Businesses going global

North America

Happy 2023. This month there has been a big push in NYC to get workers back to the office, which looks like a common theme around the US, even though 30% of respondents in a recent survey told researchers they were more productive and engaged working from home. 

The two big headlines dominating the news this month are the economy and the Super Bowl. Although there are mixed thoughts on if or when a recession will happen, most business commentators are advising companies just to be prepared for a slightly bumpy 2023 and to be careful with budgets. This slightly grim outlook hasn’t stopped American’s getting super bowl fever however – at the time of writing, the NY Giants upset the Vikings and advanced to NFC Divisional Round to face the Philadelphia Eagles this weekend. The last time they had a win in the playoffs, they went all the way to the Superbowl, so New Yorkers fingers are crossed.

If you are a Kiwi business planing to travel to the US this year remember that July and August are the two months when the US heads away for the annual summer holidays. It can be hard to pin
meetings down during this time of the year. If you are coming soon then despite the winter weather it’s a great time to do business. I am looking forward to continuing to support the amazing Kiwis in the US and helping connect the dots for New Zealand businesses in 2023.

Gary Fortune, Kea North America Regional Director

UK and Europe

Ngā mihi o te tau hou & happy new year! Looking forward to another exciting year working with our offshore community, Kea partners & NZ Inc whānau across U.K. and Europe.

2023 sees some exciting new additions to our UK NZ Inc community – we are looking forward to welcoming new New Zealand High Commissioner, HE Designate Phil Goff later this month and new Trade Commissioner for U.K. & Ireland at NZ Trade & Enterprise, Joe Allan.

For our first regional meet up, we are excited to host in Glasgow with WCNZ’er Alex Reedijk at Theatre Royal Glasgow on 21st Feb. Kea’s Global Director, Government & Industry, Saya Wahrlich, will be on hand to talk about Kea and discuss how the network operates to support its members across the world, and to share a beautiful evening together. Also in February we join the NZ Society to celebrate Waitangi Day, with the Waitangi Day Ball on 3rd February where the UK New Zealander of the Year is announced, and a beautiful church service on the 7th Feb at the St Giles Without Cripple Gate. These events are always a highlight of the offshore community here.

It will be a busy time for kiwi exporters as the Free Trade Agreements are ratified and come into affect in UK & Europe. Alongside amendments to the Youth Mobility Scheme. Both sides are committed to the improved scheme being in place no later than 2024, and the New Zealand High Commission team are working hard to see if it can be delivered sooner. We look forward to sharing updates in the months to come.

With many of our community visiting home over the festive period, we look forward to connecting when you are back and hearing how your travels and visits home have been. As well as our kiwi exporters, now that boarders are open fully it is lovely to see you in the market and to meet again face to face. Please feel free to reach out as you plan your travels to see how we can help connect you in with our dedicated and offshore community.

Sara Fogarty, Kea UK/Europe Regional Director

China

With positive changes taking place in China in the past few weeks, the brand new 2023 looks promising. With the lifting of the Zero Covid policy people with mild or no symptoms can now isolate themselves at home instead of going to quarantine camps. The National Health Commission has also downgraded the Covid-19 management from Category A to Category B. No more mandatory PCR tests are required during daily activities except for schools, hospitals and nursing homes. All venue codes are cancelled. There has been an outbreak of Covid-19 cases since the middle of December across China, particularly in big cities, but most people without underlying diseases experience mild symptoms and recover in about 7 to 10 days. The streets and public transportation are getting busier day by day, China is swiftly back on the ride!

The limitations for international travel were abolished from 8 January 2023. Travellers from abroad will no longer see the quarantine staff upon landing, and won’t be sent to designated quarantine hotels. International airports across China are restoring to daily flight volumes, with more flights coming back after the Chinese New Year holiday.

This month China has entered the Year of the Rabbit. The Rabbit is the fourth in the 12-year cycle of animals in the Chinese Zodiac. Usually people born in the year of Rabbit are believed to be witty, quick-minded and vigilant. Rabbits represents many good wishes in Chinese culture. We wish you “Kung Hei Fat Choy” !

Last but not least, Kea New Zealand brand new WeChat account is now online. We will post events, news, and activities on this platform from now on. You are welcome to scan the following QR code to follow us. Let’s get connected.

Rebecca Bao, China Regional Director

New Zealand

The big news this month was the resignation of Prime Minister Jacinda Ardern, announced 19 January and effective upon the appointment of a new Prime Minister. The resignation triggers a caucus vote to elect a new Party Leader on 22 January. The eagerly anticipated 2023 General Election date has also been confirmed for Saturday 14 October 2023. Parliament will be dissolved on 8 September, and advance voting will commence on 2 October.

The Government has kicked off 2023 maintaining its strong trade focus, with Trade and Agriculture Minister Damien O’Connor visiting Europe in mid-January to discuss the role of agricultural trade in climate change and food security, WTO reform and New Zealand agricultural innovation.

Minister O’Connor is attending the World Economic Forum and associated World Trade Organization (WTO) meetings in Davos, before travelling to Berlin for the Global Forum for Food and Agriculture and meetings with German government and industry leaders. The focus will be on supporting New Zealand exporters, particularly those in primary industries, to adapt to issues like climate change. Both meetings will provide important opportunities to lobby for the ratification of the EU-NZ Free Trade Agreement.

Minister O’Connor will also participate in a panel on indigenous trade, highlighting New Zealand’s Trade for All agenda and showcase New Zealand’s global leadership and innovation in sustainable agriculture while at the Global Forum for Food and Agriculture. This forum is the world’s largest informal conference of agriculture ministers and industry, and New Zealand’s participation enhances our credentials as a global leader in agricultural innovation along with our exporting brand.

The impact of global economic headwinds on New Zealand’s export industry is still unclear. China’s rapid move away from its zero-Covid policy and reopening of borders in time for Chinese New Year had an immediate effect on food consumption patterns, with one report noting that 10 days out from Chinese New Year eve restaurant bookings for family reunions were at 90% of 2019 levels. China is the world’s largest importer of meat, and increased consumption of New Zealand meat and seafood in China may help offset the expected reduction from markets such as the UK, Europe, and the US where inflation is reducing household spend and challenging the food service sector.

The December closure of Todd Energy’s Kapuni CO2 plant for safety reasons is having a significant flow-on effect for exporters with air cargo exports severely impacted by the critical shortage of liquid CO2 and dry ice. Liquid CO2 is used to create dry ice, with many thousands of kilograms used weekly to fly high-quality perishable goods, including meat, fish, dairy, and pharmaceutical products, internationally. New Zealand’s dry ice price has increased from $4 per kg in October 2022 to $18 per kg in January, and exporters are concerned Australia’s lower rate of $3 per kg will see offshore customers switch source of supply. Beer and cider brewers are also reducing production and seeing price hikes as CO2 is rationed.

Saya Wahrlich, Global Director, Government & Industry

‘Equity is not the enemy of excellence’

Equity within the New Zealand education system is a known problem, in 2020 a UNICEF study of rich countries, ranked New Zealand 33rd out of 38 countries in terms of educational equality. Working to bridge this gap are Kiwis like Bill Kermode. 

Bill is the CEO and Chairman of the NEXT foundation, a family owned charity which supports a range of initiatives that aim to drive higher achievement and outcomes for children, including innovative projects which exist beyond the edges of more traditional systems.

Bill says while New Zealand has strong examples of excellence in education, there is also too big a gap between the top performers and those at the bottom. 

“There is a well established link between educational outcomes and life outcomes. By supporting better educational outcomes we believe we are helping create better outcomes for future generations of New Zealanders. Schools are also community hubs so by supporting them you are also supporting the whole community.”

One of the initiatives the foundation supports is Manaiakalani, a three year programme which takes schools from a traditional to a digital based model. Manaiakalani is targeted at low decile schools and helps whānau to invest in a digital learning device for their child, provides wireless internet access at home and school, and drives evidence-based innovation in teaching methods. Bill says programmes like Manaiakalani are crucial in creating better access to education for some of New Zealand’s most vulnerable children. 

“I passionately believe that organisations like Manaiakalani should be in many more schools in this country. There is a perception in some areas that equity is the enemy of excellence but that’s not how I see it. Equity and excellence sit alongside each other, the success of individuals creates success for us all.”

‘We want everyone to bring their Tikanga’

Equal access to education and learning is something Rachel Petero is passionate about. She’s an international HR professional, governance Director and the founder of Rise2025, a global management consulting business which focuses on Indigenous learning, coaching and leadership education from a Te Ao Māori worldview. A descendant of the Tainui waka, Rachel says in the past Māori have had to fight for access to education.

“Tikanga or cultural practices and protocols that ensure we do what is right to keep ourselves and others safe in education has traditionally not considered the needs of Māori learning styles and preferences. The absence of New Zealand History in our education system is just one example. Māori had to create our own learning models of excellence, Kōhanga Reo is a wonderful example of this. Luckily we are resilient people and we have always strived to support ourselves in a system that didn’t understand how we learn. We have become the teachers, the educators, the learners and the leaders to self-determine our way forward.”

Rachel believes New Zealand has a unique opportunity to understand and capitalise on the benefits that Māori teachings and culture can bring to the education system. 

“In five years I would like to see Te Reo Māori mandatory in schools, and I would like to see a Māori education model – in much the same way we are seeing the Māori Health authority being stood up. If we go on this journey of learning and education together there are so many benefits for all New Zealanders. Not only will we get this wonderful New Zealand lens into our education system, we will also get this overlapping of a Te Ao Māori worldview that has so much richness to experience. The unique weaving of worldviews in education gives New Zealand a unique learning experience.”

Rachel says considering Māori and Indigenous people in the education space is not a problem which should be tackled in isolation, rather it is part of a much bigger journey of biculturalism that New Zealand is currently working through. 

“We need to work collectively and courageously to understand the value of tikanga Māori, Te Reo Māori and matauranga Māori (knowledge) if we truly want cultural transformation as a nation. We want everyone to bring their tikanga to this on-going kōrero or conversation. For us to truly achieve equality in areas like education or health, instead of everyone putting their best foot forward we need everyone to put their best culture forward, then we will be in a position to lead the world in all areas of education and equality.”

The lady of light

While there are many Kiwis working to improve access to education within New Zealand there are also a number who are working to achieve better outcomes for those in developing nations. One of these people is Kiwi Nick Hammond who is the Chairman of ADC Microfinance. 

ADC Microfinance is a New Zealand based charity which reduces poverty in Myanmar      by providing small business loans and financial education to people living below the poverty line. The charity works through a longstanding and trusted local partner, ZMF, to provide money and advice to those who can’t access credit through traditional channels. Nick says giving someone a hand up can have a huge effect not just on them but on their entire community. 

“The people we support in Myanmar are very entrepreneurial and resourceful but they are often excluded from access to credit, or the support they need to get started – and that’s where we can help. People come in and spend some time learning about running a business. As part of that training we help them make a plan for their specific business and then they are loaned enough money to launch that business, usually somewhere in the region of $200NZD. They pay the loan back over a period of six months with a small interest rate. After that they are left with a business that is all theirs and, more importantly, a sustainable income stream.”

“One woman borrowed money to buy a generator and some wire, and she wired up her village so that people could pay to clip on and get electricity. She paid off her loan in no time and now the local people call her the ‘lady of light’.”

Since its inception in 2008, the charity has given out more than 13,000 loans and 96% of these have been repaid in full. Recently ADC Microfinance secured funding through the New Zealand Aid Programme’s Manaaki Fund, to undertake a capacity building and expansion programme in Myanmar. The $800,000 investment will allow the charity to increase their client base from 1200 people at present to more than 20,000 by 2030. 

Nick says the programme is not just changing the lives of the borrowers but also the lives of their families and communities. 

“Around 86% of our clients are women and they spend their money on the next generation. That is where the secondary impact of this model is so powerful. Their children are getting a better education, better food and shelter      and they are being inspired by seeing their mothers as empowered entrepreneurs, people who are held up as a success in their community. We are not just giving out money or knowledge, we are empowering people to transform their lives, the lives of their families and the lives of their communities.”

North America

The big focus for the US this year will be the Presidential Elections set to take place in November. Although there could still be a few surprises in store the most likely outcome at this time seems to be a Donald Trump vs Joe Biden rematch. The US elections period is a long one with the Republican primaries having just begun. Kiwi Businesses looking to export into the US markets will need to keep a close eye on how political developments affect economic certainty and trade over the coming year.  

The economic downturn in the US is still predicted to get worse before it gets better, so companies and consumers will likely remain cautious with their spending and investing in new areas. However Forbes is predicting that despite this outlook there will still be a big investment in tech and in AI in particular. This could be good news for some of our Kiwi businesses who are working at the forefront of this area. Forbes also predicts that a rise in AI will also increase organisations’ investment in developing and nurturing uniquely human skills and attributes such as emotional intelligence, communication, interpersonal problem solving, high-level strategy, and thought leadership.

Most recently the Boston Consulting Group announced that “to be an industry leader in five years, you need a clear and compelling generative AI strategy today.” As we start the year it’s a good time for Kiwi businesses to look at what their goals are in this area and start incorporating more AI into their business to ensure they remain competitive on the world stage.

Gary Fortune, Kea North America Regional Director

UK and Europe

The UK is also facing elections this year, likely in the second half of the year, with a date not yet announced. As is the case with the US, this will likely affect economic outlooks and while the UK election race shouldn’t be as colourful as the US, it is still one for export businesses to follow with interest. 

While inflation rates across the UK and the EU are starting to fall, consumers are still spending cautiously and several analysts predict that some of 2024s biggest trends will grow from this. The circular economy has been gaining momentum over the last couple of years as consumers turned to pre-loved alternatives and looked to repair instead of replace goods. This has been driven by a desire to save money and also a growing awareness of environmental responsibility. 

Barclaycard data shows that 46% of retailers already offer resale collections and Stylus content director Katie Baron anticipates that 2024 will see even more retailers move into commercialising repairs and pre-loved services, possibly giving rise to new concept stores where new products sit next to repair, alteration, preservation and authentication and validation stations.

Coach became one of the first big brands market leaders to do this when it launched its Coachtopia sub-brand, which reimagines the label’s iconic silhouettes using excess waste materials, and opened several concept stores including in London’s Shoreditch. For Kiwi companies looking to capitalise on the UK market this trend will be one to keep in mind. The more environmentally friendly your product is the more likely it is to resonate with a growing group of consumers. 

For those Kiwi fashion brands looking to crack the UK/EU market, there is also a growing trend of seasonless fashion, as consumers  seek out timeless products that can be worn year-round and styled in multiple ways.

Sara Fogarty, Kea UK/Europe Regional Director

China

AI seems to be the big topic to watch in 2024 and in China the governance of this area will be the key focus at the Global AI Safety Summit in Seoul in May. This significant event has the potential to shape the trajectory of global AI governance. The summit is expected to unveil China’s stance on AI governance and its willingness for international collaboration in this domain and will definitely be one for our tech export companies to keep a close eye on. 

There are several industries which show high growth potential in China in 2024 including aviation, healthcare, renewable energy, and high-end manufacturing. Companies like Airbus, Volkswagen, and FUCHS are committing innovation resources to China and AstraZeneca is increasing its investment in China by planning to spend approximately $450m on a factory for making inhalers to treat chronic obstructive pulmonary disease (COPD). These investments by foreign companies could create opportunities for Kiwi businesses in this area.

And finally across the fashion industry it seems Chinese women are moving away from high heels and into more comfortable footwear driven by an increase in a preference for outdoor activities and fitness and wellness. Sales of outdoor clothing have also increased. Several large manufacturers of heels in China are struggling but this trend towards more comfortable clothing and footwear is good news for Kiwi lifestyle brands interested in the Chinese market.

Rebecca Bao, China Regional Director

New Zealand

In New Zealand the trend towards working from home continues to rise and one researcher is urging businesses to use it as a tool to promote better well being among employees. Jarrod Haar, Professor of Management at Massey University says working from home is a little like the “non-financial pay rise” and can be a useful tool for businesses who can’t offer pay rises or can’t offer a rise that is in line with inflation. Workers say hybrid and remote options are appealing as they create a better work life balance and cut back on time and money spent on commuting. 

Mr Harr is also supportive of other working alternatives such as the four day work week which he says New Zealand businesses are less enthusiastic about adopting, but which can be a good way to motivate workers through increased productivity. “The data shows people are motivated to do their work in a shorter period of time because they get their own benefit out of it.”

Also this month Prime Minister Chris Luxon delivered his first speech of the year, outlining a vision for a more “stable, confident, outward-looking and prosperous” country to MPs gathered in Christchurch for the two day National caucus retreat. He also outlined some of the priorities which were finalised before Christmas including ending Fair Pay Agreements, extending 90 day trials, and stopping work on Auckland Light Rail. In the months ahead the spotlight will be on inflation and the Government has announced big changes are in store for resource management, farming regulation, and the building consent process in general.

Kellie Addison, Global Director Stakeholder Affairs

• CASE STUDY – TALENT FOR THE TAKING
• INSIGHTS FROM OUR GLOBAL COMMUNITY
• THIS MONTH IN NUMBERS
• GROWTH THROUGH KEA CONNECT
• NEWS FROM OUR PARTNERS
• TRENDING AT KEA
• UPCOMING EVENTS
• HOW KEA CAN HELP

Merry Christmas from Kea

As we near the end of 2022 I’d like to take this opportunity to celebrate some of our highlights and reflect on the incredible work of our offshore community. This year we’ve seen incredible growth across our community with a number of new members. We have also seen our community working hard to support Kiwi businesses with hundreds of successful connections providing in-market advice and insights. WATCH

North America

2022 saw a return to travel for most parts of the world and many Kiwi businesses took the opportunity to visit the US markets for the first time in more than two years. Our US Regional Director Gary Fortune looks at some of the business trends we saw emerging in 2022 and explains why they will likely stick around into the New Year. READ MORE

UK and Europe

With the end of the year approaching there is still uncertainty across markets in the UK and with a cost of living crisis, the continued conflict in Ukraine and strikes across the UK all causing complications. Our  UK and Europe Regional Director Sara Fogarty looks back at some of the year’s highlights and also at what will be top of mind for markets in 2023. READ MORE

China

This month, China began lifting its zero-Covid policy. Most people who test positive can now isolate at home and the international traveller’s quarantine policy has been reduced. This brings a transition to living with the virus across China. The search for international flights has increased 4x compared to this time last month. Our China Regional Director Rebecca Bao explains the changes and has advice for Kiwi businesses looking to travel. READ MORE

New Zealand

Like most places around the world, 2022 saw a lifting of travel restrictions for New Zealand. These changes saw a number of overseas trade missions carried out as our Government and businesses looked to reconnect with the world. Our Global Director Government and Industry Saya Wahrlich looks back at the key events from 2022 and also at what the Government will be focusing on in 2023. READ MORE

BUSINESSES ASSISTED MADE IN MARKET THIS MONTH**

SECTORS KEA CONNECT SUPPORTED THIS MONTH

*Year to date reflects financial year commencing 1 July 2022 to 30 June 2023
**Some businesses were provided with connections in more than one market

Kiwi energy storage company makes crucial offshore connections

EnergyBank is a New Zealand-based venture-backed startup developing a tailored energy storage solution for the floating offshore wind market. The long-duration storage would further firm offshore wind, increase the effective capacity factor and increase the value of energy generated.

The team headed to London for a conference in the UK and Europe for 3 weeks and to make the most of this time Kea successfully introduced them to the GM of Customer Integration, Renewables and Energy Solutions at a multinational oil and gas company and the General Counsel of Investments at a global investment firm.

Powered by Flossie eyes US market

Powered by Flossie is a technology that allows multinational hair product companies to access and aggregate distribution network (salon) data. The technology solves a technically difficult strategic pain point commonly held by every product company servicing the hair/beauty sector.

The company were looking for local NZ-based tech companies who have recently established themselves within the US for insights into establishment. Kea was able to connect them with the Head of Data Science at a Kiwi fintech startup, based in San Francisco.

Deel and BNZ sign partnership agreement

A new collaboration between the Bank of New Zealand and Deel will make it easier for New Zealand companies to hire and pay staff globally and comply with local laws in the countries they’re hiring in. READ MORE

Flying the Fern

Hear from 24 businesses using their ‘Kiwi-ness’ to break into offshore markets. New Zealand Story Group, recently launched a podcast featuring the tales of successful Kiwi businesses that have achieved international sales success, with a focus on storytelling that embraces country of origin and provenance values. Business profiles include Ecostore, Ārepa, Book Me Bob, Hybrid Bikes, FarmIQ and Trust Codes. LISTEN NOW

Bringing the taste of home to the streets of London

For Kiwi returner Marie-Anne, moving home to New Zealand had been on the cards for several years, however, it wasn’t until after the birth of her second child that the family took the plunge. She talks to Kea about experiences moving home, including finding a job and settling into a new community and shares her top piece of advice for others feeling the pull of home. READ MORE

Creating a yoghurt culture

After launching in NZ in 2009, Kiwi premium yoghurt company The Collective quickly set their sights on expansion into the UK. We talk to UK Europe Head Sarah Smart about the learnings that come from business growth and ask her advice for businesses facing uncertain headwinds in markets in the UK and around the world. READ MORE

Is global hiring right for your business?

Kiwi companies looking to fill talent gaps in their workforce need to think creatively when it comes to hiring for 2023. For roles which can be done in a remote capacity hiring offshore Kiwi may provide a solution. However, pivoting to a global hiring model can be a challenge for businesses especially if you don’t know where to start. To help we created this five step guide to help out. READ MORE

KEA TALENT FOR THE TAKING: Get your business the jump start for recruitment in the New Year by joining our February talent event which further investigates the insights released in our latest report. ‘Talent for the taking – how to globalise your recruitment strategies. Hear from our panel of experts on a range of recruitment topics and strategies and have the chance to have your questions answered. Further details will be emailed in the new year to those who register their interest now. SIGN UP

North America

2022 was a year when the world began to travel again. It has been a busy year for visitors to the US, with the borders opening up earlier in the year, many New Zealand companies made their first trip to the US market in more than two years. Many of the trends we saw in 2022 will continue to be a key focus for businesses in the coming year, with a lot of uncertainty around economic climates, sustainability and the lingering effects of Covid. 

Governments and companies will be under pressure to continue to tackle these challenges and businesses will need to make sure that environmental, social, and governance (ESG) processes are at the centre of strategic plans.

In the US we continue to see more and more consumers looking for credible and authentic products and services when choosing to part with their hard earned dollars, and that trend will continue to grow next year.

As businesses plan their 2023 travel, it is worth remembering that July and August are the two months of the year when the US closes for its annual summer holidays. It can be hard to pin meetings down during this time of the year. Also worth noting is that the US briefly stops for a week over Christmas and New Year, and then it’s business as usual. Although it’s winter here, it is an excellent time to travel to this part of the world for business.

I am looking forward to continuing to unearth the amazing Kiwi in the US next year and to keep helping connect the dots for New Zealand businesses. There will be all sorts of opportunities for US market entry next year and I look forward to assisting where I can. Merry Christmas.

Gary Fortune, Kea North America Regional Director

UK and Europe

As the snow falls and London looks like a scene from Narnia, it’s a chance to reflect on 2022. A full year back to in-person events and opportunities to connect.

Here in the UK we are still facing challenges, with the cost of living crisis, the backdrop of the Ukraine war and continued strikes across the UK making the end of year Christmas festivities, final meetings in person and time in the office a challenge to navigate. 

This year has been a big one for Kea we have hosted over 1300 Kiwi at events across UK and Europe. As a global team, Kea NZ has assisted over 500 business connections around the globe, with insights, support and further connections. This is at the heart of what we do at Kea, and it doesn’t happen without the wonderful and inspiring community we have. As a region, New Zealand has been at the forefront of government and trade relations with negotiations for both Free Trade Agreements in the UK and Europe secured this year. Ratification and implementation for these agreements should come into force in 2023 and the effects felt by our NZ exporters shortly after. Alongside this we have reciprocal improvements to the Youth Mobility Scheme, extending the age of eligibility for the visa from 30 to 35, and extending the length of stay allowed to 3 years. Both sides are committed to the improved scheme being in place no later than 2024 and both sides are working hard to see if it can be delivered sooner. We welcome those looking to head on their OE and take advantage of being a part of a very special diaspora community.

Some highlights for me in the UK and Europe region this year were welcoming our CEO Toni Truslove to the region on her first market visit, sharing a World Class Speaker series with Owen Eastwood and WCNZ’er Angela Kearns and celebrating our Kea World Class Awards where we were thrilled to honour the amazing Katie Sadleir and the incredible work that she does across the globe with various sporting teams and industry bodies and more recently with the Commonwealth Games Federation. Finally, it was wonderful to celebrate with our community in London last week with more than 100 people joining us for our Festive Spin Christmas dinner. A chance to close out the year and see special connections and friendships made.

We have worked with so many NZ companies in the market alongside our NZ Inc and global partners. Thank you all for your time, late night and early morning zoom calls, in-person coffee dates, and the opportunity to connect you with fellow Kiwi and businesses. Wishing you and yours a safe, happy festive season. Meri Kirihimete from us in London.

Sara Fogarty, Kea UK/Europe Regional Director

China

2022 has been a very special year for Kea in China. I am grateful to be able to reconnect with the Kiwi community through my role as China Regional Director. In the past few months, I have met with many energetic Kiwi who are so positive about the future between New Zealand and China. 

With the support of our Government partners, Kea plays an important role in facilitating various events and connections in China. I would like to highlight a few – recently we provided five out of eight outstanding candidates for the NZ-Shanghai Virtual Young Leaders Dialogue in November. This is an event hosted by the New Zealand Consulate-General in Shanghai and Asia New Zealand Foundation marking 50 years of diplomatic relations between New Zealand and China. Kea also co-hosted New Zealand Featured Brands Promotion Reception during the 5th China International Import Expo (CIIE) which introduced nearly 20 New Zealand products that are not yet widely known in the China market and in Kea’s Gift Guide it’s exciting to find that Chinese consumers carry on showing strong interest in products from New Zealand. The People, Country and Business ties between the two countries remain strong. 

This month China gradually lifted the zero-Covid policy. Most people who test positive can now isolate at home and the international traveller’s quarantine policy has been reduced to 3-day home isolation (0+3) from the previous “7+3” and “5+3” practice. It brings a transition to living with the virus across China. The search for international flights has increased 4x compared to this time last month. But it is estimated that the peak of the first wave may come alongside the Chinese New Year holiday. 

Based on the experience of other countries, there is a high hope that China will start to return to pre-pandemic activity in the first half of 2023. This is certainly good news for the Kiwi community here in China and for the business community eager to be able to visit the market once again. 

For those looking to visit it’s important to note that most Chinese businesses will close from Friday the 20th of January until Monday the 30th of January for the Chinese New Year. I hope you all have a very Merry Christmas and New Year.

Rebecca Bao, China Regional Director

New Zealand

This year saw the very welcome lifting of Covid related border restrictions in most countries including New Zealand, opening the doors for international business travel, tourism and reconnecting with friends and family.

Kiwi exporting businesses have enjoyed significant progress on trade agreements this year. On 1 March New Zealand signed a high quality, comprehensive free trade agreement with the United Kingdom, one of the world’s largest economies and an important, long-standing partner. The NZ-China Free Trade Agreement upgrade entered into force in April further reducing barriers for exporters and boosting trade. It was a world first for any developed country when New Zealand entered into the original free trade agreement with China in 2008, giving us a unique competitive advantage at the time. On 30 June New Zealand and the European Union concluded negotiations on a free trade agreement.

New Zealand has long standing historical, cultural, political and economic ties to Europe. This FTA creates new opportunities, cuts cost through more favourable access to the EU, and will play an important role in our Trade Recovery Strategy. In November negotiations on the upgrade of the ASEAN-Australia-New Zealand agreement establishing a Free Trade Area (AANZFTA) were largely concluded.

The second half of 2022 was packed with travel – with Prime Minister Jacinda Ardern and Ministers including Hon Damien O’Connor, Minister for Trade and Export Growth and Hon Stuart Nash, Minister of Tourism reaffirming New Zealand’s economic ties, spending time with their counterparts and promoting education, tourism and trade. Trade missions and business delegations were made to countries including Viet Nam, Singapore, Japan, Indonesia, the Republic of Korea, the United Kingdom, the United States and Australia.

Looking ahead to 2023 the focus will be on the Census in March and the New Zealand General Election, for which a date is yet to be announced, but will be no later than 13 January 2024. Held every five years, the Census provides a snapshot of our society at a point in time and helps to tell the story of its social and economic change. Census information is used by government agencies, local authorities, businesses, community organisations, and the public for developing and implementing new policies, research, planning, and decision-making. It helps guide decisions about how to best use public funding, especially in areas of health, education, housing, and transport.

Saya Wahrlich, Global Director, Government & Industry

For Tim Brown, Kaitiakitanga, or the guardianship and protection of the environment, is key. So when it came time to hang up his boots at the end of his successful New Zealand football career, he saw an opportunity to create a better future. 

“I realised there was an opportunity to bring natural and sustainable material and innovation to the enormous category of footwear, through a different type of direct to consumer business model. Off the back of a grant in 2014 I created an innovation platform based on merino fibre, I spent $1000 NZD shooting a video to showcase the fibre on the farm of a family friend and launched it on Kickstarter. It was really successful. Following that success I partnered with my co-founder Joey Zwillinger and in 2015 we launched Allbirds from the garage of his mother-in-law’s house in San Francisco.”

In the past five years, Allbirds has become a global phenomenon and a huge Kiwi success story. The company, which once consisted of Tim, Joey and Joey’s dog Walter, has now grown to more than 750 employees worldwide and has expanded their offering beyond both merino and footwear. Time Magazine named Allbirds the “world’s most comfortable shoe” and its investors include superstars like Leonardo DiCaprio. Most recently, Allbirds successfully listed on the Nasdaq Stock Exchange.

Tim says Allbirds has always used carbon emissions as their ‘north star’ but it wasn’t until after meeting fellow Kiwi Zion Armstrong, who was the President of adidas North America, that the two brands realised they shared similar values and had a unique opportunity to do something special.

Zion was introduced to Tim through Kea Connect and says right away he was impressed with Tim’s passion for sustainability and innovation, something adidas is also heavily focused on. 

“Tim and I met for lunch in Portland. It was a positive connection right off the bat. I asked him if he wanted to come up and see our campus. I took him to our Innovation, Research & Development space so he could see some of the things we were working on. At that point it was just two Kiwi guys having a yarn and talking business and discussing how we could do things better. When Tim left I reached out to our Executive Director of Global Brands and said you have to meet this guy, the founder of Allbirds. For me it was about the personal connection and really understanding what both brands were trying to do. We knew at adidas we didn’t have all the solutions, but potentially putting the two brands together we could really create something special. It certainly started off as a Kiwi connection but more importantly it became about what we could do for our planet.”

Tim was also impressed by the work adidas were doing in the sustainability space and says meeting Zion was ‘the New Zealand network in full force.’ However at the time of that first lunch he says a collaboration was the furthest thing from his mind. 

“Zion is a little bit of a legend, in fact a lot of a legend. I just wanted to meet him and learn from a guy who had been in the category for a long time. I had no expectations and was honoured that the bloke would have lunch with me. That meeting through Kea Connect was the initial connection but it was a long time until we really started to think about working together. Zion introduced me to some other people at adidas and we hosted some people, and slowly things started to form. I think in this age of LinkedIn it’s easy to add a contact but it’s much harder to build a relationship. I like to take the time to get to know people deeply, there is no fast track in this sort of work.”

Over time the Allbirds team forged a relationship with the team at adidas and together they started thinking about how the two brands could go further, together. Tim says it was around this time that the concept of creating a shoe with no carbon footprint was born. 

“This idea that a big company that has been around for 70 years or more with all this market experience felt they could work with and in turn learn something from Allbirds, a business which was only five years old, was a huge compliment. I think all of us realised that we could achieve more if we worked together. We focused on this idea of the world’s lowest carbon running shoe and set ourselves the timeline of a year. We wanted to make the idea of reducing carbon emissions tangible for our consumers and give them something they could do right now. To be able to create a shoe using just 2.94kgs of carbon in a little over a year, was an extraordinary achievement.”

It’s hard to attach a carbon footprint to shoes as it’s not something that is traditionally measured and there is a lot of variation within the footwear category. However, early research by both companies suggests the average carbon footprint is somewhere in the low teens, therefore a shoe using less than 3kgs is a groundbreaking achievement. 

So groundbreaking in fact that Time magazine has just given the adidas x Allbirds ‘cleaner sneakers’ a special mention on their list of the ‘Best Inventions of 2021’. But for Tim and Zion the shoe is just the start of what can be achieved. 

Zion says if brands are serious about sustainability then the biggest learning is how to make a lower carbon shoe but how to move forward together for a better outcome for all. 

“Traditionally in the footwear space companies don’t work with competitors, but from the beginning there was a higher challenge in play. Addressing climate change requires a major shift in thinking. Sustainability can’t just be the things we need to stop doing, it must be about the things we need to start doing as well.”

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