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Business Growth

China’s economic rebound gained momentum in November as official purchasing manager indexes for the manufacturing and nonmanufacturing sectors both reached their highest level so far this year.

The Gross Merchandise Value for 11.11 – Singles Day (an online shopping festival on Nov 11th) exceeded 570 billion 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. JD recorded sales volume of 100 million yuan ($14.96 million) in 10 seconds via livestream on the evening of Oct 31 (Single’s Day pre-sales). 

One Kiwi dental care brand based in China – Grin, collaborated with three famous livestreamers over this year’s 11.11 shopping festival. Over 8 minutes, the livestreaming collaboration saw Grin sell over 4,000 toothpastes. Not many foreign brands in China leverage livestreaming, so Kiwi businesses that are considering to market their products on e-commerce platforms should take this buying habit into consideration.

China signed the world’s largest free-trade deal – the RCEP (Regional Comprehensive Economic Partnership) agreement with 15 countries, including New Zealand. This will usher in fresh opportunities in services and trade and investment between China and New Zealand.

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

Fix and Fogg

Can you tell me a bit about the background of Fix and Fogg? Did you always have global ambitions?

Andrea and I started Fix & Fogg 6 and a half years ago with the goal of creating something meaningful, sustainable and delicious. Things started small (in the kitchen of a lawn bowls club to be exact) but there was so much local demand for what we were making that the business quickly progressed. We now supply supermarkets and specialty stores across New Zealand as well as Singapore, Australia, and the USA.

It’s funny you ask about our global ambitions because the name Fix & Fogg actually comes from two characters in the classic 1873 adventure novel, Around the World in 80 Days. At the time I liked the idea of the business being a great journey and adventure. We are now well beyond 80 days … but Fix & Fogg (the peanut butter edition) is slowly starting to go around the world.

Why did you choose the US as the next location for one of your window shops?

The US is the biggest and most competitive peanut butter market in the world, so naturally we were drawn to it. It’s a bit of a brave and bold move but we’re committed to taking our products, values and proud Kiwi story there. Texas in particular had a great appeal given its huge size and opportunity. We found an ex-pat Kiwi living in Houston and we immediately clicked. We always wanted to open a small window in the USA to give our brand an anchor point in this new market.

To what extent did Covid-19 impact your expansion into the US?

Covid-19 has been a rollercoaster for most businesses and F&F is no exception. It crushed our travel plans, delayed ranging decisions and closed our Houston retail window after it had only been open for one week. The upside was that our US online sales went through the roof – we were lucky to be offering US consumers something that is an every-day item. We also snagged some unexpected press by a well known publication rating us as the ‘world’s best peanut butter’, which significantly helped our sales. You can read about it here.

What does your team structure and operations look like given you can’t really travel at the moment?

We employ two people in Texas who look after everything from selling jars from our window, packing online orders and pitching to supermarkets. We’re a true start-up in that sense – it’s a tiny team trying to make some noise in a large, saturated market. They’re backed up by a team in NZ managing strategy, operations, finance and marketing.

Beyond Covd-19, what has been the most challenging aspect of expanding Fix and Fogg into a new market? What has been the most rewarding?

Dealing with any new export market is challenging – and we often say it takes 2+ years to properly establish yourself somewhere new. The USA is a lot different to New Zealand’s FMCG market – there’s more complexity, players and layers of bureaucracy. Geographically it’s a much larger country so logistics and freight add another cost element.

What advice would you give to businesses looking to expand into a new market during this time?

Do your market research and get advice from as many people as you can to understand the opportunities but also challenges and risks. If you’re in it for the long-term then the current situation shouldn’t stop any decision to pursue a well-thought out strategy.

CONTRIBUTOR

Roman Jewell

CEO and Founder

Fix and Fogg

Kea member

WeWork Headquarters, Shanghai
WeWork Headquarters, Shanghai

How did Linehouse come about?

I moved from Wellington to Shanghai in 2009 with an opportunity to work for the international Architectural practice, Neri & Hu. I chose China, as I felt it was evolving rapidly. Shanghai had a progressive pace, with less design boundaries and entrepreneurs more willing to take risks. Eventually I felt I needed to pursue my own business to allow my design ethos to evolve and be recognised. So along with my colleague we started Linehouse.

One of those entrepreneurs who were willing to take a chance early on was WeWork. They were just starting out in Asia, loved our design ethic and flew us to NY. We ended up designing their China HQ in Shanghai, located in a historical building; an opium and ammunition factory. We  repurposed the building, revealing the history where appropriate, carefully balancing new and old. The design process and outcome was well received internationally and for a small company starting out the press was great.

This helped build our profile, but like any business there was still a huge amount of hard work ahead.

Why did you choose to focus on the Asian market?

As many Asian cities are modernizing there are a lot of opportunities, clients are willing to take risks, embrace new design and there is a sense of momentum in the design industry. Even amongst all the developing Asian countries, the sense of design, craft and the willingness to involve good design is very real which for the right designers provides opportunity.

In New Zealand there is often a lot of regulation that you have to work with to have your ideas realized, which sometimes makes the design process more challenging.

More recently in Hong Kong I saw a gap in the design industry which I wanted to pursue. Much of the city’s development is dominated by a few main developers and I wanted to offer a fresh young perspective on design. We got our first high profile Hong Kong project; a restaurant called John Anthony, a modern take on dim sum for a well established F&B operator, this project enabled me to make the move to Hong Kong.

The client backed our fresh approach, and saw it as a steer away from old world luxury design you see predominantly in Hong Kong’s hospitality industry. The international recognition in press and awards was again very helpful to have the design be seen and socialized what we as a design studio offer. This allowed us further opportunity to connect with the leading developers with projects that are aligned with our design ethic. With the move to Hong Kong proven successful, we now use Hong Kong and Shanghai as a base for working on projects throughout Asia, Europe and Pacific.

Where do you draw inspiration from?

I always want our work to be contextual and meaningful, we do a lot of research on the project and its context to establish the driving narrative. When starting a project we will investigate the site, location, history, local culture and craft to draw a concept from. In doing so I believe it brings an enriched experience.

There is a huge amount of history in craft in Asia / Pacific to draw from and I am constantly inspired by this. Working with local craftsman and localizing our projects in the sourcing of materials and workmanship.

From a design perspective, the studio operates as a platform to investigate the rituals of inhabitation and how these daily moments can be celebrated through design, transforming the mundane into performative acts.

What has been your greatest challenge throughout your career? What has been your greatest achievement?

It was challenging starting my own company at the age of 30 in a country like China, where nothing is straightforward. The language and the cultural sensitivities were very challenging. The pace of construction and time frames for projects are always demanding in Asia, often we have had to embrace a sense of flexibility in our processes and practice in order to get the best outcome. When I moved to Hong Kong, the challenge was again repeated, with the benefits of what I had learnt perhaps with the added pressure of bigger jobs and soon doubling the studio team and managing those responsibilities.

Perhaps my greatest recognition of achievement to date was being awarded the Dezeen Emerging Interior Design Practice Award at the end of last year (2019) in London. This is one of the top platform’s on an international scale for our practice to be recognized, and provides some satisfaction for the hard work we put in.

How do you stay connected to New Zealand whilst living abroad?

I grew up in a rural community in Gisborne. My background draws me close to the land and from that I am always conscious of introducing these forms into my work. Home remains New Zealand, that is where my heart is and I’m always drawn back there and for longer and longer periods with new family commitments and work opportunities.

What’s next for Linehouse?

I would like to see some of the NZ/Australia projects come live as I spend more time in Australasia so I can bring back my learning’s in Asia to the Pacific. There is a small pool of designers in NZ and I think I can offer a fresh youthful female perspective to the architecture and design space drawing from my experience across Asia and Europe with many top operators.

As a business we are fortunate to have navigated our way through different disruptions in the region especially in the last 12 months and are currently loaded with good projects. We have benefited in having diversification across the regions in terms of project locations especially more recently as the regions are impacted at different times.

So we need to continue to focus on keeping the right opportunities coming our way and this is especially important now when economic environment is challenging. At the same time always ensuring our design is relevant and fresh.

As a taste of our bigger projects that we are currently working on:

  • An architecture and Interior design of a 10,000m2 modern office building in Macau;
  • A large residential project with amazing views of Hong Kong south coast;
  • The design of the food market for the new Booking.com campus in central Amsterdam;
  • A restaurant in Osaka for W Hotel opening this year;
  • An upscale Foodhall in an iconic building in central Hong Kong just opened;
  • Two multi level commercial retail projects (45,000m2) in Bangkok.

CONTRIBUTOR

Roman Jewell

CEO and Founder

Fix and Fogg

Kea member

Maryellen, Jeremy, and Jeremy’s half-sister Kate.

How did Piha Pies come about?

I’m from Auckland and moved to the UK in 1991 as a young cameraman and I’m now a Director of Photography working for all the channels including the BBC, C4 and most recently Netflix.

As a Kiwi, I always wondered why you couldn’t get a decent pie in the UK like the ones in NZ. So after many years of talking about it, in 2018 my wife Susanne and I took the plunge and started a little side business making pies from our converted outbuilding in Forest Hill. Then in September that year, we set up our first market stall at Norwood Feast market in South London – and quickly followed up with other markets, pop-ups and events.

We called named it Piha Pies after my favourite beach on the west coast near Auckland, where I spent a lot of time in my teens, and it’s where I return to every time I’m home and I always grab a pie or two from The Piha Store.

The pies were baked on old family recipes. What’s the story behind that?

This is quite a story. I always enjoyed cooking and when I was younger and it was a toss up whether to go into cooking or into TV work. TV work won out and cooking was put on the back burner.  Then about 6 years ago I found out a huge family secret. On a Christmas visit back to Auckland, my mum and dad sat me down and told me that I had in fact been adopted and that my birth mother wanted to get in touch with me. Although this was a massive shock, there was a silver lining…..

3 months later, after the dust settled I decided to find out who my birth mother was, so I tentatively picked up the phone and asked the adoption agency my mother’s name. I immediately googled her and up popped a newspaper article about Maryellen, the owner of a well renowned cafe in Kohu Kohu, Northland – famous for its pies.

Many months later after many email exchanges, getting to know each other and bonding over pie talk and a general love of food and cooking, we met up in NZ. I showed her photos of my childhood and got to sample some of her famous pies, which were laid out for my welcome. Talk turned to my dream of having a pie shop in London one day and plans were hatched to be taught some of Maryellen’s recipes. So, about a year later when she eventually visited me and Susanne in London, she taught me the family pie recipes. All the recipes were in Maryellen’s head, nothing was written down. We spent the next year practising her recipes, perfecting our own recipes and testing them out on family, friends and neighbours.

For our first market, Maryellen and my new-found sister Kate, also a great pie maker, happened to be over from New Zealand. They were able to give helpful advice and were like a lucky charm because the 100 pies sold out and Piha Pies got really positive feedback.

Do you attract mainly homesick Kiwi customers?

There are always lots of Kiwi customers at the pie stall but it is mostly Brits. What is incredible though is the number of British pie eaters coming back across the market to tell us they are the best pies they’ve ever had – which proves the power and draw of the Kiwi pie.

Since lockdown, we have started doing delivery of our pies – and there is a huge proportion of Kiwi buyers looking for comfort food from home.

Are there any particular moments that stand out in your journey?

It was an incredible moment to find out that we had won Best Newcomer in the British Pie Awards this year on top of a few other awards.

But the thing that really ignited our journey was the revelation that after all the years of talking about opening a pie shop my biological mother was already a professional pie maker and she was able to give such invaluable advice on how to start a food business.

Do you have a personal favourite pie?

We love them all and it’s hard to choose which is a favourite. It depends on what mood you’re in but if we had to choose, mine would be Pepper Steak and Susanne’s is Potato Top.

What are your plans for the future?

We want to expand the business so we can start supplying other businesses – we’ve had lots of requests from Delis, Butchers and Cafes to supply them with our pies. We would love to eventually start selling them in high end food stores and supermarkets so Kiwis and Brits across the UK can get hold of them easily. So we will be looking for investment to move into a bigger kitchen and start employing a team to upscale our output and distribution. 

CONTRIBUTOR

Roman Jewell

CEO and Founder

Fix and Fogg

Kea member

Confidence is growing in North America as we get closer to things returning to normal over the summer period, with the USA hitting daily records of three million vaccinations a day and the FDA approving more applications for treatment.

New Zealand companies are exhibiting this confidence through a clear focus on taking charge of their US market entry strategy. This is reflected in a global trend by Bloomberg that reported a 77% year-on-year bump in online “micro-sellers” as well as Shopify usage growing 70% over 2020.

We are seeing this charge led by the ever-growing NZTE presence in North America. The Made With Care influencer campaign has many eyes on New Zealand brands across the F&B space, Exports to the US have increased 18% in 2020, with the food sector – meat, horticulture, wine and chocolate in particular – all performing strongly.

Additional Covid-relief funding via NZTE is supporting Kiwi exporters in gaining helpful market insights and influential data to support their strategic direction. This has been reflected in market acceleration and has been another valuable amplification for New Zealand companies in the US.

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

Australia’s defence sector is seen as a key pillar of its economic recovery.  Over the next decade Australia will spend some $250 billion on improving their defence capability, and that will be backed up by a further $250 billion dedicated to maintenance and operations.

To enable a sustainable defence manufacturing capability, at least 50% of any programme must involve local providers.  This presents significant opportunities for New Zealand, being that NZ is deemed a local supplier by way of the CER agreement.

The opportunities are far reaching; think technology, small parts of the supply chain and high end specialist areas such as cyber security.  This, coupled with the considerable flow on effect for skilled labour development, signals exciting times ahead!

CONTRIBUTOR

Ciara Liu

Regional Director, China

Kea New Zealand

Kea member

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