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Australia’s defence sector is seen as a key pillar of its economic recovery.  Over the next decade Australia will spend some $250 billion on improving their defence capability, and that will be backed up by a further $250 billion dedicated to maintenance and operations.

To enable a sustainable defence manufacturing capability, at least 50% of any programme must involve local providers.  This presents significant opportunities for New Zealand, being that NZ is deemed a local supplier by way of the CER agreement.

The opportunities are far reaching; think technology, small parts of the supply chain and high end specialist areas such as cyber security.  This, coupled with the considerable flow on effect for skilled labour development, signals exciting times ahead!

CONTRIBUTOR

Anna Shere

Ambassador, Australia

Kea New Zealand

Kea member

We welcomed the year of the Ox on February 12. 

While most of the country went on a long break, the courier sector handled about 4.8 billion parcels in a single month, showing a 73% increase compared to February 2020. This demonstrates that the pandemic has significantly influenced the purchasing habit of Chinese consumers over the past year. 

With the Spring Festival holiday, China’s February box office revenue exceeded RMB 12.26 billion, breaking the world monthly box office record. At the same time, the catering industry earned RMB 708.5 billion from January to February, up 68.9% year on year. Both statistics show clear post- COVID-19 market recovery, boosting the confidence of both foreign and local investors. 

As this year is symbolized by ‘牛气冲天’ (‘the soaring Ox’), China is very hopeful for a year of prosperity and good fortune

CONTRIBUTOR

Anna Shere

Ambassador, Australia

Kea New Zealand

Kea member

HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Spring is here bringing spectacular daffodils and a loosening of covid-related restrictions. Schools are back and small gatherings are allowed outside now but realistically it will be June before we are allowed to socialise in groups inside, ironically just as the sun comes out!

The impact of Brexit for business is reflected this month in a continued drop in shipments between the UK and the EU.  Business leaders attribute this trend to a number of factors: British businesses stockpiling inventory before the UK left the EU, the difficulty in navigating the post-Brexit paperwork needed and also changing official advice.

British exports to the EU year on year dropped 38%, and its exports to the rest of the world were down 7.5%.  At the same time, Britain imported fewer goods.  Imports from the EU were down almost 16% and those from the rest of the world dropped more than 9%. Despite these challenges, the UK is definitely open for business, and continues to proactively work with other exporting nations even as friction in cross-border commerce increases.

Although business leaders in the UK anticipate continuing instability between the UK and the EU in the months ahead, this environment also creates increased opportunities for NZ businesses across sectors to seek opportunities and market share.

Where are we spending (UK Focus):
Overall consumer spending contracted by 13.8% in February as national lockdowns continue, but we are seeing some signs of recovery compared with January as essential spending increases. This has been driven by strong spend in supermarkets and record year on year spend growth at food & drink specialist stores. Overall there has been a 14% increase on retail spending in February vs January, driven by a 21% increase in grocery and general household spend seeing a 10% increase. Retailers with a considered online presence benefitted from a 43.3% increase in sales. 

Food & drink specialists, electronics, Home & DIY improvements are leading the charge as the nation gets ready for spring.  Digital content & subscriptions are still driving steady growth at 42.6%, while the hospitality, travel and leisure industries unsurprisingly continue to see negative growth.  As we all still remain at home, takeaway food delivery apps continue to benefit and online eating and drinking spend grew by 92.6%.  

We take delight in seeing those septuagenarians and above strutting the streets with a skip in their step and a smile in their eyes, as the vaccine roll out continues with great success.  There’s a real sense of optimism with longer days and the knowledge that more and more people each day are protecting themselves and their loved ones by taking the vaccine.

CONTRIBUTOR

Anna Shere

Ambassador, Australia

Kea New Zealand

Kea member

The Global Soft Power Index by Brand Finance ranks countries according to their diplomatic, cultural, and political influence as opposed to the hard power of economic and military might. Large, wealthy northern hemisphere countries typically dominate the list. However, in the latest survey of 75,000 people conducted in December 2020, New Zealand’s reputation soared. 

While humbling to see New Zealand’s standing on the world stage strengthening, with our country’s management of the Covid-19 pandemic shining a light on our people and national values, New Zealand Story Director Rebecca Smith presented on an international panel at the Soft Power Summit acknowledging that like everyone else, New Zealand is not through this yet. 

This is not the only index that New Zealand performs well in. The nation has long been ranked amongst the first of 190 economies for ease of doing business, and is rated highly for low corruption, peacefulness and sustainability. Our most recent leap in soft power is just the latest accolade, helping New Zealand now be recognised as one of the most globally trusted country brands.   

This trusted brand is something more and more businesses want to leverage offshore, evidenced by the fact that demand for the FernMark Licence Programme is at an all-time high. Offering a trademarked fern – officially recognised and endorsed by the New Zealand Government – marks such trust while communicating a product or service’s authentic connection to New Zealand, and in turn bringing with it the credibility of New Zealand’s institutions and integrity of our people.

According to a recent NZTE International Consumer Survey, trust and safety are considered the key purchasing drivers for global consumers when looking to buy products and services. Australia, the UK and Singapore are particular countries where products made in New Zealand hold a strong reputation as trusted and safe.  

“New Zealand is much loved and envied around the world. The FernMark has allowed us to distinguish our brand from the thousands of brands we compete with in highly competitive markets around the world.” said Rodd & Gunn’s CEO Mike Beagley, when discussing her company’s experience as an exporter. 

Indeed, this soaring positive international reputation presents a significant opportunity for Kiwi business leaders around the world to leverage the trust, credibility and more recently, influence, that New Zealand is increasingly known for. This is where government schemes like the FernMark Licence Programme can be beneficial in helping businesses enhance consumer confidence in their products and services. 

The world’s ears are perked up to New Zealand’s inherit national values, which are paying dividends for the country on the global stage. There has never been a better time to leverage the country of origin trademark.

Find out how the FernMark Licence Programme can drive preference for New Zealand products and services internationally at www.fernmark.nzstory.govt.nz 

CONTRIBUTOR

Jessica Guthrie

FernMark Licence Programme Manager

New Zealand Story Group

Kea member

HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

After a year that no one could have predicted, many of us were eagerly anticipating the dawn of 2021. The New Year kicked off with some unexpected obstacles here in the USA including a post-holiday spike in COVID cases that prompted shutdowns across major cities. New York went into almost-hibernation, with schools requiring students to Zoom in for classes and restaurants closing all indoor dining, leaving customers the options of sub-zero outdoor seating or takeout. California hit its highest peak in COVID cases and Los Angeles issued a blanket shelter-in-place order for the city. 

Civil unrest gripped the nation in early January. Operations in Washington DC ground to a halt and the subsequent storming of the US Capitol in Washington DC had the country on edge. Although this raised questions among the diplomatic community around the upcoming Presidential transition, Joseph R Biden was peacefully inaugurated as the 46th President of the United States on Wednesday 20th January. 

Many saw the inauguration as a fresh start. Biden’s first day in office saw many significant executive orders being issued on topics ranging from COVID-19 to the environment. Signals of easing immigration policy bode well for Kiwis looking to work abroad in NAM. We have already seen new faces in the NAM network thanks to intra-company transfers and we are thrilled to see the network grow. This not only strengthens ties to Aotearoa, but also provides the much-needed ‘boots on the ground’ to further the efforts of Kiwis supporting one another overseas. 

Additionally, remote work continues to offer both opportunities and challenges in the region. Our San Francisco Trade Commissioner, Ruth McCleod, summarises it perfectly: “The remote working environment has leveled the playing field. There is no longer an expectation for in-person meetings. Every organisation has turned its attention to ramping up its digital marketing and lead generation activities, creating greater noise in the marketplace, and making getting the attention of potential customers possibly harder than ever. Customers that want to cut through the need to be extremely targeted, based on an in-depth understanding of their ideal customer persona, and consider how their solution provides either a cost-saving or boosts revenue, two business drivers that are front and center in the US.”

This is sage advice for our NZ companies looking at 2021 through the lens of COVID-19 restrictions. The newfound working situation means that people are open to taking cyber meetings no matter where in the world you are dialing in from. Your target clients may be open to conversations that may not have been possible in pre-COVID times.

CONTRIBUTOR

Anna Shere

Ambassador, Australia

Kea New Zealand

Kea member

China signed the upgrading protocol of its Free Trade Agreement (FTA) with New Zealand (via video link) on Tuesday 26th January. The new commitments show a positive sign of the Sino-NZ partnership to combat the pandemic as well as to support multilateralism and free trade. The New Zealand Ambassador to China, Clare Fearnley stated, “both NZ and Chinese exporters will benefit from the upgraded trade rules through easier processes, reduced compliance costs, and expanded market access in some areas.”

Hainan also issued the industry catalogue for its Free Trade Port (effective starting from 1st Jan 2021), which focuses on tourism, modern services, and new & high-tech industries. This is a clear signal of China’s commitment for opening up the country further and facilitating free trade and investment.

The upgraded FTA gave us a head start to 2021, and we can certainly expect rapid growth in bilateral trade & investment between China and New Zealand this year. 

CONTRIBUTOR

Anna Shere

Ambassador, Australia

Kea New Zealand

Kea member

HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

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