Engaging in exportation offers a valuable avenue to access larger markets. While it holds the potential for excitement and rewards, it also comes with challenges, including frustration and financial risks. Mitigating these risks and uncertainties is possible through diligent market research, meticulous planning, and seeking financial assistance when necessary.
Prioritise extensive research before embarking on your planning phase. Consider research as an investment that equips you to make well-informed decisions, enhance your planning, better manage risks, and steer clear of potential mistakes.
Choose an overseas market
You might already have a specific country in mind, driven by personal preference or a belief in the market’s potential for your business. Regardless, thorough research remains essential to validate your choice and gather critical insights.
If you find yourself uncertain about which market to choose, follow these steps:
- Determine the key priorities for your business. For instance, consider factors such as proximity, especially if your products are perishable. In cases where excellent after-sales service is crucial, prioritise markets that allow access to highly skilled staff.
- Eliminate markets with political instability or challenges in repatriating profits. Restrict your focus to low-risk countries to minimise potential uncertainties and enhance the stability of your business ventures.
- Organise the remaining markets based on the factors you identified in the first step.
Investigate countries with which New Zealand has free trade agreements. These agreements facilitate trade by eliminating barriers, creating new opportunities, and providing businesses with increased certainty. Examples of benefits include tariff reductions or eliminations and streamlined trade processes.
Learn about trade agreements and get help
Free trade agreements in force — Ministry of Foreign Affairs and Trade
Many successful exporters concentrate on mastering one market before expanding globally.
Australia often serves as the initial choice for many New Zealand exporters, presenting itself as a practical test market before venturing further. Its proximity, English language, political stability, accessibility, and cultural similarities make it an attractive option. Additionally, the New Zealand–Australia Closer Economic Relations agreement allows for duty-free export of New Zealand-made goods, further enhancing the appeal of the Australian market.
Plan your research
Conducting research is a time-consuming process. The duration varies based on your existing knowledge and the time you can allocate but be prepared for it to extend over several months.
Optimise your time and resources by prioritising critical areas and thorough preparation. Pose these key questions to guide your process:
- What information do I need?
- Where can I find this information?
- Why do I need this information? What will I do with it?
- When do I need this information?
- What is this information worth in dollar terms?
- What is the likely cost of not getting this information?
Organise your information
Given the valuable and time-consuming nature of research, ensure the safe storage and backup of information to prevent any potential loss.
Organising information by country is highly beneficial. Allocate one notebook or folder for each country where you conduct business. Regularly update this information to maintain its relevance and usefulness. Include details such as product specifications, advertising strategies, and labelling changes to ensure comprehensive coverage.
Having comprehensive information in your notebook or folder will transform it into a valuable primary source for decision-making. Additionally, it serves as an excellent resource for new staff members to gain insights into the market.
Store your research in a location accessible to multiple individuals to prevent loss in case someone leaves and to facilitate collaborative updates by others.
Do the research
Engage in online research and seek advice from experts and fellow exporters. Gather tips on conducting business overseas, including insights on adapting to local customs and protocols. Learn from the experiences of others, both their mistakes and successes.
The following are key types of information you’ll commonly need about your potential market:
About your market
Discover the opportunities and challenges, such as:
- the market size, both in geographical size and dollar value
- market trends
- consumer spending patterns
- income per person (per capita income).
The market potential for your goods or services is indicated by these figures. Consider not only country-level statistics but also account for regional variations and potential urban-rural differences.
What your customers want and how they think
Learn how to grow your business overseas with myNZTE’s free tools and guides — myNZTE
Market insights for exporters — New Zealand Story
Once you’ve selected a market, subscribe to market intelligence reports to stay informed about ongoing developments.
Market Intelligence Reports — Ministry of Foreign Affairs and Trade
About Your Competition
Understanding your competition is crucial. Visit their websites to explore the goods and services they offer, and analyse their marketing and pricing strategies. Consider whether you need to make adjustments to your approach.
Looking outwards at your market
How to research your market and competitors
About possible partners
Before considering a partnership for manufacturing or distribution, conduct thorough research on the potential company.
Teaming up with other businesses
About trade and production statistics
Determine the growth or decline of your goods and services market by studying trade and manufacturing statistics over time.
What’s made locally in that market? What’s imported, and from where?
Imports and exports — StatsNZ
About legal and regulatory requirements
Find out:
- Research the taxes and duties applicable to your business operations in the target market.
- Determine the laws and regulations that your business must comply with in the target market.
Laws and regulations in your potential market may pose barriers by increasing the cost or complexity of exporting. Government policies and regulations can necessitate:
- Comply with administrative procedures
- Navigate export restrictions, adhere to specific licensing or labelling requirements
- Adopt designated data storage and protection measures
- Appoint specific individuals to your board
- Follow prescribed material procurement methods
- And adhere to price limitations on your goods or services.
To understand the specific requirements of different countries, consult the New Zealand Customs Service and freight forwarders. Your local Chamber of Commerce may also provide assistance with export documentation.
Compliance and logistics 101 – myNZTE
Contact chambers of commerce – New Zealand Chamber Network
Export resources — New Zealand Customs Service
About intellectual property
Learn the procedures for safeguarding your intellectual property, including copyright and trademarks. This is crucial, particularly in countries where there might be a lack of respect for intellectual property rights.
Protecting your intellectual property overseas
Copyright and trade marks — New Zealand Customs Service
About culture
Consider cultural differences as well. Being attuned to local customs can be the deciding factor in winning or losing a contract. For instance, in certain cultures, taking a business card without thoroughly examining it may be deemed disrespectful.
Learn the cultural and business norms in your target market, and strategize on overcoming potential cultural or language barriers.
Find other information if you need to
Access information from the following sources:
– Foreign government websites
– Business websites designed for specific countries
– Your local Chamber of Commerce, which may provide information and seminars at minimal or no cost, and may have networks with Chambers of Commerce globally
– The Export Library and Information Service, offering free, up-to-date, and reliable information, including country profiles, foreign exchange rates, and time zone details.
Export Library & Information Service — New Zealand School of Export
Think about intellectual property if you export a service
Safeguarding your ideas from being copied is crucial, especially when selling a unique service, process, or work methodology.
When selecting an export market, thoroughly examine intellectual property laws in that country. Additionally, consider doing one of the following:
- register your patent in your overseas target market
- apply for a patent under the Patent Co-operation Treaty.
Pursuing patents in various markets is valuable. This involves thorough searches for existing patents, ensuring awareness of any potential infringement issues.
Filing international patent applications— New Zealand Intellectual Property Office
Learn more about finance and modelling
Enhance your financial decision-making by leveraging our free resources to improve your understanding of finance and financial modelling.
Advanced finance: 7 key concepts
Financial models: Step-by-step guide
Get financial help
If you’re prepared to export but concerned about affordability, consider raising funds. For instance, you could:
- secure funding from angel investors
- seek investment from friends and family
- sell a share in your company
Use the Funding Explorer to find out your options
Explore alternative funding options such as applying for grants, vouchers (subsidies) for training, or seeking other forms of assistance to support your export initiatives.
Government grants and help for your established business
The New Zealand Export Credit office provides trade credit insurance and financial guarantees to assist exporters.
Who New Zealand Export credit is and how to apply — New Zealand Export Credit
Solutions for exporters — New Zealand Export Credit
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