Businesses going global

CHINA

Despite the ongoing challenges presented by the pandemic China’s economy remains strong. Recently released figures show China’s GDP grew by 9.8 percent year-on-year in the first three quarters to 82.31 trillion yuan (US$12.79 trillion). The total value of China’s foreign trade import and export market in the first three quarters was 28.33 trillion yuan(US$4.4 trillion), a year-on-year increase of 22.7%, achieving positive growth for five consecutive quarters. China has now held the title of the second largest import market in the world for 11 consecutive years. 

E-commerce businesses have benefited from this year’s Double 11/Singles day. More than 290,000 brands battled it out during the event, and a huge $139 billion worth of goods was sold on Alibaba and JD platforms alone. Maggie Zhu, Managing Director of Alibaba group, says the event is one of the biggest opportunities for New Zealand businesses to reach the Chinese market. Last year New Zealand was the seventh top selling nation to China during the festival, with infant formula, honey products and luxury pet treats being the most popular products. 

Maggie says each year more New Zealand businesses get on board and those looking to capitalise on next year’s festival should utilise the clean, green image of Aotearoa as this is appealing to Chinese customers. Kiwi businesses’ philosophy about their products being environmentally friendly also resonates well with the Chinese consumer.

Currently China is pushing a ‘made in China’ narrative, aiming to show customers that products made in China are not second to those made in other countries. This sentiment has accelerated since Covid and is being nudged along by increasing pressure on China’s rich and famous to promote “cultural confidence”. The move represents the rising China Chic or Guochao, which is shifting preferences towards domestic brands. 

As a consequence, foreign brands need to up their game, they can no longer just be on a shelf or screen and automatically expect consumers to think they are superior as they may have done a decade ago. To compete in China, foreign brands must now work harder to understand their target audience better, and adapt quicker if they are to succeed. 

Ciara Liu, Kea China Regional Director

UK & EUROPE

New Zealand has featured prominently in the UK media recently with the NZ-UK FTA being agreed in principle. The next stages of the negotiations including the official signing of the agreement will bring several business sector items into focus for both Governments.

Timeline and Roadmap

The agreement in principle has been made, but there is still a long way to go before the agreement is fully signed and completed and a basket of New Zealand’s finest products exchanged with Number 10 Downing Street. Over this time NZ exporters need to focus and understand how their current cost structures in the UK and how much are you paying for tariffs and duties currently. It’s important for Kiwi business owners to understand what these tariffs and duties changes mean for their business, their customers, and their competitors and understand how they will adapt pricing, market support and spend.

How will it affect your bottom line and future planning?

The changes that will follow the FTA will further enforce the differences between the UK & Europe markets and continue to show that both markets need to be treated, planned and supported differently by exporters. With the changes to tariffs it’s a good time for businesses to revisit their market plans if they didn’t do so following Brexit. The changes brought about by the UK FTA and further FTA NZ – Europe negotiations, will also see a renewed focus on the NZ-EU FTA Agreement.   

All of this will cause further considerations as to how Kiwi businesses view the market in the UK and the opportunities these agreements will create. It will also allow businesses to work out how best to capitalise on them in a time where supply chains, international travel and Covid are all causing disruptions. 

Export businesses will benefit from staying in touch with customers, distribution partners and networks in-market to ensure they can implement any cost changes in a timely manner and work with offshore partners to understand the importance and opportunities that these FTA’s will offer.

Sara Fogarty, Kea UK/Europe Regional Director

North America

One of the biggest problems facing businesses in the US right now are the issues surrounding supply chain. Disruptions and hold ups are dominating the US media and are creating a domino effect around the world. 

Last month US President Joe Biden declared a 90-day sprint to clear the backlog at California ports, announcing ports would work 24/7 in an effort to reduce the current bottlenecks. He also secured commitments from some of the US’s largest retail and shipping companies including Walmart, FedEx, Target, and The Home Depot, to increase the use of off-peak hours to move their goods. The Southern California ports continue to be a focal point of the supply chain crisis with an estimated 500,000 containers waiting offshore for an average of 11 days before being unloaded at the ports. The problem is being compounded by the fact that there are not enough port workers to drive and unload containers from the ships and there are also shortages around truck drivers to transport freight once it’s offloaded. Warehouses are also reaching capacity and with the holiday period upon us the whole system is stretched. 

As far back as a year ago there were signs the pandemic was beginning to affect sea freight movement around the world. Containers were unloaded from vessels as the global need for PPE and other pandemic supplies prioritised general freight. As the world started to open up, the capacity to load, transport, and unload that freight at destinations created a logistics problem. Adding to the strain earlier in the year was the congestion caused when the Ever Given ship became wedged in the Suez Canal. The restrictions are beginning to affect many businesses, even big companies like Apple who recently reported a drop in profits blamed on supply chain issues. Many companies have panicked and over ordered stock which is leading to essentially an even worse scenario. 

The effects of this long-term supply chain disruption will continue to impact the global flow of goods, causing increasing delays for New Zealand exporters. This disruption will continue well into 2022. Exporters are currently facing a high demand placed on airfreight as an alternative movement for goods and that is likely to continue. Unfortunately there isn’t a lot Kiwi businesses can do right now, except to continue to order well in advance, look to source goods locally where possible and make sure to plan well ahead and be prepared to be flexible.

Gary Fortune, Kea North America Regional Director

New Zealand

The big news this month for Kea’s offshore community and Kea Connect customers keen on business travel was the managed isolation period for international arrivals into New Zealand reducing from 14 days to 7 days, followed by a period of isolation at home. The self-isolation period for business travellers in the pilot was shortened to 10 days at an approved location. To support the expected resurgence of travel, Air New Zealand are looking at upping domestic flight frequency and eyeing a reboot of the direct Auckland – New York flights that were planned to launch in 2020, opening up access to Europe and the US East Coast. The Government has also announced the opening of Auckland’s border which will come into play on December 15th.

New Zealand and the UK reached an Agreement in Principle (AIP) on a free trade agreement that will remove over 97% of tariffs on exports into the UK the day the FTA enters into force. Kea Connect businesses exporting to our seventh-largest trading partner will be watching the progression of the AIP with interest, as benefits include not only tariff reductions, but also the removal of administratively burdensome and costly non-tariff barriers. The aim is to conclude the NZ-UK FTA by the end of the year.

We also recently saw New Zealand announce a revised pledge with a 50% reduction in gross 2005 emissions by 2030, this which will have a flow on impact for New Zealand businesses. The new figure is in line with the Climate Change Commission’s draft advice, but falls short of New Zealand’s fair share under the Paris Agreement. To help New Zealand meet its international obligations and achieve its target of zero carbon by 2050, the Government is also inviting New Zealanders to inform our first Emissions Reductions Plan, which will set the direction for climate action out to 2035 and has recently announced mandatory climate-related disclosures for financial institutions and listed companies.

Saya Wahrlich, Global Director, Government & Industry

CHINA

Despite the ongoing challenges presented by the pandemic China’s economy remains strong. Recently released figures show China’s GDP grew by 9.8 percent year-on-year in the first three quarters to 82.31 trillion yuan (US$12.79 trillion). The total value of China’s foreign trade import and export market in the first three quarters was 28.33 trillion yuan(US$4.4 trillion), a year-on-year increase of 22.7%, achieving positive growth for five consecutive quarters. China has now held the title of the second largest import market in the world for 11 consecutive years. 

E-commerce businesses are bracing themselves for the madness and presales of this year’s Double 11/Singles day. More than 290,000 brands will be battling it out during the event which sees more than 14 million deals just on Alibaba platforms alone. The sales period traditionally sees millions of dollars of product sold every minute. Maggie Zhu, Managing Director of Alibaba group, says the event is one of the biggest opportunities for New Zealand businesses to reach the Chinese market. In 2020 Alibaba reported that New Zealand was the seventh top selling nation to China during the festival, with infant formula, honey products and luxury pet treats being the most popular products. 

Maggie says New Zealand businesses looking to do well at the festival should utilise the clean, green image of Aotearoa as this is appealing to Chinese customers. Kiwi businesses’ philosophy about their products being environmentally friendly also resonates well with the Chinese consumer.

Currently China is pushing a ‘made in China’ narrative, aiming to show customers that products made in China are not second to those made in other countries. This sentiment has accelerated since Covid and is being nudged along by increasing pressure on China’s rich and famous to promote “cultural confidence”. The move represents the rising China Chic or Guochao, which is shifting preferences towards domestic brands. 

As a consequence, foreign brands need to up their game, they can no longer just be on a shelf or screen and automatically expect consumers to think they are superior as they may have done a decade ago. To compete in China foreign brands must now work harder to understand their target audience better, and adapt quicker if they are to succeed. 

Ciara Liu, Kea China Regional Director

UK & EUROPE

October has been a busy month for the UK, and New Zealand has featured prominently in the UK media across many different sectors with the FTA Agreement being agreed in principle. The next stages of the negotiations including the official signing of the agreement will bring several business sector items into focus for both Governments.

Timeline and Roadmap

The agreement in principle has been made, but there is still a long way to go before the agreement is fully signed and completed and a basket of New Zealand’s finest products exchanged with Number 10 Downing Street. Over this time NZ exporters need to focus and understand how their current cost structures in the UK and how much are you paying for tariffs and duties currently. It’s important for Kiwi business owners to understand what these tariffs and duties changes mean for their business, their customers, and their competitors and understand how they will adapt pricing, market support and spend.

How will it affect your bottom line and future planning?

The changes that will follow the FTA will further enforce the differences between the UK & Europe markets and continue to show that both markets need to be treated, planned and supported differently by exporters. With the changes to tariffs it’s a good time for businesses to revisit their market plans if they didn’t do so following Brexit. The changes brought about by the UK FTA and further FTA NZ – Europe negotiations, will also see a renewed focus on the NZ-EU FTA Agreement.   

All of this will cause further considerations as to how Kiwi businesses view the market in the UK and the opportunities these agreements will create. It will also allow businesses to work out how best to capitalise on them in a time where supply chains, international travel and Covid are all causing disruptions. 

Export businesses will benefit from staying in touch with customers, distribution partners and networks in-market to ensure they can implement any cost changes in a timely manner and work with offshore partners to understand the importance and opportunities that these FTA’s will offer.

Sara Fogarty, Kea UK/Europe Regional Director

North America

One of the biggest problems facing businesses in the US right now are the issues surrounding supply chain. Disruptions and hold ups are dominating the US media and are creating a domino effect around the world. 

Recently US President Joe Biden declared a 90-day sprint to clear the backlog at California ports, announcing the ports would work 24/7 in an effort to reduce the current bottlenecks. He also secured commitments from some of the US’s largest retail and shipping companies including Walmart, FedEx, Target, and The Home Depot, to increase the use of off-peak hours to move their goods. The Southern California ports continue to be a focal point of the supply chain crisis with an estimated 500,000 containers waiting offshore for an average of 11 days before being unloaded at the ports. Earlier this month as many as 79 container ships were waiting to enter the ports of Los Angeles, a new record. The problem is being compounded by the fact that there are not enough port workers to drive and unload containers from the ships and there are also shortages around truck drivers to transport freight once it’s offloaded. Warehouses are also reaching capacity and with the holiday period upon us the whole system is stretched. 

As far back as October 2020 there were signs the pandemic was beginning to affect sea freight movement around the world. Containers were unloaded from vessels as the global need for PPE and other pandemic supplies prioritized general freight. As the world started to open up, the capacity to load, transport, and unload that freight at destinations created a logistics problem. Adding to the strain earlier in the year was the congestion caused when the Ever Given ship became wedged in the Suez Canal. The restrictions are beginning to affect many businesses, even big companies like Apple who recently reported a drop in profits blamed on supply chain issues. Many companies have panicked and over ordered stock which is leading to essentially an even worse scenario. 

The effects of this long-term supply chain disruption will continue to impact the global flow of goods, causing increasing delays for New Zealand exporters. This disruption will continue well into 2022. It is not yet clear how much impact the measures announced by President Biden may have on the current delays exporters are facing, and high demand placed on airfreight as an alternative movement for goods is likely to continue. Unfortunately there isn’t a lot Kiwi businesses can do right now, except to continue to order well in advance, look to source goods locally where possible and make sure to plan well ahead and be prepared to be flexible.

Gary Fortune, Kea North America Regional Director

• OCTOBER CASE STUDY – IMAGINING THE PERFECT CITY OF TOMORROW
• INSIGHTS FROM OUR GLOBAL COMMUNITY
• GOVERNMENT UPDATE
• THIS MONTH IN NUMBERS
• GROWTH THROUGH KEA CONNECT
• IN CASE YOU MISSED IT
• TRENDING AT KEA
• UPCOMING EVENTS
• HOW KEA CAN HELP

IMAGINING THE CITIES OF THE FUTURE

This week the global conversation at Expo 2020 turns to urban development, and more specifically imagining the perfect city of tomorrow. New Zealand has some of the most sprawling cities in the world, Auckland, home to just under two million people is 120km from top to bottom. Compare that to London, home to more than nine million people which is just 50km from top to bottom.

New Zealand has some amazing opportunities when it comes to our cities of the future so how can we harness technology, culture, sustainability and the power of nature to build better? And how can we learn from others around the world tackling the same challenges? We speak to experts in our Kea community to find out.

READ MORE

CHINA

Official figures show China’s total imports and exports expanded 22.7% year on year in the first three quarters of 2021, recording a fifth consecutive quarter of growth. This growth will likely continue this quarter with retailers gearing up for the annual Double 11 or Singles day period, the biggest selling day on the Chinese calendar. Our China Regional Director, Ciara Liu explains how Kiwi businesses are getting on board. READ MORE

UK & EUROPE

The big news in the UK this month is the agreement in principle of the UK-NZ FTA. The groundbreaking agreement will see tariffs lifted on 97% of Kiwi exports and is estimated to be worth almost $1 billion to New Zealand’s GDP. Our UK and Europe Regional Director Sara Fogarty looks at the next steps in the agreement and what Kiwi businesses need to focus on. READ MORE

NORTH AMERICA

In North America supply chain problems are causing global headaches for both importers and exporters. So much so that US President Joe Biden has announced a 90 day sprint which sees LA ports working around the clock in an effort to clear the backlog. It remains to be seen how much of the problem can be fixed. Our North America Regional Director Gary Fortune, looks at how the we got to this point and what Kiwi exporters need to be aware of. READ MORE

MIQ CHANGES, UK FTA AND NEW CLIMATE TARGETS ANNOUNCED

The big news this month for Kea’s offshore community and Kea Connect customers keen on business travel was the announcement of further changes to the MIQ system from 14 November. The managed isolation period for international arrivals into New Zealand will reduce from 14 days to 7 days, followed by a period of isolation at home, while the self-isolation period for business travellers in the pilot will be shortened to 10 days at an approved location. To support the expected resurgence of travel, Air New Zealand are looking at upping domestic flight frequency and eyeing a reboot of the direct Auckland – New York flights that were planned to launch in 2020, opening up access to Europe and the US East Coast.

New Zealand and the UK reached an Agreement in Principle (AIP) on a free trade agreement that will remove over 97% of tariffs on exports into the UK the day the FTA enters into force. Kea Connect businesses exporting to our seventh-largest trading partner will be watching the progression of the AIP with interest, as benefits include not only tariff reductions, but also the removal of administratively burdensome and costly non-tariff barriers. The aim is to conclude the NZ-UK FTA by the end of the year.

In time for COP26, New Zealand has announced a revised pledge with a 50% reduction in gross 2005 emissions by 2030, which will have an impact on New Zealand businesses. This new figure is in line with the Climate Change Commission’s draft advice, but falls short of New Zealand’s fair share under the Paris Agreement. To help New Zealand meet its international obligations and achieve its target of zero carbon by 2050, the Government is also inviting New Zealanders to inform our first Emissions Reductions Plan, which will set the direction for climate action out to 2035 and has recently announced mandatory climate-related disclosures for financial institutions and listed companies.

Saya Wahrlich, Global Director, Government & Industry

*Year to date reflects financial year commencing 1 July 2021 to 30 June 2022

SECTORS KEA CONNECT SUPPORTED THIS MONTH

DOES THE HUMBLE BEE HOLD THE KEY TO SUSTAINABILITY?

Humble Bee Bio are on a mission to build better materials for society using nature inspired innovations known as biomimicry. Alongside Victoria University and The Ferrier Institute, Humble Bee bio are analysing a specific species of bee to understand how nature creates materials with properties that are useful industrially – such as resistance to water, flame, high temperatures, and chemicals.

Using the bee’s genetic blueprint, they are developing a method to develop and manufacture this novel material sustainably and at scale. This material can potentially be used to replace plastics used by industries in textiles and other consumer products.

SHAKING UP THE HOSPITALITY BUYING INDUSTRY

HospoConnect are a Kiwi startup with big ideas for the hospitality industry. Their Founder grew up in his parent’s fruit & vegetable business and has a unique understanding about the manual and often clunky process between suppliers and hospitality representatives. HospoConnect is an app which addresses these challenges by improving the connection and processes between wholesale suppliers and hospotality buyers.

The app allows those on the buyer side (for instance, chefs, bar staff) to order from multiple suppliers via one app, see specials and products updates, find new suppliers etc. From a supplier side, the app allows wholesale suppliers to receive orders in a consolidated way, eliminating mistakes and saving time. HospoConnect has raised $500k and is about to embark on a $3m raise in a few months’ time. They are currently focusing on new opportunities offshore, particularly in the UAE.

SMALL BUSINESSES WEATHER COVID STORM

The strength of small and medium enterprises has always been their adaptability. Head of Central Auckland, Partnership Banking at BNZ, Jo Duncan looks at how, in this climate of uncertainty, business owners are digging deep and finding ways to weather the storm.

LONELY PLANET NAMES AUCKLAND AS BEST CITY TO TRAVEL TO IN 2022

During what is an incredibly challenging time for Tāmaki Makaurau, Auckland’s visitor economy has had some positive news – being named the number one city to visit next year in Lonely Planet’s Best in Travel 2022.

DLA PIPER LAUNCHES VIRTUAL COP26 EXPERIENCE

DLA Piper has launched Explore Shift, a virtual experience, which allows people to browse our sustainability news, insights and analysis during COP26. Access the virtual experience here

FOREIGN, FEMALE AND CHANGING THE FACE OF THE NBA

Chelsea Lane spent six years working within the NBA. As one of only a few females in a management role she has helped pave the way for women in one of America’s top sports. READ MORE

FIVE THINGS YOU SHOULD KNOW ABOUT THE UK FTA

The NZ-UK free trade agreement, will give New Zealand exporters unprecedented access to the UK market. Here are 5 key things you should know. READ MORE

FOR THE LOVE OF LANGUAGE

Kiwi returner Ethan Jones talks about his move home and how his love of languages has helped him reconnect with his cultural roots and discover his ideal future path in Aotearoa.   READ MORE

WEBINAR: Opportunities for the future of New Zealand infrastructure Aotearoa’s construction workforce needs to grow by almost 60,000 employees across the next 30 years to keep up with demand. This growth provides big opportunities for New Zealand to benefit from returning Kiwi with essential skills and experience in the infrastructure and urban planning. Join our webinar to delve into the future of the industry 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 our community to build their personal and professional networks and share their experiences with others. If you know someone who has recently returned to Aotearoa please encourage them to come along. ATTEND

• SEPTEMBER CASE STUDY – FOUR KIWI WOMEN FIGHTING TO SAVE THE PLANET
• INSIGHTS FROM OUR GLOBAL COMMUNITY
• GOVERNMENT UPDATE
• THIS MONTH IN NUMBERS
• GROWTH THROUGH KEA CONNECT
• IN CASE YOU MISSED IT
• TRENDING AT KEA
• UPCOMING EVENTS
• HOW KEA CAN HELP

FOUR WOMEN FIGHTING TO SAVE THE PLANET

Today marks the start of Expo 2020 in Dubai. This week the global conversation turns to the first of Expo’s 11 themes, Climate and Biodiversity, asking the question ‘How do we work together to better manage climate change and protect biodiversity?’

To get a Kea perspective we spoke to four inspiring members of our community who are working across different areas of sustainability from green buildings, to green finance to packaging and change brokering. Find out how their work is having a global impact.

READ MORE

CHINA

China is looking to invest more than $30 trillion USD in sustainability initiatives in order to meet its 2060 carbon goals with the energy and power generation sectors likely to be most affected. Our China Regional Director, Ciara Liu explains how this is creating plenty of opportunities for Kiwi businesses. READ MORE

UK & EUROPE

Big changes are coming to the packaging sector in the UK. Reforms currently under consultation would see producers becoming financially responsible for funding the net costs associated with dealing with packaging waste. Our UK and Europe Regional Director, Sara Fogarty explains how this could impact Kiwi exporters. READ MORE

NORTH AMERICA

Growth of organic sustainable food has been reignited by lockdowns and a focus on health in the US. Our North America Regional Director Gary Fortune, looks at how Kiwi brands are positioning themselves and their products to ensure they stay on consumer radars. READ MORE

EXPO 2020 SIGNALS AOTEAROA IS OPEN FOR BUSINESS

The big news this week is the opening of Expo 2020 Dubai. Running for six months from 1 October 2021 to 31 March 2022, this global event is an opportunity to reconnect with the world, and to promote New Zealand as a progressive, innovative, and trusted partner. With 192 participating nations, including all of New Zealand’s major trade partners, Expo is an opportunity to signal that although our borders are closed, New Zealand is open for business. 

Alongside cultural activities and events at New Zealand’s pavilion including Taste New Zealand and Te Aratini/Festival of Indigenous and Tribal Ideas, NZTE is running an extensive Expo Business Leverage Programme to support and accelerate the growth of exporters into the Middle East, including a Māori business focus. 

The official Expo programme centres around 11 globally impactful themes. The first of these themed weeks commencing 3 October is Climate and Biodiversity, and participating nations engage in answering the question ‘How do we work together to better manage climate change and protect biodiversity?’ With COP26 just a month away, leading with a Climate and Biodiversity theme is a great start for Expo 2020. 

Saya Wahrlich, Global Director, Government & Industry

*Year to date reflects financial year commencing 1 July 2021 to 30 June 2022

SECTORS KEA CONNECT SUPPORTED THIS MONTH

25 RUGBY FIELDS OF RUBBISH IN JUST 6 MONTHS

Reusabowl are a business on a mission to replace all single-use packaging worldwide with reusable solutions. The company was founded in 2018 by three passionate individuals who were fed up with single use food packaging.

A national audit found that we throw away 25 rugby fields of takeaway containers every six months. That’s Packaging which takes energy to produce, travels miles to get to our hands, yet only lasts a moment. The Reusabowl concept is simple. You pay $10 to ‘rent’ a bowl with your takeaways and then you simply refill it later on at another eatery or you return it for a refund. Reusabowl isn’t just about the product – it’s about creating products and systems that encourage sustainable action, and circular thinking.

After a successful crowdfund campaign in 2019, and CreativeHQ’s incubation programme in March 2020, Reusabowl launched across 4 eateries in Wellington in August 2020. While young, Reusabowl are proactively exploring export opportunities in Australia and the UK and Kea is helping with connections to help them investigate market fit and relevance.

WORLD FIRST IN WELLINGTON

Wellington born company Mevo are taking on the world, becoming the first ever climate positive car share company.

Mevo are on a mission to create more liveable, sustainable cities by providing a better alternative to private car ownership. New Zealand has the 3^rd highest rate of car ownership in the world, yet we use our cars just 5% of the time. Since it’s inception Mevo has recorded more than 100,000 trips amongst users on it’s app which has in turn helped removed 366 tonnes of carbon from the atmosphere.

Additionally, Mevo meticulously accounts for all the built and emitted carbon from their vehicles, and offsets this 120% through local carbon offsetting projects. In March this year, Mevo announced a $30 million vehicle supply agreement with the Ebbett Group, one of New Zealand’s largest automotive retailers. Kea is delighted to support Mevo’s export path, through industry introductions to our community in the USA.

PROTECTING YOUR COMPANY FROM GLOBAL SUPPLY CHAIN CYBER ATTACKS

DLA Piper’s Lea Lurquin looks at how cyber attackers force their way into company environments by exploiting security vulnerabilities not in the company’s network. Find out what you can do to protect your business.

GO CIRCULAR PROGRAMME OFF TO GREAT START

Last week the Sustainability Business Network and partners including NZTE launched the Go Circular 2025 programme. The programme provides practical tools and resources to help Kiwi businesses thrive in a low-carbon circular economy. 

CONSUMER CARD SPENDING CLIMBING OUT OF DELTA LOCKDOWN

New data from Bank of New Zealand shows card spending is heading back towards pre-delta lockdown levels. BNZ Chief Economist, Paul Conway, says, “The drop in card spending caused by the delta lockdown is well on the way to recovery

WHY AFGHANISTAN’S CONFLICT ISN’T BLACK AND WHITE

Charlotte Bellis is on the front lines of the Afghanistan conflict, hear about her experiences during the Taliban takeover and find out what she says the conflict is so complicated. READ MORE

DID DIGITAL KILL THE MARKETING STAR?

Marketing veteran Richard Bleasdale says the rise of digital marketing has a lot to answer for and not necessarily in a good way, do you agree?  READ MORE

OPPORTUNITIES APLENTY IN AOTEAROA

When Travis Harris first thought about moving back to New Zealand he thought it might affect his career, find out why he couldn’t be more wrong.   READ MORE

Launching your business in New Zealand. If you’re looking to launch your business in New Zealand then don’t miss our webinar which will provide crucial market insight and expert advice into Aotearoa’s business ecosystem. SIGN UP

How to become a change maker at work Almost 80% of employees say they want their company to advocate for social issues. Join our webinar to hear from Humblebrag founder Lucy von Sturmer about how to best lead the change in your workplace. SIGN UP

Returner meet-ups will be back as soon as Aotearoa returns to Level 1. Keep an eye on our events page and newsletters for the latest information.

CHINA

Carbon neutrality pledge

Ever since President Xi announced ‘3060’ as a goal for carbon emission in China at the seventy-fifth General Assembly debate last year, the Chinese government considers ‘Carbon peak in 2030 and carbon neutralization in 2060’ as one of its key tasks. Last month, the National Development and Reform Commission issued the ‘14th five-year plan for the development of a circular economy’ to explore a sustainable development path in line with China’s national conditions. At the China International Trade in services Fair held early this month, sustainable development was discussed in several different seminars. In the field of sustainable investment in the future, achieving the goal of ‘carbon neutrality’ requires a total investment of RMB 139 trillion (about USD $30.48 trillion), accounting for more than 2% of China’s annual GDP. 

China has also expressed its desire to join the global economic circulation for a long-term development. On 16^th September, Commerce Minister Wang Wentao submitted China’s application to join the free trade agreement in a letter to New Zealand’s trade minister, Damien O’Connor.

What is clear is that energy and power generation will be the single sector most directly impacted by China’s carbon neutrality pledge. In China, this sector is responsible for 52 percent of carbon emissions, higher than the global average of 41 percent. This means that there’s an opportunity for New Zealand tech developers,  manufacturers and service providers in Carbon Capture Storage (CCS), reduction of industrial wastes (eg. Kea Connect business Zincovery) or the renewable and clean energy industry (eg. Solar power, wind power, advanced batteries and electric vehicles -eg. Kea Connect business Switch Motorcycles) to seek investment and business opportunities in China for the next few years.  

Plastic waste control

At the beginning of 2021, the toughest ‘plastic restriction’ in Chinese history officially came into force. Companies manufacturing or consuming plastic products were all required to strictly implement the latest standards. For example all the major bubble tea brands (such as Heytea) and restaurants have changed their straws and takeaway boxes to degradable products. Demand for biodegradable plastics is skyrocketing due to these new restrictions, but the industry itself remains small and fragmented. Demand outweighs supply, and there remain significant barriers to mass production like capacity limitations on raw materials.

This is an opportunity for New Zealand companies that offer degradable products or advanced technology and manufacturing techniques in the degradable materials industry to export or expand to the Chinese market. 

Water Shortage Crisis

Water shortage has been an ongoing issue for China. Home to 20% of the global population, China has only 6% of the world’s total freshwater resources. 2014 statistics from the World Bank indicate that the total renewable water resources per inhabitant is only 2018 cubic meters each year- 75% less than the global average. 

According to the ‘National Water Saving Action Plan’ issued by the national development and Reform Commission and the Ministry of Water Resources, by 2035, the total water consumption in China will be controlled within 700 billion cubic meters, and the conservation and recycling of water resources will be the most advanced in the world. 

New Zealand has many companies that are experienced in water recycling and waste water treatment. If they have competitive technology and solutions, they should explore opportunities in the Chinese market.

Ciara Liu, Kea China Regional Director

UK & EUROPE

Across UK & Europe we are consistently seeing retailers and suppliers focus on sustainability as a key driving force in their business. Companies are looking to innovate, shift and change their production, supply chain, new product development and distribution lines to help implement these changes.  

This includes continually working towards reducing plastic usage, introducing refillable/reusable packaging and/or removing plastic and introducing paper packaging.  It is also extending to reducing overall waste, improving recycling and reuse and remove schemes.  Creating incentives for this development and investing in plant and equipment for ongoing improvements. 

New Zealand owned Epicurean Dairy – The Collective, is a good example of how Kiwi export businesses can continue to push and drive change in the marketplace.  The Collective boast a carbon neutral range of yoghurts which are available in 100% recyclable tubs and made from 100% recycled material.  A game changer in shaking up the UK marketplace.  

UK Packaging reforms

The UK Government is undertaking reforms to the packaging sector with four core initiatives, currently under a public consultation until June 4th. This reform will see producers becoming financially responsible for funding the net costs associated with dealing with packaging waste UK wide and will impact and affect all producers (not just UK producers). 

This will have an impact on New Zealand businesses in the UK market and they will need to keep a close eye on developments as the reforms go through the consultation and decision making process. Businesses will need to work closely with their teams and partners in the market to ensure that they are ready for this change well ahead of time.  This will also have implications in terms of labelling and data reporting. 

For those looking to engage or enter the UK market, it will mean looking at how these initiatives interplay with their own current production processes, product development, long term COGS planning and sustainability focus. Likewise with businesses already operating in the market, they will need to ensure they understand these changes, are able to analyse market suitability and have the lead-time to make changes so that they can continue to have a strong premium distribution footprint, shelf presence and market penetration.

Sara Fogarty, Kea UK/Europe Regional Director

North America

On the ground here in New York, I see many food businesses promoting the fact that they use organic produce. Farm to the table seems to be promoted more than it did even two years ago. Being stuck inside for a year or more during the pandemic has given people a lot of time to reflect on their eating habits and focus on a healthier diet. In the bigger cities eating out is easy and it’s easy to find healthy options. When the city shut down, and people were home, they turned to food delivery services which provided healthy organic produce.

Farmers markets with local produce have been popular in the city for some time now. Most parts of the city have one day a week where you can buy fresh organic produce, there just seems to be a lot more of them these days, and the variety of offerings is greater. Wines, spirits, toys, clothes are among the traditional offerings, including meats, artisan cheeses, and vegetables.

New Zealand brands definitely have something to offer when it comes to tapping into these organic, healthy, whole food trends. Kiwi Apple growers Bostock have been selling 100% organic apples into the US market for some years now and have recently released a new variety of organic apple specifically grown for the US market. Meanwhile Kiwi wine brand Villa Maria have been actively promoting the launch of  ‘Earth Garden’ their first fully organic and vegan friendly range of wines. They’re using their first ever double-decker bus wraps, and digital signs with a rotating ad promoting the brand and it’s sustainability claims.

It can be a challenge for New Zealand brands when it comes to labelling their products as they are unable to use the word organic, due to regulations here in the US. The USDA’s definition of organic is different from the New Zealand equivalent Bio Grow qualification. There is a bill in parliament that is addressing this at the moment and for now descriptions on New Zealand products are carefully crafted.

Gary Fortune, Kea North America Regional Director