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Europe

Sara Fogarty – Kea New Zealand Regional Director UK & Europe

If a year ago you had told me that we wouldn’t have been on a plane, tube, bus or been outside of our house for longer than a couple of hours at best in 10 months, I wouldn’t have believed you.   If you had said that our 5 year old would be navigating Zoom like a Silicon Valley tech wizard, as he attended ‘Zoom School’ from 8.30-3.30pm, I wouldn’t have believed you.  We have had one dinner out at a dear friends restaurant since March 9th.  We have virtually shared birthdays, weddings, and special occasions with friends and family in the UK as well as at home.  We are fortunate to have employment, both having started new jobs in 2020 – this has all been virtual, from the recruitment to appointment and now the crucial time of  building relationships with our colleagues, key stakeholders and customers: our 2020/2021 reality.  The issues we face seem trivial, compared with what so many are facing.  We take it one day at a time, one week at a time.  As 2020 finished with more last minute changes and trying to navigate what we could and couldn’t do, who we could and couldn’t spend the festive holidays with, we re-adjusted to new lockdown tiers.  This time it came with added uncertainty of how long this next one would last for, alongside the fear of the numbers we receive each day and the devastating news that goes with this. 

Our son is adaptable, having grown up chatting and sharing with grandparents and family in New Zealand on Zoom. He is confident at school, putting his hand up and sharing his stories or answers to his amazing teachers questions.  But others are not, via the visibility of Zoom and being a part of the millions of parents home-schooling their children, we get an insight into the kids and teachers in class, their personalities and their worries.  We find it fascinating to see how they are being taught, and are full of admiration (growing each week) to the teaching staff for their caring nature and going beyond to keep the kids feeling safe.  Who would want that role with potentially 40 parents watching/listening in as they also try and work from home while making sure pens, paper, water, food, mute buttons are navigated.  We are all sharing this and at present we don’t really have an end date in sight.  

We have baked @whats_for_smoko forgotten fruit muffins each week, had zoom dinner dates and drinks with friends, discovered the joy of Nano-girls podcasts and Les Mills ‘Born to Move’, but ultimately spent time all together, the three of us. We view it as bonus time, prior to Covid-19 we were rushing around, flying here and there missing each other, but now we have the time to be together, enjoying that extra game of Ludo. 

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 and what home continues to do, 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 to the opening of the markets, face to face events, and a return to life as we knew it here, all will be slower than we wish for.  We are very conscious of how fortunate we are. We are healthy, happy and safe. Our greatest purchase in the past year was a chest freezer, we know the joys that London, UK & Europe offer after almost a decade here.  It really will return, the spring bulbs are starting to push their way through the ground, the days are getting longer and even in the first flush of snow today, brings joy, but we just have to wait it out.   There will be more weeks of reassuring our son that one day he really will be able to play with friends in the park again, he will have sleepovers and be able to give his best buddy a hug, but just not now…12 months ago I wouldn’t have believed you.

Alex Reedijk – General Director, Scottish Opera 

As photos showing off idyllic summer life in New Zealand start to pour into my social media feeds, it’s hard not to reflect on the contrast between life in my birth place and our current life here in Scotland.

It is possible to argue that prior to the arrival of Covid-19, the socio-economic and, to a lesser extent, the political divide was loosely similar in both countries. However, 10 months on, the gulf couldn’t be greater. One of the differences I see is that New Zealand has shown both political courage and genuine commitment in taking a strict approach, whereas in the UK this has been a flip-flop path of political least resistance leading to the terrible toll that has been inflicted on the population.

Credit: James Glossop

The world of the performing arts here in the UK is having its own special version of ‘a long Covid’ as a consequence of the necessary social distancing guidelines. What helps us through the long winter days and reminds me there will be a new normal, is the evidence from our recent outdoor La bohème of the tremendous resilience and ingenuity shown by our artists and a deep desire from our audiences to come to live performances as soon as it is safe.

Julia Maile, London. @merrygoround_uk

We’re now in our third lockdown and it feels really grim. We’re required to stay at home, again. Schools are closed so we’re juggling homeschooling our daughter with work. Our favourite pubs, restaurants and shops are closed and we’re not allowed to meet our mates. We’re not supposed to leave our local area, let alone travel overseas.

Yet despite all these restrictions, the statistics continue to get worse by the day. I’m really fortunate that my little family is healthy and our jobs haven’t been impacted. But it’s heartbreaking to see the toll it’s all having on others within the community. The UK daily death toll is one of the worst in the world, families are grieving, businesses are closing and people are really struggling with mental health, especially young people.

The vaccine does give us some hope that the worst of it will soon be over. There’s talk of a ‘Roaring Twenties’ when we emerge from it all but I’m just as excited about the prospect of a normal day out. Meeting up with a group of friends, hugging, having a glass of wine in a pub, visiting a museum. Everyday things that I used to take for granted now feel like the biggest luxury. I promise I won’t even complain about going to the gym. I can’t wait.

Genna Elvin, Chief Tada Officer, Tadaweb, Belgium

As a Kiwi living in Belgium and running a company in Luxembourg since 2011, Covid-19 has definitely made things… well, interesting. In our company, since day one, I have worked hard to integrate the Kiwi mentality of “work hard, play harder” which has meant our culture has always revolved around the notion of “being together…” in our office. 

So when the Government insisted on working from home, it created a bit of a shock to the system, both for our company and for me personally. However, if there is one thing I have learnt more than ever over the past months, it is our incredible ability to adapt to change. 

Within days we were at home, but each of us were very dedicated to ensuring our culture, work ethic and comradery remained strong. As a team, our company has adapted, and we are just as strong as ever. We are now leveraging this opportunity to make communication between our global offices stronger and we will never again take for granted the power of being together and having fun. 

Melanie Brown – Specialist Cellars & The Laundry, London based.

We opened the doors of a 120 cover restaurant, The Laundry in Brixton, November 2019. A lifelong dream had now become reality. Having had the support and guidance of an incredible group of investors we fell into our rhythm as we prepared for the summer months, early 2020. 

As Covid-19 unravelled, I never anticipated the brutality this virus would carry, crippling our industry with force. Sadly hospitality has been given little support, the independents left to fight their corners whilst spending 12 months in survival mode. The government has contributed minuscule amounts to assist with our survival, but it is never enough – overheads continue and the revenue has stopped. The furlough scheme helped to protect our employees, but its narrow minded rules meant we couldn’t utilise the skill set of our employees willing to build and grow our business. 

Strangely any other businesses could employ our employees on furlough, but we couldn’t – absurd. We pivoted more times than I care to remember, from groceries to takeaway food, but as we launched into Lockdown 3.0, enough was enough. The brutality had affected not just our bank balance, but equally the livelihoods of our entire team. How was I meant to lead a team and motivate a team when I was broken too? 

Since we opened in November 2019 our doors have been closed more than they have been open, as a small and brand new hospitality group in London, this breaks our souls.  The last 4 weeks we’ve remained closed, no pivoting, no takeaways, no life, we’re letting our little restaurant sleep whilst we take hold and control of our business. There has to be a silver lining I say – and if the last 4 weeks have taught me anything, there are plentiful silver linings… 

How many restaurateurs have the luxury to stop, asses and reset before re-opening their doors? Yea, well I do – and we’re not resting on our laurels. We’ll be back much stronger and more committed to London hospitality than ever before, our fighting Kiwi spirit will make sure of that.

Monica Tong, Artist, Momo Production

I am a Kiwi Asian living in London, an ex-banker who has become a ceramic artist running a studio called Momo Production. During the lockdown in the past year we had very limited access to our studio, however I was fortunate enough to participate in three exhibitions in Shanghai, Auckland and London. However in tier 5 what we are currently under in the UK, everything is closed. The way I’ve learned to cope with it is to share my art journey on zoom with various community groups, including Clay for Dementia, Online Life Drawing and online teaching to people aged between 10-90. I believe lockdown enables us to learn skills and share skills globally and by releasing our creative mind, it improves our daily mental wellbeing and see the world from a different angle.

Would you like to add your experiences of living through lockdown? Email us at [email protected] – we’d love to hear from you


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Filed Under: COVID-19 recovery, Global Kiwi Tagged With: Community, Europe, lockdown, london, stories, UK

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

Kea member

Filed Under: Businesses going global, Global Kiwi, World changing Kiwi Tagged With: Business Growth, Europe, Insights, Regional, Sara Fogarty, UK

Kea was pleased to host Paul Hardy – UK Head of Government Relations for DLA Piper,  Lord Barwell – former Chief of Staff of Theresa May, and Nick Swallow, NZTE Trade Commissioner UK & Ireland at our recent webinar.  We covered topics including:

  • What outstanding changes are due to come into force, and what exporters need to know now
  • Key implications of the Free Trade Agreement (FTA) and the Trade and Cooperation Agreement (TCA)
  • How to navigate the updated requirements when shipping into Europe from the UK

Find out how Kea Connect can help you explore new markets here.

Watch the full webinar recording below.

HOW KEA CAN HELP

Join

Join the Kea community, and stay connected to New Zealand, its people and businesses wherever you are in the world.

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Jobs

Post job opportunities and attract internationally experienced Kiwi talent.

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Help Kiwi businesses explore their global potential through our worldwide community.

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Filed Under: Businesses going global Tagged With: Brexit, Europe, Export, Market update, UK, United Kingdom

Spring is here bringing spectacular daffodils and a loosening of covid-related restrictions. Schools are back and small gatherings are allowed outside now but realistically it will be June before we are allowed to socialise in groups inside, ironically just as the sun comes out!

The impact of Brexit for business is reflected this month in a continued drop in shipments between the UK and the EU.  Business leaders attribute this trend to a number of factors: British businesses stockpiling inventory before the UK left the EU, the difficulty in navigating the post-Brexit paperwork needed and also changing official advice.

British exports to the EU year on year dropped 38%, and its exports to the rest of the world were down 7.5%.  At the same time, Britain imported fewer goods.  Imports from the EU were down almost 16% and those from the rest of the world dropped more than 9%. Despite these challenges, the UK is definitely open for business, and continues to proactively work with other exporting nations even as friction in cross-border commerce increases.

Although business leaders in the UK anticipate continuing instability between the UK and the EU in the months ahead, this environment also creates increased opportunities for NZ businesses across sectors to seek opportunities and market share.

Where are we spending (UK Focus):
Overall consumer spending contracted by 13.8% in February as national lockdowns continue, but we are seeing some signs of recovery compared with January as essential spending increases. This has been driven by strong spend in supermarkets and record year on year spend growth at food & drink specialist stores. Overall there has been a 14% increase on retail spending in February vs January, driven by a 21% increase in grocery and general household spend seeing a 10% increase. Retailers with a considered online presence benefitted from a 43.3% increase in sales. 

Food & drink specialists, electronics, Home & DIY improvements are leading the charge as the nation gets ready for spring.  Digital content & subscriptions are still driving steady growth at 42.6%, while the hospitality, travel and leisure industries unsurprisingly continue to see negative growth.  As we all still remain at home, takeaway food delivery apps continue to benefit and online eating and drinking spend grew by 92.6%.  

We take delight in seeing those septuagenarians and above strutting the streets with a skip in their step and a smile in their eyes, as the vaccine roll out continues with great success.  There’s a real sense of optimism with longer days and the knowledge that more and more people each day are protecting themselves and their loved ones by taking the vaccine.

CONTRIBUTOR

Sara Fogarty

Regional Director, UK & Europe

Kea New Zealand

Kea member

Filed Under: Businesses going global, Global Kiwi, World changing Kiwi Tagged With: Business Growth, Europe, Insights, Regional, Sara Fogarty, UK

Locked down but open for business 

Being in lockdown doesn’t mean life stops. Sure the shops are shut & offices are closed but life goes on, commerce continues as consumers are still consuming and businesses still require services to operate. 

This means NZ businesses shouldn’t discount the opportunities that exist in the UK & Europe. It does mean however that the approach and mindset needs to be different and a need to accept that the higher level of fluidity will disrupt plans and hence greater flexibility is required with multiple contingency plans lined up which in themselves will probably need to be adapted or morph in to hybrids thereof. The thinking and planning won’t be wasteful, it’s just that you’ll probably find different elements will come in to play at different times.  

This insight is rooted in my own personal travel plans this year. Along with many cancellations there were many replans, eg, 2 trips to France become 1 longer trip to France & then became a longer trip to Italy. A trip to Italy was switched for a trip to Sweden that was planned for later in the year.   

Kiwis are typically resourceful and flexible so will continue to prosper. The will and the way. 

Don’t be freaked out by digital commerce – it’s just commerce done differently

It’s well documented that digital commerce has taken off. Hence to reach your customers, digital has become a necessary channel within which to be present. But don’t be afraid of it. The essential nature of business, the core challenges and what you do doesn’t change, its just that there has been a shift in how commerce is transacted and how you communicate.  

Essentially customers and consumers are still motivated in similar ways but their buying mechanisms and media consumption has changed. Your PC or mobile device is now your TV so your communication plans and creative execution will need to change to fit the media. 

As there always has been, there are expert service providers who can help you on this journey. 

Think value not volume

There’s no doubt that disposable income is becoming very tight as businesses fail and unemployment increases. At the other end of the scale there are people who are prospering and so the disposable income continuum is becoming stretched and more polarised. There is a melting middle ground and predominantly middle class societies will shrink.  

Whilst people are being more frugal and spendthrift there is evidence that they are looking for something more special than what they might have ordinarily bought, eg, where in the past they may have spent £6 on a bottle of wine and bought 2 bottles they might now spend £15 but only on 1 bottle. Or think Craft beer versus everyday bland lager. Consumption volume may be lower but value can be higher.  

Simplicity is your saviour

With all the uncertainty, now is definitely the time to keep your business simple. Make sure your processes are simple and clearly defined, and that you have a tight, core hard working range. Every product in your range needs to be a driver not a drainer. Under-performance at any point within the business is less able to be absorbed so eliminate it. 

Filed Under: Global Kiwi, World changing Kiwi Tagged With: Europe, Insights, John Alderman, Regional, UK

January 2021 hit hard. Although the grey days are getting longer and a flush of snow has brought some joy, we are all feeling the effects of Covid-19 groundhog days/weeks/months/quarters.  Stronger measures imposed by Governments around UK & Europe have seen retail and hospitality sectors closed (except for some takeaways and home deliveries). Schools remain closed to all but essential worker children, and parents are not only juggling their own virtual schedules, but those of their children.  Work days are longer, where we have no commuting time, this has been replaced with more ‘e-meetings’.  Parents are playing catch up on either side of the day with missed hours trying to navigate and fulfil their small people’s needs.

We now have an established habit of buying online and direct from producers.  We dearly miss the ability and option of browsing in stores and aisles, discovering new products, range extensions, and seasonal offerings.  Digital presence and cut through is paramount. 

57% of consumers now order at least some items direct from producers – a trend that will remain beyond Covid-19. “85 million parcels have been delivered direct to customers by manufacturers this year and that volume will grow almost 30% by 2023”  Lee Collinson, Head of Manufacturing, Transport & Logistics, Barclays

D2C will remain key for many and having a clear strategy to support this, difficult whilst being so many miles away for Kiwi businesses, but vital if you want to drive revenue streams from this region with so many retail and wholesale options limited.

Supermarkets continue to see steady growth. Specialist online retail is also increasing at around 34%, with food and drink retailers enjoying a boost. Unsurprisingly travel has been hit, but some early bounce back with confidence of the vaccine rollout and look to summer holidays/staycations.

Brexit has also brought about much confusion and frustration around the country, and also for our exporters as everyone tries to get to grip with what new requirements, labelling and logistics changes there have been.  Difficulty is emerging with movement of products to Europe from the UK and best ways to navigate this.  Time for our exporters to be even closer to their markets and partners and they’re understanding that things will take time to resolve.

It may be appropriate for business operations to be reassessed, explore new opportunities, evaluate where you operate from and how you go to market. Focus on your end customer and who they are, what their buying journey is and try to understand what they are facing in their day to day lives. The reality of the deal means that yes Brexit negotiations are officially at an end, but the UK & EU will now be engaged in negotiations of one kind or another for some years to come across many sectors.

Its not surprising that the sentiment is of frustration here and there is no clear end in sight. Dates are swirling around of a ‘hope’ to a return to school and some easing of restrictions on the 8th March in the UK. A dangerous date given its International Women’s Day, there could be the wrath of all mothers!

CONTRIBUTOR

Sara Fogarty

Regional Director, UK & Europe

Kea New Zealand

Kea member

Filed Under: Businesses going global, Global Kiwi, World changing Kiwi Tagged With: Business Growth, Europe, Insights, Regional, Sara Fogarty, UK

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