North America
The important role that Kiwi aerospace companies have to play in the wider global industry was front and centre in California this month with a visit from Minister of National Defence Judith Collins. Minister Collins met with Senior Advisor to Californian Governor Gavin Newsom, Dee Dee Myers, and Kea World Class New Zealander and Rocket Lab CEO Peter at Rocket Lab’s Long Beach facility. The visit aimed to explore business opportunities with the state, speak at the Space Symposium, and promote New Zealand’s growing role in the aerospace industry. Minister Collins also visited Colorado to meet with Governor Jared Polis and discuss ongoing negotiations to reduce barriers to investments in technology, aerospace, and artificial intelligence industries. With over 30 Kiwi companies already present in Denver, the agreement has the potential to significantly deepen economic ties and create more opportunities for businesses looking to break into the US market.
Foreign Minister Winston Peters was also in the US this month, meeting with Secretary of State Antony Blinken in Washington, D.C. Both sides emphasised cooperation on pressing global issues – climate change, geopolitical competition, and the war in Ukraine. Additionally, discussions highlighted ongoing collaboration with regional partners like Australia and support for Pacific Island nations. These high-level meetings come at a time of increasing global complexity. The emphasis on regular dialogue and collaboration in defence, intelligence, and technology suggests a strong commitment from both the US and New Zealand to navigate these challenges together.
Finally, New Zealand’s Public Service Commission announced the appointment of Bede Corry as the new Secretary of Foreign Affairs and Trade (MFAT). His proactive representation of New Zealand in the U.S. market has been a valuable asset in the region. We wish him all the very best on his new journey.
Gary Fortune, Kea North America Regional Director
UK and Europe
The UK is still presenting challenges for Kiwi businesses with high inflation dampening consumer spending. This month Britain’s inflation rate slowed by less than expected, adding to signs that a first interest rate cut by the Bank of England could be further off than previously thought. Some analysts say there is a risk that Britain will follow the trend in the US and see inflation stall. A slowdown in food prices was the main contributor to the decrease with prices of food and non-alcoholic beverages increased by 4% over the 12 months to March, their weakest rise since November 2021. However, an increase in fuel prices slowed the fall in the headline rate. International oil prices climbed last month amid growing tensions in the Middle East.
More and more brands are using Tik Tok to showcase products and services to audiences but this month the social media platform has landed itself in hot water over the launch of a version of its app that pays users for viewing videos. The European Commission has asked TikTok for details of the risk assessment it carried out before launching the feature in France and Spain and says its concerns relate to the impact on children, mental health and addiction. According to the French newspaper Le Monde, users can only earn rewards on videos suggested by their algorithmic feeds and not videos which they search for specifically. While social media presents an engaging way for brands to connect with their audiences, a version which pays users may cause some brands to rethink their strategy or at least question if this is the way they want to engage communities.
Finally this month we welcome our community to commemorate Anzac Day. In London, we invite members of the community to stand alongside the New Zealand High Commission for a day of remembrance, starting with the Dawn Service at Hyde Park Corner, followed by services at the Cenotaph and Westminster Abbey. More details can be found here.
Sara Fogarty, Kea UK/Europe Regional Director
China
China’s tier one cities have always represented the ultimate growth spaces for premium brands looking to capture their share of one of the world’s biggest markets. These cities represent huge wealth and allow brands to command higher prices for their products. However, in the current climate, living in China’s tier one cities is becoming less attractive and increasing numbers of Chinese youth are moving out to lower tier cities, attracted by a lower cost of living, increasingly sophisticated consumer infrastructure and relative improvements in job prospects.
As these consumers return to lower tier cities, they bring with them the sophisticated habits from living in the metropolises. For example, Lululemon, a brand usually aligned with tier 1 and 2 audiences, is increasingly attracting consumers based outside the main centres. In their highest-selling Douyin livestream in January, 5 of the top-10 cities in the audience were lower-tier cities without any physical Lululemon stores. Kiwi brands looking to enter the Chinese market should consider whether lower tier cities could present much-less tapped opportunities for growth than saturated higher tier cities especially if this supports them to get a foothold in the Chinese market.
Some of the Kiwi brands who have entered these top tier markets were able to showcase their brands this month at a special breakfast event which hosted New Zealand diplomats in Shanghai. At this Kea supported event, New Zealand Consul-General to Shanghai Ardi Barnard, and NZTE Trade Commissioner Richard Dunsheath spoke to a crowd of around 35. We also look forward to connecting with our community on Anzac Day, which will be commemorated in a few weeks.
Rebecca Bao, China Regional Director
New Zealand
This month the Government announced immediate changes to the Accredited Employer Worker Visa (AEWV), in an effort to help protect migrants from exploitation and address unsustainable net migration. The changes to the work visa scheme will include introducing an English language requirement for migrants applying for low-skilled jobs. A number of construction roles will also no longer be added to the green-light list due to less demand, and the franchisee accreditation category will be disestablished. Businesses looking to gain more details around the changes can visit the AEWV website.
The latest biannual BDO Business Wellbeing Index was also released this month, while many businesses are facing a number of challenges right now, the index showed that business leaders were typically more optimistic about their future business performance than their current outlook, with 60 percent more positive when looking six months ahead, compared with just 53 percent in the shorter-term. While economic conditions were a large concern, business leaders were also grappling with new technologies and artificial intelligence. Just 46 percent felt positive about the adoption of new technologies, which was one of the lowest-scoring business performance attributes and suggested leaders may still be getting their heads around how to effectively leverage AI in their organisations. However, 55 percent expected to feel more positive about technology in six months time.
And finally some good news is on the horizon for business owners with annual inflation easing to its lowest level in nearly three years. Stats NZ figures released this month show consumer prices rose 0.6 percent in the three months that ended March, taking the annual rate down to 4.0 percent, the lowest since June 2021.
Kellie Addison, Global Director Stakeholder Affairs
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