIX MONTHS, CROSS-BORDER TRADE SETTLEMENTS BETWEEN HONG KONG AND CHINA INCREASED 10-FOLD TO BE WORTH NEARLY $20 BILLION BY DECEMBER.

Banks such as HSBC and ANZ will source the currency from the approved banks and pass it on to their clients.

TAKING OVER EXCHANGE RATE RISK Exporters are urged to note that the onus is on the Chinese customer to obtain the necessary approvals to be able to remit RMB funds to Hong Kong accounts.

HSBC in New Zealand carried out its first RMB transaction for a client in August after meeting criteria set down by the People’s Bank of China for a trade settlement.

Cath Henry, HSBC head of global payments and cash management, said

NEW ZEALAND EXPORTERS WILL BE AT A DISADVANTAGE IF THEIR ASIAN COMPETITORS ARE ACCEPTING OR PAYING IN RMB WHILE WE STICK TO US DOLLARS, ACCORDING TO CATH HENRY, HSBC HEAD OF GLOBAL PAYMENTS AND CASH MANAGEMENT.” C AT H H EN RY, H S B C H EA D OF G LOBA L PAY ME NTS A ND C A S H MA NAG E ME NT

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the new currency regime means traders can send RMB to China or receive RMB from China up to the amount of the trade or service settlement.

A big benefit is that exporters dealing with China no longer have to trade in US dollars, a country which neither country uses as their base currency, said Henry.

Both parties to a trade deal are taking exchange rate risks when transacting in US dollars.

By transacting in RMB, exporters effectively can take over the exchange risk from their customer in China, enabling them to manage it within their pricing.

“They can get a better price if they can include it in their price as an exporter,” Henry said. “We are seeing some of that already.”

She encourages clients with business in China to ask for an RMB quote as well as a US dollar quote.

Price differences can arise because the US dollar fluctuates with both the

HAVING DIRECT ACCESS TO RMB IS AKIN TO HAVING A NEW CURRENCY - ONE THAT WILL INEVITABLY BECOME A LEADING INTERNATIONAL CURRENCY.” DAVID G RE E N, A NZ NE W Z E A LA ND ’ S MA NAG ING DIR ECTO R ( INSTITUTIO NAL)

NZ dollar and RMB independently.

It’s important that an exporter’s customer in China understands or knows about the changes in the rules.

HSBC is finding it is easier to deal in RMB with companies on the east coast of China because they were part of the pilot and have experience with it already.

The bigger banks are located there, too.

HSBC analysts predict a third of China’s cross-border trade will be settled in RMB by 2016.

Henry cautions that New Zealand exporters will be at a disadvantage if their Asian competitors are accepting or paying in RMB while we stick to US dollars.

ANZ New Zealand completed its first RMB deal in January.

David Green, ANZ New Zealand’s managing director (institutional), agrees exporters should be positioning themselves to take advantage of the new opportunities.

He also emphasises that obtaining the necessary approvals “is an absolute prerequisite to enable the trade to be concluded in RMB”. It is critical, therefore, “that the New Zealand company has this initial conversation with their Chinese counterpart”.

Once payment terms are established with the Chinese client and approval for offshore RMB remittances has been confirmed, the payment methods are the same as for other countries.

Letters of credit and open account transfers are both options for RMB deals.

As with any foreign exchange trading, there are risks. It is essential, therefore, to get advice specific to your circumstances.

SPECIALIST HELP “Look for specialist foreign exchange advice appropriate to New Zealand, backed up by networks in Hong Kong and China to provide local insight,” said Green.

“Having direct access to RMB is akin to having a new currency - one that will inevitably become a leading international currency.”

Green reiterates that exporters should be positioning themselves to take advantage of the new opportunities associated with the RMB as it gradually becomes an international currency.

“Dealing directly in the client’s currency may have significant benefits over working through a third currency,” he said.

“Some people may still need an account in mainland China, requiring establishment of a locally incorporated entity. But for many Kiwi importers and exporters who have no physical operations in China, the regulatory changes enable them to use the easier option of accessing or receiving RMB via Hong Kong.” [END]

BOB EDLIN / WRITER Bob, a journalist for more than 40 years, writes about trade, agri-business and the economy. He has been editor of NZ Truth, and managing editor of the National Business Review.

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EXPORTER 13

> LO G I ST I C S

Shipping lines’ holding all the cards A last-minute rush for export cargo space isn’t going to work in a market where empty containers are scarce and shipping lines call the shots on supply and pricing.

BY M A RY MAC K I NV E N

M

iddle East unrest has not been disrupting shipping for New Zealanders but increasing Somali piracy is lifting freight rates, says Geoff Popham, Burnard International freight forwarders business development manager.

“But who knows what’s around the corner? If there’s a problem with

14 EXPORTER

KEY TAKEAWAYS > Bunker fuel surcharge is increasing with oil price rises. > Shipping companies need to start sharing the profits with us, say exporters and freight forwarders. > Capacity is short so there are delays getting goods away. > Low-value cargo is being bumped off for more valuable peak-season produce. > Book space as soon as an order comes in.

EXPORTER 15

the Suez [canal], ships would go a different route from New Zealand to Europe — for example, via Panama — and there might be a surcharge. But it’s never happened.”

What is happening is increasing oil prices, causing shipping lines to raise the BAF (bunker adjustment factor), or fuel surcharge.

On top of that a shortage of cargo capacity is adding to freight rate increases.

Space is difficult to find, especially to Asia — and in particular China — where there is up to two months’ wait to some destinations on some lines.

“Exporters should be making sure relationships with their service provider – whether that’s a shipping line or freight forwarder – are open.

“Tell them what you are doing well in advance. Give them forecasts; don’t wait till your cargo is in the warehouse and you need a container ‘right now’ to pack for Shanghai,” Popham says.

And lines are still slow steaming, adding time to the round voyage to save fuel.

Some lines offer slower and cheaper services; some operate in consortiums with others, sharing

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space by all putting a ship on the trade route, and charging separately. “It’s a fluid, cyclic situation,” says Popham.

Everyone interviewed for this article echoed his comments.

The chief executive of GoGroup

there’s little we can do about that.”

Painter recommends exporters talk to their shipping partners as soon as they get an export order.

“Shippers nationwide need to get together to have some [negotiating]

SPACE IS DIFFICULT TO FIND, ESPECIALLY TO ASIA — AND IN PARTICULAR CHINA — WHERE THERE IS UP TO TWO MONTHS’ WAIT TO SOME DESTINATIONS ON SOME LINES.

NZ, that includes GoReefers freight forwarders, Murray Painter, says the upcoming peak season for New Zealand apples and other produce and meat was threatened with a peakseason surcharge from some lines, especially transtasman.

HIGH BUNKER CHARGES On this route, too, bunker charges are getting ridiculously high, he says.

Painter says as foreign-owned companies, shipping lines can add peak-season surcharges, or “pretty much anything they like”.

Finding space to ship general cargo, such as wine, is difficult because it’s getting bumped off to make space for higher value seasonal goods.

“For a general exporter it’s tough, but

clout. That’s how New Zealand has to work, and it can be done.”

GET SOME CLOUT Wielding influence at the negotiating table is not impossible for the New Zealand Shippers Council and its 14 large exporter members.

The biggest issue for them, says council chairman Greg Steed, is the continued lack of container slots: if you miss a firm booking you could be waiting up to six weeks to get a load away because all following ships are full too.

“We need more capacity, whatever size ships, but we need the right ships, with New Zealand’s cargo being reefer heavy.”

Container supply is also tight, but not at crisis point.

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16 EXPORTER

22-06-2010 12:13:05

He says shippers are paying for slow steaming, especially of perishables, but he thinks fuel surcharges could go down because big lines are making good profits.

TELL THEM WHAT YOU ARE DOING WELL IN ADVANCE. GIVE THEM FORECASTS; DON’T WAIT TILL YOUR CARGO IS IN THE WAREHOUSE AND YOU NEED A CONTAINER ‘RIGHT NOW’ TO PACK FOR SHANGHAI.” G EORG E POPH A M, B U R NA RD INT E RNAT IONA L FRE IG HT FORWA RDERS B U S I N ESS D E VE LOP ME NT MA NAG E R

“Surcharges are not going to go away but because we are big shippers we have the ability to negotiate them away or reduce them. Smaller shippers might not fare so well,” Steed says.

Even before Canterbury’s earthquakes, the region was struggling to have goods shipped, says Export New Zealand executive director Catherine Beard.

“The lines tell us exporters need to enter contracts and not rely on the ‘spot market’, as it were. Weigh up the pros and cons of paying a bit more but having certainty.

“Smaller exporters are at the bottom of the food chain for lines. Talk to your freight forwarder and try to co-ordinate with other smaller exporters; think strategically.

“And get the issues on the agenda of your local ExportNZ committee!”

costs within shipping companies’ charges they can shop around.

The only shipping company to return calls for this article, Swire Shipping, is building eight new ships to be at sea by 2013 in expectation of an economic recovery, but is still not able to sustain loss-making services long-term.

Randy Selvaratnam, general manager of Swire Shipping New Zealand, says in order to manage space requirements, exporters need to book well in advance, ensure bookings are realistic and that the cargo shows up on the wharf.

“It is one of the most frustrating issues for carriers when bookings get cancelled at the last minute when there is no chance of replacing the cargo, leading to wasted space and a loss in revenue.”

He disagrees that smaller exporters are disadvantaged. “They may require more niche services, for which there are

carriers like us, who have always tried to tailor our services to meet the demands of both large and small exporters.

“Also, having a flexible shipping strategy helps small exporters, and maybe spreading shipments over a number of carriers depending on each carrier’s strength.

“Also, smaller exporters could still enter into contracts with clearly defined clauses that should in the long term benefit both the shipper and carrier.”

And what about the near future? He does not anticipate major changes to services. But trade with Asia is expected to expand at the expense of markets such as Europe and America. [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.

IT IS ONE OF THE MOST FRUSTRATING ISSUES FOR CARRIERS WHEN BOOKINGS GET CANCELLED AT THE LAST MINUTE WHEN THERE IS NO CHANCE OF REPLACING THE CARGO, LEADING TO WASTED SPACE AND A LOSS OF REVENUE.” RAN DY S ELVA RAT N AM, G EN ERA L MA N AG ER, SWIRE S HIP P ING NE W Z E A LA ND

MINNOW New Zealand must keep in mind that in shipping terms, it is a minnow, says Peter Carr, owner of I P C and Associates transport consultancy.

It’s rare for one line to operate alone on a service from A to B - they have formulas for carrying each other’s cargo and charge their own prices.

Small exporters should consider dealing with the port directly on port charges. If cargo owners know the

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EXPORTER 17

> C O M M U N I C AT I O N S

Mastering social media Social networks are not exclusive to the young and trendy. Exporters can use social media to create an emotional tie with important customers seeking some form of connection.

BY A N T HO NY DO E S B U R G

W

hen Auckland ad man Vaughn Davis was ready to publish his new book, Twitter was the obvious way to promote it. More than that, Twitter was also how he chose to distribute the e-book.

With more than 13,000 readers worldwide in little over a month, Davis says his experience illustrates the power of social networking as a marketing and selling tool.

“In the past couple of years I’ve been taking a professional interest in social media, both on behalf of my clients, who look to us for advice, and also in terms of broadening my own professional network,” says Davis. “It’s been really successful on both counts.”

Using Twitter to launch the book is a case of “the chef eating his own

18 EXPORTER

KEY TAKEAWAYS > Social media offer a new way for exporters to interact with customers and to distribute products. > Although perceived to be full of celebrity noise, Twitter can be a useful channel for customer interaction. > Business managers hesitant about putting social media to work should try them out in their private lives first. > Business users of social media should focus on traditional brand and sales measures, not how many contacts they have. > Social media are all about interaction so responding quickly to contacts is a must.

cooking”, says Davis, who has been in the advertising industry for more than a dozen years, and runs agency The Goat Farm. Entitled Tweet This Book, and covering the use of social networking for business and personal brandbuilding, there was really no other way to go about selling it.

Davis says the response since its release in December 2010 has been as many conversations about how the book is distributed as about its contents.

“A lot of people have opened a Twitter account just to download the book and their first tweet has often been about it, which is really cool.”

VIRAL By making the book freely available to anyone who agreed to send a Twitter or Facebook message about it, Davis ensured its “viral” spread.

SOCIAL

MEDIA

EXPORTER 19

What has worked so well for him is equally applicable to many exporters. And reading his book, which he describes as a beginner’s guide to getting the most from social networking for businesses and the career-minded, is a place to start.

“Social networking can work for companies that want a relationship with their customers, and not all customers want relationships with the companies they deal with. So there needs to be a reason to be there, and I think caution is completely justified before jumping in.”

Twitter comes in for criticism for being an outlet for celebrity brain-dumps, but Davis says that’s a content issue, not a deficiency of the medium itself.

SOCIAL NETWORKING CAN WORK FOR COMPANIES THAT WANT A RELATIONSHIP WITH THEIR CUSTOMERS, AND NOT ALL CUSTOMERS WANT RELATIONSHIPS WITH THE COMPANIES THEY DEAL WITH. SO THERE NEEDS TO BE A REASON TO BE THERE, AND I THINK CAUTION IS COMPLETELY JUSTIFIED BEFORE JUMPING IN.” VAU G HN DAV IS, THE GOAT FAR M

YouTube is Air New Zealand’s social networking tool of choice, although the Google-owned online video sharing service isn’t often thought of in the same context as Facebook and Twitter.

The airline’s promotional campaign for its Boeing 777-300 premium economy seats, revolving around puppet character Rico, is drawing hundreds of thousands of online viewers.

mistakenly tweeted to his work account, ‘Man, I’m so over this week’.”

The blunder — if that’s what it was — provoked a storm of Twitter responses, ranging from “Who wouldn’t be over it when you’re paying this much interest on your home loan”, to “Yeah, it’s really hot and I’m over it too”.

“A number of interesting things happened,” Davis says. “First, the mainstream media picked up on it saying it was a great example of what’s bad about social media; how things could go terribly wrong.

“But then a lot of people started saying that it gave a human face to a bank that no amount of advertising ever could.

“The final thing that happened is that the conspiracy theorists came along and claimed it was planned all along.”

Even if that were the case, Davis says, it’s the kind of ploy that has been practised in other media “for as long as there have been advertisers and customers”.

AIR NEW ZEALAND’S PROMOTIONAL CAMPAIGN FOR ITS BOEING 777-300 PREMIUM ECONOMY SEATS, REVOLVING AROUND PUPPET CHARACTER RICO, IS DRAWING HUNDREDS OF THOUSANDS OF ONLINE VIEWERS.

Tweet This Book Vaughn Davis, The Goat Farm

“A lot of what appears in the print medium is brain-dumps — not all of it is War and Peace; a lot of it is New Idea. You can’t really judge the medium entirely by its content.”

Another misconception about social media is that it’s a young person’s game. Not so, Davis says.

“I think they’re not as difficult [to master] as people believe. There’s a sort of throwing up of hands, ‘this is for young people’ reaction, which is one thing that can put senior marketers and business owners off.”

He advises newbies to first familiarise themselves with social networking in their private lives.

“If you’re a manufacturer of nuts and bolts by day and a breeder of sausage dogs by night, express your sausage dog passions through social media, and see how it works — sort of a low-risk entry.”

Air New Zealand is an example of a large company with an overseas market that is “working the social networks really hard”, Davis says.

20 EXPORTER

TRADITIONAL MEASURES But what do countless YouTube viewers, Facebook friends and Twitter followers mean in conventional marketing terms?

Davis thinks exporters using social media shouldn’t allow themselves to be distracted by the numbers, keeping their eye instead on traditional brand and sales measures.

“The trick is linking those measures to social networking activity, and that comes down to how you do it in other mediums — whether you’re doing discrete promotions or certain promo codes or stuff that you only promote through Facebook, Twitter or LinkedIn.” A legitimate concern is when social networks turn against a user who puts a foot in his mouth, something sportspeople, in particular, seem prone to doing. But commercial users sometimes do it too, finding themselves in the headlines as a result.

BLUNDER, STAGED? “A classic example that I use as a litmus test with clients,” Davis says “was Westpac Australia, back in the early days of Twitter, about 18 months ago.

It was a Friday afternoon and the guy who ran the Westpac Twitter account

REGULAR FEEDS Although avoiding such missteps is important, a more mundane point for businesses taking the plunge is that social media need regular feeding.

There are no hard and fast rules about frequency of updating content, but interactivity is the name of the game.

“I guess if you were going to prioritise them, Twitter is the hungriest, requiring the most frequent interaction and the quickest response. Facebook would come a bit behind that, and LinkedIn a distant third in terms of how dynamic each network is.

“The main thing if you’re going to jump in and raise the social networking flag as a brand is that you are promising people you will respond to their engagement.

“A lot of smart companies are aware of that and really try to look after their social media contacts,” Davis says. [END] ANTHONY DOESBURG / WRITER Anthony Doesburg is an Auckland-based freelance journalist who specialises in technology.

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> FINANCE

Factoring: Pipeline to quick cash flow Factoring can be a quick way to ease tight cash flow, but it comes with a cost and there is a gap in global factoring coverage for emerging markets such as China.

BY M A RY MAC K I NV E N

O

utsourcing debt collection frees up small to mediumsize companies to focus on core business, but it is only appropriate in certain circumstances, says M-Com sales and marketing manager Serge van Dam. “Factoring, or selling your accounts receivable to a third party is not relevant to us because we have a small number of customers with a high degree of intimacy,” van Dam says.

M-Com invoices 20-40 organisations a month. Customers are big banks operating on five continents. They take time to pay.

22 EXPORTER

KEY TAKEAWAYS > Factoring is a tool whereby a company’s accounts receivables (in the form of invoices) are offered at a discount for immediate cash. The financier buying the receivables is called a factor. > International Factors Group members collect invoices in their own countries. > As credit markets have tightened, factoring lets you use accounts receivable for security to “buy” cash. > Factoring is not an appropriate financing tool if your customers are few, long-term and high-value. > Factoring can get you through a growth phase. > It’s best to avoid using outside help to chase debt or raise cash flow quickly.

EXPORTER 23

“Banks and big companies take a relaxed view of paying on time, even though contracts have punitive clauses such as interest for late payments.”

He says banks go through multiple layers of approvals for payment, hence pay a month or two late — but they do pay. Even so, late payments are an issue.

“You have to keep significant reserves in the bank for customers that don’t pay. And each order is worth hundreds of thousands of dollars.”

A growing company, M-Com needs all the cash it can get to expand.

Factoring feels inappropriate for the company and would be used only as a last resort, van Dam says.

“I know the person who authorises the payment so getting that third party to chase the person would be weird.

The factoring company might yell and swear at them; threaten to put a horse’s head in their bed — I’m joking. It could adversely impact our relationship with our customer long term.”

But he can see benefits. “Factoring makes sense for someone with a significant cash flow problem or no intimate relationship with a large set of customers; for example, if they sell to 200,000 people online each month.

“If you sell to lots of different distributors in lots of countries and chasing debt is not your core business — it’s time consuming, disruptive and irritating — maybe it’s not even economically viable to do it yourself.”

FACTORING, OR SELLING YOUR ACCOUNTS RECEIVABLE TO A THIRD PARTY, IS NOT RELEVANT TO US BECAUSE WE HAVE A SMALL NUMBER OF CUSTOMERS WITH A HIGH DEGREE OF INTIMACY.” SER GE VAN DAM , SALES AND M AR K ETING M ANAGER , M -CO M

Lock’s service has mostly been used for local business.

It takes time for people to get used to the concept, Thompson says. “We are trying to find people that it suits.

“It’s easier for us if the company has a spread of debtors compared with a single risk, and exports to countries where regular debt procedures are enforceable [for ease of collection].”

Lock is working with the International Factors Group (IFG) as a partner company to collect invoices for overseas deals. IFG has extensive networks, with members in Europe, Russia and some Asian banks.

“There are a lot of exports to China, but it’s harder to find parties — banks, finance companies — to take the country risk there,” Thompson says.

WHEN LCS DON’T COME EASY Thompson says factoring is often cheaper than a letter of credit (LC), or an alternative if a business can’t get an LC. “It’s a form of pre-shipment finance.

Invoices are already in motion. We also work off purchase orders to fund exciting projects.

COMPANIES SHOULD TRY FACTORING BEFORE THEY GET TO THE POINT OF DEBT WRITE-OFF BECAUSE BY THEN NOT EVEN FACTORING WILL WORK, SAYS SIMON THOMPSON, LOCK FINANCE’S CHIEF EXECUTIVE.

BENEFITS Companies should try factoring before they get to the point of debt write-off because by then not even factoring will work, says Simon Thompson, Lock Finance’s chief executive.

Lock can provide access to cash tied up in the debtors’ ledger, providing up to 90% of each debtor’s face value within 24 hours.

In addition, Lock manages the accounts receivable, so precious time is not wasted chasing customer payments.

When Lock receives full payment a company receives the remaining funds.

A certain portion, typically 12-15%, is deducted as the cost of providing the debtor administration service, Thompson says.

24 EXPORTER

“If you have a lot of working capital, that’s good, but credit markets have tightened up and you have to put property up for security.

But you can use your assets on your balance sheet – accounts receivable.

“It’s not a long-term solution, but to get you through a growth phase.”

Needing to raise cash flow quickly is a foreign concept to GMP Pharmaceuticals, a winner of the New Zealand Trade and Enterprise International Business Awards and contract manufacturer of supplements and natural health products.

General manager Minesh Patel says in the company’s seven years of operation GMP has written off less than $100,000 of non-payments, which isn’t much for

the amount of business it does.

His $110-million business, which exports to China, among other destinations, has never needed help because the company is managed as a circle of activities so that cash flow is not an issue.

“It’s not just about having good accountants — they can only do their part — but inventory, bargaining and product turnaround all combine to make for good cash flow and [minimal] debt. We try to manage the risk.”

Simon Thomson, business development manager of Commercial Factors and Finance (CAFF) says his company also discounts LCs where the buyer agrees to pay on an agreed date.

But there’s still a lag of more than 30 days, whereas factoring puts money in the seller’s pocket in 24 hours.

“We recognise many exporters struggle through lack of cash flow as opposed to lack of profits. Certainly any growing business requires cash to facilitate growth.

“Our clients may elect to use our services on a one-off basis or on a continual basis. We believe our service is not only quick and easy but is fully transparent.”

The newly formed Combined Building Society (including MARAC Finance) has indicated it is pursuing a banking licence, says David Battersby, regional manager, business.

The new entity is already focused on providing cash flow lending and invoice finance solutions to small and medium enterprises, with less emphasis on mortgage security than traditional banks. Cash flow lending will complement its traditional strength in asset financing.

“Consideration of an invoice discounting product for exporters is also under way. Watch this space,” Battersby says. [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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EXPORTER 25

> C O M M U N I C AT I O N S

What do you sacrifice by choosing an Android-based phone over an iPhone running Apple’s iOS operating system?

How different are the two?

BY ANT H O NY DOESBUR G

I

f you don’t already have a smartphone, the chances are you will within the next year or so.

Worldwide sales of the devices, which put email in your pocket and come with numerous other productivity (and time-wasting) applications, almost doubled in 2010. This year, the pace is expected to pick up further.

In total, just over 100 million smartphones flew off the shelves last year, says market researcher Canalys.

And as sales boom, seismic shifts in market share are accompanying them.

WINNER Last year’s big winner was Android, the smartphone operating system from Google that runs on phones made by, among others, Samsung, Sony Ericsson, HTC, LG, Motorola and Huawei.

Vodafone, Telecom and 2degrees all feature Android-based phones in their smartphone product line-ups.

The casualty of 2010 was Nokia.

Android has passed Nokia’s Symbian to become the global smartphone market leader, Canalys told AFP in February.

That doesn’t mean Nokia doesn’t still sell the most smartphones — it does, with 28% of the market. But its market share fell last year from 44%, as Android’s climbed from 8.7% to 30.6%.

Although still able to claim more than

KEY TAKEAWAYS

Clash of the Titans: iPhone vs Android

> Apple’s iPhone sets the benchmark for smartphone usability and build quality. > The accompanying Apple App Store remains the model other smartphone-makers aspire to. > Google’s Android operating system is fuelling a boom in smartphone sales. > The Android market is fast closing in on the App Store in application range and ease of use. > Choosing between Android and iPhone is a matter of personal preference.

26 EXPORTER

a quarter of the market, Nokia sees the writing on the wall. It is not only up against an ascendant Android, but Apple’s iPhone and RIM’s Blackberry have also eaten into its sales.

In February, Nokia boss Stephen Elop announced the company was pulling the plug on Symbian and would work with Microsoft to put Windows on its handsets.

PRICES The competition may be painful for the Finnish company, but it is a tonic for smartphone buyers who might previously have been put off by high prices. The proliferation of Android devices has pushed smartphones below the $300 mark.

For about that price, 2degrees sells the Ideos U8150 from Huawei; $50 less gets the own-brand Vodafone 845 (although early this year it was out of stock online); and the best Android smartphone deal from Telecom in February was a Samsung Galaxy i5503T for $349.

FROM ITUNES ON A PC, OR DIRECTLY FROM THE IPHONE, USERS HAVE ACCESS TO HUNDREDS OF THOUSANDS OF APPLICATIONS IN THE APP STORE. THE MEASURE OF ITS SUCCESS IS THAT EARLY THIS YEAR THE APP STORE REACHED 10 BILLION DOWNLOADS.

Ideos U8150 are unarguably less well made and pleasurable to use. But rather than a comparison of handsets, the Android versus iPhone choice comes down to picking which smartphone “ecosystem” offers best value.

This is where Apple has shown its genius, leaving Nokia floundering, and Android and others — including Microsoft — in catch-up mode.

When the iPhone went on sale in 2007, “Apple blew everybody away”, says Tim Hayward, the mobile devices product manager at 2degrees, “and everyone has been scrambling to catch up since.”

Apple’s ground-breaking achievement, apart from making a phone that continues to be the industry quality benchmark, was creation of the App

WHEN THE IPHONE WENT ON SALE IN 2007, “APPLE BLEW EVERYBODY AWAY,” SAYS TIM HAYWARD, THE MOBILE DEVICES PRODUCT MANAGER AT 2DEGREES, “AND EVERYONE HAS BEEN SCRAMBLING TO CATCH UP SINCE.” T I M H AYWARD, 2 DEGRE E S

Tim Hayward, Mobile devices Product Manager at 2degrees

Those prices are a far cry from the $1123 for Apple’s iPhone 4. This apparently hasn’t escaped Apple: according to the Wall Street Journal, it is working on a smaller, cheaper iPhone model.

DIFFERENCE What do you sacrifice by choosing an Android-based phone over an iPhone running Apple’s iOS operating system?

Perhaps not much.

Cheaper Android models such as the

Store. As an online distribution system for iPhone applications from thirdparty developers, it drew on an existing element of the Apple ecosystem, iTunes.

From iTunes on a PC, or directly from the iPhone, users have access to hundreds of thousands of applications in the App Store. The measure of its success is that early this year the App Store reached 10 billion downloads.

There are apps for remotely accessing company financial systems and networks, currency converters, mapping

tools for finding routes in foreign cities, tip calculators, memo recorders and countless games to play and e-books to read between meetings. And that is just the tip of the iceberg.

As ecosystems go, it is vast, simple to plug into and closely controlled by Apple, which restricts the applications the App Store stocks.

The Android market, however, is closing in on Apple’s first-mover lead.

A standard Android handset comes with numerous Google apps, including Documents, Maps, Latitude, Calendar and Gmail. Supplementing that set through the Android Market can be done directly from the handset or through the web, requiring a Gmail account.

WHICH IS FRIENDLIER? Which ecosystem is the more userfriendly? US publication Network World compared them at the start of the year and, although declaring Android Market the winner in areas such as updates, refunds and web access, overall honours went to Apple for being easier to browse and having a wider app selection — about 280,000, versus Android’s 200,000.

In terms of the cost of apps, it found the average price of Apple’s top 100 to be less than half Android’s; but 60% of Android Market’s apps are free, versus 29% in the App Store.

In the end, there wasn’t much in it.

And when it comes to handsets, too, 2degrees’ Hayward thinks it’s too close to call.

“If you showed a high-spec Android phone and an iPhone to somebody from Mars, they’d have trouble distinguishing between the two. They’re both phenomenally capable systems.

“I think if you get into the detail you have strengths and weaknesses in each but, to be honest, it comes down to personal preference.” [END]

ANTHONY DOESBURG / WRITER Anthony Doesburg is an Auckland-based freelance journalist who specialises in technology.

EXPORTER 27

> INSURANCE

Protecting smart phones How should you treat the insurance of expensive smartphones? Should you just tag it on to an existing comprehensive policy? Or should you buy separate cover? Beware, as not all prepay phones qualify for cover from phone companies.

BY VA L L E V E S O N

S

martphones have become a necessity for many exporters who want constant access to their emails, but losing or breaking them can be expensive.

Vodafone and Telecom sell insurance policies that cover mobile phones, with Vodafone excluding the iPhone, but are they good value? What about the option of adding it to your existing comprehensive insurance?

Lesley Sher of The Insurance Brokers says: “iPhones and other smartphones can cost over $1000 to replace. It makes sense to insure and pay a small excess on claiming.

“I would suggest adding it on to your contents insurance. Usually it does not have to be listed as a specified item, depending on the insurer.”

The excess for a claim would be upwards of $150, depending on insurer and whether you have opted for a voluntary higher excess.

She says overseas coverage depends on the policy.

“However, I would always recommend taking out a travel insurance policy and advising that you are taking an iPhone or smartphone. “

28 EXPORTER

KEY TAKEAWAYS > Contents insurance can cover phones. > Vodafone and Telecom sell mobile phone insurance. > Shop around for the best deal. > Ensure cover extends overseas. > Back up your mobile daily to your computer.

BACKING UP YOUR DATA Sher also advises daily synchronising of any mobile device with a computer so if the handset is lost or broken there is a copy of the data.

Vodafone spokesperson Michelle Baguley says the company’s PhoneInsure policy provides immediate barring of calls from a lost or stolen phone, and a claim can be processed at the same time. iPhones are excluded because they come with a limited one-year hardware repair warranty and customers can buy additional coverage through an Applecare Protection Plan from Apple.

However, Vodafone is reviewing its phone policies and hopes “to have

something covering the iPhone 4 and all smartphones shortly”, Baguley says.

She says PhoneInsure costs $9.95 excluding GST a month. “If your mobile would cost more than $300 to replace PhoneInsure would be good for you. Remember, you’ll have to pay the full retail value of a replacement mobile, even if your mobile was free or subsidised as part of your term contract.

“For example, two years of PhoneInsure premiums will cost $238.80 excluding GST. So if your mobile is lost or stolen within those two years you’ll be better off.”

IPHONES AND OTHER SMARTPHONES CAN COST OVER $1000 TO REPLACE. IT MAKES SENSE TO INSURE AND PAY A SMALL EXCESS ON CLAIMING.” LESLEY SHER , THE INSURANCE BR O K ER S

She says that because premiums are at a flat rate of $9.95, PhoneInsure becomes better value if the replacement cost of your mobile is high.

But there is an excess on claims of $125 for the first claim made within a 12-month period, $175 for a second claim and $250 for any subsequent claims in the period.

VODAFONE AND TELECOM HAVE INSURANCE DEALS FOR MOBILE PHONES, BUT VODAFONE EXCLUDES THE iPHONE.

She points out that if a phone is covered by a home contents policy, a claim could jeopardise the policyholder’s no-claims bonus.

For more details on the Vodafone deal, go to www.vodafone.co.nz/ services/phoneinsure.jsp

For premiums, policy and excess information, see www.telecom.co.nz/ mobileinsurance A representative of Apex General says most good contents policies automatically cover phones. The type of cover depends on who the insurer is.

WHAT’S COVERED Telecom spokesperson Stephanie Furgusson says its policy covers phone and charger, but not any accessories that were not in the original box. Cover is for: • Accidental damage (including repairs or replacement, depending on severity) • Accidental loss (worldwide) • Theft (worldwide) • Up to $1000 of unauthorised voice or data calls made in New Zealand after the device has been lost or stolen • Cost of hiring a temporary mobile device if the mobile device is lost or stolen while overseas, up to the value of $500 (all receipts must be kept to claim on this benefit).

WITH VODAFONE PHONEINSURE, CALLS FROM A LOST OR STOLEN PHONE CAN BE IMMEDIATELY BARRED AND A CLAIM PROCESSED AT THE SAME TIME.

Some examples are: • NZI covers phones for replacement less the standard policy excess of $250.

• Vero limits cellphone cover to $1000 and has a $150 standard excess.

• Vero also has a Misuse of Mobile/ Cellular phone extension which covers unauthorised use up to $500 in the 24 hours following a phone being lost or stolen — provided the network is immediately informed of the loss.

Michelle Baguley Vodafone’s Spokesperson

“If your contents policy doesn’t provide the cover needed to replace the phone then, yes, look at the individual phone covers through the network providers,” Apex advises. [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.

EXPORTER 29

> A DV E R TO R I A L

Delivering Comprehensive Security Solutions

H

aving the ability to control who goes where and when is vital in an export and manufacturing environment. It mitigates the risk of contamination, sabotage, vandalism and theft of equipment and produce on site – all significant threats to day-to-day operations, company reputation and business viability.

No one understands these security challenges better than Gallagher Group Ltd who, as a sizeable security system manufacturer and global exporter, is an example of how a multi-divisional global manufacturer and exporter incorporates a variety of security measures to protect staff, resources and goods.

Gallagher NZ headquarters include a plastics manufacturing plant, a die and tool making business, an electronics factory and full warehousing. The company employs 1000 plus staff globally and exports to over 130 countries – activity that was challenged

30 EXPORTER

by post 9/11 security threats which placed immense pressure on export security requirements.

In response to this threat, New Zealand Customs was swift to introduce a new Secure Supply Partnerships agreement with the aim of a smoother path past the 18,000 customs, immigration and agricultural inspectors protecting the US. Recognising the significance of this export agreement, Gallagher Group, was one of the first to sign and they promptly introduced tighter security on site including an electric perimeter security fence system packing an 11kv electric shock for anyone trying to breach it. This was enhanced by monitored access control systems at its 22,528 sq feet container park and 29,000 sq feet warehouse.

Like Customs’ other secure export partners, all containers shipped out of the Gallagher Group site now carry special seals meaning they are less likely to be halted for inspection

by Customs here which is often at the request of overseas customs authorities. They are also less likely to face X-ray and other Custom inspection fees than non-secure partners.

Gallagher Group’s Operations Executive, Brent Dawson says the introduction of tighter security measures on site provides an environment of accountability.

“It’s all about piece of mind around safety, security and traceability. During peak periods we will run a 24/7 roster so we need to know all areas of the facility are secure and the staff working in those areas are in the approved space at the approved time. Security is also heightened with a ban on private car parking within the secured area, and by locking partly-packed containers overnight. “ He comments “At the end of the day the initial outlay of implementing high security standards is a long-term cost saving exercise for any business.”

For Gallagher, having a single access

management system integrating various security technologies means one platform from which to monitor and manage site activity.

For example, if anyone attempts to breach the monitored perimeter system protecting their container park, not only is the intruder deterred by a sharp electric pulse, but the attempt triggers an alarm in the access

monitoring. Nedap’s system provides long range vehicle identification from distances up to 10 meters [33 feet] even when a vehicle is travelling at high speed. Driver based AVI tags offer fast, convenient and secure vehicle access for authorized drivers. This solution ensures that a vehicle can never leave, or get access to a secured area unless occupied by an authorized driver.

management system alerting operators to the specific zone being attacked.

Integrated imaging systems can capture the event, providing a visual record of the activity.

The site’s security also incorporates Nedap long range readers at the gates of its container park. These facilitate the smooth entry and exit of transport vehicles onsite providing real-time

Within its factory, Gallagher has also implemented Time and Attendance monitoring. Staff badge their access cards at readers creating a record their log-in and log-out times. Entry and exit information recorded and can be shared with the company’s payroll system and T&A reports can also be generated. The system accommodates different shifts at different times and is highly configurable.

Other security features in place a Lockdown functionality. It enables zone/s to be locked down during a security threat or emergency situation, for example in the event of a chemical spill, allowing only a selected group of staff to enter and exit locked down zone/s.

Of course, security measures aren’t limited to the warehouse and yards.

Gallagher’s research and development unit, within its corporate office, is secured via a biometric solution delivered by the integration between Gallagher’s access management platform and biometric readers.

Brent Dawson is adamant since employing a comprehensive security solution covering both physical and procedural measures Gallagher Group now enjoys a high level of transparency of staff movement and access events on site.

He says the comprehensive security solution has lead to increased accountability, safety and security consciousness and reduced shrinkage – necessary components when your business is a strong candidate in a competitive global market. [END]

EXPORTER 31

> ECONOMY

Your export market is coming to town Rather than focus on the hard-sell, exporters should build networks and long-term relationships with Rugby World Cup visitors, who may be compelled to do business although their main focus is watching their team play.

BY M A RY MAC K I N V E N

W

ell-heeled business people could be swarming the streets during the Rugby World Cup in September and October, but it’s up to Kiwis to cross paths with them.

Smoothing the way for everyone is Alex Matheson, NZ 2011 Office business engagement programme manager.

Matheson is recruiting businesses for the online Business Club – the focal point for connecting, with about 2000 members so far – through economic development agencies, local companies, business organisations, rugby clubs and individuals who say they want to host overseas people.

He’s also talking to overseas companies with New Zealand assets, and foreign embassies with teams playing here, to find out who’s coming down under.

“We’re working to find out who businesses are bringing to New Zealand – which VIPS – so New Zealand towns and business groups know who’s turning up when.”

The Business Club’s online home,

32 EXPORTER

KEY TAKEAWAYS Key websites: > Check out www.nz2011.govt.nz to access the Business Club, Real NZ Festival (September 9 – October 23) and associated Real NZ Showcase (www.realnzshowcase.com) of events and activities, highlighting the creativity and innovation of NZ businesses. > Check out youtube.com/nz2011office for short, inspiring videos about the Business Club and business opportunities. > Check out the www.rugbyworldcup.com official tournament site for visitor information about NZ visas, tax, etc. > Check out www.ticketek.com/rwcnz2011, www.hospitalitynz2011.co.nz and www.rth2011.com for tickets and hospitality. > www.auckland2011.com includes a “business connections” section and online tool.

nz2011.govt.nz, outlines dozens of industry events, such as the boat show in Auckland, the hi-tech forum in Christchurch and the aviation expose in Hamilton, all timed to fall during the tournament. Mini field days are being held at locations around the country.

These REAL New Zealand Showcase events run as part of the REAL New Zealand Festival, to highlight what New Zealand business and science have to

offer and provide a networking platform.

Matheson describes the hypothetical opportunity: a group from the Argentine finance industry is here, potentially with money to invest in New Zealand agriculture, so they’re taken to see a model farm.

He says: “Take the opportunity to make some interesting connections. If you see an activity at a town near you, go to it.

Don’t wait for things to come to you.”

EXPORTER 33

TAKE THE OPPORTUNITY TO MAKE SOME INTERESTING CONNECTIONS. IF YOU SEE AN ACTIVITY AT A TOWN NEAR YOU, GO TO IT. DON’T WAIT FOR THINGS TO COME TO YOU.” A L EX MAT H ESON , N Z 2 01 1 OFFIC E BU S INE SS E NG AG E ME NT P ROG RA MME MA NAGER .

Many visitors will be spending on food, wine and experiencing New Zealand and may do a business deal on the side, although leisure is the main objective.

Some follow big sporting events and, for others, rugby is a game of the business elite, as in Russia and the US. “Our focus is long-term opportunities. People will be here to watch the rugby, experience New Zealand and, thirdly, maybe do business.

“I don’t necessarily think it should be around the board room table but maybe a barbeque or golf. It’s about making connections.”

He advises: “Don’t over-invest or throw all your eggs at this; but don’t miss it.”

A visitor from France, for instance, may be persuaded to send some wine home.

The Auckland Tourism, Events and Economic Development councilcontrolled organisation has launched Match Ready for Business, a programme of online tools at Auckland2011. com aimed at small-to medium-size enterprises, and based on successful programmes for overseas major events.

companies take that into account.”

He wasn’t initially sure of the value of the job and has no funding or financial guarantee from tournament owners.

“All the risk is mine, so I will be very careful who I give credit to!”

Multi-disciplinary consultancy Synergine Group is featured in a video at youtube.com/nz2011office, in which chairman and owner Phil Warbrick talks about Synergine’s redevelopment of the New Lynn railway station and town centre. Chief executive Dr Jim Bentley is also the inaugural director of the University of Auckland Faculty of Engineering’s Centre for Infrastructure Research.

As a Business Club member the company is hoping to meet people involved in infrastructure.

In 2011, new Zealand wIll

showcase its business innovation, expertise and excellence to the world. realnzshowcase.com

0082 NZO Real_Prospectus_FAlb.indd 1

COnTenTS Join the NZ 2011 Business Club .................. 2

34 EXPORTER

Food & beverage ....................................................... 20

Introducing Queens Wharf..........................3

wine .................................................................................. 22

REAL New Zealand Showcase..................... 5

equine .............................................................................. 24

Marine ................................................................................. 6

Film .................................................................................... 26

aviation .............................................................................. 8

Fashion & textiles .................................................... 28

information and communications

Music ................................................................................. 30

technologies (ict) ................................................... 10

education ....................................................................... 32

agribusiness ................................................................ 12

tourism ........................................................................... 33

Forestry .......................................................................... 14

rugby ................................................................................ 34

energy & resources ................................................ 16

Doing business in New Zealand................ 36

science ............................................................................ 18

Map of New Zealand ................................... 37

1]

0082 NZO Real_Prospectus_FAlb.indd 1

25/01/11 6:13 PM

THE BUSINESS CLUB IS

FOReSTRY

A WONDERFUL

Technological leadership meets sustainable forest management

OPPORTUNITY FOR BUSINESSES TO

showcasing foREstRY

CONNECT WITH VISITORS, HOST

Nursery, Verda New Zealand Ltd

THEM AT HOME AND OFFER SOME GENUINE KIWI HOSPITALITY. “ P HIL WAR BR ICK , OW NER , SYNER GINE GR O UP

It’s fitting that we celebrate our forestry

for future growth. at the same time,

technology that allows for innovation

industry in 2011, as it is the united

indigenous forests were protected for

with wood. This includes new applications

nations International Year of the Forest.

the enjoyment of future generations. as

for wood fibres such as in bio-energy,

Sustainably managed forests and

a result of this foresight, new Zealand is

biomaterials and wood composites. Other

innovations in wood processing are vital

now a leading supplier of high-quality pine

innovations include how we harvest and

components of new Zealand’s largest

to the world. all 1.8 million hectares of

manage forests, wood processing, drying

industry and third largest export sector.

new Zealand’s plantations are renewable,

and treating and design applications for

Forestry accounts for $3.7 billion per

and almost half are Forest Stewardship

building construction.

year in exports, a figure likely to increase

Council (FSC) certified. New Zealand pine

to $6.2 billion by 2020 and has an annual

is a “super softwood” of the 21st century

wood harvest of 23 million cubic metres.

– one of the most attractive and versatile

last century, vast timber plantations

Warbrick says the Business Club is a wonderful opportunity for businesses to connect with visitors, host them at home and offer some genuine Kiwi hospitality.

New Zealand Trade and Enterprise (NZTE) has contacted all businesses on its database about the opportunities for international marketing onshore during the tournament, says Bruce Gadd, NZTE Rugby World Cup project director.

“We are working closely with the NZ2011 office to organise events to get international business people together with local businesses. For example, in Nelson, where Italians, Russians and Americans are playing, businesses will be supported to promote their products and services in that town at that time if those countries are target markets.”

NZTE also has a bank of business stories to supply to overseas media to showcase New Zealand. [END]

were established to provide a resource

types of wood available.

Foresters who love rugby should come a few days before Rugby world Cup kicks off and attend a major forestry expo and symposium in Rotorua – the nation’s

new Zealand also produces advanced

forestry and wood processing capital.

[ 14

0082 NZO Real_Prospectus_FAlb.indd 14

ShOwCaSe daTeS

BUSINESSES DOING IT THEMSELVES Flagz is producing flags and banners as the licensed supplier of street banners that councils will erect to mark access to stadiums. It will supply hand wavers, car flags and related products to retailers, games venues, corporates, clubs, pubs and anyone who wants flags and banners with official RWC insignia.

Company owner Shane Brown has taken on three extra staff for the job and expects to employ casuals to meet the workload.

Smaller items are being made in China because of the large volumes and crucial price point and margins, but the rest are made in Auckland.

“We have to document our manufacturing processes to deal with councils and government departments.

This required systems and certifications as part of the proposal for the licence.

The impact on the environment is important and a lot of overseas

25/01/11 6:13 PM

25/01/11 6:14 PM

DatE

EvEnt

Location

september – october

winning with wood – new Zealand Forests and wood

rotorua and

processing Festival

nationwide

2 – 4 september

Kawerau woodfest (including national woodskills

Kawerau

competition) 5 – 7 september

Forest industries expo and symposium (Fi2011)

rotorua

6 september

Forest industries conference (Fi conference 2011)

rotorua

7 september

Fitec national training awards

rotorua

For more information go to realnzshowcase.com and winningwithwood.com.

15 ]

0082 NZO Real_Prospectus_FAlb.indd 15

25/01/11 6:14 PM

REAL New Zealand brochure showcasing events during the RWC 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.

RUGBY = BUSINESS OPPORTUNITIES

2011

‘DOING BUSINESS WITH NZ’ A magazine inserted into the New Zealand Herald on the eve of the final - Sat 23rd October 2011 The World is coming to NZ for the rugby. With more than 80,000 visitors anticipated to our shores, this is New Zealand’s opportunity to get in front of the worlds business leaders and show them all that our businesses have to offer.

Doing Business With New Zealand - a publication inserted into the NZ Herald on Sat 23rd Oct 2011 - this is anticipated to be the most read Herald of 2011 and is also the day before New Zealand wins the Cup! The magazine will be targeted at companies and individuals doing international business.

This unique title will showcase New Zealand’s best. Leading journalists will provide editorial that supports “doing business with NZ” inserted: NZ Herald on Sat 23rd Oct 2011

Space

RaTe

32/48pp glossy A4 magazine

Full Page

$6,750

1/2 Page

$3,500

1/4 Page

$1,900

Print run 120,000+ (Auckland region, subscription and retail)

20% loading back page, inside front and inside back

Contact Matthew Smith - National Sales Manager Phone: 64 9 366 6879 | Email: matt@peoplemediagroup.co.nz People Media Group Ltd | www.peoplemediagroup.co.nz | 26 Albert St, PO Box 7070, Wellesley St, Auckland, NZ EXPORTER 35

> MARKETING

Gold is beautiful, bare arms are not Exporters branding products for offshore consumers need to balance brand integrity with multinational appeal.

BY YO K E H A R L E E

M

alcolm Dale, practice manager at design house gardyneHolt, has a good story to tell about the potential hazards of packaging and design for offshore markets.

“Sip” seemed a safe enough name choice for a café in the Dusit Princess Hotel chain in Dubai. A check with the Arabic translation was deemed acceptable, too.

The café’s brand was all ready to go until a local from the United Arab Emirates came to know about it. It turned out that in UAE dialect, Sip has a

Malcolm Dale, Practice Manager, gardyneHolt

36 EXPORTER

KEY TAKEAWAYS > Be careful of both official language translations and local slang. > Take time to finalise label translations before packaging design begins. > Adapt to local consumers’ taste without compromising brand integrity. > Do not tweak products for every customer who asks for change. > Figure out how to communicate your point of difference while meeting customer demands.

meaning too dreadful to mention, Dale says.

“The Dusit had to rebrand the café completely. Dialect traps are easy to fall into.” Sip eventually became JoyBean Café.

In another instance, at his former company Montana Wines, there was a project to brand a Chilean wine. The label “Al Pico”, meaning “mountain”, was deemed catchy in local translation.

“The labels were on the press ready to be printed when a native Chilean man chanced upon it. He was horrified and told us we can’t use the label as in Chile the word is local slang for a man with an enormous erection!”

The wine label was subsequently

rebranded with the feminine form – La Pica. “One way or another, if you are a New Zealand company producing for the local market, lack of local knowledge can lead to many traps,” Dale says.

STAYING AUTHENTIC One of the most challenging tasks for Kiwi companies packaging for and communicating about a product overseas is maintaining the integrity of the Kiwi brand while trying to adapt to foreign tastes. gardyneHolt had the experience of designing packaging for a company selling mussels to Chinese seafood suppliers.

EXPORTER 37

The client, Pure New Zealand Greenshell Mussels, wanted the packaging to communicate the quality of the product, it had to appeal to Chinese distributors, convey New Zealand’s clean/green and reliable image and get across the authenticity of the product against Chinese copycats.

NZ Pure Mussels

Armed with market research done by the client, gardyneHolt was able to tackle the packaging design. “You need to understand who’s doing the talking, who you are talking to, figure the client’s limit – what they are able to do in terms of reaching and aiming for the market,” Dale says.

YOU WANT YOUR PRODUCT STILL LOOKING LIKE A NEW ZEALAND PRODUCT YET TO APPEAL TO THE RESPECTIVE LOCAL MARKET.” MA LCOL M DAL E, PRAC T I C E MA NAG E R, G A RDY NE HOLT

“There is no easy answer to that.”

Asian markets have certain quirky colour and image preferences. Asia, in this case, is not a homogenous market but a tapestry of multiple cultures and languages.

Good Health Products’ brand manager Kim Batley says one of the most time-consuming issues is getting labels translated accurately for different markets. Good Health sells to China, Indonesia, Korea, Taiwan and Thailand.

Her advice is to ensure documentation is signed off with local partners before going ahead with any artwork. “This is to deal with the issue of the amount of changes that will happen.”

LOCAL QUIRKS Good Health’s Asian clients like European-looking children on packaging. “In New Zealand we tend

38 EXPORTER

to like lifestyle shots. Asian countries tend to want European-looking people. And for slimming products, there is a tendency to focus on the physical attributes of the image being marketed,” Batley says.

The Chinese, for example, like glitziness, gold and anything embossed in their colour schemes. “We’ve had to change to a gold label – for them, that colour represents quality,” according to Batley.

In one case, a client in Asia wanted a colostrum product in yellow while Good Health’s original packaging is bright blue. “We did not concede as that didn’t fit our brand,” Batley says.

Indonesian distributors, for example, like to have sample sizes for their customers – something quite localised. gardyneHolt’s Dale reiterates that the trick is balancing brand integrity with authenticity.

“You want your product still looking like a New Zealand product yet to appeal to the respective local market.”

A notable feature of the packaging of New Zealand-made vodka 42 Below is that it doesn’t resemble a traditional vodka bottle.

“Although they are selling vodka, the bottle doesn’t look anything like traditional Russian or European vodka packaging. It was a product designed to appeal not only to New Zealand but the wider market.” gardyneHolt works closely with several language schools to design their promotional and communications material.

“With the language schools, sometimes we have to do two or three versions of the same brochure,” Dale says, adding that Middle Eastern material would not feature girls with bare arms, while material aimed at the ASIAN MARKETS HAVE CERTAIN QUIRKY COLOUR AND IMAGE PREFERENCES.

German market would portray young people engaged in outdoor activities.

Once you ship your product to an Asian market, you may find the need to tweak your product based on the client’s feedback.

In MadeBlunt’s case, the company’s umbrellas have caught the Japanese market’s imagination. However, the Japanese distributor has asked the

MadeBlunt’s Umbrellas

THE REALITY IS YOU DON’T WANT TO CREATE PRODUCTS

BY TICK BOXES. YOU HAVE TO MEET DEMAND IN A WAY THAT YOU ARE COMFORTABLE WITH.” SCOTT K INGTO N, M ANAGING DIR ECTO R , MA D EB LUN T

company to include a sleeve for the commuter-centric market, and to supply curved handles.

NOT BY TICK-BOXES There was also a request to cater to the female market with umbrella made from fabrics that reflected the seasons.

Currently MadeBlunt umbrellas are made using plain fabrics.

MadeBlunt managing director Scott Kington says the company is in the process of introducing patterns, but on New Zealand terms.

“The thing is the umbrellas still have to look European, or Western. We have asked an Italian fabric pattern designer to produce several patterns for the Japanese to choose. That’s our compromise.

“The reality is you don’t want to create products by tick boxes. You have to meet demand in a way that you are comfortable with. We are adapting to the specifics of the Japanese market without losing the essence of who or what we are.”

Whether marketing mussels or wine, the important message is your point of difference and how to communicate that, says gardyneHolt’s Dale. Then there is the job of matching that to market demand. [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.

NZEXPORTER NZEXPORTER Website For New Zealand The The Website For New Zealand Exporters & International Buyers Exporters & International Buyers 100’s of New Zealand companies seeking 100’s international of New Zealand companies buyers, agents seeking & distributers. international buyers, agents & distributers.

nzexporter.co.nz visitvisit nzexporter.co.nz

Text “code” to 710 to learn Text “code” how to use this to 710 to learn how to use this

>> TMEACRHKNEOTLI N OG Y

From webinars to the world Using the web to conduct seminars or deliver product education can be a potent yet cost-effective way to reach a global audience.

BY SA N GE E TA ANAND

T

ight market deadlines and increasing pressure on marketing budgets are factors encouraging New Zealand exporters to find

more efficient ways to reach their markets and suppliers. Webinars not

KEY TAKEAWAYS > Webinars can help create brand awareness, build relationships and strengthen sustainable, long-term business networks. > Use webinars to present weekly team meetings, quarterly supplier announcements, showcase new products and provide after-sales service. > Setting up a webinar is easy with a webinar service provider. A computer, telephone line and internet access are needed.

only offer a cost-effective alternative

> Choose a webinar provider based on the company’s record, pricing plans and audio and video quality and speed.

to a physical meeting, they save

> Avoid webinars for a sales pitch or for closing a sale.

valuable time while offering most of the benefits of the real thing.

40 EXPORTER

> Have a clear idea of what you are trying to achieve before committing to use webinars.

EXPORTER 41

WHY WEBINARS Webinars enable a direct relationship with prospective clients and suppliers in remote markets. As part of a well researched and implemented export marketing plan, webinars may help New Zealand exporters create sustainable, long-term

“Companies in New Zealand looking to export can use webinars to maximise visual impact and extend reach to those who cannot attend a live product showcase.

“You are also helping the environment by reducing the pollution from transport.”

THE POWER OF A WEBINAR IS THE SIMPLICITY BY WHICH A STRONG AUDIO AND VISUAL MESSAGE CAN BE SENT TO A DISPERSED AUDIENCE, SAYS VICKY LABROSKI, MARKETING MANAGER (ASIA PACIFIC) AT ARKADIN, A GLOBAL AUDIO AND WEB CONFERENCING PROVIDER.” V I C KY LAB ROS KI , MARKETING MA NAG E R (A S IA PAC IFIC ), A RKA D IN

business relationships, says a New Zealand Trade and Enterprise (NZTE) spokesperson.

“Webinars, particularly live ones, provide an opportunity to ‘meet’ the people behind a business, and to build awareness of your company’s brand.”

Exporters can deliver high-impact presentations using a telephone and computer. The power of a webinar is the simplicity by which a strong audio and visual message can be sent to a dispersed audience, says Vicky Labroski, marketing manager (Asia Pacific) for Arkadin, a global audio and web conferencing provider.

WHEN TO USE A WEBINAR Webinars can be used in any situation where the audience is physically removed. For example, car-maker Nissan has a global presence and uses webinars for regular sales meetings with field staff.

New Zealand exporters can make presentations to suppliers or buyers located in another country or dispersed location; they can be used for new stock demonstration, weekly team meetings or quarterly supplier announcements.

“Webinars are perfect for sharing pricing spreadsheets, PowerPoint

Vicky Labroski, marketing manager (Asia Pacific) at Arkadin, a global audio and web conferencing provider.

presentations or your entire desktop.

“They can create a perfect environment for brainstorming, idea exchange or showcasing a new product,” says Labroski.

Webinars also provide valuable market intelligence. “They can be a low-cost way of helping to test the appetite for new services and products in international markets,” says the NZTE spokesperson.

“Webinars can work well as educational events, when the audience wants to learn more about how to solve a problem. Therefore, they may provide an opportunity for New Zealand companies to position themselves as experts in niche fields.”

WEBINARS CAN BE USED IN ANY SITUATION WHERE THE AUDIENCE IS PHYSICALLY REMOVED. FOR

• • • • • • •

Air & Seafreight Exports Freight forwarding Air & Seafreight Imports Full customs Documentation EDI Capability Landed Costing Services Storage

• Cargo Insurance • Specialists in shipping exotic motor vehicles (sea or air) • Specialists in airfreighting works of Art & Collectables

Contact Grant Hudson, Aironaut Customs brokers Ltd Level 4 , 156 Parnell Road , Auckland Ph: +64 9 309 8814 · www.aironaut.co.nz

42 EXPORTER

EXAMPLE, CAR-MAKER NISSAN HAS A GLOBAL PRESENCE AND USES WEBINARS FOR SALES MEETINGS WITH FIELD STAFF.

THE RIGHT WEBINAR SERVICE PROVIDER Free and paid-for services are available.

While the free services can be useful for smaller, internal audiences, exporters should consider the risks associated with security and reliability while running external meetings.

“To confidently convey a critical message, new product launch or company announcement, organisations need to rely on companies like Arkadin that are dedicated to providing a

professional service,” says Labroski.

Before hiring a webinar service provider, the exporter should run a trial (but real) internal webinar, probably with their remotely located staff. They should look for potential issues like difficulty of set up, the quality of audio and video, and technical service before, during and after the webinar.

It is worth checking whether the service provider can offer a copy of the webinar to publish on your website for clients or others who could not attend. Seeking client references from the webinar provider is essential too.

Most providers offer two types of pricing plan: pay-per-user-perminute or pay-per-licence. The cost will depend on the duration and extent of services bought.

PREPARING FOR A WEBINAR One of the reasons many exporters don’t use webinars is technophobia - fear of technical difficulties. But they’re not complicated.

For the moderator, or host, the webinar provider will give you a dial-in number, a PIN and a web link where the webinar will be streamed.

These details remain yours for as long as you need. Similarly, a PIN is given for the participants. The PIN is unique to moderator and participants.

“This is an added level of security provided by Arkadin for the moderator. It enables moderators to confidently host a webinar anywhere in the world,” says Labroski. “As a participant you will receive an invitation with the dial-in details and a web link.”

The dial-in number and PIN provide access to the audio part of the webinar while the web link is crucial for the visual component. “Essentially, the telephone and the web are integrated to provide a seamless virtual meeting,” says Labroski.

Moderator and participants require a telephone and computer. However, if there are participants who cannot access a PC and the internet, they can join in via a telephone conference call.

MISTAKES TO AVOID Webinars provide an audio and visual communication channel, yet lack the personal touch. While a good medium for breaking the ice, beginning a relationship and even for follow-ups and after-sales service, it may not

be the best way to persuade your prospects and close a sale.

A common mistake is lack of clear goals for the virtual meeting. “You need to have a clear idea of what you are trying to achieve before committing to use webinars,” says the NZTE spokesperson.

The spokesperson adds that webinars are not appropriate for a sales pitch; they are for education.

“Ensuring you provide relevant and focused information that helps the audience understand how your company’s products and systems can help them is important.

“Your marketing tools provide a critical first impression. Spend time producing worthwhile content that is suitable for the international audience and that reflects your company’s brand.” [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.

> T R AV E L M A N A G E M E N T

On-call 24/7 What should you expect from your travel planner? Here’s a guide to ensuring your provider meets your needs and gives you value for money.

44 EXPORTER

BY VA L L E V E S O N

M

ost exporters have to travel – they need to meet distributors, attend trade shows and scope potential markets. But arranging travel can be a tedious affair that takes you away from your core business. And often, if you’re doing it yourself, you’re not getting the best deals possible.

So what should you expect from your travel planner, how do you make sure you’re getting value from them and that your needs are being met?

The managing director of HRG New Zealand Executive Travel, Kevin Weston, says there are several things a travel management company can and should provide that you can’t get from booking your own airline tickets online.

TRACKING SERVICE Firstly, he says, travel management companies (TMCs) should have a security policy so travellers can be tracked.

“Recently there have been earthquakes, political violence and even the Iceland volcano. What if your senior management team is caught up in something like that?

Or even an employee that you’re concerned about. A good TMC knows exactly where they are at any time, can get hold of them quickly and organise to get them out of a situation as quickly as possible. It’s about having the right contacts.”

KEY TAKEAWAYS > Travel management companies (TMCs) should have a security policy that enables travellers to be tracked. > A travel company should have a good understanding of your organisation.

People using a TMC should expect personalised service. “They should be dealing with senior, experienced people who have an understanding of the client company’s needs. You need your travel company to understand your company.”

You also need to be with a TMC that retains its staff. Most companies want someone consistent to deal with, someone who knows their company and who they feel comfortable working with.

30 minutes away from doing your core business. “It’s about someone adding value – helping with visas, organising conference rooms, helping negotiate excess luggage or stopovers. It’s about helping you get the seating of your choice — everything that will make your travel experience a comfortable one.”

Also, travel management companies with bulk buying power can negotiate better deals than those available to individual consumers. This applies to airlines, hotels, car rental firms and

IT’S ABOUT SOMEONE ADDING VALUE – HELPING WITH VISAS, ORGANISING CONFERENCE ROOMS, HELPING NEGOTIATE EXCESS LUGGAGE OR STOPOVERS. IT’S ABOUT HELPING YOU GET THE SEATING OF YOUR CHOICE — EVERYTHING THAT WILL MAKE YOUR TRAVEL EXPERIENCE A COMFORTABLE ONE.” KE VIN W ESTO N, M ANAGING DIR ECTO R O F HR G NEW ZEALAND EX ECUTIV E TRAV EL

“If you have a policy that staff travel economy and a staff member tries to book business class, the person who’s dealing with the client needs to know the policy of your company and alert you to the discrepancy.”

As far as pricing is concerned, Weston says using a TMC saves you time. Most bookings take at least 30 minutes – that’s

more. Often they can achieve 25% off usual corporate rates. Even with fees, a TMC can shave 10-15% off travel costs, Weston says.

Travel management companies are not travel agents. If all you’re getting from your TMC is what you’d expect from a travel agent, you probably should look elsewhere.

Executive Travel TravEl should nEvEr bE hard work! we specialise in Travel Management for new Zealand’s sME and Corporate business. with over 30 years focussing on business travel we understand your needs. we’re small enough to give you personalised service, but big enough to give you access to the best deals.

Your business is unique, and we aim to provide a travel service that complements it.

> You should be getting enhanced reporting – know your costs, your savings and even what your carbon emissions are.

Contact us any time to talk about the performance you can expect from Executive Travel.

> Your travel management firm should have a 24-hour call centre so it is available to deal with problems immediately.

www.executivetravel.co.nz

> It’s important that corporate travel solutions drive internal efficiencies.

Call us on 09 295 0688 or email viv@executivetravel.co.nz

ProudlY suPPorTEd bY

EXPORTER 45

A TMC should adhere to the travel policy you have set out. You should be getting enhanced reporting – know your costs, savings and even your carbon emissions. If your policy is for employees to take the cheapest possible flight, you need to be informed when they are not.

These days, travel management companies also need to be up with the latest technology, Weston says.

Companies should be able to log in to the internet and get an idea of what the TMC has organised. “It’s about using technology to ensure what’s happening is what management is wanting to happen.”

It’s also good to ensure your travel management partner has global support, he says. “Because we’re an international company, we have people on the ground to assist in 140 countries. We can provide one global solution, one interface.”

If anything goes wrong on your travels, you also need to make sure that your service has 24-hour customer care. “You don’t want it to be a case of someone keeping a cellphone on them to answer calls. They could be in a movie or in a car where they can’t pick the call up. Your travel management firm should have a 24-hour call centre so they’re available to sort out any problems immediately.”

HRG sets out to give its customers’ senior staff VIP treatment. “We try to get them upgraded by airlines, manage their air points for them, arrange concierge service, restaurants and more.”

THE THING TO REALISE IS THAT TRAVEL MANAGEMENT COMPANIES ARE NOT TRAVEL AGENTS – IF ALL YOU’RE GETTING FROM THEM

small and enterprise-size businesses can be dramatic and it’s important their travel solutions are tailored to be as cost-effective as possible.

“For example, businesses that prefer to book online can take advantage of Corporate Traveller’s unique `SME3’ THE MOST OBVIOUS ADVANTAGE OF USING A TMC IS THE SAVINGS YOUR COMPANY CAN MAKE.” SIMON MCKEARNEY, GM CORPORATE TRAVELLER NEW ZEALAND

Simon McKearney, General Manager of Corporate Traveller New Zealand

“This gives employees the flexibility to work with their travel manager to make bookings that suit them, but also ensures policies are being adhered to in terms of time of travel, upgrades and cost.

“It is also important that travel booking solutions fit your specific business or company requirements.”

He says the differences between

tool that allows employees to book themselves online, but the final signoff and accountability for the booking remains with your TMC. “So if there are any issues or changes that need to be made, their dedicated travel manager can act quickly on their behalf.” [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.

WhErE EvEr you ExporT To WE arE on ThE ground WiTh you! hrG new Zealand is part of the hrG worldwide network combining local expertise and specialist knowledge with our wide reaching global links to make your business travel easy.

IS WHAT YOU’D EXPECT FROM A

whatever your export focus , we can offer practical advice and

TRAVEL AGENT, YOU PROBABLY

innovative solutions designed to meet your exact requirements and

SHOULD LOOK ELSEWHERE.

help you achieve your objectives. our capabilities stretch far beyond the classic travel management role.

Simon McKearney, the general manager of Corporate Traveller New Zealand, says: “The most obvious advantage of using a TMC is the savings your company can make.

“By having negotiated rates for hotels, car hire and air fares, the savings can add up across all employees and businesses.

A TMC will also work with businesses to make a travel policy tailored specifically to the businesses needs.

46 EXPORTER

our global traveller assistance service, which operates 24 hours a day 365 days per year, provides peace of mind wherever you are in the world.

Call us to find out how we can help meet your travel needs Phone: 09 550 6520 | Email: sales@nz.hrgworldwide.com www.hrgworldwide.com ProudlY suPPorTEd bY

We’ll help take your business to the world.

If you have overseas customers, then we’ve got the tools you need to deliver products to 220 markets around the world. We’re a Kiwi company like you, so we understand all the ins and outs of operating a business here. That’s why we offer helpful solutions for sending practically anything anywhere, from one letter to a whole container load. Backed up by our in-depth customs knowledge. Call 0800 501 501 to speak to one of our exporting specialists or visit www.nzpost.co.nz/export

BSM 0003

> MARKETING

Marketing on a shoe-string Without deep pockets, getting the right marketing message to your consumers can be a challenge.

It is possible to do it well with a clear and concise plan.

I

BY SA N GE E TA ANAND n difficult economic times with a limited budget it is still possible to reach out to clients and achieve outstanding marketing results.

Here’s how.

UNDERSTAND YOUR BUSINESS AND YOUR CUSTOMERS WELL Market research is often under-funded when budgets are tight. But it is the foundation of effective marketing.

First and foremost understand your customers and their buying behaviour, says Gary Lee, managing director of Christchurch-based e2digital, a marketing agency that has helped brands like A J Hackett and Jockey.

Understanding customers is crucial to establishing what communication channels and tools to use and in what format the message needs to be delivered, says Dr Stéphanie Lamotte, marketing co-ordinator at Wyma

48 EXPORTER

KEY

TAKEAWAYS

> Understand your business and customers well. > Plan marketing objectives in line with business objectives. > Limited marketing budgets dictate that every dollar spent is closely monitored for returns. > Build strong relationships with suppliers. > Build a sound customer database and keep improving its quality. > Use digital tools such as search engine optimisation, mobile media and YouTube. > Google AdWords advertising can help get qualified traffic and provide invaluable market intelligence. > Build networks on LinkedIn and other social media channels.

Engineering (NZ), an exporter of postharvest solutions.

Understanding your brand helps transform reputation into brand equity by positioning your products effectively around a strong point of difference and value proposition.

Dr Lamotte explains how Wyma decided to engage in a brand project three years ago.

“Our website and online strategy needed a fresh start. But Wyma chose to set the right foundations by first engaging with all its internal and external stakeholders to fully understand their brand values and customers.”

True to its tagline “Fresh Thinking”, Wyma was committed to understanding its customers, delaying the new website’s launch until it was sure it knew their needs.

“It may have delayed the implementation of the website.

However, this brand strategy stage

EXPORTER 49

allowed us to develop a consistent and distinctive look across all touch points and to clearly communicate Wyma’s points of difference to our international customer base.”

The research paid off. The new website resulted in 40 times more new visitors.

PLAN MARKETING OBJECTIVES IN LINE WITH BUSINESS OBJECTIVES Planning provides the much-needed clarity that can minimise wasteful marketing activities. For this, marketing planning must be closely informed by business strategy.

“Your budgets and objectives need to be aligned to the strategic direction of the company and, in particular, its market development strategy, so that your limited marketing resources are adequately spent,” says Dr Lamotte.

Wyma’s marketing activities were worked out in parallel with the strategic objectives of the company.

One of Wyma’s aims was to develop a direct presence in Europe. “So a lot of our marketing initiatives have focused on supporting this objective with targeted print and online tools,” says Dr Lamotte.

This strategy has found success, too: Wyma has established an office in Europe and appointed three full-time salespeople to cope with European demand.

LIMITED MARKETING BUDGETS DICTATE THAT EVERY DOLLAR SPENT IS CLOSELY MONITORED FOR RETURNS. HOWEVER, IT’S NOT ALWAYS EASY.

MEASURE TO MANAGE What cannot be measured, cannot be managed. Limited marketing budgets dictate that every dollar spent is closely monitored for returns. However, it’s not always easy.

“It is sometimes hard to adequately measure ROI on marketing activities.

But setting up a budget and objectives associated with each marketing activity is a good start,” says Dr Lamotte.

Lee agrees. “A lot [of marketers] do not have the discipline on the measurement side, so ROI is hard to gauge. Digital [marketing] offers [methods of] measurement but decisionmakers usually are not committed.”

Senior managers need to get behind the measurement tools, especially digital ones.

YOUR BUDGETS AND OBJECTIVES NEED TO BE ALIGNED TO THE STRATEGIC DIRECTION OF THE COMPANY AND, IN PARTICULAR, ITS MARKET DEVELOPMENT STRATEGY, SO THAT YOUR LIMITED MARKETING RESOURCES ARE ADEQUATELY SPENT.” DR STÉPHANIE LAM OTTE, M AR K ETING CO -O R DINATO R FO R WYM A ENGINEER ING (N Z), AN EX PO RTER O F POST-HARV EST SO LUTIO NS.

Marketing steps include: • Building strong relationships with suppliers • Using digital tools • Reviewing marketing spend to identify potential savings • Using Google AdWords to drive highly targeted traffic • Tapping into free social media tools • Recruiting a marketing manager with digital media knowledge Build strong relationships with suppliers Having a strong relationship with suppliers allows you and them to develop and learn, says Dr Lamotte.

“You will find they learn as much from you as you do from them.”

Have a clear project brief for suppliers so that you don’t waste time and resources. Choose suppliers carefully. Don’t let price alone dictate the selection of a supplier, even when on a small budget.

“There also needs to be a strategic fit with your company and a belief that you can trust the selected supplier.”

Dr Lamotte says Wyma prepared a detailed project brief when it undertook its website redesign. It interviewed three suppliers and short-listed two.

“We have partnered with our digital supplier for two years now. We have regular discussions as to how our online strategy can be further developed at low cost.”

Using digital tools A website is a very cost-effective marketing channel. Build the website with clients in mind. Analyse website statistics to understand how the site is being used by visitors and use that knowledge to improve the visitor experience. Hire a search engine optimisation (SEO) specialist to improve returns on internet marketing.

Reviewing marketing spend Here are some questions to ask: Can you partner with a supplier for your advertising campaign? Can you replace a print newsletter with digital?

Wyma shifted from offset printing to digital printing. The company made it a rule to first send its representatives to trade shows as visitors.

“This is usually planned as part of their sales trip. Based on a visit, we can assess the potential of the show,” says Dr Lamotte.

Wyma also moved its graphic design work from an external supplier to an in-house designer. “This has had immediate financial benefits and also resulted in greater control and flexibility of creation,” says Dr Lamotte.

Using Google AdWords Google AdWords is a potent way to drive highly targeted traffic. Campaigns can be started, paused or stopped at any time. A daily or monthly AdWords budget can be set. “[With AdWords] you can target demographics, geography. You can also measure ROI,” says Lee. AdWords can also provide valuable market information and could be a good market intelligence tool. Google AdWords executives are helpful and can provide campaign design expertise.

Exploring other social media tools Check out other free social media tools.

YouTube is one of the top five mostvisited websites in the world. Wyma website traffic increased by 10% when it released the Wyma Solutions channel on YouTube.

Digital media Hire a marketing manager with a good understanding of digital media and online tools.

Outstanding marketing results are possible on a limited budget with detailed planning, focused execution and close monitoring. [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.

50 EXPORTER

BSM

We’ll help take your business to the world If you do business overseas, then you’ll appreciate being able to reach the furthest corners of the globe quickly and efficiently. We can help you access 220 destinations worldwide and offer free pick-up and packaging on items sent via international courier, as well as easy online lodgement through RedClickTM. You can send practically anything anywhere – without variable fuel surcharges or rural delivery fees. Call 0800 501 501 to speak to our export team or visit www.nzpost.co.nz/export

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BSM 0003 IntMarkets-Warehouse-A4-2 2

15/3/11 1:59:53 PM

The Most Important Club

N

ew Zealand companies are being invited to join the NZ2011 Business Club set up for Rugby World Cup 2011.

The Business Club is a way to make important contacts with overseas companies before, during and after RWC 2011. It will match businesses with visitors in similar industries or with common interests to make valuable business connections and set up opportunities to host international businesspeople.

Businesses looking to expand through capital investment, exports or innovation will want to join Business Club.

Membership is free and open to all.

economy’s biggest, smartest exporting companies, the opportunity to hook up with the right people from the right markets is priceless. There are plenty of opportunities for local businesses to show off their talents and develop some long-term relationships with likeminded business people.

The best way for Auckland-based businesses to access Business Club is through the auckland2011.com website, which also offers specific information about RWC 2011 and how to make the most of the Auckland events.

More than 85,000 people will visit New Zealand during RWC 2011. Nearly half will arrive before opening match,

and for many it’s their first visit to New Zealand. With opening matches and the opening celebration happening in Auckland many are opting to base their visit in the region.

THE BUSINESS CLUB MESSAGE The NZ 2011 Business Club represents great value for local business people – it’s free, it only takes a few minutes to sign up, and members receive updates and information each month to help them with their planning.

The message from the developers of the Business Club is simple: ‘no matter where you live in the country, you’ll experience the excitement of what it

Brent Ogilvie, Director of Pacific Channel makes his living helping companies to grow and knows all about the benefits of hosting and building business relationships.

Brent Ogilvie, Director of Pacific Channel

With 48 games of world class rugby and a nationwide festival in full swing, RWC 2011 will be a great opportunity to foster business connections between matches.

Hosting opportunities might focus on a bespoke Kiwi experience, a tour of local industry facilities or a larger event such as the International Boat Show.

Being a host offers the chance to build international relationships and gain knowledge, ideas or mentoring.

HELPING AUCKLAND BUSINESSES TO BENEFIT There is a special attraction for businesses based in Auckland. With the number of teams hosted in the region and the presence of some of the

52 EXPORTER

A keen member of the NZ 2011 Business Club, Brent helps companies to make new business connections on a daily basis. His goal, and the goal of Pacific Channel is to help New Zealand bioscience and clean-tech companies expand by providing capital and expertise, and by forming beneficial partnerships in the United States and Europe.

“We identify the right people to introduce our technologies to other markets, giving New Zealand companies access to worldrenowned technical and commercial experts. I’m very privileged to work with inspiring entrepreneurs and world–leading business people.

“There’s great interest from offshore investors and corporate partners in New Zealand biotech start–ups.

Particularly in areas where we have deep technical expertise, such as

in dairy innovation and areas of biotechnology and medical science, which gives us a real advantage.”

As someone who’s in the business of building relationships, Brent knows the value of being a good host.

“Hosting has a massive impact on whether people choose to do business with you and it can open doors into other markets. I’ve noticed recently that overseas business people are increasingly seeking authentic experiences - and New Zealanders can offer that in spades.

“To me, the Rugby World Cup gives New Zealanders a chance to be ourselves and give our visitors a warm reception when they get here.

Our Business Club event is taking guests out on Auckland Harbour to give them a fun, authentic experience that many of us Kiwis take for granted.”

Make 85,000 new connections

WITH 85,000 VISITORS EXPECTED FOR RUGBY WORLD CUP 2011, there’s never been a better time for New Zealand business people to make enduring personal

connections with like-minded business people from overseas.

NZ2011 Business Club connects visitors with local Kiwi business hosts, in towns they’ll be visiting while they’re here for the Rugby.

As a host, you have the chance to create a fun, informal event, and show our international visitors how we live, work and play.

Join NZ 2011 Business Club Becoming a host is free and easy. To find out more and register visit: nz2011.govt.nz/business

means to be host of RWC 2011. Hosting is more than putting on a great event and making sure our visitors have a fabulous time, it’s about taking the opportunity to show the rest of the world what we’re made of, and how unique we are.’

In other words, highlighting all the things Kiwis love about this country and making sure our higher-level business visitors have a heck of a time – and building some valuable contacts and networks for your business at the same time.

The REAL New Zealand Festival runs alongside the Rugby World Cup from 9 September to 24 October 2011. The Festival is the biggest celebration of our country ever staged, and has a rich and varied programme. Our international guests may be coming to New Zealand to see some great rugby, but they’re also interested in experiencing more of New Zealand – and the REAL New Zealand Festival proudly celebrates all the things that make New Zealand – and New Zealanders – tick. The REAL New Zealand Showcase will present the best of New Zealand business and industry to the world during Rugby World Cup 2011. The hub of the Showcase will be based at The Cloud on Auckland’s Queens Wharf, and the programme comprises more than 200 events nationwide, demonstrating New Zealand’s key industry sectors and the people who work within them.

The concept has the backing of no less a business and rugby identity than David Kirk, captain of the RWC 1987-winning All Black team.

“It’s a great opportunity [for overseas business people] to meet New Zealand business people, not just for business but for pleasure.”

LASTING BENEFITS FOR NEW ZEALAND BUSINESS The Business Club is an initiative from NZ 2011, the office set up by the Government to help New Zealanders to get involved in RWC 2011, and to create lasting benefits for industries, businesses and communities. The office has a range of programmes designed to do just that, including a nationwide festival, sector showcase and business initiatives.

Business Club connects local business hosts with international business people while they’re in New Zealand for RWC 2011. International visitor recruitment comes through

54 EXPORTER

How will Auckland benefit?

Auckland’s long-term benefits • Long after the final whistle blows and the last celebration ends, Rugby World Cup 2011 will provide enduring, positive change for Auckland.

• The region is investing millions of dollars in hosting RWC 2011 and looking for long-term returns over and above the estimated $267 million in direct economic benefit. Long-term benefits from RWC will include its effect as a catalyst for major improvements in infrastructure and the profiling of Auckland as a desirable place to hold international events. This perception and profile will be very beneficial for companies looking to recruit staff internationally or to make the most of global perceptions of this country when developing export projects.

• New Zealanders remember the transformation of Auckland’s Viaduct Harbour for the America’s Cup. This time, we are hosting a sporting event eclipsed only by the Olympic Games and Football World Cup. • Preparing for RWC 2011 will speed up waterfront projects aiming to link people, city and sea, and provide greater public access to working wharves, event spaces and recreation areas.

• Auckland will have: • an open and transformed Queens Wharf • a world class multi-purpose viaduct events centre • new public spaces and seafood markets in the Wynyard Quarter. government and business connections, overseas events and ambassador presentations, relationship marketing and the online Business Club tool.

Hosting Business Club members creates a great environment for making new and enduring relationships, and means they get a personalised and unique experience of New Zealand.

Hosting comes in many forms, from a BBQ on the beach to attending a REAL New Zealand Showcase or REAL New Zealand Festival event together.

SO LET’S GET PLANNING As RWC 2011 gets closer, members will need to plan their hosting. Businesses can create their own events or attend one of the many REAL New Zealand Showcase and REAL New Zealand Festival events around New Zealand.

Once hosts have decided on an event, they submit it to the Business Club,

which sends an invitation to business contacts on their International Business Club member database.

Business Club members can also get extra help with hosting: the NZ 2011 Business Club works closely with regional economic development agencies (EDAs) who can help members to design and deliver tailored events to match the interests of the international visitors.

Auckland business club members will find the auckland2011.com web site offers information and ideas that will help them make the most of the region’s many assets as they develop hosting concepts.

Businesses in other parts of the country are able to use the nz2011.govt.nz web site, which has broader information about RWC 2011 and opportunities to be involved throughout the country. [END]

FOR MORE INFORMATION PLEASE CONTACT: Anna Thomson > NZ 2011 Communications Manager (M) 021 242 6918 | (E) anna.thomson@nz2011.govt.nz Sally Woodfield > REAL New Zealand Festival Publicist (M) 021 868 020 | (E) sally.woodfield@nz2011.govt.nz Suzanne McKinnon > Auckland Business Club Engagement & Delivery Manager (M) 021 055 7881 | (E) Suzanne.mckinnon@aucklandcouncil.govt.nz Or visit these sites: Auckland2011.com | nz2011.govt.nz/business | realnzfestival.com youtube.com/nz2011office

ONCE IN A LIFETIME

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OPPOSITE PARTY CENTRAL Imagine your clients and staff will access their own exclusive private lounge while experiencing the excitement and buzz of the tournament. Located in QEII Square, No.1 Queen Street is right in the heart of The Rugby action. Thousands of fans walking past every day. They will see your brand and you entertaining your guests in the exclusive sanctuary at No. 1 Queen Street.

No. 1 Queen Street will operate as an exclusive private lounge every night of the tournament. As hirer of the venue you will have: Exclusive use for up to 90 guests • Glass structure and corporate marquee including carpet, furnishings etc • Multiple screens for game viewing • Catering and beverage options • Security passes • Security • Signage opportunities

For further information contact People Media Group today P: 09-3666-879 | peoplemediagroup.co.nz | E: mike@peoplemediagroup.co.nz

> GUTSY PEOPLE

Viewpoint ALISTER GATES MANAGING DIRECTOR, NEW ZEALAND TRADE CENTRE

Of IndyCar races and exports

T 56 EXPORTER

he New Zealand Trade Centre has had a face lift in more ways than one! My partner Rochelle and I are the new owners. We have revamped

the inside of the Trade Centre and introduced a range of new initiatives to take kiwi companies to the world.

The new team brings a background in internet marketing and experience in

taking products to the international stage. International trade is in my blood. I grew up with my father being in the diplomatic corps and we have lived in the UK, USA, throughout the

Pacific and Japan. I have a great passion in taking New Zealand’s best products to the global stage.

Those of you familiar with the NZ Trade Centre might be asking ‘what’s new?’

A decisive coup for us is having the opportunity to link up with the famous Dixon family to “export” New Zealand companies using the USA IndyCar races as a platform.

Ron Dixon, father and number one supporter of Scott Dixon, two-time Indy Car champion approached us a couple of months ago about running a New Zealand Trade Show at the 12 American races.

Ron has been unofficially promoting NZ products for the last 10 years that he has been up in the USA supporting his son.

Last year he noticed what an amazing job Apex-Brazil were doing in promoting Brazilian products at the races. Such a good job that in fact the combined income from being associated with the show is around US$500million!

Ron has made some incredible contacts in the time he has been is the US and as part of the trade show he is actively looking for agents, distributors and importers of New Zealand products.

Combine that with the million plus people who visit the races over the 12 events and there is a powerful marketing opportunity.

We are also off to Shanghai!

I am in the final stages of negotiation with a kiwi expat in Shanghai about opening a New Zealand Trade Centre there. The business partnership will provide New Zealand companies with a presence and expert support in selling into to China.

The new partnership will offer help to New Zealand companies wanting to set up Chinese importing and distribution licenses, setting up trading platforms, market research and consultancy.

At the Trade Centre, we receive hundreds of enquiries each month from overseas companies looking to import a variety of New Zealand products. We are always looking for new and innovative products to recommend to our visitors and have simplified our business model to make it easier to get access to the leads.

This business is about networking and every day we are able to match interesting businesses together, it is very satisfying helping kiwis do well. [END]

MORE PORTS MORE SERVICES MORE OFTEN

www.swireshipping.com 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.

Sales 0800 947 947

EXPORTER 57

GLOBAL STAGE EXPORTER LOOKS AT INNOVATIVE NZ PRODUCTS SEEKING A WORLDWIDE AUDIENCE

IF YOU HAVE AN INNOVATIVE PRODUCT YOU WANT TO TAKE TO THE WORLD, EMAIL EDITOR@EXPORTERMAGAZINE.CO.NZ

DomHealth DOMHEALTH PROVIDES innovative animal health solutions through products and technical support and have a goal to improve the health of horses and production animals around the world. Their more popular products include Moremag™, (dairy and equine), Fly-ax™ (a granular fly-bait), Manderson’s Mix™ (helps animals recover from stress), Electrolytes for horses (to maintain fluid balance), Calf salts, Rockie stock lick blocks for cattle and horses, Energraze™ (full vitamin and mineral nutritional supplement with probiotic for better nutrient uptake), and Staysound (leg clay).

More-mag™ is a DomHealth “hero” product, according to DomHealth General Manager, Jo Wrigley.

The product was developed by DomHealth founder, Ken Wrigley.

Horses under training and racing pressure are susceptible to magnesium deficiency. Problems arising from any deficiency are therefore likely to manifest themselves quickly in nerve and muscle function. In horses common signs of magnesium deficiency are nervousness, excitability, inability to concentrate, and muscle tremors.

More-mag™ is magnesium pidolate in a liquid form that is palatable and ready to use. For a 500kg horse the 100mL dose can simply be poured on the feed. More-mag™ is quickly absorbed, and because magnesium pidolate (unlike salts such as oxide, chloride and sulphate) can be stored by cells, the magnesium in Moremag™ is available to the animal for up to 10 days.

At the beginning of summer, DomHealth launched their new fly bait called Fly-Ax™ which was developed in conjunction with another kiwi company. Fly-Ax™ proved to be incredibly popular at

58 EXPORTER

stables and on farms (dairy, sheep, poultry and piggeries), and sales well exceeded expectations. Fly-Ax™ has a strong sex attractant in it to lure flies into a bait station to feed on the bait.

After 20-60 seconds the flies begin to die which is great news for anyone trying to reduce fly burdens.

DomHealth is a family business and was originally known as Dominion Chemicals (1988) Ltd. Jo worked in the family business before studying at Massey University, obtaining an animal science degree and postgraduate qualifications. She has now been in the animal health industry for nearly 20 years. It is her passion for animal

Horse + logo image only.indd 1

health that continues product development at DomHealth striving to achieve affordable and innovative products for high performance sport horses (racing and equestrian) and production animals (beef and dairy cattle, sheep, deer).

Currently exporting to Australia, DomHealth is now focussing on the racing industries in Singapore and Hong Kong.

In New Zealand, DomHealth products are widely available through rural supplies stores, large animal veterinary clinics, saddlery and feed outlets.

MORE INFO: WWW.DOMHEALTH.CO.NZ

29/03/11 9:17 AM

Peter Shakes Jeweller PETER SHAKES DRAWS inspiration from the world around us, from the interlacing knot-work from the treasured book of Kells, movie star iconic style, and the many wonders of nature. Collections include Celtic Class™, Web of Gold™ and Nugget & Pearl™ collections. The Celtic Class™ wedding band range is probably the most notable, while the Sunrise Sunset Web of Gold pendant was so popular in the 2007 National Jewellery Showcase held in Wellington that the piece won the People’s Choice Award for the Fine Jewellery category.

Peter Shakes is a well-known, awardwinning New Zealand Jewellery manufacturer who has been in business for 30 years. With a factory based in Wellington, and offices in Victoria, Australia and New Hampshire USA he has an established international export operation providing customers with exciting

individual designs and original collections.

Peter is committed to producing quality jewellery. His staff are highly motivated and extensively trained in the production of pieces which must stand up to stringent quality controls. Cutting-edge technology, such as a laser welder and a Rapid Prototyper, allow the company to create exceptional pieces, limited only by their imagination.

Additional to the company’s core range, Peter Shakes Jewellers offers the ability to design and create one-off pieces, as well as a specialist repair service able to undertake restorations that previously would have proven difficult and costly.

Manuka Health Limited MANUKA HEALTH LIMITED was established in 2006 as a wholly owned New Zealand company with a vision to take to the world a range of natural healthcare solutions utilising the unique healing properties of bioactive compounds found only in New Zealand native flora and fauna.

The key to success is providing the science to identify the active compounds responsible for the therapeutic effect, quantify these compounds and then developing unique delivery devices or formulations to maximize the benefit of these natural compounds.

Manuka Health is the only company to declare the level of the active ingredient methylglyoxal in its manuka honey products. Professor Thomas Henle, a German scientist discovered methylglyoxal is responsible for manuka honey’s antibacterial properties.

More recently, Manuka Health has launched two new innovative product ranges: Firstly, a unique range of woundcare products based

on the wound healing properties of manuka honey. Developed in partnership with a leading American wound care manufacturer, these dressings offer significant advantages over standard dressings for chronic wounds. Secondly, in association with a Japanese researcher, the company has developed a bio-molecular delivery system using cyclodextrins derived from plant material as a complexing agent to deliver natural bioactive ingredients. To be marketed under

the brand name CycloPower, this technology can increase the effectiveness of the bioactive compounds, delivered in a form that can easily be applied topically, ingested or used as an ingredient to other products.

Manuka Health now exports to 40 countries, with exports comprising 80% of total sales. The main markets are within Asia and Europe, with a presence in North America only recently established.

EXPORTER 59

We are a private international trade promotions company that is passionate about growing small and medium New Zealand export businesses.

We offer a range of integrated marketing solutions to gain new export leads. Visit our website today and talk to one of the team about our Export Success packages.

Quality Export leads

guaranteed

or your money back

EXPORT OPPORTUNITIES Below are some of the opportunities from recent visitors to the New Zealand Trade Centre. All these opportunities are available at no charge to New Zealand Trade Centre Export Success and Export Lead Members. Export Lead Membership is just $239.40 p.a. Join as a member at http://newzealandtradecentre.com/join-now/

www.nzexporter.co.nz

All $200+GST each or free to Trade Centre Exhibitors

SAUDI ARABIA

AUSTRALIA

Frozen beef/mutton, evaporated milk for Saudi Arabia

Skincare supplement raw ingredients for Australia

A well-established trading company in Saudi Arabia that imports and distributes foodstuffs is looking for tinned unsweetened evaporated milk and frozen mutton and beef for distribution into the Saudi market. This company imports many products from a wide variety of countries but frozen meat is one of their biggest business segments. They are now looking to New Zealand to fill their orders.

This Australian biotechnology company headed by an ex-pat Kiwi is actively looking to source raw materials, including bioactives, that are used for therapeutic skin care supplements in both the human health and animal health sectors. The company currently sells to pharmacies, health food stores, practitioners, clinics and veterinary practices in a variety of countries.

VIETNAM

MALAYSIA

Pickles and chutneys for Vietnam

Aloe Vera Juice/Gel, Health Supplements for Malaysia

New Zealand pickles and chutneys are sought by a Centre contact for their chain of 30 stores in Vietnam with plans for many more stores. Get your foot in the door with this lead for your pickles and chutneys and who knows where else this may take you.

A Centre visitor wants to source Aloe Vera juice and gel to export to Malaysia. This company is also interested in other health supplements and honey. The company is an import/export business based in New Zealand and currently importing wine into Malaysia.

ITALY

AUSTRALIA

Hug boots and wool products for Italy

Skin care products for Australia

A resident of both New Zealand and Italy wants to source “Hug” boots and other wool clothing or footwear products specifically for the Italian market.

Do you have a unique NZ skin care product with a middleto-premium target market? An Australian hair and beauty importer looking for your product! With a warehouse in Sydney, this company supplies to hair and beauty salons in NSW, Victoria, Queensland, and Western Australia. The company currently imports makeup, skincare, nail and foot care products from a variety of countries including New Zealand and actively seeks out unusual hair and skin products for salons, spas, specialty stores and aesthetic services.

CHINA

INDONESIA

Colostrum for China

Woollen sports clothes and baby clothes for Finland

A trading company based in Shenyang City, LiaoNing Province, North-East China, is looking for a long term business partner in New Zealand to supply health products to China, especially colostrum. They are interested in colostrum products such as powder and different flavoured tablets for children, teenagers and older people. Colostrum is currently in high demand in China.

100% wool sports clothes for men and women, jumpers for women and baby clothes are being sought by a resident of New South Wales, Australia, who is representing a small family import agency in Finland. These sports and clothing items are specifically wanted for the Finnish retail market.

For more information or a personal introduction, please email, alister@newzealandtradecentre.co.nz or call (09) 281 4030

EXPORTER 61

Useful Websites for Exporters GOVERNMENT-RELATED SITES www.mfat.govt.nz Ministry of Foreign Affairs and Trade website. Trade and economic relations information. www.nzte.govt.nz New Zealand Trade and Enterprise (NZTE) is the Government’s national economic development agency. Our job is to lift New Zealand’s economic performance by helping businesses to grown and compete internationally. www.maf.govt.nz Ministry of Agriculture and Forestry. www.customs.govt.nz/exporters Useful information and advice for exporters. www.nzeco.govt.nz /info@nzeco.govt.nz The New Zealand Export Credit Office (NZECO) provides financial guarantee products for New Zealand exporters and banks. Our products help exporters manage risk and capitalise on trade opportunities around the globe.

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.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.germantrade.co.nz/services/index.asp NZGBA: German Chamber representative office provides support services to NZ exporters for participation at German trade fairs and/or providing important contacts when setting up business in Germany. www.cilt.co.nz THE CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT IN NEW ZEALAND INCORPORATED In the 50 years since CILT NZ was formed, which now has an active membership of over 1,000 focusing on improving the quality of Transport & Logistics (Supply Chain). Members obtain industry knowledge though courses, conferences & meetings to benefit and advance our membership and Industry. www.cbaff.org.nz The Customs Brokers and Freight Forwarders Federation of NZ Inc is a national organisation which promotes the interests of all members; assists member companies and individuals working professionally and participating in customs broking and freight forwarding, and is affiliated with the wider transport industry. CBAFF is organised independently of Government by a management executive and initiates discussions with relevant bodies, seeking to develop an environment favourable to our members.

RECRUITMENT www.logisticsrecruit.co.nz Logistics Recruitment are the specialist recruiter for the Import / Export / Freight sector in New Zealand. We have an extensive database of high calibre candidates that will add value to your company. Our rates are competitive and all placements are guaranteed for 90 days. www.teamrecruitment.co.nz Team Recruitment specialise in the logistics & supply chain areas, supplying top quality people from the operational level through to project & senior management for importers, exporters, shipping, international & domestic freight forwarders. “Quality candidates quickly” – this is our purpose & our goal is to deliver this to you wrapped up in outstanding service. Having specialised in this market for 15 years, we have considerable knowledge of the people in these industries, and can add valuable people to your team as your needs arise.

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EDUCATION AND TRAINING www.export.ac.nz New Zealand School of Export is the only provider in New Zealand to offer the internationally accredited Diploma of International Trade. Highly practical and delivered entirely by distance learning with one-on-one personal tutoring – we work with you and your business to raise your game.

Course participants have access to our unique online Export Library & Information Service (ELIS) and we offer a range of scholarships – check us out: www.export.ac.nz 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.getexporting.co.nz WHK provides expert and practical advice to new and existing exporters and importers. Their specialised export team add insights and value in areas ranging from market entry strategy and planning to budgeting and tax structure. www.ema.co.nz / www.exportnz.org.nz New Zealand’s premier exporting partnership brings you a series of targeted, contemporary, and practical export and international business courses. EMA Learning and Export New Zealand offer workshops in areas such as trade documentation, trade shows, foreign markets and international marketing, plus the Diploma of International Trade (in conjunction with the New Zealand School of Export). www.shortcourses.ac.nz The University of Auckland Business School offers over 200 2-day practical business and management Short Courses each year to provide business and professional people from all walks of life opportunities to up-skill and re-skill. Short Courses also deliver an ever-growing number of in-house courses which are delivered specifically for an organisation, when they want and where they want, with the option to have the courses tailored specifically for that organisation. 0800 800 875. www.LTG.co.nz LTG provides applied, distance qualifications.

Prior learning/experience are recognised.

LTG specialise in bridging qualifications including the CILT(UK) Certificate and Professional Diploma in Logistics & Transport. www.theicehouse.co.nz/ownermanaged The ICEHOUSE Business Growth Centre, Auckland Join business owners and entrepreneurs becoming globally capable with ICEHOUSE knowledge, tools and contacts. www.nzlogistics.co.nz Manukau Institute of Technology’s New Zealand Maritime School is the premier provider of logistics, shipping and freight training in New Zealand. www.learningpost.ac.nz Learning Post – Study at Your Own Pace at Your own Home.

Fit education around your work and family commitments Contact us today for more information 0800895895.

CUSTOMS TARIFF AND FREIGHT CONSULTANTS www.aironaut.co.nz Aironaut Customs is a highly motivated, privately owned, independant customs broker.

WEBSITE DESIGN Zeald.com Zeald.com is one of the fastest growing website design and e-business consulting companies in New Zealand. Our vision is to help small to medium sized companies generate amazing results online using a website and other methods of electronic marketing.

Visit www.zeald.com to book your FREE Audit or Consultation www.bka.co.nz When you’re talking to the world, you need a world class website.

At bka interactive, that’s what we build. We help our clients connect with the world through their websites.

Contact us – www.bka.co.nz

TRADE SERVICES

TRAVEL CONSULTANTS www.chinatravel.co.nz Asia’s 1-stop travel shop China wholesaler.

www.jacanna.co.nz International Logistics Company 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.tmnz.co.nz Tax Management NZ is NZ’s original tax payment intermediary dealing with most of the top 200 companies, all of the largest trading banks, and the top four chartered accountancy firms.

We can help you too. www.tabak.co.nz Selling businesses is all Tabak does, which allows it to be fully committed to their clients throughout the sales process – from bringing buyers and sellers together and to achieving to a satisfactory.

www.apx.co.nz Atlantic Pacific American Express (APX) offer a comprehensive corporate travel management service to large corporates and SME’s. APX are an American Express Business Travel Partner, offering innovative business travel solutions to increase savings and control over your travel program, including reporting, online booking tools and access to AMEX global corporate hotel rates. www.chinatravel.co.nz The China travel specialists since 1928 China’s 1-stop travel shop with hundreds of offices to provide local support and service on a 24/7 basis .Phone: 0800 CTS 888

MATERIALS HANDLING www.secureaload.co.nz Cargo care products to protect your exports and now the BIG Red Flexitank for bulk liquid. www.liftrucks.co.nz Liftrucks NZ Ltd: Forklift sales and rental from 1 tonne to 50 tonnes.

Petrol/LPGas, Diesel, Electric. Warehouse equipment to Container handling. Brands: Komatsu, Still, Hoist. Tel 0800 62606

FREIGHT FORWARDERS

INSURANCE www.chartisinsurance.co.nz As a world leader in insurance, Chartis has been helping New Zealand exporters navigate the ever-changing landscape of risk and confidently pursue their goals since 1970. Our unrivalled global network, across 160 countries and jurisdictions, means we can respond whenever, and wherever you need us.

INTELLECTUAL PROPERTY www.baldwins.com Turn ideas into profit through sound IP management. Whether you’re looking to commercialise, develop, protect or enforce your IP rights call 0800 Baldwins. Mention ‘Exporter’ when you call to receive a free consultation with our experts. www.ajpark.com A J Park are the clear leaders in IP. They provide a full range of IP services, including trade mark, patent, and design protection, copyright advice, commercialisation and litigation. www.everedgip.com EverEdge IP provides a comprehensive range of intellectual property related services to corporations, research institutions, individuals and investors with the objective of assisting organisations and individuals to generate and maximise the value of their intellectual property. www.piperpat.com If you need to protect your brand or create a brand, or if you need to know whether you can export your products freely without infringing other protected products or brands, PIPERS might well be your first stop and not your last hope. www.jaws.co.nz James & Wells Intellectual Property is New Zealand’s most dynamic firm of patent attorneys, trade mark specialists and intellectual property lawyers. Our clever thinking sets us apart in assisting clients to develop and grow their businesses.

www.tnlintl.co.nz TNL International provides seamless, door to door services to meet our customers’ individual requirements. We specialise in offering importers and exporters tailored solutions and not a one size fits all approach, often taken by our competitors

TRADE CREDIT www.atradius.co.nz Company description: Atradius provides trade credit insurance and collections services worldwide with a presence in 42 countries. Its products help protect companies from payment risks associated with selling products and services on credit. www.redwoodcredit.co.nz Specialist trade credit insurance (cover against the failure of a buyer to pay) Broker and consultant.

SHIPPING COMPANIES www.swireshipping.co.nz/web/index.jsp Swire Shipping is New Zealand’s leading multi-purpose liner service connecting New Zealand with Australia, Papua New Guinea, East and South East Asia, North Asia, Noumea and West Coast USA. Services provide extensive port coverage catering for breakbulk, containerised and project cargos

INDUSTRY TRAINING ORGANISATIONS (ITOS) www.tranzqual.org.nz Tranzqual is the Industry Training Organisation (ITO) responsible for setting world-class training standards for the commercial road transport and logistics industry sectors.

PORTS www.lpc.co.nz LPC is the trade gateway to the South Island and a world-class supplier of port services. LPC offers a full array of shipping services to exporters and importers, 24 hours a day, 365 days a year.

exporter is not responsible for the contents or reliability of the websites listed above and does not necessarily endorse the views expressed within them.

For more information regarding these listings please contact the listings directly.

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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

With ANZ, doing business with China just got easier.

ANZ New Zealand has become the first major New Zealand bank to do a cross-border trade deal in the Chinese currency Renminbi (RMB). This means New Zealand companies now have more options for negotiating price and settlement when trading with Chinese entities. Combine this with

ANZ’s rapidly expanding Asian presence and experienced New Zealand Trade teams, and you have the expertise and connections you need to get the most from China. To find out more, call Chris Mouat, Head of Asian New Zealand Relationships, on 09 252 5458.

TM Š Rugby World Cup Limited 2008 -2011. All rights reserved. In New Zealand, ANZ New Zealand is ANZ National Bank Limited; elsewhere ANZ is Australia and New Zealand Banking Group Limited and its affiliates.

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