Businesses going global

• CASE STUDY – AGAINST ALL ODDS
• 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

AGAINST ALL ODDS

Guled Mire was born into the Somali Civil War and after spending several years in a refugee camp in Kenya, was resettled in New Zealand with his family at age 6. During his teenage years he struggled to fit in and was repeatedly told by his teachers that ‘University wasn’t a place for people like him.’ Despite this, he went anyway and after passing with flying colours, was awarded a Fulbright scholarship to study Public Policy at an Ivy League University in America. He talks about his inspirational journey, why he never gave up and how he wants to use his offshore experience to give back to the country that took him in. READ MORE

CHINA

Kiwi businesses exporting to China will watch with interest the upgrade to the NZ-China Free Trade Agreement (FTA) which comes into force on April 7, 2022. We look at the effect this will have for exporters. Plus with the Winter Olympics coming to a close we also examine the valuable role of good brand ambassadors. READ MORE

UK & EUROPE

Good news for Kiwi exporters this month with the signing of the UK-New Zealand FTA. Our UK and Europe Regional Director Sara Fogarty explains at what this means for Kiwi exporters. Plus she takes a look at the ambitious agenda set out by the new German Government. The centre-left three way coalition, is heavily focused on sustainability and has announced some bold plans including a focus on sustainable farming practises and digitalising German customs.

 READ MORE

NORTH AMERICA

As restrictions relax and borders reopen there will no doubt be Kiwi businesses eyeing an entry into the US market our North America Regional Director Gary Fortune caught up with several US based Kea members and US business owners to ask them what sort of advice they would offer those looking to expand. READ MORE

NEW ZEALAND

It’s been a busy start to 2022 for the Digital Technologies Industry Transformation Plan (Digital ITP) with two milestones being reached. The publication of the Draft Digital ITP and the launch of the New Zealand Tech and Innovation Story  Government Relations Director Saya Wahrlich explains. 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 connections in more than one market

PREMIUM MILK MEETS PREMIUM COFFEE

Creating beautiful coffee sachets filled with coffee from around the world is the key to DouXuan Coffee’s success. The company made a huge splash when they exhibited at the Shanghai Coffee and Food Festival in 2021, and in an effort to build on that early success they approached Kea’s Regional Director in China seeking connections with New Zealand premium milk brand Taupo Pure for a potential collaboration. As an exporter of premium dairy and goat milk powders with strong provenance and a focus on the China market, DouXuan felt the Taupo Pure brand aligned strongly with its target audience. The connection was successful and resulted in a cross brand collaboration of Douxuan coffee and an initial trial of 50,000 sachets of Taupo Pure milk powder for the China market.

URGENT REQUEST CREATES INROADS FOR KIWI TRANSPORTATION COMPANY

Transportation and logistics software company M2X provides one platform to optimise transportation, increase efficiency and reduce both costs and carbon emissions. The Kiwi company analyses billions of possible scenarios, to allow businesses to make stronger decisions based on more data, more analysis and more computational power than ever before and allowing companies to future proof their transport management. The founder came to to Kea asking for help with in-market connections for an upcoming short notice trip to the US. within days, Kea was able to make high level introductions to four Kea community members. The M2X team were then able to travel across North America to make the face to face connections Kea had arranged.

THREE MAORI BOYS GO GLOBAL

NZTE’s short documentary ‘Three Māori Boys’ tells the story of the Kiwi trio behind the premium beverage brand Wai Mānuka. The documentary aired on Maori TV this month and highlights the boys journey to take their product to the world. It can be watched in full here

NZ INTERNATIONAL BUSINESS AWARD WINNERS ANNOUNCED

On 17 February 2022, a group of extraordinary businesses were recognised as the winners of the New Zealand International Business Awards 2021. See the full list of this year’s winners and read about their stories.

AS BORDERS REOPEN HOW WILL MARKETS PERFORM?

BNZ Head of Investment Solutions Louis Nel takes a look at how financial markets could perform in 2022 as countries reopen and the threat from the pandemic starts to ease.

THE FUTURE OF WORK

There is no doubt the pandemic has changed the way we work forever. This month we speak to experts in our Kea community about what the future of work will look like and how we can balance our personal and professional lives. Plus we examine how adapting your company’s wellness offering can help attract and keep top talent and compete with larger companies who can afford to offer bigger salaries. READ MORE

SOWING THE SEEDZ OF SUCCESS

US based Kiwi, Rebecca Brady has transformed her love of baking crackers into a highly successful business. Her company Top Seedz, employs only female refugees and she’s got a strong track record of helping other Kiwi businesses break into the tough US market, plus Top Seedz just won a million dollars in an international business competition. She shares her recipe for success. READ MORE

WORKPLACE CULTURE CRUCIAL FOR STARTUP SUCCESS

Data cleaning company Segna is a Kiwi startup on the road to success. After being accepted into one of Silicon Valley’s most prestigious start up programmes, co-founder Aryan Lobie realised his business was about to experience significant growth. So he contacted Kea Connect to get help with a common problem – how to create a positive workplace culture and avoid growing pains. READ MORE

WORLD CLASS SPEAKER SERIES: Our next World Class Speaker Series features CEO and China marketing expert Jennifer Ma. Jennifer is the founder of the ‘Little Oasis’ childcare chain which is based on the New Zealand principals of education and play and has 15 centres across 11 locations in China. Recent changes to China’s education policies have meant she has had to pivot her business model to keep up with regulations. Jennifer is also in the process of launching a children’s beverage line and family first hotel complex. As part of giving back to her community, she also works to get Chinese mothers back into work and helps Kiwi businesses understand the China market. She will discuss the trends and changes in marketing to children and families in China and look at what the new Government focus on “family time” could mean for New Zealand brands. ATTEND

VIRTUAL RETURNER MEETUPS: Every month Kea holds returner meetups to build our community of recently returned Kiwi. It’s an important way for our community to build their personal and professional networks and share their experiences with others. The next event will take place on Wednesday the 2nd of March. If you know someone who has recently returned to Aotearoa please encourage them to come along. ATTEND

China

Kiwi businesses exporting to China will watch with interest the upgrade to the NZ-China Free Trade Agreement (FTA) which enters into force on April 7, 2022. The upgrade to the agreement with our largest trading partner will modernise it, further reduce barriers for exporters, and boost 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. Two-way trade (exports and imports of goods and services) has more than tripled from $9 billion to over $32 billion since the free trade agreement was signed. To learn about the areas covered by the negotiations and detailed objectives of the negotiations, read MFAT’s update.

China has been getting a lot of attention lately with the Winter Olympics in full swing in Beijing. With any international event comes branding opportunities and at these Games, all eyes have been on China lately with the Winter Olympics in full swing. 18 year old Chinese American ‘snow princess’ Eileen Gu is arguably the biggest brand ambassador in China right now. 

Born in America to a Chinese mum and American dad, and raised by her mum and Chinese grandma in San Francisco, Eileen switched allegiances to compete for China after just two competitions for the US. Her polished conversations with Media and her polite refusal to be pulled into political tensions has made her popular with both Chinese and Western brands. She has worked with some big names including Mengniu, Luckin Coffee and Bank of China. You’ll also see her face all over Louis Vuitton, Tiffany & Co, Victoria’s Secret. Last year, she earned at least ¥200 million ($31.4m) in brand ambassadorships alone. Her appeal with a wide range of brands and markets should be a reminder to Kiwi businesses that trusted Brand ambassadors still have huge sway with Chinese consumers. While the impact of social influencers may have swayed recently there is still a lot to be gained from getting the right person to market your brand. 

UK & Europe

The feeling that travel home is now a reality has brought many emotions to our offshore community and we are starting to see an increase in people looking to explore offshore opportunities and Kea community members reaching out with requests to navigate restrictions and protocols in the market. Working from home is still commonplace in London but in person events are back on the calendar, although these require some more planning with lateral flow tests, numbers and air flow.

We are getting ready to celebrate International Women’s Day next month, hosting a joint in person event with the NZ Business Women’s Network. This years theme is #breakthebias and our panel will feature Kiwi sports women who have been leaders in their fields, including Katie Sadleir, Rebecca (Bex) Smith, Sene Naoupu and Jonelle Price. They will be supported by Mary Fenwick, and Deputy High Commissioner, Shannon Austin from NZ High Commission in London. Please join us on March 7th. Tickets are available here 

Further afield, we are seeing a real focus on sustainability coming from Germany. The country has a new centre-left three party coalition with an ambitious agenda. Led by the Social Democrats and joined by the Greens and liberal FDP, their Coalition Agreement sets out their agenda for the next four years and has signalled continuing support for free trade agreements, provided they include strong sustainable provisions. This is likely to affect our agricultural and tourism exports.

The German Government wants to promote more sustainable farming practises and animal welfare and has signalled it intends to introduce mandatory animal welfare labelling and comprehensive country-of-origin labelling, beyond what EU law currently requires. The scope of this is unclear at this stage but it’s good for Kiwi exporters to keep an eye on the changes. 

The Health sector is also under review with coalition parties agreeing to legalise recreational cannabis, which could impact on the German market for medical cannabis. The Government will also support the proposed EU ban on microplastics in cosmetics, which could affect some exporters. 

Other initiatives in the Coalition Agreement worth mentioning include the intention to make German Customs faster and more digitalised, and to make it easier to set up a business in Germany (including through digitalised procedures). This is good news for New Zealand exporters looking to expand into EU operations and reducing costs associated with customs. 

For more on what the new German Government means for New Zealand exporters see the full MFAT report here

Kea community member John Bache has worked with AUDI, BMW, Porsche, and Volkswagen. He explains how the new German Government policies are affecting the automotive industry. Read more

Sara Fogarty, Kea UK/Europe Regional Director

North America

The peak of the omicron wave seems to be in the rear-view mirror in the United States, with new Covid cases falling to half those seen during January. The tension between Russia and Ukraine dominates news over here, alongside the protests at the Canada border and rising inflation. As Covid cases fall, we see some states starting to ease mask mandates, and more and more offices are reopening. Events like the Super Bowl and the upcoming Coachella concert are again drawing huge crowds.

As restrictions relax and with the recent news of the New Zealand border reopening, Kiwi businesses will undoubtedly be eyeing an entry into the U.S. market this year. I caught up with several US-based Kea members who have well-established companies here to ask them what sort of advice they would offer those starting business stateside.

Chris Perfect is the owner of Concept and Perspective, a business advisory firm that helps organizations grow and navigate complexity, change, and risk. His most important advice is to do your research.

“The American market is vast. Unless your business model is to sell (online) and ship, choose a narrow piece of the market to focus on. Remember that America is an incredibly diverse country. Demographics, culture, political affiliation, buying habits vary significantly between states (and often within states)! Don’t make assumptions, with borders reopening, take the time to visit, listen, learn, ask questions and test assumptions.”

This statement echoes Six Barrel Soda founder Joe Slater who says it’s crucial businesses treat each state as a separate entity with its own set of procedures, laws, and tax requirements. Make sure you work with a partner who understands your brand, services the proper channels, and is willing to work together for long-term success.

While the vastness of the American market may be one of the biggest hurdles for Kiwi businesses to get their heads around, the American legal system is also another challenge.

Novelli CEO. Craig Pinker urges businesses entering the U.S. to engage a good lawyer. “In smaller markets like New Zealand and Australia, we tend to operate a lot more on handshake/informal agreements, whereas here in the U.S.A., most things are done via written agreements. Boilerplate agreements, redlining, and negotiation via a war of Word documents were new to me and not something I expected. With the litigious nature of the U.S.A., there are a lot of mediocre lawyers around who do not always have their client’s best interests at heart. It’s worth paying for good advice on structuring your entity as while it’s expensive; it’s money well spent.”

With the ability to visit key markets on the not too distant horizon, this is an excellent time to start looking to the U.S. for the opportunities it brings. There are plenty of Kiwi businesses that have seen success in the U.S., and I hope many others will join them this year.

Gary Fortune, Kea North America Regional Director

New Zealand

It has been a busy start to 2022 for the Digital Technologies Industry Transformation Plan (Digital ITP) with two milestones being reached. The publication of the Draft Digital ITP for the period 2022 – 2032 proposes the detailed sector transformation steps needed to move toward a future state defined by a tech sector with high-quality jobs, productive businesses, weightless exports, low emissions, and regional job growth. MBIE is seeking feedback on the draft, with submissions due by 5pm 31 March 2022.

The launch of the New Zealand Tech and Innovation Story is taking place online on 22 February. One of the workstreams of the Digital ITP, the Tech Story was created in collaboration with industry and government and delivers a compelling, consistent way of promoting our tech capabilities to the world. It aims to help our tech businesses grow by attracting investment, talent and global sales and also helps share what we stand for as a country and our values when it comes to creating tech. If you’re a tech business, register for the launch event to get first access to the sales and marketing resources toolkit; the most up to date research with insights on the international perception of New Zealand and a timeline for the national activation plans for the Tech Story. 

Staying on the digital theme, with the evolving COVID-19 situation playing out in NZ and globally, technology and digital tools have become a lifeline for businesses during the pandemic and they are making a real difference to business productivity and performance. Since starting in 2021 MBIE’s Digital Boost Educate platform now has over 44,000 Kiwi business owners, business starters and employees engaging. The team runs daily 10am Digital Boost Q&A sessions on Facebook and anyone in business can sign up for the free skills training. MBIE’s Better for Business team released two new reports this month on the health of New Zealand businesses and the New Zealand business digital landscape with a detailed report due at the end of February, taking a closer look at the impacts being felt by different industry sectors.

Saya Wahrlich, Global Director, Government & Industry