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COVID-19 recovery

Daimler and Volkswagen are making solid headway with their electrification plans as they belatedly attempt to catch up with Elon Musk, but they will need to overcome a variety of challenges if their future is to be assured. With Tesla’s first European factory to be opened in Berlin later this year, things aren’t about to get any easier!Despite increasing unit sales, the automotive industry is still facing significant challenges posed by supply bottlenecks, a dependence on the Chinese market, and expansion of the EV charging infrastructure lagging behind market growth.

German automobile manufacturers have traditionally purchased components from a multitude of different partners, using their purchasing departments to pressure suppliers into ever lower pricing. Delivery chain difficulties caused by COVID have brutally exposed the risks of this approach, as shortages of key components have meant that some manufacturers have been forced to prioritise their highest margin vehicles, leaving higher volume, lower margin models unfinished.

The much more self-sufficient Tesla has been better able to take advantage of increased demand over the last couple of years as consumers unable to enjoy international holidays due to COVID restrictions have looked to treat themselves to a new car.

In the “good news” department, the EV subsidies started in 2016 that have been so helpful in overcoming consumer reluctance and kick-starting electric vehicle demand here in Germany have been extended, with the current subsidies of up to €9,000 per vehicle scheduled to remain in force until 2025.

Whereas Volkswagen and BMW have set themselves a target for at least 50 percent of new global car sales to be electric by 2030, Porsche expects that 80% of its vehicles will be at least partially electric by 2030, and Daimler predicts that by 2030 they will be 100% electric in markets where that is feasible. Opel is targeting 100% electric cars in Europe by 2028, and Audi are planning to be 100% electric by the early 2030s.

When it comes to charging infrastructure, the chasing pack is still a long way behind Tesla and their European network of more than 600 charging stations, but IONITY — a joint venture between BMW, Daimler, Ford, Hyundai, and Volkswagen — now operates a network of more than 400 fast-charging stations across 24 European countries and has plans to increase this number to 1000 by 2025.

If the ambitious EV sales targets are to be achieved, the manufacturers will need to work ever more closely with each other and the public sector to ensure that the EV charging infrastructure is radically expanded to support this massive increase in the number of vehicles.

CONTRIBUTOR

John Bache

Managing Partner of Munich-based brand change consultancy VIM Group. Since moving to Germany in 2002, John has worked with AUDI, BMW, Porsche, and Volkswagen.

Kea member

Filed Under: COVID-19 recovery

Co-founder of Jucy group, Tim Alpe can still remember the point when the company he built from scratch lost 90% of its revenue overnight. With millions of dollars of refund requests flooding in and borders around the world slamming closed faster than an angry teenager’s bedroom door, there was no way to tell what the future held. 

“It’s something you can’t predict or plan for. For our sector in particular, younger travellers and backpackers, the market was completely decimated overnight. We relied heavily on the US and Europe travellers and all of a sudden they stopped coming, there is nothing you can do, you can’t plan for that.”

Tim Alpe

Tim and his brother Dan were forced to bring in external capital, which resulted in the three businesses, rentals, snooze and cruise being split up. Dan continued with the rentals business and Tim focussed on the POD hotels. Despite describing the last few years as ‘horrific’ Tim says he 100% believes New Zealand will once again become a top tourist destination. 

“We have a new 300 bed POD hotel opening in central Auckland in September, it was planned before the pandemic, but the new owners backed it’s completion because they see the opportunities in the industry. When it opens it will be the largest hostel accommodation in New Zealand. We still have a bit of a rough time to get through but once the borders properly reopen people will flood in, there is a lot of pent up demand. New Zealand is a bucket list destination, people will be back, it’s just going to take awhile.”

The belief that the market will come back bigger and better is one shared by Air New Zealand CEO Greg Foran. He believes the pandemic has given his company time to reflect and reprioritise in order to ensure they come back stronger with the best travel experience possible. 

“We’ve been able to look at our domestic and international network and figure out how to offer our customers the best routes, flights and customer experience. This goes all the way through to our future aircraft cabin experience – we’re using customer input to create the best international travel experience for when borders open. Our new international aircraft coming 2024 will offer an incredible travelling experience. Some awesome new innovation is on its way.”

Greg Foran

“We know the future of Air New Zealand must be sustainable, and we think it’s the single largest challenge we have, so we’ve been exploring how to accelerate the reduction of our carbon emissions. By far the biggest contribution to decarbonisation will come from Air New Zealand accessing Sustainable Aviation Fuel (SAF) and we made good progress in 2021 towards making SAF a reality in New Zealand. We’ve also put out the call out to traditional aviation manufacturers and entrepreneurs and innovators worldwide to help us get a zero emissions aircraft in the air in the next five years.”

Tourism marketing and business development expert Rēnata West says talking about new innovations and ideas is one of the best ways businesses can stay connected ahead of borders reopening. The California based Kiwi says businesses should be looking to promote what they have been doing over the last two years to refine their products and experiences and clearly show how they have altered their business practices to be more COVID-safe. 

“In plain terms, if one of your key selling points was a buffet experience, you may want to think about how eating communally will be received by consumers who have largely only eaten outdoors at tables six feet apart for the last two years.”

Rēnata says his Los Angeles based travel business, Pacific Storytelling, is starting to see an increased interest in the New Zealand market, and notes that a change to the way people work is creating new and exciting opportunities. 

“People in North America have some of the lowest levels of paid holidays in the world, but the pandemic has created a wider acceptance of remote working, this is offering people more flexibility and option to travel further afield. It also allows them to spend more time in a location and have a more meaningful experience.”

Rēnata West

“During the pandemic Aotearoa did a really good job showing off the country through digital tools like video and interviews with local personalities. This allowed the country to be brought into the living rooms and home offices of those in North America and now we are seeing this translate into an appetite to visit. We need to keep up that Kiwi storytelling to highlight our New Zealand story, the things like culture and Maori heritage that make Aotearoa unique, the things you won’t find anywhere else.”

Making the most of the Kiwi storytelling is something New Zealand Story CEO David Downs says all export businesses can benefit from, not just those in the tourism industry. 

“Having an association with brand New Zealand is a great way of boosting your business. Our research data tells us that ‘Brand NZ’ is still strong, and while we wait for borders to reopen it’s really critical that all businesses are able to communicate a strong brand story and have a good online presence in order to stay front of mind in-market. 

David says he hopes the lessons learned in the pandemic will continue to benefit businesses well into the future.  

“As we start to emerge from this crisis I hope that people don’t just go back to business as usual. Instead we should be taking the lessons we have learned and looking at what needs to be fixed or changed. After all, the best time to fix the roof is when it’s not raining.”

Both Greg and Tim have had time to reflect on the past two years. For Tim the crisis made him realise some things really are just out of your control. 

“I spent a lot of time panicking and sweating over stuff I couldn’t control, and as much as it’s devastating and stressful, I learnt you can’t take it personally. I think time is a big healer, you think about things you did or things you could have done over and over again, but eventually you get to a place where you are like ok we will get through this. The tourism sector in New Zealand will grow significantly in the future. I think the key for many businesses has been to survive, now they need to revive and hopefully in the not too distant future they will thrive.”

Greg says if he could go back to 2019 and give himself one piece of advice it would be the reminder to ‘panic slowly.’

“Air New Zealand has been around for a long time and has weathered its fair share of storms with level headed people calmly navigating constant change and uncertainty. Giving yourself a moment to gather all the information is crucial and I would say it’s how we’ve gotten through the countless challenges thrown our way. Grit is also an important quality at a time like this, two years in and we still have closed borders. It takes real resilience and you need to pace yourself, so I would say to people keep one eye on today and the other on tomorrow.”

If you would like to hear more about this topic or hear more of Tim’s story please join our online World Class speaker series. Find out more here

Filed Under: Businesses growing at home, COVID-19 recovery, Global Kiwi, Kiwi coming home

Auckland born James Gemmell says he has always loved watching Kiwis perform on the world stage and being able to tell their stories to countries that admire them. But after years fronting sport for Sky UK, he was ready for his next challenge. So when independent television production company Whisper won a six year contract to produce coverage of the Black Caps cricket for Spark Sport, James jumped at the opportunity, and along with his English wife Olivia packed up and prepared to move their two young boys to Aotearoa, in the middle of a pandemic. 

“I am not sure if I ever stopped and really thought about how hard it was, bringing my whole family halfway across the world. This was mid pandemic, we had two little boys. It was by no means a stress free experience, but it was an easy decision. The pinch point was probably the two weeks in quarantine that was hard, but Olivia and I knew we were doing it all for the right reasons.”

James and his wife Olivia have recently moved their young family to Auckland.

The opportunities for James’ two sons, Teddy (3) and Toby (1) were a big part of those ‘right reasons’ and while the boys are loving their new Kiwi lifestyle, James says there is always an added pressure on parents when they relocate their children.

“It’s taken an intangible toll on Olivia and I. Our inherent concerns for our boys have been heightened in the past few months. We want to make sure they are settled, to make sure they are happy. I think the displacement and the move definitely takes a toll on parents, but it’s fantastic to see them settling in so well.”

After more than a decade on camera, James was looking to transition into the business and management side of production, and had been impressed with the growth of UK-based Whisper. Global entertainment giant Sony recently invested in the company and James says it was pure serendipity that they chose New Zealand as their first international foray. 

“Whisper saw opportunity in New Zealand and decided they needed someone down here serving the business in this part of the world. They felt it would be helpful to have a Kiwi at the helm, someone who knew the country and the culture and knows how things are done here. I was lucky that I fit all those requirements.”

The content creation market has exploded in recent years, and with that has come a changing broadcast model. James says this change brings exciting opportunities to engage with tomorrow’s sports fans, particularly in a country as sports mad as New Zealand.

James returned to New Zealand to take up a role with television production company Whisper.

“There is no denying that streaming is the future, it may not be the only way that people watch their content but it will be a part of it. Seeing Spark Sport and New Zealand Cricket commit to a six year partnership shows that forward-thinking organisations here are on board with this future. I definitely think you can sense the opportunity here. In my industry in particular there is as much opportunity, if not more, than I thought there would be. it’s really exciting to see.” 


Like many Kiwi returning home, it wasn’t just the work opportunities but also the lifestyle that appealed to James and his family. 

“It was great that we were able to move her over summer, the weather has been great and the boys have had lots of beach time. New Zealand is a vibrant country, it’s culturally diverse, it’s a little slower paced than the bigger markets, but we are past the point where we are going out and painting the town red! We can immediately see the benefit for us and our family. I think we both appreciate that if we throw ourselves into it, this will be a wonderful experience for our family.”

Jame’s wife Olivia is a personal trainer and teacher, and is in the process of launching a fitness club specialising in connecting new Kiwi and their families, many of whom will be making a life here for the first time. The ability to establish connections is important to James who says moving home has highlighted just how much New Zealand has changed. 

James two young boys are enjoying the Kiwi lifestyle

“Auckland has changed out of sight in the last thirteen years, it’s bigger, it’s bolder, it’s more outward looking. New Zealand is going through some real demographic changes at the moment and it will be so interesting and exciting to see how things evolve as more long term expats come home.” 

James and his family are looking forward to the rest of the New Zealand summer, but like many Kiwi who have lived offshore, he will always think of more than one country as home. 

“My heart will always be in two places, we still have our family home in the UK and who knows what the future will bring, right now we are just going to see where this journey takes us. It’s fantastic to be in Aotearoa and with our two young boys and with all that is going on in the world we are really grateful for the freedoms and excited about this next chapter.”

Filed Under: Businesses going global, COVID-19 recovery, Global Kiwi, Kiwi coming home

A key focus for New Zealand in 2022 is to refresh and strengthen our global trade relationships, and to not only reconnect our country to the world but also the world to Aotearoa. And it is here that our offshore and returning Kiwi community should play a vital role. 

One million Kiwi live offshore. This community offers New Zealand an incredible resource of skills, knowledge, connections and experience. Harnessing the power and inspiration of this community is key to ensuring a smooth and successful recovery and navigating the challenges and opportunities that lie ahead as we work to re-energise our economy and show our trading partners we remain competitive on the world stage. 

Research shows 18% or almost a fifth of Kiwi live offshore, many of them in countries which are several months further down the track with their opening up strategies. These Kiwi have already navigated various reopening challenges and are keen to share this knowledge particularly with the business community. The recent discovery of the Covid Omicron strain is a timely reminder that the pandemic situation will continue to shift and evolve. This is yet another reminder of the huge potential to be gained from learning from the ongoing experiences of this community. 

Ganesh Nana, Chair of the New Zealand Productivity Commission – Te Kōmihana Whai Hua o Aotearoa, recently urged New Zealand to “be proactive in ensuring the distinctive skills, knowledge, experience, and connections of our offshore and returning Kiwi community are used to lift innovation, productivity, and the wellbeing of all in Aotearoa.”

Utilising the power of a country’s offshore community or diaspora, is not a new phenomenon. In fact many countries around the world are actively engaging in research on how best to leverage this growing opportunity.

The International Organisation for Migration predicts that over the next decade, governments, multilateral organizations and corporations will be drawn to the diaspora sector, with investment in it growing substantially. The sector will be seen as a “whole-of-government” issue that needs time, attention and resources. 

IOM spokesperson for Asia and the Pacific, Itayi Viriri, says diasporas have a huge potential for leading sustainable development in their countries of origin and this potential is often most evident in island nations with large diaspora communities such as New Zealand. 

“Members of a diaspora can help open doors for their country of origin politically, through public diplomacy and economically, through nostalgic trade and their own commercial activities. These opportunities would otherwise be difficult for the country to achieve due to limited visibility on the international stage, lack of connectivity due to geographic remoteness, and/or limited resources for formal diplomatic or trade promotion activities. This bridging role of diaspora communities is an invaluable resource for countries of origin, however it cannot be assumed as a given. Institutions in the country of origin must work to build and maintain the trust of their offshore community who may easily feel neglected or disconnected if there is a lack of proactive outreach.”

Across the world we can see inspiring examples of how connecting with a country’s offshore community has a positive impact on the growth and development of a nation. 

For example, the Institute for International Economics found that Koreans living in the United States have generated an increase of trade between the two countries by around 15-20%. 

The Korean Government considers offshore communities to be valuable sources of global talent and potential investment. By leveraging its overseas population with an eye towards enhancing national economic competitiveness, Korea trades more with countries where a larger number of ethnic Koreans reside. In 2017, more than 600 small and medium-sized companies in Korea signed deals with Korean entrepreneurs living overseas to further enhance Korea’s economic profile.

Further research this time into offshore Indian communities in the US further supports this economic advancement theory. Indians living and working in Silicon Valley in California, showed  27% regularly exchanged information on jobs or business opportunities and technology with people back in India. 46% had been a contact for domestic Indian business and 23% had invested their own money into Indian start-ups. 

There is no reason why New Zealand shouldn’t be able to harness similar benefits from our offshore community. Our Kea Future Aspirations Survey showed 25% of Kea’s offshore community are interested in being a brand ambassador for New Zealand, 18% are interested in New Zealand board and advisory positions and 17% are interested in giving time and mentorship to NZ businesses. The opportunities that this community presents are there for the taking. 

As we look ahead to 2022 and focus on reconnecting with the world we must make sure that we are not wasting an opportunity to harness the power of our offshore community. Next year will represent a key turning point in our battle against Covid and it is vital that we all work together to ensure the best outcomes for the productivity of all Aotearoa. 

Kāhore taku toa i te toa takitahi, he toa takitini – we cannot succeed without the support of those around us.

If you’d like to enlist the ideas, experience and networks of our offshore Kiwi to support your business, get in touch with Kea and let’s engage more of our global explorers for a more productive New Zealand. 

CONTRIBUTOR

Toni Truslove

Kea Global CEO

Kea New Zealand

Kea member


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Filed Under: COVID-19 recovery, Global Kiwi, Kiwi coming home Tagged With: Coming Home, Covid-19, Economic Recovery, Future Aspirations Survey, Growth, offshore kiwis, opportunity

For those businesses starting to plan ahead with this new information, there is much to be learned from those overseas who have already begun navigating some of the more common challenges. 

Kea Connect’s global community is both willing and able to offer advice to businesses in Aotearoa looking to adapt to this new normal. We spoke to several offshore Kiwi who shared advice on three common areas of concern. 

Supply chain delays

With the summer holiday season fast approaching, it’s a key time of year for our business community. Ryan Bennett is based in the USA and is the Vice President of Sales at ShipHero, a leading provider of Warehouse Management Software and eCommerce Fulfillment solutions. He says many eCommerce and retail businesses are adjusting to longer lead times due to delays in shipping and planning is key. 

“I see some businesses utilising air freight if their products are small, light, or of higher value, while others are ordering inventory months in advance and seeking financing options for the cost of owning stock earlier.”

Pressure on global sea freight is expected to continue

Most online retailers’ sales follow the 80/20 rule, 80% of orders come from 20% of their total SKUs. Ryan’s advice for Kiwi businesses is to order larger quantities of the top-selling 20% of items for peak season. He says New Zealand retailers shouldnt be afraid of running aggressive sales on slow-moving products (the other 80%), if the supply of goods or materials is delayed to ensure they capture much-needed revenue during peak season. “It’s critical to be flexible and quick to pivot during these unprecedented times.”

Closer to home, Melbourne businesses are reopening after enduring some of the longest lockdown periods worldwide. Kerry Osborne is a business mentor advisor working with SMEs in the Victorian capital and says supply chain issues have seen many manufacturers become less reliant on overseas imported materials.

“Manufacturers are now looking to the circular economy to supply recycled product, such as recycled plastic pellets for their goods. Also handmade and local products are really taking off both in online sales, but also within stores, as they open and use live streaming for those still unable, or unwilling to travel. I am also seeing local communities and businesses banding together to promote their food, wine and local products regionally and in urban clusters, which also uses that sustainable theme and recycling, circular economy at its heart.”

The Ministry of Foreign Affairs and Trade says globally the effects of Covid will continue to strain supply chains and ongoing pressure on global sea freight is expected to continue as are long standing cargo delays. This is particularly prevalent for ports along the USA West Coast. In response, businesses that usually ship to the West Coast have shifted cargo to ports along the East Coast, Gulf and Pacific Northwest. 

Travel Restrictions

Difficulties around international travel continue to challenge export businesses. Whether it’s keeping front of mind with partners or securing offshore investment, it’s a frustrating environment and it’s easy for Kiwi businesses to feel left behind. 

Chris Perfect helps businesses navigate risk and says there are a few tactics that Kiwi businesses can employ to make sure they stay front of mind until our borders reopen. 

“Every geographic market, business segment, and industry is different. “There is no single factor that a business can rely on, but here are some themes that I’ve seen help clients navigate the pandemic to stay front of mind: 

  • be creative – there is an ocean of samey-samey client engagement out there, even small amounts of creativity in the look and feel of engagement can make a big difference
  • emphasise the relationship – think personalise, empathise, energise.
  • don’t use guesswork – chase feedback and monitor buying patterns relentlessly. Then learn from it: be better, be more resilient.”

For businesses concerned about raising capital offshore, investor relations and marketing expert Elizabeth van Rooyen says many professionals have realised there are plenty of opportunities they can access digitally, and businesses should leverage this. 

Difficulties around international travel continue to challenge export businesses

“In the venture capital world, there have been many instances of founders getting access to offshore investors through Twitter or other digital mediums that has led to funding entirely virtually. Because of this shift, investors are getting access to a whole new range of differentiated deal flow compared to the venture capital down the road from them. Business owners should take advantage of this.”

Team morale and productivity 

Along with the more business focused challenges, many companies are also working out how to bring people back into the office safely and productively in the months ahead. 

Chris says businesses that have done well in the USA are those that have focused on the aspirations and human concerns of their employees. 

“Some workers will find returning to the workplace difficult, many have happily settled into a life of remote working, others will have concerns about the risk of contracting COVID if they return to a shared workspace. Open and frequent communication is key, emphasising the positives: increased productivity, less loneliness, and firmer boundaries between work and home life. Businesses should be ready to make reasonable accommodations. With recruiting challenges in many sectors now is time to be pragmatic rather than dogmatic.” 

Former management consultant turned entertainment entrepreneur Rebecca Assice says her key tip for New Zealand businesses is to use this time to work together with your competitors to reopen your industry in the most productive and positive way possible. “Collaboration is more important than competition”.

Whatever your focus is over the next few months, remember that you are not alone. Kea Connect’s free service is happy to connect you with our global community of experts to help with the challenges facing your export business. If you would like an introduction to any of the contributors mentioned in this article, or anyone else in our international community, reach out today. To learn more about how Kea Connect can help your business and our process, see here.

We would like to thank those people from our global community of experts who helped with this article. 

Ryan Bennet, VP of Sales, Fulfillment at  ShipHero, USA

Rebecca Assice, Owner, Virtual Room Asia Pacific and Escape Hunt Australia & NZ, Singapore

Chris Perfect, Owner and Principal Consultant, Concept and Perspective, LLC, USA

Kerry Osborne, Lead Mentor, Managing Partner, The Leaders Mentor, Australia

Elizabeth van Rooyen, Head of Investor Relations & Marketing, Invest Unlisted, Australia

Filed Under: Businesses going global, COVID-19 recovery, Global Kiwi, Kiwi coming home

The report builds on Kea’s Welcome Home survey released in November last year when we sought to understand the timeframes, skills, industry experience as well as needs – of our returning Kiwi.

With the world continuing to evolve and adapt to the Covid-era, we saw the need to reconnect with our Kea community – to understand how the last 6-12 months have affected them, and how that could be impacting their decisions for the future. We wanted to understand what’s changed for offshore and returning Kiwi? How can Aotearoa make the most of this moment in time?

Kea Future Aspirations Survey Results Returning Feedback

We continue to see strong intentions of our offshore Kiwi planning to return to Aotearoa.

Kea Future Aspirations Survey Results Permanently Staying Feedback

Of those intending to return, 69% intend to do so permanently. Returning Kiwi are wanting to develop their roots in Aotearoa and invest.

Kea Future Aspirations Survey Results Experience Feedback

While their choice to return is primarily lifestyle-driven, our returning Kiwi bring significant expertise and skills. 40% of people who have Senior, Director, VP, C-suite or Board experience, indicated they have 10+ years experience in this space.

Kea Future Aspirations Survey Results Contributing Back To NZ Feedback

While many Kiwi choose to remain abroad, their connection to home and willingness to contribute remains

Now is the time to act to unlock the potential of our exploring Kiwi.

Click here to access the full #KeaFutureAspirations report

If you’d like to enlist the ideas and experience of our offshore and returning Kiwi to support your business, please get in touch and let’s engage our global explorers. 

Filed Under: COVID-19 recovery, Global Kiwi, Kiwi coming home Tagged With: Coming Home, Economic Recovery, economy, Future Aspirations Survey, Growth, opportunity

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