Business Growth

What are the main challenges facing your business this year?

The vast majority of answers for this question could be grouped into three main categories: attracting talent, securing funding or investment, and adapting to changing technologies including the increase of AI.

When it came to staff businesses, they felt the biggest challenge was getting access to high quality staff and having avenues to recruit staff from. Last year, to support our community in this area, we launched Kea’s Job Platform. This site is specifically designed for businesses looking for people with global skills and experience and is a great way to showcase your role or business to returning Kiwi. If you are struggling to find the right person for your team, keep in mind that lately there has been a growing trend towards hiring people who have additional “softer skills”, such as communication, problem-solving, teamwork, and leadership skills which can make a long-term difference in your team.

Did you know that Kea Connect can work with your business to showcase opportunities for funding and investment? Every eight weeks Kea showcases businesses to our international community – if you would like to be included in these updates please get in touch with us at [email protected].

And finally if it’s technology questions or advice you are looking for, keep an eye on Kea’s event page, where we are working on a series of events where our community will share their thoughts and advice and answer your questions. We have two events coming up soon: our ‘What’s in Store for 2024?’ event and a tech-focused event for International Women’s Day featuring female trailblazers advocating for inclusion in their leadership and industry.

See our upcoming events here.

What are the three key areas you would like the most support in?

The answers to this question often mirrored the above as businesses look for support to navigate challenges ahead. We also had a number of people discuss the difficulty of finding funding specifically for pre-revenue companies especially when your product is not quite ready.

“We would like support to get in front of customers who understand that we are at a prototype stage, and are willing to work with us as we develop the product.”

A number of businesses are also looking for extra support to grow international networks and expand into offshore markets. Our Kea Connect service is the best way for businesses to grow their international networks and, most importantly, it’s free. Kea has a community of more than 800 solvers around the world – experienced Kiwi who are ready and waiting to connect you into key markets and distributors. This year, Kea will also have a focus on events and will be hosting a number of networking events globally which are a great opportunity for our customers to grow their professional networks.

Is there anything else you would like to share?

Many businesses shared their stories with us about the help and support that Kea Connect has given them and also shared their advice on how to get the most out of the service.

“There is a clear ‘best practice’ method to engage Kea Connect to get better outcomes; we had an amazing experience when we engaged last year, and the connections remain valuable today; but the way I empowered and helped to target the connections made a difference.”

“We have just signed up to Kea so we are still understanding how we can utilise all the opportunities. This year we are very focused… so hopefully we will see some good outcomes.”

Thank you to all the businesses who shared their thoughts and advice, please keep an eye out for future surveys.

What are some of the issues you have seen arise with Kiwi businesses and trademarks?

New Zealand businesses too often enter the Chinese market without having properly thought about brand protection – only to discover that their trademarks, branding and name are already owned by a local third party. If a business’s trademark is already registered, the true owner cannot operate under their current trademark. The business will be unable to sell their product under their original branding which means they will need to change it and create a Chinese name, unravelling years of previous marketing work and adding a significant extra cost.

If you have not registered your trademark but realise later down the track that you would like to get your products into China, the first thing to look at is protecting your intellectual property (IP). China is a first-to-file trademark country meaning whoever registers their trademark first becomes the owner, not the party who uses the trademark first. If there is someone that already has your trademark registered, or even something very similar to yours, you will most likely be unable to register yours. Unfortunately for some businesses, there are opportunists in China who search for brands all over the world and register their trademarks to make money. They do this by selling the trademark back to the original owner or by selling cheap products/services under the trademark in China or other parts of Asia.

It’s also important to be aware that as a foreign company, some distributors will offer to help with your trademark registration – this happens often, particularly when the relationship between the business and distributor is good. Distributors can often want to save a small cost and save the hassle, but not all of them understand the process of registering which can be detrimental to the business. It’s important to register under your own name.

How can businesses avoid this problem?

For total peace of mind, you should apply for the registration of your trademark rights in China before meeting with or discussing any business with a potential partner, service provider, distributor or client. It’s crucial to ensure your brand is clear for use in China and to register your trademark.

I have a gin business that I own with two Kiwi business partners. When we launched in 2016, we began investigating trademarking from the very beginning. We first looked at China and then the EU and UK, Canada, US and New Zealand and Australia. So, while we were still in the stage of trialling our products, we already had a view of potential markets.

What does it cost to register a trademark in China?

The registration of a trademark is by classes – there are 45 different classes, but not all of them are relevant. A separate trade mark application must be filed for each class the business wants to obtain protection.

We advise you to register in only relevant classes. For example, a wine company may want to register in class 33 for wine as the main category. Then, you may want to register in other potential classes depending on your strategy such as packaging, advertisement, and online which is becoming more and more relevant with the development of e-commerce in China.

In terms of disbursement, each class is 300 RMB ($60 NZD) and includes 10 items of goods/services. An extra 30 RMB is charged per additional item – it’s not too expensive and is definitely worth doing.

Considering the cost of marketing, brand building and potentially designing new logos and packaging if you find someone else has your trademark, it’s well worth getting in early.

How should businesses go about registering a trademark?

The best thing to do is get good advice. When companies come to us we work to conduct an analysis of the business’s current logo and look at what we call ‘registration risks’ to see what companies are sitting in the same industry or category as the business we are assisting. We then inform the business on anyone that has registered the same or similar trademark and the risk factor that comes with that.

Lately my firm has been collaborating with the New Zealand Business Franchise in China and the New Zealand Business Roundtable (NZBRIC) to build a free system which helps New Zealand businesses navigate the complex world of intellectual property and safeguard their innovations in China with a tailored Trademark Health Report covering the following:

Dilution risk: The harm that a trademark’s reputation and distinctiveness could face if someone uses a similar or identical mark without permission.

Registration risk: If your trademark is not registered in China’s trademark administrative system or if there are already similar registered trademarks that resemble yours, there’s a higher likelihood that your trademark registration application will be rejected.

Infringement risk: How likely you may be challenged for using the mark/logo without trademark registration.

The Trademark Health Report will also provide you information on who in the market is registering identical or similar marks/logos as you, and prior obstacles to your registration. It will also supply you with a comprehensive trademark strategy, countermeasures, and protection advice that is tailored to your business.

Ready to get started? If you would like to use this free service head here to fill out the application form and use the discount code NZBRiCTM1. If you have any further questions about trademarking in China, email [email protected].

Entrepreneur Stu Potter isn’t driven by money or world domination, rather his passion to start a business came from a desire to create more opportunities for rangatahi in his hometown of Gisborne and showcase to the world just what Kiwi are capable of.

“I guess StardustME grew out of a want to do something that hadn’t been done before in New Zealand, and the desire to inspire others to think big. We were stargazing one night on a camping trip in Tairāwhiti, and we started talking about space and under-utilised payloads – which is essentially the empty space inside a rocket when it goes into orbit. I wanted to create a company with a focus on sustainability and innovation and the idea of sending people’s ashes into space seemed to tick both those boxes.”

The first company of its kind in New Zealand and one of only three in the world, StardustME takes a portion of a loved one’s ashes and encloses them into a specially designed memorial token, this token is then placed into a rocket, and generally orbits earth for around five years. During this time family members can track the ashes via an app. When the rocket re-enters earth’s atmosphere, it flares as it burns, similar to a shooting star, leaving no waste in space. It’s an idea that’s resonated with many Kiwi looking to honour their loved ones in a unique way.

“We’d come off the back of COVID and there was a high demand for cremation and a high demand for virtual ceremonies and memorial services. It was then I thought that space could be used as a continuum to connect people through technology. Through research and existing connections I had in the funeral industry, I realised that consumers were looking for different ways to honour their loved ones’ past.”

From concept to cosmos

Having a good idea is one thing but turning it into a viable business is another. Stu says It took years of research and development testing to, quite literally, get the company off the ground.

“As with anything related to space, there’s a long lead in time. You’re looking at a three to five year window of research and development testing, refining, compliance, and then you’ve got all the launch logistics.”

Creating a relationship with SpaceX and highlighting the success of a similar business in the USA, gave StardustME the initial leverage to prove the logistics were safe and the business proposal was viable.

“You can appreciate we had to show that we were dealing with families in a respectful way. It was a big challenge but it came back to our relationships with our partner the Funeral Directors Association of New Zealand, and having host funeral sites both here in New Zealand and the States.”

Early on in his business journey, Stu’s belief in the StardustME concept was further validated when his cousin passed away.

“My cousin was living in Australia when he passed, but we grew up together in Whakatane. At the time our family couldn’t get his ashes back into the country because of COVID restrictions and therefore he was never able to get the memorial service he should have. I approached his family with the idea of sending his ashes up as our inaugural launch, and they agreed, now we can watch him weaving through the stars in the evening sky.”

Crucial connections

Another challenge of launching the business was the cost. As a self-funded company, solid connections with like-minded companies was critical in turning conversation into mutual opportunity. This was where Kea Connect helped Stu to not only network with the right companies in New Zealand, but expand their horizons in overseas markets.

“Working in a small business can be very isolating, scary and lonely, and sometimes you just need someone positive and optimistic with a really good outlook to talk to. Kea Connect helped me to be more focused on where we are trying to get the business overseas.

“Kea connected me to the right people overseas that could give me their evaluation of how things are in the markets we wanted to enter without having to deal with all the costs that are associated with market research.”

Having successfully completed two launches and now validated in the New Zealand market, StardustME expanded to Australia in late 2023. Their focus shifted to becoming an export business, with plans to grow in Australia before exploring other markets.

Stu also aspires to bring jobs in the space industry closer to home and for it to coincide with the work StardustMe is already doing.

“I want to showcase that we can build a space community in Gisborne. I’m currently looking into how we can put that into action alongside StardustME.”

Kea Connect supported StardustME with connections in Australia, enabling them to officially launch their business there in late 2023.

Sapro-Tech’s Founder Keith Hudson strongly believes that the climate crisis is the biggest issue facing humanity and sustainability is the most impactful action we can take for our planet.

“We’re going forward two to four degrees in temperature by the end of the century. According to the Intergovernmental Panel on Climate Change (IPCC) we should be shooting down greenhouse gases, but it is still going up and that’s really critical.”

With a background in science and technology spanning 20 years, Keith wanted to use his skillset to find a business solution that would address these very issues. Inspired by the native bush that surrounded his home in the Waitakere ranges, where various species of fungi thrive, Sapro-Tech was born. The company focuses on next generation materials using the amazing properties of mycelium, i.e fungi.

“I have a very ecological perspective. I realised that fungi are remarkable in the number of forms they have. The ones we are interested in are called polypores which tend to grow on dead trees. Fungi are fascinating in the structures that they take from slimes and corals to almost wood like structures such as artist brackets – this variety gave us inspiration to perceive that they could create new materials. I looked at opportunities in creating sustainable businesses, and this is where I thought there was the greatest opportunity in terms of intellectual property, my skills, and a gap in the market.”

**Sapro-Tech’s founder Keith Hudson analysing fungi in the lab.**

Navigating opportunities and scaling innovations

Sapro-Tech’s advantage lies in the way the company uses fungi to combine low cost plant-based products in novel ways and produce a range of materials.

“At Sapro tech we believe we can create products that have similar performance metrics and costs to current leather – and we can probably make a range of materials that even go into plastic-like materials.”

Sapro-Tech Chief Commercial Officer, Andy Hamilton says the main challenge is scaling their business so they can get to a point where consumers eventually prefer an alternative leather.

“There are other companies that are trying to find alternative ways to make a contribution – there’s mycelium leather, cactus leather, pineapple leather – it’s a significant trend. But, what manufacturers and brands are struggling with is obtaining supply of these materials in a form and a price that is just as good, if not better, than real leather.”

Sapro-Tech nearing the end of their second generation of material. The pivotal point for market readiness is expected to emerge in the fourth to fifth generation which Andy says brings a distinctive challenge, how to establish a market presence and engage with potential consumers/partners when your product is not yet available for distribution.

“Often you can only engage with the market when you have something to show them, our challenge is that we haven’t yet finished the second generation of material and we generally aren’t ready to show people those materials. Therefore, how we communicate the possibilities of the product is really important.

“That’s where Kea Connect has been really great. They have helped us with introductions across the world and we have been able to meet people who are also committed to sustainability and are interested in potentially partnering with our brand.”

“It’s important to be clear in the way you communicate/engage with the market – we’ve learnt it’s less about us and more about them. Be consistent. Communication has a big part to play in the openness from the other side.”

**Chief Commercial Officer Andy Hamilton (far left), the Sapro-Tech team, and founder Keith Hudson (far right).**

Kea Connect supported Sapro-Tech with connections in Europe, the United States and New Zealand – some of these connections are now looking to partner with Sapro-Tech in the near future.

Building on recent nation branding efforts and featuring a line-up of talent diverse in both thought and sector, the Ingenious Together films promote innovative Kiwi businesses and well-known ‘friends of New Zealand’ with ties to Kiwi business, exploring why such homegrown thinking attracts the world’s attention.

There is a 1-minute film for five key markets including the USA, Australia, Singapore, Japan, and China, with each film bespoke to the region. The Singapore and the USA films are the most global, so can be used for other markets.

The films will be used online across New Zealand Story’s social media channels and will be supported by paid media in their key markets to showcase New Zealand’s ingenious way of thinking to a global business audience.

They are also available to download from the New Zealand Story Toolkit and use within business meetings, events, and presentations to reinforce the unique way of thinking that sets New Zealanders apart.

At a time when our borders are closed growing perceptions of New Zealand as an ingenious nation is critical as our weightless export sectors such as technology, gaming and the creative industries are still very much open for global business.

Find out more about the campaign here.

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December sees the UK coming out of Lockdown and into a revised 3 Tier system, although perhaps not a lot of change in day-to-day life. As well as navigating the ever-changing world with Brexit negotiations. There is a return to some high street shopping and hospitality, venues who have been able to adapt to open with winter friendly outdoor seating are seeing steady traffic but are still challenged by working within new strict limits of serving alcohol with a substantial meal (although a scotch egg counts!) and mixed household limits.

UK Shoppers have continued to dial up their online purchasing and we have seen Christmas shopping starting early and may be longer. Key categories are in steady growth, tracking at 12.4%+ vs. last year, this is a trend that will look to continue as online becomes more of the day to day purchasing shopping habit.

Within the grocery sector, consumers shopping choices have seen massive increase in those wanting to cook at home, winter has seen an emergence of posh coffee at home as well as slow cooked meals and winter barbecues. The entire supermarket industry is up 13.2% which is an opportunity for NZ businesses with strong relationships to see continued increase in demand.

Private Label offering and share is declining to 33.9% in the last quarter from its 52 w/e figure of 34.2 as consumers resonate more with brands. This is potentially good news as people trust brand New Zealand and may also trade up and treat themselves in this super premium sector over the festive season.

Positive vaccine developments and the first vaccinations given on 8th December, have helped to drive FTSE 100 growth, however the government is forecasting that unemployment will be back to levels seen in the last recession in 2009. Closures of high street retailers like Topshop and Debenhams are adding to this.

As the snow threatens to make an appearance, yearning for a bit of joy from home has never felt so needed, especially at this time of year. With the difficulties of limited opportunity to connect ‘in real life’ with home, sharing the amazing initiatives like Whānau – Voices of Aotearoa far from home at the Royal Albert Hall gives a well needed warm boost.

CONTRIBUTOR

Sara Fogarty

Regional Director, UK & Europe

Kea New Zealand

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