Rugby World Cup 2011 boosts export industry in transition

Rugby World Cup 2011 boosts export industry in transition

• Export confidence for coming year hits 70%
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• NZ exporters diversifying into Asian markets
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• Online commerce presents growth opportunities
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• NZ exporters considerably more confident than Australian exporters whose confidence is at all time low
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Auckland, 1 September 2011:

Despite the Tournament lasting six weeks, Rugby World Cup 2011 is set to give a much-needed boost to the New Zealand export industry, with the impact felt into 2012 and beyond, says the 2011 DHL New Zealand Export Barometer.

Exchange rates, fuel prices and the Christchurch disasters topped the list of factors that have negatively impacted exporters in the past 12 months, but New Zealand exporters are positive about the year ahead with 70% saying their export orders will increase in the coming year.

Phil Corcoran, National Sales Manager – New Zealand, DHL Express says confidence is improving:

“The DHL Export Barometer provides accurate insights into the factors impacting on New Zealand’s export trade. The export industry has taken a hit due to several factors in the last few years, but there is a slow-burning confidence, with two thirds believing orders will increase over the next year.”

Rugby World Cup 2011

Corcoran says some of this confidence can be attributed to Rugby World Cup effect:

“Rugby World Cup 2011 has put a bit of energy into the sector, with 40% saying they believe it will have a positive impact on their business’ bottom line.”

Nine out of ten of those who believe it will have a positive impact say this will continue beyond 2011.

Economic Impact of Asia

Showing the increasing reliance on the Asian markets, those exporting to Korea, China and Taiwan are most confident of orders increasing over the next 12 months. To prove this, 68% of those surveyed feel orders from Korea will increase over the next year.

“Australia continues to be the top export destination. China has emerged as another top export destination in 2011 coming in ahead of North America, Europe and the UK for the first time,” says Corcoran.

Online Commerce

Corcoran said the exporter community has had a difficult year but online commerce is presenting growth opportunities.

“Half of the exporters surveyed reported an increase in the levels of online commerce they have undertaken in the last year. Although competition has increased, e-commerce is making it easier for exporters to reach out to a wider market and will help many businesses react to opportunities in a timely and efficient way,” Mr Corcoran says.

The impact of online commerce on the industry has now been felt to a much greater extent. Social media in particular has crept up as a big factor, as Corcoran comments:

“Almost a third of New Zealand exporters say they rely on social media for their marketing. This is a huge percentage when we consider that the export industry is mainly made up of people who haven’t grown up with this technology as the norm.”

Australia

In comparison, the DHL Australia Export Barometer shows the strong dollar and natural disasters at home and overseas has significantly dented the confidence of Australian exporters. Corcoran highlights the stark contrast in confidence between New Zealand and Australia:

“Interestingly, only 48% of Australian exporters expect an increase in orders over the next 12 months, compared to 70% in New Zealand.”

The annual survey of Australian exporters found that exchange rates are challenging 81% of exporters, affecting their ability to compete with overseas rivals (72%), the prices they charge (70%), sales revenue (69%) and profit (68%).

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