Opportunity UK a success for New Zealand exporters

Export New Zealand
MEDIA RELEASE

21 March 2007

Opportunity UK a success for New Zealand exporters

New Zealanders with high-end, premium products should look to the UK market was the message from Opportunity UK, trade and investment summit, presented by Export New Zealand.

For sheer volume, look to Australia, entrepreneur Peter Maire recommended to the more than 250 exporters attending Opportunity UK on Tuesday at the Sky City Convention Centre. But for premium, niche-market products, the UK provides a sophisticated audience ready to try what New Zealand makes, he said.

American consumers are less likely to take a punt on an unknown brand, but UK consumers give more thought to their purchases and are more willing to try new brands and products based on features, said Peter, founder of Navman. “The UK is where Navman made money,” he said, adding UK consumers will pay for high-end products they like.

Ross MacKenzie, CEO of Old Fashioned Foods, found this to be true with the remarkable growth of Aunt Betty’s steamed puddings (sold under the Aunty brand in the UK). In three years, Aunty’s puddings have grown to almost 50 per cent of its market, knocking out competitors such as Heinz.

Ross was among an exceptionally strong line-up of experts from the UK and New Zealand providing insights for exporters considering expanding into overseas markets. The experts covered everything from salaries for your UK employees to branding to finding the right person for your company.

Any New Zealand company wanting to thrive must consider expanding beyond our shores, said John Heng, Group Chief Executive of Click Clack. Brushware and specialised plastics manufacturer Click Clack employs 250 fulltime staff. “Four million people isn’t enough to keep a factory with 250 [staff] running,” Heng said.

While the UK shares a language and culture with New Zealand, expanding overseas is always hard, the experts caution. Studying the market and learning local tastes will lead to success. The experts agreed it is ideal to have a mix of local and New Zealand staff when expanding overseas. Some 200,000 expat Kiwis live in the UK and many businesses already have a Kiwi on staff. But finding a local person who fits into your company can be difficult. Founder of Metlifecare Cliff Cook noted his company hired the wrong person and it set the company back a year.

UK Trade & Investment (UKTI) is prepared to help any New Zealand company as if it were a UK company, said UKTI Managing Director Ian Fletcher. He noted New Zealand is rich in ideas and innovation, which can find a place in the UK’s dynamic economic and social environment. New Zealand has a high profile in the UK ¬– for tourism, not for business. The 100% Pure New Zealand campaign was a success and Kiwis can build on this.

Ian Narev, Managing Partner of McKinsey & Co, offered four guiding principles for international for success. The principles are: make a commitment to international success; focus on your competitive advantage; take international growth in steps; use experienced insiders in local markets. Ian noted while the steps are simple, following them can be hard for any business.

Using the insights gained at Opportunity UK, New Zealand exporters have an edge as they prepare themselves to expand into the tricky waters offshore.

ends

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