Businesses going global

China

The announcement that the Chinese Government will “strictly limit” overseas travel for “non-essential” reasons. It is the latest initiative to support China’s unwavering zero-covid policy. Despite China’s population being overwhelmingly supportive of the lockdowns the cracks are beginning to show with latest figures showing a spike in those considering migration.

In the past 20 years the average disposable incomes of urban Chinese grew seven-fold from around ¥6.3K to almost ¥44K. Meaning the collective net worth of these consumers skyrocketed from $7 trillion to $120 trillion. This has supported the emergence of a massive consumer class in China, and given rise to the huge increase in the popularity of travel. In 2000, Chinese travellers made around 10 million trips outside of the mainland, mostly to Hong Kong. By 2019, they made 155 million trips, with less than a third to Hong Kong.

As a result, the latest news about the travel ban could go one of two ways. It could further increase nationalism through the resulting isolation. But there is a good chance that we may see a reverse of nationalism from some camps as consumers become fed up with stringent dynamic zero-Covid policies.

Other countries may start to look increasingly aspirational again and, by proxy, brands and products from those lands. The allure of foreign brands may gain appeal as they are considered more exclusive, we may even see the renaissance of the daigou trade as a result, when logistics allow it. The measures may also have an impact of increasing foreign student numbers. Studying abroad remains a way Chinese can get passports and tickets to travel, and could be seen as a pathway to break the cabin fever and explore the world again and this could have positive effects for New Zealand universities preparing to welcome back international students. 

This China insight was written with the help of China Skinny.

UK & Europe

In London, there are plenty of union jacks flying and trifle bowls being dusted off as we gear up to celebrate the Queen’s Platinum Jubilee. Kea World Class New Zealander Monica Galetti was part of a panel of chef’s who judged the hotly contested Platinum Jubilee Pudding competition. Baking royalty, Mary Berry also took part if you would like to try the winning pudding yourself you can find the recipe here. 

Jubilee celebrations will come to a pinnacle in the UK with an extended bank holiday weekend from the  2-6^th June. A good one for Kiwi businesses to put in their diaries as most places will be closed over this period. 

Europe is celebrating the ‘great reopening of tech’ with a number of events taking place across the continent. Including the world’s second largest tech conference, Vivatech, which is being held in France from 15-17 June.  

One of the key themes of the sector in 2022 is that Data is more valuable than ever and with new technology easing privacy concerns, it is more shareable, and useable. Adam Bennett, Commercial Advisor – Technology lead, New Zealand Trade and Enterprise, says the biggest trend for tech companies at the moment is the monetising of data assets. “Data gains value when it is shared.” is a topic which many companies are looking at keenly as a starting point. 

Other Tech events happening over the next few weeks include; 

Money2020 – 7-9^th June Amsterdam, Fintech’s leading trade event for the global money ecosystem. 

Dublin Tech Summit – 15-16^th June 

London Tech Week (13-th 17^th June) 

And our very own Kiwi led – Xerocon which will take place 20-21^st July in London. We look forward to welcoming many New Zealand exporters as possible, with another chance for the great NZ tech story to be shared across the ecosystem of partners. 

At Kea, we are thrilled to be working with NZTE & DIT on a delegation of NZ Tech companies heading this way for London Tech Week.  We are hosting an event for the delegation with members from the broader Kea Community here to connect, discuss and share updates and insights across the markets.  

 If you are heading to Europe and would like to know more about Kea or NZTE activities across these exciting events, let us know. 

Sara Fogarty, Kea UK/Europe Regional Director

North America

As summer draws closer things have been busy in New York. As much as we would like to put Covid behind us, a new wave of infections have forced the city to raise its alert level from medium to high just as the memorial weekend approaches. Although there are no new restrictions yet, the advice is to wear a mask in gatherings and in large groups of people. With only 30% of Americans receiving a booster, it reminds us that we are far from back to normal.

Tech is also in the spotlight with the competition for the nation’s brightest talent heating up, and big companies looking to New Zealand for expansion plans. From 2024, Amazon Web Services has pledged to spend NZ$7.5 billion over 15 years to set up a network of cloud data centres in New Zealand, creating an estimated 1,000 jobs. Microsoft Corp has also announced plans to build data centres in the country.

Greg Cross co-founder and Chief Executive at Soul Machines, a Kiwi AI company with operations in San Francisco, says global companies are going to be hiring from an already constrained labour pool. 

“The pandemic has underscored the ability to work remotely and increased the chances that locals will be picked up by offshore companies. We now live in a ‘work-from-anywhere’ world and the brain drain happens without Kiwis even leaving the country.”

Kiwi games developer PikPok decided to expand in South America, picking Columbia because they couldn’t find the necessary talent at home. Chief Executive and co-founder Mario Wynands says if the company wants to stay cutting edge, it means not only training up our people internally, but also tapping into cutting edge talent internationally.

In other news the University of Auckland has been in town this month. Associate Professor Dr.Christine Woods from the University of Auckland Business School was recently appointed as the inaugural Theresa Gattung Chair for Women in Entrepreneurship and has promoting the initiative at a series of events supported by Kea in New York and San Francisco. 

Gary Fortune, Kea North America Regional Director

New Zealand

Through May the big news has been trade missions, accelerated border reopening, and Budget 22.

Budget 2022 brought with it several big ticket items including a $1 billion cost of living package and $11.1 billion for the health sector. For business and industry we will see $100m for a Business Growth Fund for SMEs, the continuation of the $200m Regional Strategic Partnership Fund, $30m for Advanced Manufacturing Industry Transformation plan, $5m for Agritech Industry Transformation plan and $40m for Primary Industry Transformation plan.

There is also additional tech sector support, with $20 million over four years towards two key initiatives in the Digital Industry Transformation Plan. These initiatives support the growth of the Software-as-a-Service (SaaS) Community and take New Zealand’s Tech and Innovation Story, a marketing initiative led by industry in partnership with Government, to the world. 

Health Minister Andrew Little also unveiled a pre-budget $100 million package for specialist mental health and addiction, to more quickly reduce the lengthy backlog in treatment for mental health issues that have been exacerbated by Covid.

This month also saw the Prime Minister, Minister O’Connor, and a business delegation travel to the United States. This follows April’s trade mission to Singapore and Japan. Trade missions are a vital part of the wider plan to reconnect New Zealand with the world and strengthening partnerships between government, business and industry will help accelerate our strong economic recovery. 

Finally the accelerated border opening has been welcomed by business travellers and tourists alike. New Zealand’s border will now be fully reopened to all tourists and visa holders by the end of July – three months earlier than originally planned. Vaccinated travellers arriving under the Accredited Employer Work Visa category can apply to enter New Zealand from 4 July 2022.

Saya Wahrlich, Global Director, Government & Industry

20 years ago, the World Class New Zealand network was established to connect and leverage the growing Kiwi diaspora for the benefit of New Zealanders. Kea led activities involving the World Class group have incorporated a mix of social gatherings, meetings and networking opportunities, enabling individuals with global ambition to achieve their goals by opening doors, mentoring and brokering relationships. 

Today, the Network has grown to more than 500 New Zealanders living in New Zealand and offshore, representing excellence and providing leadership across all industries. There is a unique opportunity now to identify a renewed purpose for this group and to unleash opportunities for its members to contribute their skills, networks and goodwill for the benefit of other ambitious global Kiwi. 

Insights 

Late last year Kea invited members of the WCNZ Network to give feedback on questions around purpose, opportunity, impact, and contribution. We also invited leaders from a range of industries and government partners to participate in a 30–40-minute in-depth interview to explore the possibilities that lay ahead for the network to achieve its potential. Here is an example of some of the feedback we received. 

“It is a great honour to be acknowledged in this way by your fellow kiwis. The network is a trusted, respected cohort of like minded, success oriented, proud New Zealanders. The value is in the network, its global presence and reach and the connections it makes between individuals, be it for professional, social or mentoring,  education purposes or heritage purposes.”

“The value of the WCNZ network is in the mana it confers on the individuals and the responsibility they take on to help others achieve similar success.” 

“It is a connected network of NZers globally, who are committed to helping NZ business succeed and thrive on the international stage.”

“An opportunity to stay connected to NZ and contribute my skills, experience, perspectives & contacts to help make a difference for NZ on the world stage.”

“High value access to a select group of smart and valuable people. Also, a certain pride to be part of the group, and with it, a special connection back to NZ.”

This feedback showed us that many of our community see the value in the network and from these and other insights we were able to identify six key themes. 

1. Give back – Almost all respondents see it as their role & responsibility to “give back” (via offering mentorship/guidance to others going global; being a “cloak of connections” and by being “ambassadors” for NZ.)

2. Prioritise the Next/Future Generation – Many indicated that they wish to pass on their experiences/lessons to the “next generation” of global Kiwi. They talked about demonstrating trust, care and an “intergenerational vision”. 

3. Greater Good – Another common theme expressed was to be able to grow/contribute to a “greater good”. Members want to feel as though they are a part of something bigger than themselves. They talked about this resulting in job creation, higher living standards, impacting bold issues like climate change, greater export returns and increased investment opportunities. 

4. Enable a “thousand points of light” – The idea of a “thousand points of light” (Arthur C. Clarke, 1946) indicates the opportunity to utilise members of our network individually, together. We need to value unique experience and perspective, while also creating a unifying purpose. Members of the WCNZ network are currently not visible to each other, nor do they behave like a network. However, there is a desire to be a part of something; to inspire others, and to contribute meaningfully in a variety of ways. 

5. An approach of many small actions – There are as many ideas and ways to contribute as there are members. This is a strength of the network that needs to be harnessed and supported. We need to create the opportunity for each to “give back” in a way that is relevant and meaningful to them. 

6. Reflect an authentically NZ perspective – Almost everybody sees it as their responsibility to be ambassadors/representatives of New Zealand in a truly authentic way. They want to reflect what is unique about New Zealanders by reflecting te ao Māori, our care for people and planet, and our strong Kiwi values of “doing the right thing”. 

The purpose of the WCNZ network

Using these key insights we created the following statement which captures a clear and unifying mission for the network, and an opportunity to establish a regenerative community of world-leading Kiwi. 

‘The purpose of the World Class New Zealand network is to light the way for more exploring Kiwi and a globally connected New Zealand.’

This mission statement is then backed up by our belief, value and proposition statements to create a clear path forward for Kea’s World Class New Zealand network. 

WCNZ Belief: Is that global experience and relationships truly matter. And when we pass these onto other Kiwi, it adds significant value to them, and to New Zealand as a nation. 

WCNZ Value: We are a collective of successful global Kiwi. Our work and influence on the world stage, along with our strong desire to connect and support others, enables more kiwi to think and operate globally, for the benefit of all New Zealand.

WCNZ Proposition; We create a cloak of connection around exploring Kiwi. We use our global relationships to open doors, and we use our experience to offer insight and inspiration.

Measuring our future success

Our key measure of our success will be the impact we have on future world-leading Kiwi. We want more Kiwi taking on the world, advancing knowledge and innovation, growing new market opportunities and taking more Kiwi along for the ride. By giving these individuals relevant and meaningful help, at the right time, we hope to inspire optimism and raise the aspirations of any New Zealander who hopes to take on the world. 

The cloak is a symbol of protection. It is held in the highest regard and worn with the highest form of respect. In our case, the cloak is a gift from one group of Kiwi (the World Class New Zealanders) who have achieved the highest levels of success in their endeavours to those who come next so that they may thrive in their own global aspirations. This gift represents many threads (a rich tapestry of skills, networks and goodwill) coming together to individually and collectively, create the “thousand points of light” around the world showing the way for future generations of global Kiwi. 

Next steps

With a renewed sense of purpose, there is an opportunity to reinvigorate the 534 members of the network by inviting them to join/re-opt-in to the mission. Now that we are clear on the thinking, we are moving towards how this can be best brought to life for World Class Community members and for those they seek to support. To do this we are looking to appoint a community led advisory group to work alongside the Kea team. We envisage this group would meet 1-2 times over the course of this calendar year to support immediate deliverables, and then quarterly after this. If you would like to be involved or know of someone who could make an impact in this group please get in touch.

• CASE STUDY – VOICES OF THE COMMUNITY – SUPPORTING UKRAINE
• 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

Voices of the community – Supporting Ukraine

The conflict in Ukraine is affecting millions of people and businesses across the globe. This month we speak to four offshore Kiwi help support those affect by the upheaval including Vanessa O’Neill NZTE’s Regional Director Europe. Vanessa is part of a special project team established to ensure Kiwi businesses have all the practical support and information they need. READ MORE

China

Businesses looking to export to China are experiencing major disruptions due to the country’s Covid elimination strategy. Commodity-based categories such as Fresh Seafood, Dairy etc are finding it particularly tough. We speak to a Kiwi on the ground in Shanghai to find out what the longer term forecast is and how companies on the ground are coping. READ MORE

UK and Europe

The UK Government has just published guidance on restricting promotions of products high in fat, sugar or salt. This guidance has been developed ahead of new regulations, coming into effect on 1st October. Our UK and Europe Regional Director Sara Fogarty has advice for businesses who may be affected by the changes.READ MORE

North America

In North America the market for healthy sustainable food is growing rapidly and many mainstream supermarket chains are dramatically expanding their organic and sustainable product lines. This month our North America Regional Director Gary Fortune looks at how Kiwi businesses are capitalising on this post pandemic trend. READ MORE

New Zealand

Welcome news with the announcement of the reopening of New Zealand borders to tourists. With the Trade Recovery Strategy a high priority for New Zealand, the Prime Minister has just attended the first trade mission in over two years. Our Global Director Government and Industry Saya Wahrlich looks at the takeaways from the trip and how Kiwi businesses are reconnecting now that borders have reopened. READ MORE

BUSINESS CONNECTIONS MADE IN MARKET THIS MONTH**

SECTORS KEA CONNECT SUPPORTED THIS MONTH

*Year to date reflects financial year commencing 1 July 2021 to 30 June 2022
**Some businesses were provided with connections in more than one market

Embedding learning into organisations

The Breakthrough Co is a Kiwi business which runs development programmes for leaders and managers. They focus on practical, cost effective ways for people to better utilise time and skills for themselves and their businesses through a series of workshops. They already work with some of New Zealand’s most well known companies including Chelsea, Mike Greer Homes and the AA.

Kea Connect introduced the company to a management consultant and a senior sales coach in Australia, who were able to advise them on the opportunities for taking their programmes to the Australian market. This connection has helped The Breakthrough Co speed up its Australian exploration.

Kiwi granola bar takes on the world

Christchurch entrepreneurs David & Clare launched their company, The Crafty Weka Bar, after seeing a gap in the market for real food snacks made the old fashioned way. The couple make their granola bars in small batches, ensuring each bar is of the highest quality. They have just been recognised as the ‘best backpacking food of 2022’ by leading North America magazine ‘Backpacker’.

After seeing their business written about in a local paper, Kea Connect proactively approached Crafty Weka to see if there was anything we could do to support the business. We are now actively working to connect them to distributors in North America and with specialised grocery and outdoor stores in the region. Our North America RD was also able to connect them to musicians to help create music for their brand video.

Update on Russian Sanctions Act

A free webinar on the Russian Sanctions Act will take place on Friday 6 May, 10am NZT. This webinar will provide New Zealand importers and exporters with an opportunity to hear directly from the Ministry on the Russian Sanctions Act and an update on the unfolding situation and its impacts on New Zealand imports and exports. Sign up here

2022 New Zealand International Business Awards

Entries and nominations are now open for the New Zealand International Business Awards (NZIBA) 2022. The NZIBAs celebrate the global success, vision and determination of New Zealand businesses, and over the past two years the resilience and innovation of New Zealand’s export community have mattered like never before. For more details visit the website

Multi-million dollar art collection to be sold for charity

An acclaimed multi-million dollar art collection owned by the Bank of New Zealand since the 1980s is to be sold to fund a charitable foundation. More than 300 contemporary New Zealand paintings, prints and photographs will go under the hammer this September. Read more

Connecting the world, one image at a time

Kiwi photo journalist Simon Townsley talks to Kea about the major world events he has captured over his 40 year career and explains why he is so passionate about connecting people through the power of still images. READ MORE

It takes perseverance, hunger and passion

Anthony Romano has an impressive CV, in fact when it comes to business there isn’t much he hasn’t done. The Nelson born Kiwi has worked for Deloitte, Timberland, Calvin Klein and Luna Rossa and has consulted for numerous big name luxury brands. He talks to Kea about the business lessons he’s learnt along the way. READ MORE

How US businesses are getting back to work

“My best advice is to assess each situation and allow for extra time as people learn to deal with face-to-face meetings again. Don’t expect a quick result. If it used to take eight touches to get a reaction, assume it is sixteen now.” Kea speaks to five US business leaders about how the business landscape has changed. READ MORE

WORLD CLASS SPEAKER SERIES: Our next World Class Speaker Series is an in person event in London and will feature Owen Eastwood. Owen is a top performance coach and best selling author. He will talk about his work with some of the best teams and athletes on the planet and discuss the biology and psychology of togetherness, fear vs challenge mentality, and talk about how high performing groups follow a path to success. If you know someone who would like to attend please direct them to SIGN UP

VIRTUAL RETURNER MEETUPS: Every month Kea holds returner meetups to build our community of recently returned Kiwi. It’s an important way for Kea members to build their personal and professional networks and share their experiences with others. The next event will take place on Wednesday the 11th of May. If you know someone who has recently returned to Aotearoa please encourage them to come along. ATTEND

China

China’s Covid elimination strategy continues to cause problems for Kiwi export businesses. Daily new cases remain in the thousands and across the country, many cities and provinces have enforced some version of a lockdown in an attempt to slow the spread of the virus. 

To get an idea of what it’s like on the ground and understand how consumers and customers are feeling this month we spoke to offshore Kiwi Ashwin Pillay, a Commercial Manager at RedFern Digital, a full-service Digital Marketing and E-commerce agency based in Shanghai. 

Ashwin says many businesses in Shanghai have been, and certainly are feeling major disruptions due to the hard lockdown across the board.Commodity-based categories such as Fresh, Seafood, Dairy etc are finding it particularly tough. Though China is an enormous market, Shanghai does make up a strong proportion of the overall consumer market for imported goods.                                                      

“Naturally, because Shanghai is such a core entry point for importation, the implications of lockdowns on wider disruption of transportation of products across the mainland are significant. With the zero-covid approach, there will almost certainly be future disruptions on the horizon in not just Shanghai but also other regions throughout China. This will result in a wider impact on offline retail/bricks and mortars as well as distribution. On the other hand, this will certainly bolster and drive e-commerce consumption and growth.”

Ashwin says China will most definitely rebound as was seen back when Covid first emerged in the mainland.

“Post-lock-downs we saw an evolution of consumption in terms of purchase channels, demand for particular products as well as new consumer segments entering the e-commerce space – more so a boom in elderly consumers who previously were not so ‘digital savvy’. The demand for New Zealand brands and products still remains very high in consumers’ minds, and we can only expect this to increase in a ‘post-covid’ climate where consumption and day to day life revert back to a sense of normality, as we have seen before.”

UK & Europe

Trade shows and events are back in full swing at the moment as new vintages and products are being launched in anticipation of summer. With borders open we look forward to reconnecting with New Zealand Food and Beverage producers and welcoming new businesses to the market. 

The UK Government has just published guidance on restricting promotions of products high in fat, sugar or salt by location and by volume pricing. This guidance has been developed ahead of new regulations, coming into effect on 1^st October this year. More details can be found here. These changes will impact how products are marketed and promotions are undertaken and will have an effect on some Kiwi exporters.

One such exporter is Epic Dairy – Dairy Collective, who have worked hard to plan and implement changes ahead of the new regulations. They are welcoming the opportunity to discuss their journey with fellow Kiwi F&B companies looking to understand the impact in the market. Please reach out if you would like assistance via our Kea Connect service.

The Food and Beverage industry in the UK is facing a lot of pressure at the moment with supply chain issues, sharp rises in energy, food and labour prices, the end to VAT relief and staffing troubles. To combat this we are seeing F&B businesses offer initiatives such as sponsoring visa arrangements, flights and accommodation support in order to secure great staff. This provides some incredible opportunities for those Kiwi looking to head offshore and get some international experience. 

If you’re planning a visit to the UK or Europe, make sure you take the opportunity to talk to your distributors and partners about the effect the UK FTA will have in terms of pricing and supply, and to look ahead to the European FTA completion and what that could mean. Also just a note most of the UK and Europe will be on Summer holidays at some point during July and August, so make sure you plan ahead.

Sara Fogarty, Kea UK/Europe Regional Director

North America

New Zealand’s food and beverage exporters continue their strides into this market, offering premium quality foods, wines, and non-alcoholic drinks to a discerning and eco-conscious US consumer. Since the pandemic, the US organic food business has been growing rapidly. There is an increasingly health-conscious consumer with an awareness of the environmental impact of where their food comes from. This target market demands more sustainable products and farm-to-table options and is happy to pay the higher prices organic products traditionally carry. 

A recent survey showed that around 82% of Americans buy organic foods, and most of the sales are through conventional grocery stores and markets. My local supermarket has expanded its offering from a small bespoke section to having products alongside more traditional ranges throughout the store. The original leader in organic and sustainable groceries was the now Amazon-owned Wholefoods market, where you can find many New Zealand products on offer. Other major supermarket chains like Walmart, Target, and Costco are increasing their organic offerings on their store shelves, improving consumers’ access to organic foods, which is good news for Kiwi exporters. A recent market report predicts this sector to grow from the $53 Billion posted in 2021 to over $90 Billion by 2027.

With summer fast approaching, airlines are reporting a huge increase in bookings for the summer holiday season. With Americans housebound for the past two years, the industry is seeing domestic bookings for flights at levels last seen pre-pandemic. Many airlines reduced staff levels during the pandemic and are struggling to replace staff. Our Kiwis should consider booking early if they plan to travel internally in the US because travel costs increased 10% in March from the previous month, and flights over the summer period are in great demand. 

As covid cases rise around the country again, some people are again being cautious about abandoning their masks just yet. Philadelphia has just reinstated its citywide mask mandate due to increasing Covid cases. And other US cities are on high alert with the new variant. New York has slowly lifted mandates, and our infection numbers are low. As we head into the warmer weather, we hope the high vaccination rates in the city will avoid any business or event disruptions. 

Gary Fortune, Kea North America Regional Director

New Zealand

With the Trade Recovery Strategy a high priority for New Zealand, the Prime Minister has just attended the first trade mission in over two years. Visiting Japan and Singapore, our fourth and fifth largest trading partners respectively, she was accompanied by the Minister for Trade and Export Growth Damien O’Connor. Also on the trade mission were 13 business leaders from dairy, food and beverage, technology, tourism, and renewable energy sectors. The mission focused on promoting sustainability and innovation, and will address future-proofing supply chains, as well as mark the 70th anniversary of diplomatic relations with Japan. 

This month also saw New Zealand moved into Orange in the Covid-19 Protection Framework, easing many restrictions related to indoor gatherings and the hospitality industry. Borders also reopened to fully vaccinated Australian citizens and permanent residents on 12 April, paving the way for the return of tourists in advance of the ski season. Reopening extends to fully vaccinated visitors from visa waiver countries, and visitors from other countries who already hold a valid visitor visa on 1 May.

Kiwi businesses have been quick to take advantage of newly opened borders and the removal of Managed Isolation and Quarantine [MIQ]. Kea is supporting businesses from diverse sectors through Kea Connect, making connections from within Kea’s global network in advance of upcoming international business travel.

Saya Wahrlich, Global Director, Government & Industry