Exporter Issue 17 by Adrenalin Publishing Ltd

ISSUE 17 DECEMBER QUARTER 2010

EXPORT OPPORTUNITIES ON EVERY PAGE

Wish list 2011: Stop the NZ dollar nightmares • • • • •

Top toys for the top boys Rugby World Cup: What’s your legacy? NZ’s trade arsenal Best trade fairs How the Japanese say “No”

Rapport QBE-019 EX

ISSUE 17 DECEMBER QUARTER 2010

COVER STORY ECONOMY All I want for Christmas is ... Exporters’ wish list

FEATURES

REGULARS

ECONOMY Turning the corner? Export performance

PUBLISHER’S VIEW / SAY IT LIKE IT IS Mike Taillie Letter to Key: If only I could end our relationship

MANAGEMENT New game plan for 2011 How and where to grow markets

VIEWPOINTS Shane Stoneman Getting the best freight solution

MARKETING Build your legacy at Rugby World Cup Time for action?

PRODUCTS Global Stage Innovative NZ products seeking a worldwide audience

TECHNOLOGY Gizmos as buddies for life Must-have technology toys

Exporters’ Toolkit Products & services you should know about

Export Opportunities New contacts from the New Zeland Trade Centre

EYE ON GOVERNMENT Cocktails, market intelligence and export pipelines What do trade commissioners do?

02 22

DIRECTORY Useful Websites Information for travellers and exporters

62 CURRENCY Keep your eyes on your business to stay ahead of the NZ dollar High lows in FX market

MARKETS “That would be a little difﬁcult” means “No” in Japan Doing well in Japan

MARKETING Fairs not to be missed in 2011 Getting prepared for trade fairs

FINANCE Reﬁnancing to stay lean and mean Extra funds for your business

TECHNOLOGY Building your website to go viral Is your website outdated?

Cover photography: Dreamstime

EDITOR: Yoke Har Lee, (E) yokeharlee@exportermagazine.co.nz COPY EDITOR: Anthony Doesburg ADVERTISING: Matthew Smith (M) 027-572-5071 email: matt@peoplemediagroup.co.nz P.O. Box 7070, Wellesley Street, Auckland, New Zealand (T) 09.366.6879 (F) 09.366.6838 www.exportermagazine.co.nz DESIGN: Craig Haythornthwaite / URBAN_i, Phone: +64.9.631.1400

MANAGEMENT Compliance cost: the monster won’t stop growing No way out

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EXPORTER 1

Say it like it is MIKE TAILLIE EXPORTER MAGAZINE / publisher@exportermagazine.co.nz

Letter to Key: If only I could end our relationship

ear Prime Minister, This is hard for me to say, but I want out of our relationship. We can be friends, of course, but I need to move on with my life without your overpowering presence. I know you will want to know why – every relationship bust-up has a reason. So here goes... I feel trapped, almost stalked, in our relationship. Everywhere I turn, there you are, in my space. In all my businesses I seem to compete with you (the Government). What is more painful is you are using my hard-earned money (tax dollars) to compete with me. The more I earn and pay in taxes, the more I hand over to you, the more resources you have to compete against me. I know you are a detail sort of person so here are a number of speciﬁcs from me. I own the New Zealand Trade Centre, a business built around supporting exporters, based on overseas inquiries we receive. In addition we frequently send email newsletters containing information that might assist exporters. New Zealand Trade and Enterprise (NZTE) offers a similar service to exporters, which

2 EXPORTER

introduces exporters to overseas buyers. NZTE sends frequent email newsletters to exporters with news and information it believes to be of value to them. NZTE is funded primarily by the taxpayer. I own exporter magazine. The magazine provides articles and insights into areas of interest to exporters. This is funded from commercial advertising. NZTE has in the past produced a number of titles, such as Bright (primarily funded by the taxpayer), which also accepted advertising. I own arrival magazine. This is one of the largest tourism magazines in the country, fully funded by commercial advertising. Tourism operators are approached by Qualmark for fees. Qualmark is owned partly by Tourism New Zealand and the AA. Tourism New Zealand is funded by taxpayers. Tourism operators are also approached by a large number of RTOs (regional tourism ofﬁces) for advertising and joint promotions. RTOs, once again, are funded by taxpayers. I think you are now getting the picture. This happens in other areas. NZTE offers free training for exporters – hence there is no point

in the private sector being involved in this. I stopped producing my City magazine as advertising was hard to JOHN KEY get – my main competition being the Auckland City Council and its rates-funded promotion entity “Heart of the City.” I also own an event venue, No 1 Queen Street. My main competition is, again, Auckland City, providing public space for commercial events in QE II Square. The Government’s involvement in business is overpowering. For whatever reason, quite often identiﬁed as “the public good” or “national interest”, our Government has stakes in, or owns, the airline, the railways, the ports, most health providers, a bank, the postal network, data transmission cables, television, radio … Wow, this is starting to sound like China 20 years ago. John, I am happy to be your friend, but I only want to catch up once or twice a year, not live with you every day. Have a Merry Christmas! [END]

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What I want for Christmas is … Exporters would welcome funding to get them started in overseas markets but are mostly realistic that no help will be given to calm the fast and furious rise of the NZ dollar. BY YO K E H AR L E E

ichael Carden, co-founder of Sonar 6, a performance management software company, would like a lower exchange rate for a bit of Christmas cheer. But he knows the Government won’t tamper so he stays focused on his business. Kaweka Food’s chairman, Rod Pearce, also feels the ravages of the currency, and thinks bit more monetary policy effort from the Government wouldn’t go astray. Pearce and countless other exporters have for years contended with a volatile NZ dollar. This Christmas will be no different. Living with a NZ dollar that went from about 69 US cents in July to 76-78c in late November has been a rough ride even for the most seasoned exporter. “A promising business we have outside New Zealand is now at risk with the exchange rate and cost differential increasing 10% in the past few months. Our clients tell us they cannot absorb that, so we must ﬁll current orders and take the loss,” Pearce says.

4 EXPORTER

KEY TAKEAWAYS > Don’t expect the Government to curb the NZ dollar’s climb. > Incentives for small exporters would be a big help. > Keeping the lid on compliance costs would help. > Better broadband infrastructure should be a priority.

A MORE STABLE CURRENCY REGIME Exporters don’t want handouts but could do with a little Christmas ﬁllip by way of some currency stability. Carden says: “Of course exporters would prefer to have a lower exchange rate but we are realistic enough to know that this is really not within our Government’s control. The inﬂation target is more important for us as that creates the basis for a stable local economy.” Prime Minister John Key has been unambiguous about the Government’s position: no intervention in the currency market. Exporters such as Derek Bartosh,

whose company Canary Enterprises sells over $10 million of custommade dairy products, of which 75% is exported, is also realistic. “As far as Government currency management goes, I think it has made it very clear that it will not and cannot intervene. I guess as a free-market economy, the expectation is that our currency will ﬁnd an appropriate level. “That said, it will become increasingly difﬁcult for price-taking exporters — for us with Fonterra being the price-maker — to continue to maintain and grow sales with the NZ dollar above 75c. “This in turn will have an impact on the Government’s plan to increase the ratio of export sales to GDP by 10% in the next decade. We are in an uncomfortable period vis-à-vis the exchange rate two years ago, but we have to make the most of what we have to work with from our perspective, both in terms of commodity pricing and exchange rates.” MORE TARGETED EXPORT FUNDING Other than wishing for a stable environment to price and sell their

EXPORTER 5

products, exporters are also feeling the pinch of a contracting pool of money to help with marketing and research and development. The popular Market Development Fund run by New Zealand Trade and Enterprise (NZTE) is in the process of being phased out. More than half of the budget allocated to the various grant programmes run by NZTE is being transferred to a new fund and the overall budget for NZTE grants programmes is being reduced in 200910 by $10 million, and by $30.4 million in 2010-11. Bartosh would like more help, not less, for businesses to explore new markets. “Over the past six years or so NZTE has had very supportive schemes for growing exporters through its Export Development Grants. These were great initiatives to support exportdriven companies, which allowed us to undertake marketing activities and to be in-market more often than we would otherwise, which in turn drove export receipts. “These have now been replaced with some similar schemes and other support mechanisms. It is important that exporters continue to be able to gain support from government agencies like NZTE in an administratively simple manner. We see numerous examples of other governments — Australia and Spain come to mind — supporting their exporters in a variety of ways and it is important that NZTE continues to provide leading-edge support.” Sonar6’s Carden would like to see more support for exporters with high ﬁxed costs in the start-up and growth phases. This should be based on revenue growth and be simple to administer, without the compliance costs associated with most grants. Exporters, whose businesses are helping to grow the economy, should be given incentives, he says; and broadband infrastructure and branding of the country also call for more Government investment. As a “virtual” exporter, Sonar6’s biggest challenge is not the tyranny of distance but of time-zone difference. For Carden, extending daylight saving time so his company could better service California would be a perfect Christmas gift. INFRASTRUCTURE The better broadband and branding that are also on his wish-list would also

6 EXPORTER

Exporters say they want: Help us with incentives and help push for lower duties: • “Government incentives designed to assist smaller exporters to break into new markets (both geographical or a new product segment) based on a shared cost, a 50:50 basis. We would also like to see the start of an initiative by the government to approach the EU (or France) to reduce or eliminate the heavy customs duty rates that NZ exporters face in order to sell into French territories.” • “Introduction of another ﬁnancial assistance scheme to help with travel, accommodation and other costs associated with trade fairs, similar to that of the last programme from NZTE. We are so far from markets it is almost impossible to grow your business through self-funding from the bottom line.” • “In South Africa we had more funding from the Government in attending overseas missions and trade fairs for SMEs. We would like to see the same assistance in New Zealand.” R&D credit, better tax system; lower data roaming costs; faster broadband • This exporter wants R&D credits and simpler, lower taxes. He also wants an international agreement on data roaming costs and faster broadband. “NZ speeds are pathetic for accessing our remote systems in US, Korea and the UK,” he says. Less nit-picking by ACC • This exporter wishes for better treatment for R&D expenditure and less nit-picking from Government, particularly ACC, which he says “issues invoices that I cannot understand”. FTAs: Zero duty with the US, EC and UK • “For me the jury is still out about having free trade agreements with countries like China. Having zero duty with the US, Europe and UK would make life better for our company.” • “Free trade agreement with Canada, especially British Columbia, which is extremely tough to deal with. Its immigration and visa regulations are rubbish. There are heaps of business opportunities but these are blocked by the Canadian Government’s policies. However, being an APEC business card-holder has made port of entry a little easier.”

pay dividends. “With proper focus, we could continue to improve the country’s brand so branding becomes part of our decision-making process,” Carden says. The National Government’s efforts at sewing up free trade agreements seem aimed at the country’s primary export producers, exporters say. Bartosh says the playing ﬁeld is never completely level. There have been multiple examples of protectionist policies by others, including the US, EU, China and Russia, that will continue to create barriers for exporters to deal with, he says. For Pearce, who has been in the food industry all his working life, constant product development is what will set Kaweka Foods apart. “I understand that export incentives as such are a thing of the past, but I do think Government could take a more active role in supporting

innovation and new technology. In the case of Kaweka Foods we have constant enquiry for new product development from many sources. “The cost of product development is very significant and is a major financial drain, but it is work that needs to be done and could be expanded with suitable assistance. “Our labour and compliance laws are making it very hard for us to compete on world markets and, coupled with high and fluctuating exchange rates, make small business a massive challenge,” Pearce says. [END] YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

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Turning the corner? Exporters have had a patchy year, with more lows than high points, although there is hope 2011 will be better. BY B O B E DL I N

t was a patchy year for New Zealand exports at best although the country’s total export receipts in the year to September were a tad higher than a year earlier. This was the ﬁrst time this year that 12-month receipts were up year-on-year. The data included a recovery in education export receipts (up nearly 7.5%) and the service sector generated annual export revenue of more than $2 billion to recover ground lost after it peaked at $2.4 billion around 2003-04. “There’s an indication that things are moving in the right direction,” said John Walley, chief executive of the Manufacturers and Exporters Association. His organisation’s latest survey (at time of publication) showed sales and employment were up, albeit from a “dire” comparable period of 2009.

8 EXPORTER

KEY TAKEAWAYS > Export receipts are picking up for the ﬁrst time since January. > Free trade agreements have paved the way for more efﬁciency in terms of market access for NZ exports. > Non-trade barriers remain among the toughest to break down. > Exports to China have increased three-fold since 2005 and it is now our second largest market.

Some people were above 2008 sales levels. “It’s patchy but some people are doing pretty well,” Walley said. “Are we in a better position now than this time last year … probably. Will we be in a better position a year from now … hopefully,” he said.

THE HIGHS Trade agreements: Negotiations are under way for an expanded Trans-Paciﬁc Strategic Economic Partnership Agreement (embracing Brunei Darussalam, Chile, New Zealand and Singapore) to include the US, Australia, Peru and Vietnam. Negotiations towards free trade agreements (FTAs) with Korea and India have been instigated. The New Zealand Hong Kong Closer Economic Partnership agreement was signed earlier in the year, complementing the FTA with China. Negotiations on the New Zealand–Gulf Cooperation Council FTA concluded on October 31 and negotiations on an FTA with Russia, Belarus and Kazakhstan will start early next year. An Export NZ survey found more than 70% of respondents enjoyed a modest to substantial increase in business efﬁciency from the removal of barriers

EXPORTER 9

to trade and investment in their export markets as a result of signing FTAs. China: China has risen from being our fourth biggest export market to second biggest in the past ﬁve years. New Zealand’s exports have increased 30% in that time but exports to China have grown more than three-fold from $1.6 billion in 2005 to $4.5 billion in the 12 months to September 30. WTO complaint procedures: The World Trade Organisation’s Panel found in favour of New Zealand apple growers in their dispute with Australia (although Australia has appealed the ruling). New Zealand apples have been barred from Australia for decades by restrictive quarantine measures. Rules of origin changes: Changes to the Rules of Origin under the Australia New Zealand Closer Economic Relations Trade Agreement will help streamline the export process for several industries. The rules determine which products count as “Australian” or “New Zealand” goods to qualify to be exported between the two countries duty-free. THE LOWS Exchange rate: “This continues to be a real problem for people who are thinking about expanding capacity, said Walley. “I don’t know of any signiﬁcant investment which is aimed at export capacity expansion outside the primary sector.” Catherine Beard, executive director of Export NZ, more philosophical, said the currency tracked close to commodity prices, so it may or may not have been an issue, depending on what you were exporting. The US market was challenging, but plenty of her members had a natural hedge by importing components and adding some value before exporting. “The message we get

NZ Annual Exports Exports (fob) $million

January

39,659

-7.7%

February

39,524

-7.5%

March

39,546

-8.8%

April

39,878

-7.6%

May

40,121

-7.5%

June

40,655

-5.5%

July

41,063

-4.0&

August

41,463

-1.1%

September

41,796

0.5%

Source: Statistics NZ

ARE WE IN A BETTER POSITION NOW THAN THIS TIME LAST YEAR …PROBABLY. WILL WE BE IN A BETTER POSITION A YEAR FROM NOW …HOPEFULLY.” JO HN WALLEY, CHIEF EX ECUTIV E O F THE M ANUFACTUR ER S AND EX PO RTER S A S S OC IAT ION

“We have had situations, especially out of Lyttelton, where containers of goods have been sitting on the wharf but been bumped, particularly if they were non-perishable and the customers were not big enough to pressure shipping lines,” says Beard. Trade barriers: Countries increasingly are imposing non-tariff trade barriers (known as sanitary and phytosanitary barriers). A recent trade barriers report commissioned by the Horticulture Export Authority and Horticulture New Zealand found tariffs imposed by other countries on New Zealand products cost growers $34,000 each last year, an increase of $6000 on 2008 ﬁgures. Horticulture exporters paid $235 million in tariffs to importing countries, an increase of 19% on the 2008 ﬁgure

HORTICULTURE EXPORTERS PAID $235 MILLION IN TARIFFS TO IMPORTING COUNTRIES, AN INCREASE OF 19% OVER THE 2008 FIGURE OF $197 MILLION. AT THE SAME TIME, EXPORT EARNINGS INCREASED 8%.

from exporters is they would like less volatility,” Beard says. Shipping: Some exporters have struggled to get their goods away due to a reduction in global shipping capacity. The international shipping industry, lumbered with surplus capacity because of the global recession, combined services and sidelined ships in a rationalisation strategy to get back into proﬁt.

10 EXPORTER

Change from the same period of previous year

Year ended

of $197m. At the same time, export earnings increased 8%. China: The downside of the FTA is that New Zealand still doesn’t have access under the China Compulsory Certiﬁcation component. “It’s an ongoing thorn in the side of a few people,” Walley said. “Two years after signing the Chinese FTA we still don’t have access into China for our elaborate products.”

R&D tax credits: The NZMEA called for the Government to restore the tax credit after the latest Innovation Index of New Zealand showed R&D investment had been flat between 2000 and 2007 and dropped in 2008. Many other countries offer significant tax benefits for R&D activity. Australia recently introduced a 45% tax credit. Skills: The Government removed $55 million from apprenticeship training and reallocated it to fund university places. Skill shortages are likely to reappear, Walley warns. An Export NZ road show asked members about the main barriers to doubling their exports. Getting qualified staff was among the key issues. “It’s partly about getting schools to be focused on what business needs and connecting the education system with employers,” says Beard. The Doha Round: The target for wrapping up the World Trade Organisation’s Doha Round of negotiations was the end of 2010, but has slipped again. The 153-nation organisation now hopes for an outline agreement by mid-2011 and signatures on the overall deal at a ministerial meeting in December 2011. [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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New game plan for 2011 Some NZ businesses plan to tackle the uncertainties of 2011 with ambitious growth while others are staying focused on existing strategies or keeping lean. BY M A RY MAC K I N V E N

uckily for Lifestream International the global ﬁnancial crisis has made people value their health and encouraged them to buy the company’s natural health products, says Harvie Graham, international sales and export manager. Other sectors might be experiencing doom and gloom, Graham says, by the health sector is in good heart. “People’s attitudes are they want to look after themselves better, they can’t afford time off work or to be sick and they want to look younger and feel better. “So 2011 will see the company doing more of the same, perhaps trying to focus more on the markets that will pay off best.”

12 EXPORTER

KEY TAKEAWAYS > Clinching new markets is a key concern for most exporters in 2011. > China is a big focus. > Some are focusing on highvalue markets. > Some are focusing on tightening operations. > Others are using market research to grow.

Graham says Germany will be the main new focus, based on encouraging market research by the company and through the New Zealand German Business Association.

EXPANDING CHANNELS Lifestream will follow through on the ﬁndings early next year and look to putting someone, possibly a distributor, on the ground in Germany. “China continues to be a big focus too, as is Indonesia, where there are regulatory hurdles we are struggling with. But once they are sorted out … it’s the fourth biggest [consumer] market in the world and a near neighbour.” Coping with frustrations better is an explicit goal for mobile banking and payments company M-Com next year. Head of marketing Serge van Dam says the stringent security needs of its bank customers and unique requirements of operators on ﬁve continents can make market advances infuriatingly slow.

EXPORTER 13

Harvie Graham, Lifestream International, international sales and export manager.

He says: “We have to remind ourselves that as we offer banking technology, our customers need to trust us 100 times out of 100, not 99

times. This brings with it rigour and due diligence that other industries may not face. We actually have to celebrate banks having that level of rigour.”

STAYING FOCUSED Another resolution for 2011 is to be more focused. “We have to be focused on the customers that want to spend money, time and energy with us.” The company needs to avoid being distracted by the “shiny new devices”, such as new phones, that are a feature of the market it operates in, van Dam says. Allied Industrial Engineering will develop the exporting side of the heavy machinery manufacturing and solutions business that has been a focus for the past few years, says Jevon Priestley, sales and marketing manager. The company has been planning several marketing initiatives in Asian markets and is seeking funding from New Zealand Trade and Enterprise. “The recession hasn’t beaten us down as it has for some because we found some new markets — Indonesia, the Philippines and Papua New Guinea,”

WE HAVE TO

Survey ﬁndings

BE FOCUSED EXPORTER ASKED SUBSCRIBERS FOR THEIR BUSINESS RESOLUTIONS FOR 2011. HERE’S WHAT THEY SAID:

ON THE CUSTOMERS THAT WANT TO SPEND MONEY, TIME

• “Sell software into Southeast Asia.” • “Deﬁnitely looking at new and potential markets like South America and Europe.” • “Develop new markets, Australia growth, and focus on point of difference.” • “Increase our Australian market share.” • “Continue growth at 80-100%.” • “Succeed in ‘crossing the chasm’ in the US from early adopters to majority of utilities.” • “Cut off the 20% of our activities that do not directly lead to success and use the freed time to make a difference.” • “Introduce new product line. Find decent distributors in India and Brazil. Spend more in Asia.” • “Grow our web shop sites in more markets.” • “Explore all offshore opportunities for our products that worldwide research indicates have excellent potential in both design and price compared to current/y available alternatives. We have invested in mass production plastic injection moulding technology to provide a superior item to current steel alternatives.” • “Revise bonus scheme, increase sales to our existing customers by focusing on products where we have an advantage and build on our reputation as a reliable supplier. Get behind our new website.” • “Concentrate on overseas markets getting back up to 60% exports so the NZ economy doesn’t affect me so much – every three-year election brings huge swings and lows.” • “Keep staff employed full-time.” • “We are going really well with ‘lean’ but are now committed to sorting out our factory staff.”

14 EXPORTER

AND ENERGY WITH US. M -CO M HEAD O F M AR K ETING, SER GE VA N DA M.

says Priestley. Another focus will be continuing with efforts to make workshop operations lean. Leveraging relationships Ngai Tahu Holdings built around activities such as its co-sponsorship of the World Expo in Shanghai will be a major focus in 2011, says chief executive Greg Campbell. The company manages four subsidiaries, including Ngai Tahu Seafood and Ngai Tahu Tourism, that are export-focused. The expo and free trade agreement with China are expected to help sell seafood such as live lobster to China as well as bring more Chinese tourists to New Zealand, he says. “Visitors from China represent a small proportion of revenue and we see a great opportunity in that avenue,” Campbell 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 15

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Build your legacy at Rugby World Cup The Rugby World Cup presents unmissable opportunities for exporters to create a lasting impression on customers.

16 EXPORTER

BY MARY MACKINVE N

ext year’s Rugby World Cup (RWC) is expected to attract a television audience of about four billion people. But the Employers and Manufacturers Association Northern (EMA) is promoting the message the tournament is not just about 48 games; it’s about building a legacy that will sustain businesses and brands for years

to come. EMA public relations manager Marie Hasler says the association is holding a raft of workshops and other activities in the lead-up. A key event, Thrive New Zealand 2011 — billed as “the big day out for business” — will be held on October 20, four days before the grand ﬁnal match in Auckland. It will be aimed at domestic and overseas business visitors, present inspiring speakers and showcase New Zealand business success.

Marie Hasler, EMA public relations manager.

THE BUILD-UP In February to June workshops will focus on preparation for the visitor onslaught and applying for rights to sell at RWC New Zealand festival events. Seminars in July to August will focus on customer service and short timeframe ﬁxes; in September-October, the thrust is on help with networking events, including meeting a premier rugby team. An idea that emerged at the EMA’s Legacy2011 conference in October was businesses could give staff inspiring

to be a licence-holder (though at time of writing no licensees were sought). Government agency Te Puni Kokiri has organised regional workshops for Maori businesses to learn about maximising opportunities. Verona-Meiana Putaranui, Te Puni Kokiri communications account manager, relationships and information, says opportunities include opening marae for concert-style experiences and hangi. Workshops go over how to provide these experiences as a business while keeping integrity intact, and issues such as food safety and Qualmark ratings. Putaranui says a recent model for such activities was the international rowing championships at Lake Karapiro, where five local marae co-ordinated to perform the official opening ceremony and had sole rights to produce Maori products and services. Rugby Travel & Hospitality (RTH) exclusively creates, manages and implements the official travel and

A MAJOR TOOL IS THE FREE-TO-JOIN NEW ZEALAND 2011 BUSINESS CLUB WWW.NZ2011.GOVT.NZ, WHICH IS ALSO THE ONLINE HOME OF THE REAL NEW ZEALAND FESTIVAL AND THE RECRUITMENT PORTAL FOR THE RWC VOLUNTEER AND HOSTING PROGRAMME. REGISTRANTS CAN BE ALERTED TO EVENTS TO ATTEND AND LIST THEIR OWN RELEVANT BUSINESS EVENT.

Eden Park Pavilion: artist’s impression

KEY T TAKEAWAYS > Resources for RWC 2011 include nzte.govt.nz (under “events”), nz2011.govt.nz, rth2011.com and tenderlink.com for tenders to supply RWC 2011 licenceholders or be notiﬁed of tender opportunities. > Connect and engage with international business visitors by joining the Business Club and/or showcase your business and network at festival events. > Exporters see little business beneﬁt from the RWC if their markets are not rugby-mad nations. Others are gearing up for major promotions.

new RWC-related tasks that, when combined with festival fever, could heighten business morale. The Ministry of Economic Development has set up the New Zealand 2011 ofﬁce to connect businesses with international visitors at events during the RWC. A major tool is the free-to-join New Zealand 2011 Business Club, www. nz2011.govt.nz, which is also the online home of the Real New Zealand Festival and the recruitment portal for the RWC volunteer and hosting programme. Registrants can be alerted to events to attend and list their own relevant business event. New Zealand Trade and Enterprise’s website has briefs on the home countries of the 16 participating team, tips for getting businesses ready for the RWC and links to sources of help to develop sustainable business practices that will save money and enhance a ﬁrm’s image with customers. There are also tips on tendering to deliver goods and services to RWC licence-holders and on applying to Licensing in Motion

hospitality programme for the RWC — that is, it sells the tickets and travel packages and provides hospitality at matches. Operations director David White says RTH is also putting up the $10 million Eden Park Pavilion on the park grounds over four months in 2011. The two-tier air-conditioned and carpeted marquee structure will have eight restaurants showcasing New Zealand produce and entertainment, exclusively for the nine matches at Eden Park. “It will be the place to entertain your guests,” he says. Local architects, electricians, engineers and plumbers will be involved in the building and more than 1000 staff will be employed at each match for security, performances and waiting. BUSINESS VALUE LIMITED FOR SOME Most of the Fletcher Building group businesses are planning to host customers at matches, at both a regional level with local customers and for major customers, including some from overseas, at Eden Park, says

EXPORTER 17

Philip King, general manager investor relations. “This is a project we are incredibly proud of and we want to be able to showcase during the RWC.” One of the businesses, Tasman Insulation, has 10 tickets to each Auckland match for inviting key customers. Pre-and post-match entertainment will be part of each occasion. General manager Tony Te Au says guests could be a mix of domestic and Paciﬁc Island clients. Exporting only contributes 10% of revenue and some client countries, such as India, don’t play rugby, he says. The NZ Merino Company will be ﬁrming up plans in the next few months for its many ideas to make the most of RWC opportunities, says chief executive John Brackenridge. ABOUT MARKETING While the company will buy tickets for key partners it’s more about marketing, he says.

John Brackenridge, chief executive of New Zealand Merino.

“We should be thinking laterally and holistically about the number of people coming through and having positive experiences with our products while they are here. “This is about a lasting experience, not a short-term transactional gain.” Energy-saving light bulb manufacturer Energy Mad has no plans to involve clients in the RWC because 90% are too distant, or from countries that don’t care about rugby, says managing director Dr Chris Mardon. Likewise, Kevin Ban, managing

director of Kelford Cams, doesn’t have great expectations of the tournament, apart from the disruption it could cause his business, which is located in a street adjacent to an RWC stadium. “Our business is motorsport, not rugby. We’d be better to bring customers to the local speedway. “We might get a couple of offshore visitors pop in our door [if they are here].” Worldwide television coverage might, however, raise awareness of his city, Christchurch, he says. [END]

MARY MacKINVEN / WRITER

FLETCHER BUILDING GROUP BUSINESSES ARE PLANNING TO HOST CUSTOMERS AT MATCHES, AT BOTH A REGIONAL LEVEL WITH LOCAL CUSTOMERS AND FOR MAJOR CUSTOMERS, INCLUDING SOME FROM OVERSEAS, AT EDEN PARK,

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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Gizmos as buddies forever From a Segway to move around in the city to a string of communication accessories, businessmen tell us why they can’t live without their technological gizmos. BY A N T H O NY DO E S B U R G

hen Steve Simms packs his bags to pitch his wares overseas, there’s not one but three items he wouldn’t be without. What’s more, each item in his gadget bag would warm the heart of Apple boss Steve Jobs. “I take my iPhone, iPad and MacBook Air with me when I’m travelling,” says Aucklander Simms, who spends about 60% of his time out of the country. Each gadget has its role. When at an event such as a conference, the iPhone and iPad accompany him, and in his hotel room he’ll work on the MacBook laptop. “I have to say that since the iPad

20 EXPORTER

KEY TAKEAWAYS > Apple’s iPhone and iPad are winning the hearts of business travellers. > The iPhone provides ready access to work email and the iPad is an effective presentation device. > A variety of battery chargers, battery-life extenders and cables make useful travel companions. > Carefully chosen luggage can ease the life of exporters on the road. > A Segway is an eye-catching way of going about your business.

came out I’m using the MacBook much less. One of the most remarkable things I saw recently at a conference in Hong Kong was that half the audience had upgraded their lives to iPads. “So where you usually see people opening up laptops, there they all were with iPads. What that says to me is that Apple has cracked it — if you just want something for browsing the internet, doing email and taking notes, that’s the gadget.” Apple has certainly broken into the business market with its mobile devices. Andrew McLean, managing director of Christchurch-based Bremca Industries, is no fan of Apple computers, but has adopted the iPhone as a tool for travelling with. “We used to carry a notebook, phone

and GPS when overseas,” McLean says, “but since we started using iPhones about 12 months ago, with their built-in GPS, the notebook and phone give us access to everything.” The ease with which the iPhone connects to the company’s Microsoft email setup convinced McLean to get over his Apple phobia. Bremca, a manufacturer of electrical components, does business in Australia, the Middle East and Europe. McLean says the company has become savvy about which hotels and cafes to go to for free internet access, which is essential for avoiding crippling cellular roaming charges.

Bluetooth keyboard for the iPad.” The iPad is ideal for quick presentations and catching up with more detailed email than is comfortable with the iPhone. “I don’t have a 3G iPad. I cannot stomach the idea of paying for two data plans.”

ROAMING KILLS “Roaming costs are our worst nightmare — they can crank up into the thousands of dollars without any trouble. We had a guy away for about 72 hours and his roaming charges were just under $1000.” Where possible, travelling Bremca staff buy SIM cards for short-term cellular voice and data services, which are typically about a tenth of the cost of roaming. Mark Thomas, founder and technology head of software exporter Right Hemisphere, also goes to lengths

IMPORTANCE OF FREE WI-FI Thomas connects to free Wi-Fi hotspots wherever he can, and uses Skype on his phone and iPad for free voice calls to keep costs down. “Starbucks is always a good bet for Wi-Fi — if you actually like the coffee,” Thomas says. He has accumulated a variety of devices to make life on the road smooth, including battery chargers and battery-life extenders. Other musthave items are an ethernet cable for connecting to hotel networks, and a range of audio connection cables for

I HAVE TO SAY THAT SINCE THE IPAD CAME OUT I’M USING THE MACBOOK MUCH LESS. ONE OF THE MOST REMARKABLE THINGS I SAW RECENTLY AT A CONFERENCE IN HONG KONG WAS THAT HALF THE AUDIENCE HAD UPGRADED THEIR LIVES TO IPADS.” STEV E SIM M S, CO -FO UNDER O F TO M IZO NE

I HAVE A POWERFUL 3D-CAPABLE LAPTOP, A DELL 6400, TO NOT ONLY SHOW 3D PRESENTATIONS BUT TO AUTHOR AND PREPARE THEM ON THE ROAD. IF I DIDN’T HAVE TO DO HEAVY GRAPHICS WORK AND 3D I WOULD LEAVE IT AT HOME AND JUST GET A BLUETOOTH KEYBOARD FOR THE IPAD.” MA RK T H OMA S , FOU ND E R RIG HT HE MIS P HE RE

to avoid roaming charges. He is another iPhone carrier who will buy a SIM card overseas rather than be hit by a big bill when he returns to New Zealand. “Roaming rates are possibly one of the most criminal activities I think the telcos get away with,” says Thomas. “Never, never roam with an iPhone or any phone for that matter.” Right Hemisphere sells sophisticated visualisation software, and has an ofﬁce in San Ramon in Silicon Valley, where Thomas bases himself when in the US. He lugs a grunty computer on his travels, along with an iPad. “I have a powerful 3D-capable laptop, a Dell 6400, to not only show 3D presentations but to author and prepare them on the road. If I didn’t have to do heavy graphics work and 3D I would leave it at home and just get a

Mark Thomas, founder and technology head of software exporter Right Hemisphere.

plugging his iPhone into car radios and hotel stereos to listen to music. Thomas recommends a Samsonite iMobile 360 Spinner case (www. yourofﬁcestop.com/samispin360-cs. html) as a travel companion. “It has enough room for a change of clothes when overnighting from a base location.

Stack another carry-on on top and you have enough for several weeks on the road, I find.” What’s more, they readily roll down the aisle of a plane, he says. Simms, like every frequent overseas traveller, also rails against cellular roaming costs. But he is actively providing an alternative. With partner Phillip Joe and financial backer Sir Stephen Tindall, in 2006 he founded Wi-Fi internet access provider Tomizone, which has thousands of hotspots around the world. Simms is an avowed technology-lover. “I’m certainly not a laggard when it comes to technology. I pretty much want to get the latest — if it’s helpful. If it’s just a trivia sort of gadget, I’m not interested.” There is an exception to that rule, however: since an encounter with Steve Wozniak, co-founder with Jobs of Apple, Simms has had a collection of different coloured lasers. Although their main use is to impress guests by aiming them the 30km from his deck to Auckland’s Skytower, they do have a more serious purpose. “We use them for lining up pointto-point radios, so that’s a real-world application.” Another acquisition in common with Wozniak is Simms’ Segway, an upright two-wheeled electric conveyance that bears more than a passing resemblance to a push mower. “It gets me around town pretty quickly,” Simms says. It, too, has a practical use. “For instance, I’ve just held a major conference here in Auckland, hosting 70 delegates at the floating pavilion. Without the Segway I would have been goosed. I would have lost so much time going back and forth to the office.” A shame it’s too big to take on a plane. [END] ANTHONY DOESBURG / WRITER Anthony Doesburg is an Auckland-based freelance journalist who specialises in technology.

EXPORTER 21

Viewpoint SHANE STONEMAN BUSINESS DEVELOPMENT MANAGER, CARGO COORDINATORS

Getting the best freight solution It pays to explain your business well to your freight service providers. Holding back vital information from them ultimately results in poor pricing.

oo many people are holding back vital information from their freight service providers and paying a high price as a result. Getting the best freight solution for your company is not easy. It requires specialised industry knowledge and should be viewed as an ongoing project in the face of a constantly changing environment.

22 EXPORTER

The most important aspect of getting your best freight solution is the relationship you have with your service providers, be they shipping lines, freight forwarders or a customs broker. In my experience the best relationships are the ones built on trust. Trust comes with time and requires people to communicate openly and honestly to share information and ideas. When this type of communication

is backed up with integrity and accountability, trust is formed. This perpetuates itself as people who trust each other communicate more openly, and so on. In 25 years working as a customs broker, freight forwarder or for a shipping line, I have seen the best results where there are strong relationships with customers. This type of business environment creates

an energy that fosters creativity and a willingness to go the extra mile. What’s the alternative? Don’t share information about your business, delivering instead the old “send me your best rates and I will have a look at it” line. The strategy of holding your cards close will simply make it hard for any service provider to match the best solution to your business need. I wonder what the local plumber would say if I called him and said I want to buy a heat pump and install it — how much? If he’s polite he would ask me some questions and want to visit me at my house so he can ﬁnd out what I am trying to achieve with this heat pump. He would want to learn what’s important to me and see if a heat pump really is the best solution. So if the plumber just gave me a price as I asked and we didn’t share any more information, what is the likelihood of a good outcome for either party? So where do you start? I suggest you arrange a meeting with your freight forwarders or shipping lines.

In this meeting ﬁnd out what they know about your business. This could be interesting and you may be surprised by the areas of your business they are unaware of. Don’t be disheartened – this is a good sign because you will have uncovered an information gap and can explore an opportunity for improvement. So now enlighten them – tell them about your lead times, production, terms of sale, company structure and even broaden out to the challenges that face your industry as a whole. Okay, so it’s not all up to you – as the cliché goes, it takes two to tango. Yes, your service provider should also tell you what is important to them. But more importantly they should be investing the time to understand what they can do to best serve you. So why is this not happening? Freight is a very competitive industry. As companies embrace technology, employees are serving a larger customer base with fewer staff. This is particularly so in sales and customer service, which has the most contact with you, the customer. This means they have less time to spend with you than

before, so one challenge you face is getting their real attention. It’s not uncommon to hear “I use xyz but I haven’t heard from anyone there for months”. From the customer side there is a fear of telling everything, giving away too much information, especially in a negotiation, and expose vulnerabilities the other party can exploit. Almost everyone can recall a bad experience in the past when dealing in the freight industry. This has built up mistrust. The underlying good news is that this is a service industry and many people in it are problem-solvers by nature. They are solution-orientated and want to help. The industry also keeps people – shipping gets in the blood. So there is a lot of experience out there, a real resource that can work for you if you can tap into it. So grab their attention by taking the initiative. After all, you have the power to change if you are not getting the best freight solution. But rather than change, can I suggest you invite them over for a cuppa and let them know about your business. [END]

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

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EXPORTER 23

Cocktails, market intelligence and export pipelines They do fancy cocktails and move in high circles. Some speak Cantonese or Mandarin while another learns Hindi. They live, eat and breathe the markets they operate in – New Zealand’s trade commissioners are wired to seek channels for NZ exports. BY M ARY MAC K I NV E N

xporters wanting overseas market intelligence and networking opportunities are encouraged to register with New Zealand Trade and Enterprise (NZTE) in New Zealand rather than roll up to the government ofﬁces overseas. An NZTE account manager will connect them to resources as required, such as in-market consumer research, business partners or participation in trade missions – for which they are quoted a lump sum fee based on a highly subsidised hourly rate, says Jack Stephens, NZTE group general manager international. “We manage relationships closely.” NZTE has 38 overseas ofﬁces of different shapes and sizes, “in locations where business wants us and where we see growth for New Zealand”. They have 220 staff who are mostly nationals speaking the local language, and with

24 EXPORTER

KEY TAKEAWAYS > Contact NZTE’s business services team in NZ for assistance in overseas markets, at 0800 555 888 or email via www.nzte.govt.nz. > Trade commissioners connect companies to business opportunities in two primary ways – with knowledge and access to key contacts. market knowledge and contacts that can help New Zealand businesses grow in their markets. At some of these ofﬁces are trade commissioners on four-year terms, mostly Kiwis, who “live and breathe the market”, says Stephens. Much of their work revolves around exploiting local business events such as the World Expo or trade missions. Exporter asked four trade commissioners to describe their roles.

ACROSS THE DITCH: AUSTRALIA In Sydney Michelle Templer operates with a team of 16 in six offices, as Australia and the Pacific regional director. She says a lot of her focus is on the boom economy: looking at specific sector opportunities for New Zealand companies in, for example, resources, mining, infrastructure, processed foods and capital investment. “A core role is to provide connections with high-level influencers or ‘critical friends’ that we have a long standing relationship with, who we can ask to meet with a company and provide some feedback on their approach to market and market dynamics. “It’s not the person at the bank, Coles or David Jones you are trying to sell to that we connect you with straightaway, but someone who understands your business and the local decision-making processes, who can provide insights. “Because we are neutral and not selling, we get access to people companies don’t normally get to engage with.”

EXPORTER 25

Los Angeles Trade Commissioner, Duncan Catanach

In November the New Zealand naval ship Te Kaha was due in Sydney and made spaces available to host a reception. “This gives us an opportunity to invite targeted VIPs who we would like to speak to a group of companies, for example. “However, I’m worried people will think it’s a great cocktail circuit. You are working to ﬁnd out information and contacts and following up to leverage them.” With such heavy commitments it’s fortunate her partner can be the fulltime parent at home. “By the way, schools can be the best networking places.” Templer says.

BEHIND THE GREAT WALL: BEIJING From Beijing, trade commissioner Alan Young says there’s a lot of background material online for newbies, but people still arrive at his ofﬁce unprepared for the China market. “Others who have been doing business here for many years still like to come in and chew the fat on politics and the economy as well as talk about their own product or service.” Young was previously Consul-General and trade commissioner in Guangzhou and worked for many years in China for New Zealand companies. He speaks ﬂuent Mandarin and Cantonese, “which helps”. He works with the two other trade commissioners in China (in

Shanghai and Guangzhou) and closely with the Ministry of Foreign Affairs and Trade to organise the commercial content of trade missions. “China is so big we have to divvy up [the jobs] and home in on sectors of need — for example, food and beverage, agritech and ICT.” LOS ANGELES New to Los Angeles (LA) is trade commissioner Duncan Catanach whose team recently organised meetings with executives and market experts for nine New Zealand medical technology companies centred on their attendance at the pre-eminent US trade show for the sector. The NZ Ambassador hosted

NZTE group general manager international Jack Stephens, and NZTE Trade Commissioners (from left): Michelle Templer (Sydney), Alan Young (Beijing), and Gavin Young (Mumbai).

26 EXPORTER

Survey results Exporter magazine asked subscribers who have dealt with a trade commissioner outside New Zealand what their experience was. They said: • “Very good and helpful.” • “Varied. When a trade commissioner is adequately resourced with, say, administrative assistance, he does a good job.” • “Mixed at best. Dire at worst. Good support in one market, limited in two others.” • “Not particularly good - with one product we gave details of its use, what we could supply and where we thought its market advantages were. We got back contacts that were not appropriate. With another product the exercise seemed more about getting cash for the overseas ofﬁce and the information wasn’t useful. This was some time ago, so possibly things have improved.” • “Lots of talk but no action (three countries).”

a networking event for 120 VIPs. This will help the companies access huge health markets, Catanach says. The next big event in Catanach’s calendar is the Natural Products Expo West in LA in March. His ofﬁce is working intensively with about 200 companies, and many others on an ad-hoc basis.

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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BOLLYWOOD, MUMBAI Stationed in Mumbai is Gavin Young who is also trade commissioner for Sri

Lanka and the Maldives, and ConsulGeneral for the three states. The latter role sometimes gives access at a higher level than a trade commissioner could achieve, he says. Lately he’s been talking to airlines at CEO level about New Zealand aviation services such as pilot training expertise. “Once you get in they introduce you to people in their organisation. It’s better to start from the top; use me to get better access.” His team has done done months

of reseach for the New Zealand Pine Manufacturers Association on trade opportunities and took a group of Indian architects to Dubai to see wood standing up to a harsh climate – paid for with NZTE project funding. Young also spent a day and a half with delegates on an apple industry mission. “It helps give the mission status with the local community and bridges the gap because I live here.” The Mumbai office also does research and develops market strategies for clients seriously engaged in India to present to NZTE’s India Beachhead board. Young says his learning Hindi is appreciated but he’s not expected to be fluent like his staff. He recently gave presentations to the local Australia-New Zealand business group and a rotary club about New Zealand and how to interact with his office. Events based around cricket, a national obsession, are on the drawing board to build relationships that lead to business. [END]

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EXPORTER 27

Keep your eyes on your business to stay ahead of the NZ dollar Forces beyond New Zealand control will continue to wreak havoc on the NZ dollar. The key to surviving 2011 is to get as many natural hedges as possible, then hedge a little. BY B O B E DL I N

he NZ dollar’s year started in the shadow of the global financial crisis, which was still adversely affecting some of the powerhouse economies. It ended stronger against the euro, the pound and the US dollar, but a bit weaker against the Australian dollar. Bancorp treasury economist Peter Cavanagh says the past 12 months has been “a mixed bag”. Imbalances in Europe have been destabilising: some economies (such as Germany) have been strong; some (Greece and Ireland) have been cot cases. The cot cases had a huge influence on sentiment early in the year, when global risk-aversion induced a sharp fall in the NZ dollar. The focus later shifted to the US and its quantitative easing (jargon for printing money) to stimulate a flagging economy. The US dollar depreciated rapidly. The big shift during the year was the cementing of China as a global power. Its economy continued to boom and it was

28 EXPORTER

KEY TAKEAWAYS > Beyond the NZ dollar’s swings, stay focused on your business, customers. > To manage your position, you need to have a view on Europe, on China and on the US.” > Aim for a natural hedge where possible; base just 5% (as low as even 1%) of your hedging decisions on a currency forecast.

prepared to pay well for commodities. The Australian and NZ dollars were lifted on its coat-tails. ALL SORTS OF RISKS HiFX trading manager Mike Hollows says interest rates, commodity prices, sovereign risk “and all sorts of things” that have weighed on the currency are beyond New Zealand’s control. But the NZ dollar was not immune to nasty domestic surprises. It was beaten down in mid-November by the kiwifruit

PSA outbreak and by Standard & Poor’s revision of its outlook on New Zealand’s credit rating. This volatility makes it hard for exporters to decide what do with their currency policies. Our soft commodities are still holding up well, says Hollows, and if you are a commodity exporter, broadly you are being protected from the appreciating NZ dollar by the rising prices of exports priced in US dollars. For a manufacturer without an offsetting hedge, however, “that’s a tough one”. OUTLOOK The outlook is uncertain and “you’ve got to have a view on Europe, on China, and on the US”. The key will be how quickly the US gets out of the mire with its quantitative easing and at what point the US dollar can make a meaningful recovery. NOT ALL ABOUT CURRENCY FORECASTS Cavanagh’s over-riding advice is not to base your hedging on currency forecasts. “It’s a matter of looking

EXPORTER 29

at yourself, making sure you’ve got the best possible understanding of your business, your markets and your customers,” he said. NZ dollar movements against our major trading partners over the past year have had little to do with what’s happening in this country. “So it’s important to identify, assess and manage what you can do. “Make sure you have the right reporting systems and policies.” Tony Alexander, chief economist at the BNZ, typically advises exporters (and importers) to base just 5 per cent of their hedging decisions on a currency forecast. “The rest should reflect your ability to naturally hedge, your cash flow and balance sheet sensitivity to exchange rate shock. “And in this sort of environment I would probably drop that 5% to 1% because exchange rates now are extremely unpredictable.” A raft of formidable uncertainties must be considered: • What will happen if the US maintains its quantitative easing? Hollows cautions it eventually might lead to trade controls and tariffs. • Will there be a currency war and – if so – what measures will non-US countries introduce to try and stop their currencies rising against the greenback? • What will be the currency effects of the fallout from the debt crisis in Europe and the weakness of the British economy compared with some European economies? • Will the Chinese allow their currency to revalue more rapidly against the US dollar? Cavanagh expects China to move at its own pace, “which won’t be at the pace wanted by the US or Europe”. • Will Asian economies generally introduce capital controls because money is coming out of the main currencies and going into the developing world where the economies are growing rapidly? • What other consequences will flow from the developing world’s growth far outpacing the developing world? For example, it puts upward pressure on the currencies of Brazil, India, China and the other Asian economies. • What interest rate differentials will develop and who will be the first to tighten monetary policy – the UK, Japan, Europe or the US?

30 EXPORTER

DAILY QNZDEUR=R

7/01/2010 – 21/12/2010

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7/01/2010 – 21/12/2010

DAILY QNZD=

7/01/2010 – 21/12/2010

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7/01/2010 – 21/12/2010

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7/01/2010 – 21/12/2010

The next wave Looking through a fog of uncertainty, these developments are forecast by some of our experts. AGAINST THE US DOLLAR The risk is a further rise in the coming year, but in a volatile pattern. – Tony Alexander, chief economist, BNZ Within ﬁve months the US dollar may be starting to come out of its downward trend, at least in the interim. – Mike Hollows, trading manager, HiFX AGAINST THE STERLING The NZ dollar has kept creeping up against the British pound in recent years. The risk is a further rise. – Alexander AGAINST THE EURO We are likely to go higher against the euro as our monetary policy will be tightened earlier than Europe. – Alexander AGAINST THE AUSSIE The NZ currency will lose ground for a while, until such time next year when we start raising interest rates. The Australians would have stopped their monetary tightening so NZ dollar should recover some lost ground. – Alexander NZ dollar is nearing its bottom around the Aussie. Expect Aussie to trade in a A75-82c range. – Hollows

• What will come of worries about the US federal deﬁcit? Without meaningful action to bring it under control, will investors keep buying US government debt? Then there are the lesser currencies. South American economies, led by Brazil, have the potential to cause surprises in the year ahead. “If the Brazilian economy, particularly, can keep growing at the pace it is growing, and if its government is prepared to ease up some of its exchange controls, the Brazilian real has the potential to be a worthy global currency,” says Cavanagh. [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 31 Ogilvy/KB1223

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23/09/10 9 29 AM

“That would be a little difﬁcult” means “No” in Japan Japanese consumers are finicky while the country’s distribution channels are highly complex. For those who can’t afford to set up direct presence, Japan is a market best tackled leveraging on the wisdom and network of others who have already succeeded. BY YO K E H AR L E E

he average Japanese consumer leads a hurried life – a look at Japan’s bullet train system will give Kiwi exporters an idea of how ridiculously fast-paced life is. However, doing business with Japan, the New Zealand exporter can be anything but hurried. Japanese businesses take time to understand who they are buying from and what they are buying. Understanding exactly what will meet Japanese requirements is a process that takes investment in time and money. Contrary to what most think, conducting business in Japan is less

New Zealand’s trade commissioner for Japan, Ben Wilson.

32 EXPORTER

KEY TAKEAWAYS > Japan is less about protocols, more about knowledge of your consumers. > Don’t expect success after a ﬁrst meeting. It takes longer than that. > Get your own interpreter during negotiations. > Negotiate with the right person in the company. > Japan’s distribution system is complex; take time to know it well. > Be prepared for tough standards from Japanese clients. > Be prepared for whimsical customers – their tastes change rapidly.

about the culture or etiquette and more about whether a Kiwi business grasps what its target market wants and at what price. New Zealand’s trade commissioner for Japan, Ben Wilson says: “What Japan is not about is this: it is not about the protocols or the etiquette. People tend to get worried about upholding the honour of the other side. To be blunt about it – the rituals are for the Japanese. They won’t hold it against you if you hand over your business card upside down — it won’t break a deal.” Kiwi exporters should really be worried about how to sell to Japan, Wilson says. In this respect, selling to

Japan should be no different to selling to the rest of the world. KNOW YOUR CUSTOMERS WELL “The questions exporters need to ask are what do they need to do to please their consumers, how much do they need to know about them and how much are they willing to pay for what they want to buy,” Wilson says. Japanese businessmen are known as tough negotiators. The ﬁrst meeting will not cut you a deal unless under the special circumstance where you have the exact product at the right price, according to an Asia Foundation guide to doing business in Japan.

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Top tips for doing business in Japan KEY BUSINESS PROCESSES Ringi: The decision-making process: a project needs to be agreed by all key executives; it can often be a long process from the beginning of negotiations to the actual signing, but then it is quick to implement. A good decision-maker is one who listens to everyone and leads the group towards a consensus that has the broadest support and eliminates resistance and risks. Scott Kington, MadeBlunt’s managing director.

For some, Japan would be a best left to last market for its complexity and high demands. But MadeBlunt, a company with patented umbrella-making technology, did just the opposite. Managing director Scott Kington says the company was lucky it was approached by a Japanese distributor with experience of dealing with Japanese department stores. The best thing MadeBlunt did, Kington says, was to employ the translation services of a New Zealand company called JanzFreight, which handled all the language issues in the negotiation process. “It was a critical factor for us, having our own interpreter, as no one we were negotiating with spoke English,” Kington says. MadeBlunt’s umbrellas had to be tailored to ﬁt the Japanese market. “Our distributors are 100% focused on having quality,” Kington says. But he doesn’t mind because that sets the company up to meet high standards elsewhere in the world. Fine-tuning was also needed, such as adding a carrying sleeve, essential for commuting Japanese. Trading company JanzFreight’s Yuri Iizuka says language is a big barrier for Kiwi exporters. Unless dealing with a global Japanese company, it is advisable to use email rather than phone calls while negotiating. WHICH CHANNELS? One of the biggest decisions an exporter has to make is whether to go direct into a market or use a distributor or representative. Wilson says not many companies tackle the Japanese market directly, although he thinks it should be the preferred option. There is a high cost associated with using an intermediary in the Japanese market, potentially leaving a producer with about 30% of the price of a product, with the rest going to the distributor. Wilson reckons one of the most

34 EXPORTER

HO-REN-SO: Tips about the Japanese workspace hierarchy. • Hokoku (Report): your responsibility to report to your superior/s on your requested tasks. • Renraku (Inform): your responsibility to send information to your superior/s. • Soudan (Consult): your tactics to make a relationship work by consulting with superior/s. BUILDING TRUST WITH YOUR JAPANESE CLIENT • Face to face meetings: Establishing a relationship of mutual trust which could include an invitation to dinner, drinking or golf. • Sincerity: Be sincere in trying to resolve difficulties and doing business to the satisfaction of all involved. • The contract: Remember the contract is a secondary issue. • Respect: Always respect older people and higher-ranked people. Politeness is very important to establish trust with business partners. BUSINESS MEETINGS: BASIC ETIQUETTE • Ojigi (Bowing): 45-degree bows replaces the shaking of hands and can be used when saying hello, goodbye, for introducing someone and even to say thank you. • Business cards: Exchange cards with both hands. When handing over business cards say “Hajime mashite” (I am pleased to meet you and make your acquaintance). It is customary to place cards in front of you during the business meeting. It is very important to study the business card and remember the individual’s name. • Gifts: The exchanging of gifts is a custom in Japan. At initial business meetings, it is expected that a gift would be presented – again with both hands. Receiving gifts is also done with both hands. Quality gift-wrapping is important. As a rule, a gift would not be opened until returning to the office. Don’t present a gift that includes a set of four items as the number 4 in Japanese is similar to the word for “death”. • That would be a little difficult: As a rule, the Japanese do not like saying “no” because they don’t want to offend their business partner. If they disagree or feel unable to do something, they may say “That would be a little difficult.” • Silence: Is also a way of communicating and in meetings it is better to talk too little than too much. • Opinions: Respect opinions from superiors more than your own opinion. These tips to doing business in Japan are from Gary Cross, head of trade and supply chain at HSBC New Zealand.

common hurdles faced by Kiwi companies is non-performing distributors, usually by the second or third year of their products having been sold into Japan. “By then, a company would usually have had enough of their distributor and tries to ﬁnd another. Regrettably, that’s always a bit late. Others would view this as a second opportunity – the better distributors would tend not to take you on unless you have a new product and a strong brand, or there is some mileage to be had.”

Iizuka, however, advocates use of a Japanese distributor with industry experience and distribution channel knowledge POWER OF LEVERAGE Getting traction for a deal in Japan is also about who you know or who you can leverage off, says Jon Doherty, who spent ﬁve years in the country, helping set up a New Zealand-themed café in Tokyo. He recently returned home and is director of sales and marketing for

JanzFreight’s Yuri Iizuka.

Terrace Downs. “Don’t expect to make money in the ﬁrst year in Japan but it can be a very successful market once you have invested time and money there. A lot of it is about who you know in Japan. “If you can, leverage off people who have succeeded in Japan, who are familiar with how to do business in Japan; leverage off their contacts.” Knowing the right people can help you fast-track decision-making. “If you take the bottom-up approach, it might take forever. The higher you get up the ladder, the faster you can get results. However, this hierarchical society is breaking down.”

Kington is learning about expectations. The Japanese, he says, are conservative so the targets set may be lower than what a Kiwi company is used to. “Our wish is always to aim high and put in plans to achieve the target. But for them, it may be a case of aiming low so they can exceed it.” While distributors may err on the side of caution in setting sales targets consumers have very high expectations from stores. Big retailers such as Wal-Mart and Carrefour have tried to break into the Japanese market, but ﬁnd it hard to succeed. Iizuka says one of the reasons is a lack of understanding of Japanese

consumer behaviour. Consumers are whimsical and always looking for change. “For example, global Japanese brand UNIQLO [a speciality retailer in the apparel market] has been growing even during this deﬂationary period. But even UNIQLO cannot display its products longer than a month, except for its signature product.” Consumers in big Japanese cities, he says, are looking for something different from the crowd. “In this market, you could be a big hit instantly if you splurge on a big PR or marketing campaign but, at the same time, you could be gone quickly. This is typical in Japan,” Iizuka adds. For that reason Ian Mellsop, whose company Marinescape has built aquariums in over 20 locations around the world, has not bothered with Japan. Japan’s large trading houses have a huge hold on the market and that has proven too hard for the company, he says. [END] YOKE HAR LEE / WRITER Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

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EXPORTER 35

The Anugaexhibition centreâ&#x20AC;&#x2122;s new Boulevard links trade fair halls.

Fairs not to be missed To succeed at trade fairs, Kiwi exporters need to be organised about where their efforts should be targeted. 36 EXPORTER

BY SANG E E TA ANAND

or most exporters, 2011 will be a busy year, with many high-proﬁle trade fairs on the calendar. Here’s a preview of some of the events to mark in your diary.

Photo: koelnmesse

FOOD AND BEVERAGE Fruit Logistica, Berlin, February 9-11, www.fruitlogistica.com More than 2300 companies from the fresh produce value chain around the world are expected to attend Fruit Logistica in Berlin. The three-day exhibition will bring together major brands and small and medium-sized operators. The event offers a networking platform and an overview of international trends. The last event attracted 54,000 visitors from 125 countries, representing importers and exporters, producers, wholesalers, retailers, packaging, transport and handling businesses. Malaysia International Food & Beverage Trade Fair (MIFB), Kuala Lumpur, July 14-16 This is an opportunity to interact, transact and explore business opportunities in a multi-billion-dollar market. Its proven track record, popularity with visitors and success for exhibitors have made it one of the most anticipated events in the region. Asia Fruit Logistica, Hong Kong, September 7-9 Asia Fruit Logistica is an exhibition of Asian fresh fruit and vegetable marketing. The 2010 event attracted more than 4100 decision-makers from 60 countries; and 304 exhibitors from 30 countries showcased their businesses. The event runs alongside the Asiafruit Congress.

in 2011

Anuga, Cologne, October 8-12, www.anuga.com As the world’s most important food and beverage trade fair, Anuga is highly regarded by exhibitors and visitors. It brings together international managers

KEY T TAKEAWAYS > Germany is the mecca of international trade fairs; two in three international trade fairs take place there and three of the world’s ﬁve largest exhibition grounds are in Germany. The country hosts more than 250 international trade fairs a year. > Participants should register as early as possible. Get a list of exhibitors and visitors and contact them before the event. Arrange meetings. > If you are exhibiting, look presentable and professional. > Be culturally aware and prepared to adapt to local ways of doing things. Get a translator if needed.

from the trade and food service and catering markets. The event combines 10 specialised trade shows under one roof: ﬁne food, meat, drinks, chilled and fresh food, frozen food, dairy, organic, bread and bakery, hot beverages and foodservice. TOYS International Toy Fair, Nuremberg, February 3-8, www.toyfair.de Toys go green with the Special Toy Fair in 2011, which focuses on sustainability. The entrance area will be decorated with ecological materials and innovative packaging concepts. The fair is an opportunity to keep track of a million existing products and 70,000 new products. It showcases 2600 exhibitors from 64 countries, and draws 76,000 visitors from 115 countries. It also attracts extensive publicity with 2500 journalists covering the event. Other highlights of the event include the Global Toy Conference, the Toy Business Forum and the Building Our Future Toy Conference. Toy Fair 2011, New York, February 13-16, www.toyassociation.org Described as the largest international toy trade show in the western

EXPORTER 37

hemisphere, this event attracts 25,000 attendees and 1200 exhibitors, and displays 100,000 products, 7000 being shown for the ﬁrst time. It pulls about 1000 global media representatives and provides updates on safety legislation. WINE ProWein, Düsseldorf, March 27-29, www.prowein.com ProWein thematically displays 1000 international wines for public tasting. It will be a meeting point for 36,000 specialist visitors, with 3300 exhibitors. Last year’s event registered strong international interest and one in three visitors travelled to Düsseldorf from abroad, especially from Eastern Europe and Asia. Hong Kong International Wine and Spirits Fair, Hong Kong, November, http://bit.ly/aHQxEn Hong Kong remains the world’s freest economy and this trade fair is an opportunity to explore this free market. Close to 700 exhibitors are expected to showcase a wide range of highquality wine and spirits, beer and other alcoholic beverages, as well as wine production, products and services to

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buyers from around the world. The event organiser, Hong Kong Trade Development Council, offers travel assistance to qualifying participants. CONSTRUCTION & ENGINEERING AUSPACK Plus, Melbourne, March 22-25, www.auspackplus.com.au Auspack Plus brings together exhibitors and buyers of packaging, processing, plastics machinery, materials and associated technology every two years. It is the only major exhibition in Australia of its sort, attracting packaging professionals and users from around the world. Hannover Fair, Hannover, April 4-8, www.hannovermesse.de The organisers have lined up 13 international trade shows to put the spotlight on all elements of industrial value chain, especially automation, energy, component supply and mobility solutions. The annual event attracts exhibitors from 70 countries. The fair also provides an opportunity to network with participants from other fairs taking place simultaneously in the same venue. Some of the key trade shows in the exhibition include: industrial automation; MDA — motion,

drive and automation; energy; power plant; wind; MobiliTec; digital factory; ComVac; industrial supply; CoilTechnica; surface technology; micro nanotechnology; and research and technology. AUTOSTRADA-POLSKA, Poland, May 10-13, www.targikielce.pl In its 17th year, and bringing together 700 exhibitors, the exhibition is a meeting ground for large companies in road construction, trafﬁc engineering and road safety. Every year Kielce hosts exhibitors from Germany, Spain, Italy, Denmark, Turkey, Greece, Sweden, Hungary and Korea. The range of exhibited products includes construction equipment, road construction materials, marking equipment and paints, as well as infrastructure necessary for the maintenance of motorways. As Europe’s largest event of this kind, the fair attracted 20,000 visitors last year. [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.

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38 EXPORTER

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Reﬁnancing to stay lean and mean How you approach your bank or financier for more money makes a real difference to whether you succeed in getting them to take more risks. BY M A RY McK I N V E N

KEY TAKEAWAYS

he new mantra for New Zealand businesses is to have less debt. The sharp lesson from the global ﬁnancial crisis for New Zealand businesses is that funds are hard to come by these days. According to the Reserve Bank, credit growth across the business sector decreased 7.6% at September 2010 compared to September 2009. The underlying message is that credit is still tight and banks will carry out tough risk assessments before extending new credit lines. So when it comes time to reﬁnance either to reduce debt or extend cash

40 EXPORTER

> Asset finance is growing in popularity. > Banks expect evidence of business planning and even engaging independent advice where necessary. > Have a documented finance plan on hand to send to another bank if needed; it’s a risk-management tool that needs to be kept up to date. > Fundingpartners.co.nz – new finance structures for exporters to complement banks’ lending.

flow needs, what are the options? Senior business adviser at Icon Business Solutions, Jon Brewerton, says: “Banks are difficult for business lending. They are risk-averse and really only lend if you don’t need it.” He cites the example of an exporter of seasonal goods he worked with that had five staff and revenue of about $14 million. At its required annual refinancing one year, the bank refused to renew with two weeks notice at Christmas time. The firm had missed a couple of covenant measures. “This caused a lot of problems. It seemed diabolical to me.” Brewerton says. The exporter was a seasonal buyer and supplier, with goods on the

water for 60 days and a cash cycle of more than 120 days. From the start of the year ﬁnance was used to fund purchases till late in the year, creating an overdraft of about $5 million. Then returns would come in slowly from debtors and the company would make a proﬁt by the end of the year.

Senior business adviser at Icon Business Solutions, Jon Brewerton.

UNDERSTANDING REQUIREMENTS The bank was also concerned the business was forecasting finance needs based on $18 million of revenue, mostly debtor-funded. So Brewerton helped the company look for additional investors and ways to mitigate risk from the bank’s perspective. Eventually the exporter settled with another bank.“I don’t know why, because both banks had the same information given to them. Maybe the new bank had different forecasting information.” Brewerton recommends businesses avoid refinancing problems by understanding their requirements and choosing the best funding terms in the first place. They should ask themselves, for example, whether they need short term (under two years) or long term (3-20 years) financing. Lenders commonly review funding each year, therefore good reporting systems and forecasts are important. “Have a documented finance plan on hand to send to another bank if you need to; it’s a risk-management tool that needs to be kept up to date.”

ALTERNATIVES Chris Mardon, managing director of Energy Mad, which makes eco light bulbs, says banks are risk-averse and prone to foreclose on loans when they want to reduce exposure on certain sectors. “Bigger companies than us have similar stories to tell: ‘one day the bank rang and said we see you are going well — we want our money back now’.” Mardon recommends people needing to reﬁnance look to private investors or old-fashioned equity. His company is also cautious about who it sells to. “There’s plenty of money out there but they [investors] are risk-averse too. “Debt is bad and hard to get right now. Grow organically, generate cash from your own business and collect [payments] as soon as possible. Collect cash as soon as you can and pay as slow as possible – this seems to be good business practice that we follow now.” FUNDING PARTNERS A new arrival on the specialised ﬁnance scene is Funding Partners, based in Auckland. The company offers a

EXPORTER 41

combination of invoice finance, export finance and structured financial products. Director of business development Graeme Hill is a former banker and finance company general manager. He says Funding Partners differs from most finance sector players in not seeking funds from the public. “We have developed a business around the idea of bringing global best practice to the New Zealand market. This includes wholesale funding lines, products and systems that result in an offering for businesses that was previously unattainable. “We can be competitive with traditional funders yet offer product capability and flexibility well beyond bank-type guidelines.” Each product incurs application and administration fees and interest on the outstanding loan balance. Interest is in the 8-15% range, depending on risk, between the rates banks and finance companies charge for similar products. Funding Partners requires relatively standard information from prospective clients, such as their past three years’ financials, current trading results, projections and business plans. “It is also important we understand the overall strategic direction of a client to be able to provide a funding solution that incorporates likely future requirements,” Hill says.

Graeme Hill, Director of business development at Funding Partners.

ASSET FINANCING ANZ New Zealand’s general manager, specialist businesses, Ross Verry, says the bank has seen more inquiry for asset ﬁnance over the past six to nine months, with plant or equipment used as loan security. But the ANZ is keen for clients to place emphasis on future planning and less focus on history to lift their game. “The two main things [we like to see] are planning – ﬁnancial elements as well as comments on the marketplace and opportunities – and engaging independent advice; maybe a mentor, a professional adviser or making

IT IS ALSO IMPORTANT WE UNDERSTAND THE OVERALL STRATEGIC DIRECTION OF A CLIENT TO BE ABLE TO PROVIDE A FUNDING SOLUTION THAT INCORPORATES LIKELY FUTURE REQUIREMENTS.” G R AEM E HILL, DIR ECTO R O F BUSINESS DEV ELO PM ENT, FUNDING PARTNER S

Once Funding Partners has all the information it needs, it can process and approve a standard funding application within ﬁve working days. Loan terms and structure vary and are reviewed each year, the same as with banks. Funding Partners can lend anything from $500,000 to $100 million, and offers support for New Zealand exporters in over 227 cities, backed by strong and credible global connections, Hill says.

the leap towards governance, with outsiders to bring new skills, ideas and challenges.” [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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The New Zealand Export Credit Office (NZECO) provides financial guarantee products for New Zealand exporters. Our products help these exporters manage risk and capitalise on trade opportunities around the globe. As well as working directly with exporters, we work closely with commercial financiers in New Zealand and offshore to support and improve the competitiveness of exporters. NZECO is currently located in the Treasury and obligations to third parties are guaranteed by the New Zealand Government.

42 EXPORTER

EVERY DAY VISITORS TO THE NEW ZEALAND TRADE CENTRE ARE ASKING FOR A DIRECTORY OF NEW ZEALAND EXPORTERS

the market for the directory is: More than 5000 qualified visitors to the New Zealand Trade Centre. A minimum of 7500 directories will be printed and distributed. The Directory will also be promoted to international visitors via ‘arrival’ magazine. International trade offices located offshore such as New Zealand Trade and Enterprise office, KEA offices and offshore trade associations with links to New Zealand. Email requested from visitors to the New Zealand Trade Centre website: www.newzealandtradecentre.com

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Building your website to go viral Websites that are effective can help SMEs reach the global market without blowing the budget and let them respond to customers far quicker than their bigger, bureaucratic competitors. BY A N T H O N Y DO E S B U R G

n export website built three years ago is unlikely to be reaching all its potential customers, according to the company that got the country’s biggest exporter online. Doug Hanna, managing director of Terabyte Interactive, developer of fonterra.co.nz, says a site built today would feature a social media component to take advantage of the viral effect of the internet. “Your three-year-old website with no social media is a bit like a supermarket in a desert,” says Hanna. Product information and expertise of value to customers would go unnoticed except by those looking speciﬁcally for it. But social media feeds such as Twitter need to be used judiciously, says Luke Pierson, creative director of Heyday, a Wellington web developer. WHERE MARKETING CAN GO WRONG “Just spouting marketing messages is absolutely the wrong way to do it. Following people and have them follow you, and trying to build relationships with those people, can be quite effective. “From an exporter’s perspective, people might be interested in their products. It costs them nothing to follow them and all they have to do is talk about some interesting stuff now and then and they may or may not get noticed.”

44 EXPORTER

KEY T TAKEAWAYS > An exporter website with social media feeds can exploit the internet’s viral effect. > Social media should be used to get across meaningful information to a targeted audience. > Websites should be designed to answer the questions of a welldeﬁned customer audience. > Exporters selling to a number of markets should host sites in each market. > Google Analytics is a free and powerful tool for understanding customer behaviour.

It should not be viewed as the be-all and end-all of online communications, however. “The thing about online that’s not well understood is that you’re still having conversations with real people — it’s just a different medium. The whole objective of online is to provoke an action ofﬂine,” Pierson says. The beauty of the web, Hanna says, is that a small exporter can make as big an impact as a business Fonterra’s size, providing great bang for the marketing buck. “Innovative small companies can really punch above their weight online,” Hanna says. What’s more, without the bureaucratic overhead of big organisations, they have the advantage

of being able to act quickly. He cites the example of Mt Cook accommodation provider The Hermitage, which has been able to reach its overseas customers directly with a user-friendly online booking system. Auckland website developer Zeald nails site success down to two things: promotion and persuasion. Effectiveness at the first is measured by how many visits a site gets; if visitors then go on to take some action suggested by the site, then it scores well for persuasiveness. WHO IS YOUR AUDIENCE? Zeald’s sales and marketing director, Brent Kelly, says the key for any website is to be clear about its audience. “There’s a huge amount of focus in the online space about ranking number one in Google and other search engines, and about how important it is to get traffic to come to your website. But there’s very little awareness, we find, on making sure that once you’ve got people to your site that they don’t just leave without responding to what it is you want them to do. “The biggest point is to ensure your site content addresses the key problems or issues of your target customer. “We have customers that sell baby clothing to overseas markets and our advice to them is to understand who their site visitors are and what motivates them; to try to understand what questions or problems they

might have and make sure the website addresses those. “It’s a solid principle of business, applying to everything, but is often overlooked when it comes to websites.” Once the fundamentals are sound, exporters can begin to look at incorporating social media features. Kelly says social networking should not just be a me-too site addition but needs to be undertaken with the same degree of deliberateness as overall site design. With a well-directed social media initiative, an exporter can draw attention to themselves in a market such as the United States without a big outlay on advertising. “It’s very important to have a solid strategy to power your approach to social media. There’s not much point getting a Twitter page and then just talking about any old thing on it. You need to have a very targeted audience and make sure you’re posting information that’s of value,” Kelly adds. Adding social media feeds to a site wouldn’t typically necessitate a redesign, but starting a blog is another matter. That raises the question of whether the effort is worth it. More important for an exporter is making sure your site is being found by search engines in the markets in which

THE THING ABOUT ONLINE THAT’S NOT WELL UNDERSTOOD IS THAT YOU’RE STILL HAVING CONVERSATIONS WITH REAL PEOPLE — IT’S JUST A DIFFERENT MEDIUM. THE WHOLE OBJECTIVE OF ONLINE IS TO PROVOKE AN ACTION OFFLINE.” LUK E PIER SO N, CR EATIV E DIR ECTO R O F HEYDAY

it operates. Kelly says that might mean having sites in a number of countries. “To rank well in searches in the UK, for instance, you’re probably going to need a site hosted in the UK with content tailored for the UK market.” For an exporter selling a seasonal product, separate sites in different markets provide a mechanism for promoting goods appropriate to the time of year. Paul Russell, director of Auckland online marketer and site designer Adhesion, also downplays the importance of social media compared with doing the web basics well. For an exporter, Google Analytics is an essential service for understanding diverse customer wants, and whether a site is catering to them. The free Google tool, which Adhesion can build into any site, will tell the site owner from where and how visitors got to the site, and the order in which they made their way around it.

“It can be as simple as looking at a content report in Analytics and being able to say, ‘we had a view that our target audience wanted Product A but in reality they’re all interested in Product B’. “Then you’d ask yourself whether the website was set out in a way that was meeting customer needs.” Google Analytics provides a free means for a customer such as Pumpkin Patch to ﬁnd out which colours of its children’s clothing range do well in particular markets, Russell says. “It’s a free service and it’s inexcusable for a business not to have it to see what’s going on with its site. If an exporter doesn’t have it it’s a good reason to refresh their site.” [END] ANTHONY DOESBURG / WRITER Anthony Doesburg is an Auckland-based freelance journalist who specialises in technology.

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Compliance cost: the monster won’t stop growing High compliance costs incurred locally and in export markets are causing business owners nightmares. Will productivity improvements and more free trade agreements help bring costs down? BY SA N GE E TA ANAND

t annoys Tim Ritchie, the chief executive of the New Zealand Meat Industry Association, that the industry forks out about $80 million a year to meet New Zealand’s high food safety and hygiene standards. That is what it costs for hygiene veriﬁcations carried out by the regulator, NZ Food Safety Authority (NZFSA), together with the work of AsureQuality, the provider of meat inspection services. The meat industry exports more than 90% of its output to some 120

48 EXPORTER

KEY T TAKEAWAYS > Exporters face many compliance costs in local and foreign markets. > The NZFSA-developed e-certiﬁcation provides government-to-government assurances that animal products exported from New Zealand comply with the regulations of importing countries. > The government is considering a new Joint Border Management System (JBMS) for one-stop border clearance.

markets, and for its pains experiences the most government intervention of any segment of the commercial food production sector. Sheep meat is the second largest exported food commodity, earning the country $2.8 billion in 2009, according to Statistics New Zealand. One of the industry’s major challenges is operating to a single set of standards that meet the varied requirements of all its markets, says Ritchie. The industry appreciates that stringent food safety and hygiene standards help preserve the country’s reputation, but it would like to see the requirements standardised.

OUTMODED REQUIREMENTS “This is a signiﬁcant cost to the industry and there is no contestability in the provision of meat inspection services. Many of the veriﬁcation and inspection activities are based on historical requirements and are no longer supported by sound science, and are therefore obsolete and add unnecessary costs to the production system,” says Ritchie. On top of that are the costs associated with being one of the largest employers in the country. At the height of the meat processing season, the industry employs about 25,000 people, heaping employment-related compliance work on meat companies. The Holidays Act 2003, for example,

THE NZ FOOD SAFETY AUTHORITY’S ELECTRONIC CERTIFICATION USES THE WEB

Compliance nightmares We asked exporters about their biggest compliance nightmares. Here are some responses. • “The worst example came from the Health Department with respect to GMP compliance. A previous officer had accepted our procedures; the next one would not, and would not say why. A further problem is the bewildering changes that come out from various departments. Small businesses simply do not have the resources to deal with all this legal stuff.” • “We have a problem with ever-increasing export documentation and security costs, and also with bank charges for just about everything.” “My New Zealand fishing company clients pay up to $2.50 a kg compliance costs either directly or indirectly to New Zealand government agencies/ departments like MAF.” • In another case, an exporter tells of the Australian government affecting $145 million of refrigeration exports by introducing a compulsory refrigeration licence for all importers. This licence costs A$3172 for two years. • “One problem we have had is finding a site to actually do business. The problem is Health Department regulations limit strongly what can be nearby, in terms of air pollution, etc. Local bodies refuse to have clean zones, and the net result of this is that products are made offshore.”

TO HELP PROVIDE GOVERNMENTTO-GOVERNMENT ASSURANCE THAT ANIMAL PRODUCTS EXPORTED FROM NEW ZEALAND COMPLY WITH THE REGULATIONS OF IMPORTING COUNTRIES. THIS HELPS REDUCE COST OF PAPERWORK.

ͻ ͻ ͻ ͻ ͻ ͻ ͻ

ŝƌ Θ ^ĞĂĨƌĞŝŐŚƚ ǆƉŽƌƚƐ &ƌĞŝŐŚƚ ĨŽƌǁĂƌĚŝŶŐ ŝƌ Θ ^ĞĂĨƌĞŝŐŚƚ /ŵƉŽƌƚƐ &Ƶůů ĐƵƐƚŽŵƐ ŽĐƵŵĞŶƚĂƟŽŶ / ĂƉĂďŝůŝƚǇ >ĂŶĚĞĚ ŽƐƟŶŐ ^ĞƌǀŝĐĞƐ ^ƚŽƌĂŐĞ

caused major changes to the way employees are paid for holidays and sick leave, and introduced the concept of relevant daily pay. “The act has resulted in signiﬁcant direct costs arising from sick pay, disruption and loss of productivity, with absenteeism increasing on an average by 100 per cent,” says Ritchie.

ͻ ĂƌŐŽ /ŶƐƵƌĂŶĐĞ ͻ ^ƉĞĐŝĂůŝƐƚƐ ŝŶ ƐŚŝƉƉŝŶŐ ĞǆŽƟĐ ŵŽƚŽƌ ǀĞŚŝĐůĞƐ ;ƐĞĂ Žƌ ĂŝƌͿ ͻ ^ƉĞĐŝĂůŝƐƚƐ ŝŶ ĂŝƌĨƌĞŝŐŚƟŶŐ ǁŽƌŬƐ ŽĨ ƌƚ Θ ŽůůĞĐƚĂďůĞƐ

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50 EXPORTER

High compliance costs are a big bug bear for NZ businesses. Exporters not only face the cost of satisfying local regulations, but also those of foreign markets. There is hope, however, that breaking down trade barriers will be a first step in reducing the cost of exporting. The recently concluded APEC Summit in Japan, work on the Trans Pacific Partnership (TPP) to create a Pacificwide free-trade deal, the apparent willingness of Japan to lower trade barriers and the start of free-trade negotiations with Russia all augur well for reducing compliance costs in those markets. TECHNOLOGY & BETTER PRODUCTIVITY Technological improvements are also helping by raising productivity. The New Zealand Customs’ Secure Exports Scheme (SES), which partners with exporters, gives them greater certainty about the movement of their goods, especially to and through the countries with which New Zealand Customs has mutual recognition arrangements. A large number of exporters have already joined the SES. For their part, they have to ensure protection of their goods against tampering, sabotage, or smuggling from the point of packing to delivery to the port. The NZFSA-developed e-certification is another platform that has been

THIS IS A SIGNIFICANT COST TO THE INDUSTRY AND THERE IS NO CONTESTABILITY IN THE PROVISION OF MEAT INSPECTION SERVICES. MANY OF THE VERIFICATION AND INSPECTION ACTIVITIES ARE BASED ON HISTORICAL REQUIREMENTS AND ARE NO LONGER SUPPORTED BY SOUND SCIENCE, AND ARE THEREFORE OBSOLETE AND ADD UNNECESSARY COSTS TO THE PRODUCTION SYSTEM. T I M RI TC H I E, C HIE F E XEC U T IVE OF T HE NE W Z E A LA ND ME AT IND U STRY ASSO CIATIO N

well received and is internationally recognised, with the United Nations developing a paperless certification system based largely on the NZFSA model. The Electronic Certification, or E-cert, is a web application used to assist with providing government-to-government assurances that animal products exported from New Zealand comply with the regulations of importing countries. The direct electronic exchange of information makes it difficult for traders to use forged documents to clear goods and also reduces the cost of paperwork. The government is hoping that the use of E-cert by overseas authorities will pave the way for improved overseas trust in the integrity of New Zealand’s assurance programme and help lift export volumes. It is also hoped this measure will help

reduce the total compliance burden on exporters. Adoption of E-cert is already in train with Australia, China, Hong Kong, Japan and the European Union. Another measure the government is considering is a new Joint Border Management System (JBMS). This will usher in a single shared computer system to replace the Customs Service’s CusMod and Ministry of Agriculture and Forestry’s Quantum ageing computerised borderclearance-systems. The system will enable exporters to access and electronically submit all border clearance documents once, rather than to multiple agencies. It will also collate separate agency fees for one consignment to enable a single fee payment. Exporters are hoping for more improvements. For example, goods exported to China require a Certiﬁcate of Origin (as per the FTA with China), issued by a designated non-government

organisation. “For the meat industry this is an extra, unnecessary cost as nearly all the information required for the certificate of origin is already produced on other official documents that accompany meat exports. “While rationalised government systems can reduce duplication and cost, it is important to ensure that the costs involved in introducing a new system do not outweigh the potential benefits,” Ritchie says. [END]

USEFUL WEBSITES ON COMPLIANCE ISSUES: Ministry of Agriculture and Forestry www.maf.govt.nz New Zealand Food Safety Authority www.nzfsa.govt.nz Ministry of Economic Development www.med.govt.nz Customs - www.customs.govt.nz Ministry of Health - www.moh.govt.nz Biosecurity - www.biosecurity.govt.nz

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.

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Spreading the cost with external warehousing Using an external warehousing service provider with a good understanding of your business can spare exporters a headache and expense. 52 EXPORTER

BY SA N GE E TA ANAND

xporters work in a global environment in which the pace of change can be daunting, especially for those just starting out. But whether a start-up or an established export house, operational certainty is a major competitive advantage, a prime reason why warehouse contracting has become popular with exporters. “The advantage is local personnel understand the market in freight, location, staff hiring conditions and when and where everyday delays can occur,” says Rod Giles, managing director of Contract Warehousing. Giles founded the business in 1980, recognising that Australian companies looking to enter the New Zealand market under the Closer Economic Relations agreement would ﬁnd it easier without high set-up costs. In 2002 he opened up in Australia, and has been helping exporters from both sides of the Tasman to cross the ditch. “We have opened the door to several companies that started with us in one city, found the ease of doing business with us, and went on to expand into other cities,” says Giles. “One company in Brisbane joined us to hold bulk product in July 2009;

we now handle all of his business and operate out of Brisbane, Sydney and Auckland.” It’s an often-repeated story: the company has 18 customers that have expanded use of the service from one city to multiple cities, attracted by the uniformity of service and the fact that the stock on the ground is their only cost; they are spared the expense of owning or leasing a building and paying warehouse staff. FLEXIBILITY The ﬂexibility of customised services is another hallmark of contract

warehousing. “In an ideal environment the product would be manufactured and transported to the contract warehouse in such a manner that any requirement for on-site warehousing was limited to purely holding product in quantities that allowed for a costeffective transport option to be deployed,” says Andrew Wright, general operations manager for Profreight. “We currently operate an existing client in this manner, where we receive daily ﬁnished goods as they come off the production line.” Exporters using external warehousing enjoy the service of a specialist whose

ONE COMPANY IN BRISBANE JOINED US TO HOLD BULK PRODUCT IN JULY 2009; WE NOW HANDLE ALL OF HIS BUSINESS AND OPERATE OUT OF BRISBANE, SYDNEY AND AUCKLAND.” R O D GILES, M ANAGING DIR ECTO R O F CO NTR ACT WAR EHO USING

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KEY T TAKEAWAYS > Warehousing specialists undertake services including basic storage, pick-packing, service centre management, kitting, re-work and road transport distribution. > An exporter can achieve cost savings of up to 30% with an effective warehouse service provider. > Outsourced warehousing provides hassle-free operation, access to local knowledge, seamless and pay-for-use service and access to state-ofthe-art facilities. > Running a warehouse incurs costs including real estate, handling equipment, container ramps, pallet racking, packaging machinery, computers and RF scan equipment. > Deﬁne your expectations well to get the most from your warehouse contractor.

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costs are spread over many export clients. â&#x20AC;&#x153;Factor in the cost of a warehouse footprint, repairs and maintenance, assets such as pallet racking, wrapping machines, mechanical handling equipment leases and labour. Why have your own warehouse when there are solutions readily available for immediate use?â&#x20AC;? says Wright. Nor are they expensive: competition among warehousing specialists ensure margins are low, he says. MINUS THE HASSLE For an exporter it means removal of the logistical hassles of storing and transporting products, leaving them to get on with serving the market. â&#x20AC;&#x153;The clientâ&#x20AC;&#x2122;s focus becomes the companyâ&#x20AC;&#x2122;s development and growth, rather than managing the day-today movement of stock or the staff problems that will and do occur, and are made all the more difďŹ cult by the water between them and the overseas operation,â&#x20AC;? says Giles. â&#x20AC;&#x153;It takes a while to develop the right staff who can cope [with running an overseas warehouse]. There is a big difference between someone who works well in head ofďŹ ce and can do the same in a distant country without the support of someone next door.â&#x20AC;? The warehousing specialist also has the economies of scale to invest in state-of-the-art facilities. â&#x20AC;&#x153;Today we have numerous and robust technical advances in IT that allow real-time visibility of stock-on-hand, and EDI links that reduce potential for human errors and present productivity gains,â&#x20AC;? says Wright. Contract warehousing also provides certainty in uncertain times. â&#x20AC;&#x153;Fixed pricing lends stability in the sales environment; and client relationship managers allow an easy conduit into the business,â&#x20AC;? he says. For cyclical businesses, as many Kiwi exporters are, there is an added advantage â&#x20AC;&#x201D; warehousing can readily be scaled back to match export volumes without worrying about overheads. â&#x20AC;&#x153;In the case of using thirdparty warehousing, they gain in that they pay for the services actually being used in proportion to their business,â&#x20AC;? says Giles. INFORMATION IS VITAL However, exporters need to discuss their needs in detail with the warehousing specialist. The

54 EXPORTER

FACTOR IN THE COST OF A WAREHOUSE FOOTPRINT, REPAIRS AND MAINTENANCE, ASSETS SUCH AS PALLET RACKING, WRAPPING MACHINES, MECHANICAL HANDLING EQUIPMENT LEASES AND LABOUR.â&#x20AC;? ANDR EW W R IGHT, GENER AL O PER ATIO NS M ANAGER , PR O FR EIGHT

beneďŹ ts of contracting depend on how well the warehousing manager understands the clientâ&#x20AC;&#x2122;s needs. It is important both parties communicate expectations well. â&#x20AC;&#x153;If the exporter is starting out, he should be clear about time frames and the desired result,â&#x20AC;? says Giles, so services can be provided with maximum efďŹ ciency.

or inventory systems or suitably trained staff,â&#x20AC;? says Giles. With the expected outcomes well deďŹ ned, and with the expense spared by not managing their own warehouses totted up, exporters stand to make big gains by outsourcing to a specialist. â&#x20AC;&#x153;I have been advised by clients that their savings have been of the order of 20% to 30%,â&#x20AC;? says Giles. [END]

NOT ALL ARE EQUAL Similarly, the exporter should shop around. â&#x20AC;&#x153;There are a large number of freight companies that say they are in the third-party warehousing business, but they really are just freight companies, and lack the right mindset

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.

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BrandStand LOOKING FOR A STANDOUT exhibition? These days, being at an exhibition is the easier part of the journey. Having the “WOW” factor at your stand is harder to achieve. BrandStand’s portable display helps companies present their products attractively. Stuart McNeil and wife Louise O’Shannessey bought an existing portable display business ﬁve years ago and added Jacques Swanepoel, who came with design and engineering skills and a “can do” attitude, to the team. They saw an opportunity to add to the range of innovative portable products targeted at the exhibition, event and conference markets. They took an existing product range and expanded it to reach a broader customer base. The company has grown rapidly. It opened a Sydney ofﬁce two-anda-half years ago, which is licensed to manufacture and market a range

56 EXPORTER

of portable display products in Australia. BrandStand produces attentiongrabbing display products that can be broken down into carry-cases for easy transport. The focus has been to design bespoke display stands that are easy to install and break down. BrandStand has developed a freight-friendly exhibition system named Tech-Style. It is portable and modular, making it possible for exporters to own a customised and professional-looking exhibition stand that can be carried from venue to venue and built by the exhibitor themselves, saving on-site costs and hire fees. The modular system can easily be adapted to different stand shapes and sizes and graphics are easily interchanged. The product has been available for six months and several exporters have taken advantage of it, including Compaq Sorting, Endace and Phitek. FOR MORE INFO: HTTP://WWW.BRANDSTAND.CO.NZ

Acma Industries THIS KIWI COMPANY has designed an innovative non-slip floor material that is soft and stable to walk on, yet provides cushioning to reduce the impact of a fall. The Kradal range of floor material uses renewable resources and can handle high traffic yet act as a highperformance barrier. More than a third of adults aged 65 years or older fall each year and, of those who fall, up to 30% suffer moderate to severe injuries. Acma Industries says in 2003 more than 1.8 million seniors were treated in emergency departments for fall-related injuries. Falls are the leading cause of injury deaths and hospitalisation in older adults. In 2002, nearly 13,000 people aged

65 and older died from fall-related injuries. By 2020, the total cost of fall injuries for people 65 and over is estimated to exceed $43.8 billion. Acma’s new flooring technology optimises energy absorption on impact as well as minimising deflection to avoid falls. The flooring material is a thin panel of composite polyurethane materials that is suited to being made into crash mats, underlay for carpet or vinyl and other types of indoor and outdoor flooring. Acma has a US patent pending on its technology. It is suitable for long-term care facilities, hospitals, shopping malls and other applications. The company also makes a large range of moulded polyurethane products. MORE INFO: HTTP://WWW.KRADAL.CO.NZ

Methven SHOWER HEAD TECHNOLOGY continues to improve. Methven’s new-tomarket Kiri Low Flow shower head is designed to save water. The Kiri Low Flow shower head has a flow rate of five litres a minute, compared to the average flow of 12.5 litres a minute, providing a 60% water saving. It is suitable for mains pressure installation only. Its environmental-friendliness was recognised in October 2010 with a gold award in the Sustainable Product category at the prestigious Designers Institute of New Zealand Best Design Awards. The judges said: “This entry demonstrates an organisation’s ongoing dedication to improving the sustainability of their product portfolio. An almost twofold improvement on their previous shower products brings new levels of water-saving to an increasingly important common resource.” Methven design director Kent Sneddon says the company’s focus on innovation is driven by worldwide demand for water and energy conservation that doesn’t detract from the showering experience. Methven’s next-generation shower, using Satinjet twin jet technology, has been retrofitted in 13,000 hotel bathrooms in Asia and Australia, helping establish the company’s shower and tapware as the brand standard for a number of international chains, including Accor Group in Australia and IHG and Hilton in the UK and Europe. MORE INFO: HTTP://WWW.METHVEN.BIZ/COMPANY/AWARDS

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Assure Quality ASUREQUALITY HAS DEVELOPED a one-stop-shop for timber industry compliance solutions, according to forestry business development manager Allen Fraser. “We are delighted to announce that JAS-ANZ [the Joint Accreditation System of Australian and New Zealand] has recently certified both the AsureQuality Verification of Timber Properties programme and the PINENZ programme. This means we can now provide these assurances in addition to the AsureQuality Timber Treatment Programme, which has been running since 2005.” The PINENZ programme has been jointly established with the Pine Manufacturers Association to strengthen consumer confidence in manufactured timber products, and to help establish New Zealand fingerjointed products in the Australasian market. The Verification of Timber Properties Programme has been designed to ensure confidence in structurally graded timber products. The programme ensures compliance to NZS3622:2004 – Verification of Structural Timber Properties, as well as incorporating associated standards. Both programmes complement the AsureQuality Timber Treatment Programme, developed six years ago with industry input to provide an independent third-party assurance programme covering industry-recognised standards. Once certified by AsureQuality, customers can apply the AQ mark to their products, indicating a product has been produced in accordance with a comprehensive and independent audit programme. AsureQuality has also adopted the new Standard Operating Procedures for Timber Treatment Plants & Treatment Auditors. More info: http://www.asurequality.com/

58 EXPORTER

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CLARK EQUIPMENT manufactures distributes and services materials handling, industrial, construction and rural equipment in the New Zealand, Australian and Paciﬁc markets. The company has New Zealand branches in Auckland, Hamilton, Mt Maunganui and Christchurch, supplying equipment for ports, importers and exporters. The company offers a broad product range of materials handling equipment including: • OMEGA heavy forklift trucks • Reach stackers • Clark forklift trucks • Terberg terminal tractors • Noell straddle carriers • Gottwald ship to shore cranes The company’s forklifts range from 1.5-8 tonne capacity. Its forklift trucks include gas, diesel and electric forklifts ranging from 1.5 to 8 tonne capacity, engineered for indoor and outdoor use on semi-improved surfaces in manufacturing, warehousing, storage yards, lumber handling and other applications. More info: Clark Equipment, visit: www.clarkequipment.co.nz

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EXPORTER 59

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

visit nzexporter.co.nz Text “code” to 710 to learn how to use this

EXPORT OPPORTUNITIES Below are a number of opportunities from recent visitors to the New Zealand Trade Centre. All of the opportunities are available for $200 + GST each. If you are a paying client and display your products at the New Zealand Trade Centre, ALL opportunities are available at no charge.

www.nzexporter.co.nz

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

MALAYSIA

DUBAI

New Zealand meat for Malaysia

Various NZ products for Dubai

his visitor to the Trade Centre from Malaysia is currently involved in importing and exporting various types of meat products into and out of Malaysia. The meat products that he deals with currently are not all Halal grade. This business distributes the products he imports through wholesalers and restaurants and has been doing so for a number of years.

This businessman has a number of companies in the UAE that sell products into the UAE and African States. He is looking for a variety of products to export to grow into this market. I met this business party personally and found him very pleasant and easy to communicate with. This gentleman has a lot of experience in importing and exporting and I’m sure you will ﬁnd contact with him to be of value.

DUBAI

ISRAEL

Aluminium boats for Dubai

Health products for Israel

This visitor from Dubai is looking to talk to companies in New Zealand that are in the business of boat manufacture, of particular interest are those constructed of aluminum. He believes that with his family connections and background, there could well be opportunities within the UAE to create a new market. Glass boats are common in that part of the world at the moment while aluminum boats are rare. He wants to change this.

This visitor is originally from Israel and now calls Auckland, New Zealand, home. He has a company involved in the export of health products and foods to Israel and other countries in the UAE. Of particular interest to this gentleman are products ranging from honey, premium foods, to health products and herbs. This businessman currently sells to a retail group as well as direct to the end consumer and is simply looking to add to his existing range of products.

HONG KONG

SOUTH AFRICA

Health products for Hong Kong

Milk Powder for South Africa

A visitor today spent some time looking through the Trade Centre, predominantly looking at health and well-being type products. He is keen to talk to New Zealand companies looking to grow into the Hong Kong market. Although he believes there is already a variety of a products available on the shelf in Hong Kong, he thinks that there is still room in the market for new products.

This business woman and her husband who visited the Trade Centre a few days ago have come back with a couple of further requests for products. Originally from South Africa, the couple now lives in Queensland’s Gold Coast. They currently manufacture and sell health foods, nutraceuticals and medicinal products which are sold to the likes of Woolworths and Coles and second- tier retailers in Australia, the USA and South East Asia. Over and above health foods, they have requested information on any independent company that can contract manufacture milk products/powder.

SINGAPORE

INDONESIA

Gourmet foods for Singapore

Natural fruit juices for Jakarta

This visitor to the Trade Centre from Macedonia wants to communicate with producers / exporters of gourmet foods. This businessman is here in New Zealand on holiday but is also looking for business opportunities. Of particular interest to this gentleman is any gourmet food company producing products that are of the highest quality and who are interested in entering the South East Asian market. This businessman has many years of experience in importing and distributing food products so you can feel conﬁdant that he will understand the requirements to succeed in South East Asia.

This businessman from Jakarta is in New Zealand on holiday whilst looking for business opportunities at the same time. Although he spent some time looking at various products he was really only interested in honey products and fruit juices. The fruit juices that this gentleman is interested in importing must be low in sugar and preservative free, among others. Currently this businessman is importing products from China. He has a number of retail and distribution channels that he conducts his business through.

For more information or a personal introduction, please email, mike@nztc.co.nz or call (09) 366 6879

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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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Independant reviews of freight, banking insurance, IT, travel & more Comment & interact with buyers, other exporters & suppliers

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FUNDING UND N A AVAILABLE The New Zealand Trade Centre e is happy h to announce a new relationship with an innovative business w s funding in provider with global connections. Market leading debt funding solutions so are ar now available. Do you have working capital/ cashﬂow constraints? Are you ou looking tto grow your business? Funding solutions are now available for businesses operating er in bo both the domestic and global markets. Specialist products are available forr NZ N exporters te to assist with funding business operations and expansion. Additionally y there th are products pro available to both manage and mitigate business risk. Transaction ctio size can an accommodate all funding requirements from SME’s to large corporations. orpo

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