Businesses going global

Kia ora, 

Welcome to Kea’s first monthly report for 2021. The year is already ramping up with the World Class New Zealand Awards just a couple of months away, the team are very much looking forward to the year ahead. 

This month we talked to Bridget Scanlan, founder of KYT Bags, who worked with Kea Connect to gain expert advice to expand her business. We also highlight a new capital raising venture founded by Kea Community member Elizabeth van Rooyen, and feature Cognizance’s journey with Kea Connect to gain essential UK market insights.

New Zealand’s host year of APEC has officially kicked off, our Global Director of Government and Industry, Saya Wahrlich discusses the details and the positive future impact on Kiwi businesses.

Finally, our Kea Regional Directors give their monthly insights, including the impact new administrations and widespread vaccine campaigns are having on Kiwis living around the world. Did you realise that China’s box office surpassed the US for the first time?

• GROWTH THROUGH KEA CONNECT
• INSIGHTS FROM OUR GLOBAL COMMUNITY
• KEA CONNECT: SPOTLIGHT ON CAPITAL RAISING AND TECH CONSUMER INSIGHTS
• IN CASE YOU MISSED IT
• TRENDING AT KEA
• CONNECTIONS THIS MONTH
• HOW KEA CAN HELP

Global growth through Kea Connect

Beautifully designed and award-winning KYT Bags has had global expansion in their sights from day one, with their mission to redesign what diabetes looks like and to empower and revolutionise the lives of people living with diabetes.
The team engaged our Kea Connect service in 2019 to gain advice on how to best approach upscaling production and expanding their already sell-out range.
Founder Bridget Scanlan spoke to Kea about the support gained through our Kea Connect community, the story behind KYT Bags and her experiences as a business leader. READ MORE

USA

It was an uncharacteristically quiet close to the year for Kea North America. With spiking Covid-19 cases and further lockdowns across multiple states, many of our North America members have taken the chance to escape the winter and enjoy extended trips home to New Zealand. The US looks to 2021 as a year of change with a new president and the rollout of mass inoculation to combat the pandemic. Hopes are high among exporters and the wider North America community that there will be a growing sense of normality for travel and business opportunities as we approach the summer.

Ryan Mulcock, Kea USA Regional Director

UK & EUROPE

2020 finished with more last minute changes, leaving us all trying to navigate what we could and couldn’t do, who we could and couldn’t spend the festive holidays with, and adjusting to life under new lockdown tiers. There’s added uncertainty of how long this next lockdown would last for, alongside the fear of the numbers we receive each day and the devastating news that goes with this.  

During these first weeks at the Kea UK/Europe desk I have been blown away by the time and energy people are willing to share and contribute for Kiwis, to give back to New Zealand and New Zealand business off-shore. Although we can’t jump on a plane home when we want, the need to connect with what is happening at home has never been greater.  We are extremely proud of what New Zealand has achieved, but there are frustrations at the negative sentiment of those who have remained offshore, perhaps amplified by ‘UK Variant’ headlines in some New Zealand press. 

Vaccine rollouts bring a ray of hope. This will take time, so the opening of the markets, face to face events, and a return to life as we knew it here will be slower than we wish for. In the weeks ahead we look forward to positive ongoing NZ / UK FTA discussions and working together as we navigate Brexit (more on that next time).

Sara Fogarty, Kea UK/Europe Regional Director

Read more personal insights from our UK & Europe Kea Community in our new Voices of the Global Kea Community series, with our January edition: Living life through lockdown.
READ MORE

CHINA

China’s GDP rose by 2.3% percent in 2020 (101.5986 trillion), showing a steady recovery from the global pandemic. While the global luxury goods market shrunk by 23%, sales in China increased by 48% (totalling RMB 346 billion).  Online sales (of physical commodity products) increased by 14.8% (totalling RMB 9.76 trillion). 

China’s online education market has grown by 20.2% (totalling RMB 485.8 billion) and K-12 (kindergarten through twelfth grade) online education companies have raised more than RMB 50 billion of capital in 2020. This proposes an opportunity for NZ’s education providers (eg. schools & software developers) to offer online courses and programs for the Chinese audience. Start-ups in this sector may also consider financing themselves through China’s capital market. 

On 31st Dec, China’s box office reached RMB 20.417 billion. It is the first time that China’s box office has surpassed America’s, making China the world’s largest film market (America’s box office dropped by 80% in 2020). 

SOE Sinopharm’s Covid-19 vaccine has been approved for roll out in China. Stats from ongoing phase 3 clinical trials show that it is 79% effective. It is reported to offer over six months of immunity, meeting the World Health Organisation (WHO) guidelines. The Chinese government announced that the vaccine will be offered for free, with a priority to people in high-risk groups.

Ciara Liu, Kea China Regional Director

What does APEC mean for the growth of New Zealand businesses? Hosting is a once-in-20-year opportunity for New Zealand and there is no other event on the calendar with such potential to shape our region’s future. Saya Wahrlich, our Global Director Government & Industry shares a few insights into APEC, its key programmes and Kea Community involvement. READ MORE.

SUPPORTING CAPITAL RAISING VENTURE WITH A FOCUS ON KIWI TECH STARTUPS

Kea spoke with Kea Community member Elizabeth van Rooyen about her exciting new venture tasked to shorten and improve the capital raising experience so founders can spend less time on the process and more time where it really matters. In an increasingly remote world, Diligr’s mission is to increase data-driven connectivity between investors and startups and provide them with the transparency they need to build meaningful relationships for long-term funding solutions. With a focus on Kiwi tech startups, we at Kea are excited to see this platform take shape and open up new opportunities for New Zealand businesses. Read more here.

AUDIENCE INTELLIGENCE & AD PERSONALISATION PLATFORM ZEROING IN ON THE UK

Kea Connect helped Cognizance obtain crucial digital and tech consumer insights on the UK market to help shape their market strategy. 

Cognizance is an audience intelligence platform that provides advertisers and marketers with unique, actionable guidance for personalizing display ad creative. Display ad design guidance is delivered in human or machine readable formats and integrates with creative workflows. Their vision is to enable advertisers and marketers to achieve significantly better results by identifying the purchasing mentality of individual website visitors and directing suitably crafted display ads to each visitor.

With a focus on the UK market, Cognizance sought to tap into the expertise of our community for digital and tech consumer insights. Kea Connect introduced Cognizance to both a Consumer Insight Director and a Business Growth expert, each who have extensive knowledge of the UK market. 

Director of Cognizance reported back and said very practical advice was received, which extended into further introductions to our member’s broader network. “Our conversation was one of the most helpful that I’ve had”.

CHINESE OUTLOOK FOR 2021

China Skinny’s latest report ‘China 2021 Trends‘ showcases how some of the great minds of China view the year ahead. The white paper covers the perceived opportunities, challenges, and key focuses in 2021 for senior leaders from some of the most successful brands in China.

SMALL BUSINESS TRENDS IN 2021

Xero have released their Small Business Trends report for 2021, which looks at how small businesses behaved in 2020, and predictions for the coming year. This year’s report highlights in particular the growing resilience of businesses and their ability to adapt.

GLOBAL AND ECONOMIC TRADE UPDATE

The Ministry of Foreign Affairs and Trade have released their Global Economic and Trade Update for New Zealand Businesses. The report includes regional updates from the Pacific, Europe, and the Americas.

KEA COMMUNITY VOICES OFFSHORE: LIVING LIFE THROUGH LOCKDOWN

As the pandemic continues to have far reaching effects in 2021, we reached out to our UK and Europe Kea Community to share their personal experiences of living life through lockdown. READ MORE

KEA GLOBAL KIWI PIE AND FLAT WHITE DIRECTORY

We reached out to our global community and asked where they get their local pie and flat white, and the response was astronomical. Find out where your local is, wherever you are.  READ MORE

KIRI NATHAN ON BUILDING HER TRIBE

We caught up with Kiwi fashion powerhouse Kiri Nathan on how she’s fared through Covid-19 and what’s next for the Kiri Nathan brand.  
READ MORE

NZ MORTGAGE RATE PREDICTIONS FOR 2021

Kea Independent Economist Tony Alexander shares his insights on mortgage rates, and how banks and everyday Kiwis are responding to the Covid-19 pandemic.  READ MORE

SECTORS KEA CONNECT SUPPORTED THIS MONTH

*Year to date reflects financial year commencing 1 July 2020 to 30 June 2021

Kia ora, 

As we reach the end of a tumultuous year and look forward to 2021 Kea is proud to share the last installment of our online monthly report for 2020. This month we talked to Kiwi SaaS company Touchpoint Group, about the pivotal role that Kea Connect played in their expansion into the UK and Australia. We also followed up with two Kiwi start ups: a Kiwi entrepreneur based in London looking to import organic New Zealand produce into the UK, as well as a Kiwi skincare business exploring their options in the Middle East.

We have our ongoing series of insights from US, China, UK & Europe, and Australia, updates from our extensive partner network and a Kea Community exclusive with Lucy von Sturmer, a returning Kiwi, on bringing her consultancy business to New Zealand.

• GROWTH THROUGH KEA CONNECT
• INSIGHTS FROM OUR GLOBAL COMMUNITY
• KEA CONNECT: SPOTLIGHT ON NEW F&B VENTURE AND MIDDLE EAST EXPANSION
• IN CASE YOU MISSED IT
• TRENDING AT KEA
• CONNECTIONS THIS MONTH
• HOW KEA CAN HELP

Global confidence and Covid-19 stability through Kea Connect

Kiwi SaaS company, Touchpoint Group, have been part of the Kea Connect business community since 2018. Since then, we have worked with Frank, Co-Founder and CEO, to understand key opportunities Touchpoint globally, making key in-market introductions that directly led to new business opportunities, and global confidence. Once such introduction led to a successful PoC (Proof of Concept) with Barclays and stability during Covid-19. READ MORE

USA

It has been a rather eventful month here in North America. Most conversations centered around the US Presidential Election, which became a close and contentious race won by Joe Biden. Prime Minister Jacinda Ardern reported a “very positive and warm” first phone call where the President-Elect spoke fondly of New Zealand. Further optimism came in the form of positive signals of a Covid-19 vaccine soon to be approved by the FDA and cleared for general distribution.

Market conditions for Direct To Consumer SMEs trading with the USA are buoyant, with Shopify hitting record-breaking sales of $5.1B over Black Friday/Cyber Monday. This surpassed Amazon’s $4.8B total for the same period. Alongside our NZ Inc partners, we are excited for the December launch of the Made with Care Campaign to support NZ products selling in the USA.

Ryan Mulcock, Kea USA Regional Director

UK & EUROPE

This month, Kea appointed a new Regional Director for UK & Europe, Sara Fogarty.

Sara shares her insights into consumer behaviour in the UK & Europe in the lead up to the holiday period with the UK emerging out of Lockdown and into a revised 3 Tier system, although perhaps not a lot of change in day-to-day life. Find out about the positive economic impact for New Zealand with both significant increases in online shopping and a desire for premium products at the back end of the year. READ MORE

CHINA

The Gross Merchandise Value for 11.11 – Singles Day (an online shopping festival on Nov 11th) exceeded $570B across all e-commerce platforms (JD, Tmall, Pinduoduo etc). This year, livestreaming has become a new driving force for sales. Livestreaming is used for a number of promotional purposes, including product releases, VIP sales events, seasonal events, as well as being a great way to engage in conversation with your customers.   Find out more about how Kiwi brands can utilise these channels, as well as free trade updates in Kea’s China Regional Director, Ciara Liu’s December update. READ MORE

AUSTRALIA

Melbourne was the last of the Australian cities to emerge from Covid-19 restrictions and also the city with the harshest lockdown (the second wave led to 111 days of lockdown, however most of us were in our homes from mid March). While Australians are feeling a little tender and looking at the rest of the world’s Covid-19 numbers with apprehension, there is also a feeling that we are indeed a lucky country and that Summer 20/21 is one to celebrate.

In terms of consumer sentiment, the feeling is reflective of the general mood. Two very different lines of thought show us to be either enthusiastically shopping and spending the money we’ve managed to save while at home. Or, cautious and selective about what we buy, burned from many jobs lost and some beloved industries (arts, hospitality, events, physical retail) damaged. Digital commerce, without doubt, has been the big winner. Online marketplaces, supermarkets and pharmacies have thrived.  ‘Shop Local’ has become a catch-cry with Australians lamenting the loss of much loved stores during earlier bushfires. We’re seeing significant support for small retailers and local brands. The goods news: New Zealand is seen as an extension of Australia. Not just the little sibling across the ditch, but an equal partner here down under. Australia welcomes smart NZ businesses with open arms.

Bella Katz, World Class New Zealander.

EXCITING ORGANIC FOOD VENTURE FOR KIWI IN LONDON

Kea Connect supported a Kiwi entrepreneur in his new venture involving the import of organic New Zealand food into the UK. 

This Kea Community member moved to the UK toward the end of 2019, and is working on a new exciting project involving the import of organic New Zealand food into the UK. He contacted Kea Connect seeing if we can connect him with expertise in our network who can advise on:

• Brand positioning for New Zealand organic food products in UK+EU
• Rollout of combo B2B / B2C models in UK for food
• Experience approaching large retail partners
• Industry pricing and margin targets

Kea Connect introduced him to an internationally experienced senior Marketing and Sales practitioner and brand enthusiast based in London.

DISTRIBUTION CHANNELS IN MIDDLE EAST REALISED FOR NEW ZEALAND INDIE BRAND

Kea is helping Kiwi business TE WAI understand distribution channels in the Middle East. 

TE WAI produce a New Zealand inspired, hydrating fine-mist facial spray infused with extracts Kawakawa, Manuka, Kowhai, Mamaku and Pohutukawa. With operations established in China, TE WAI conducted market research to validate other export markets, Middle East being one of them. 

CEO and Co-Founder of TE WAI wanted to speak with experts in our Kea community who know the landscape in the Middle East, have worked with industry partners in distribution/consumer goods, and would be willing to share any insights and help make further introductions where suitable. 

Kea introduced TE WAI to an Events expert based in Dubai, to discuss the business landscape and provide in-market channel suggestions.

DIGITAL ESSENTIAL FOR SMALL BUSINESS

Xero Chief Product Officer and Kea Board Member Anna Curzon talks to the power of digitisation, especially in future-proofing small business. Covid-19 has emphasised the necessity of cloud-based operations, and the dependence businesses have on their systems to maintain success. Read more about Anna’s insights here.

AUCKLAND UNIVERSITY NAMES YOUNG LEADERS

The University of Auckland has released its 40 Under 40 list for 2020. Every year, the university releases a list of their inspiring young alumni who continue to shine in both their professional and personal lives.

NZTE SPEAKS DIGITAL

NZTE in partnership with Stuff have released a seven-part series, Digitally Speaking, on a range of digital commerce topics. The series includes a line-up of global digital leaders who share case studies, inspirational insights and tactical advice, with the purpose of providing insights into how businesses can build the digital channels and strategies you need to reach your customers online and grow your market reach.

THE YEAR THAT WAS: MFAT’S ANNUAL REPORT 2019-20

The Ministry of Foreign Affairs and Trade have released their annual report, which focuses on the Ministry’s Strategic Intentions and performance measures. In particular, it highlights the work MFAT did to support the New Zealand Government’s Covid-19 response.

ANTIPODES ON THEIR GLOBAL AMBITIONS

Antipodes founder Elizabeth Barbalich about the decision to expand into the US, how Covid-19 impacted the expansion, and her advice to businesses looking to do the same.  READ MORE

LUCY VON STURMER: AMSTERDAM TO AOTEAROA

After years building her consultancy The Humblebrag in Amsterdam, Kea spoke to returner Lucy von Sturmer about her decision to move herself, and her business back to Aotearoa.  READ MORE

JAMIE MCLELLAN ON DESIGNING SUSTAINABLY

In 2011, Kiwi designer Jamie McLellan was approached by Tim Brown who had the idea to make a shoe out of wool. Fast forward to 2020 and Allbirds is revolutionising the footwear industry.   READ MORE

SECTORS KEA CONNECT SUPPORTED THIS MONTH