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New-Zealand - Selling and buying

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

Reaching the consumers

Marketing opportunities

Consumer behavior: Customer service is an important element in a sale. The quality of the service will sometime depend on the delivery lead time of spare parts. There are actually many similarities between European countries and New Zealand when it comes to lifestyles and purchasing behavior. Educated and earning good incomes, they like to shop and they spend more time reading than watching television. They also are concerned with healthy lifestyles and make healthy food purchase choices. New Zealanders want convenience products. They also demand healthy and wholesome food products. They are concerned about time management and nutrition.
Consumer profile: New Zealand consumers are relatively wealthy, not particularly sophisticated but diverse in their interests and tastes. They value home comfort and are interested in innovative and fashion products from Europe and the US.  Do It Yourself and outdoor products are also area of growth for exporters.

The rapid growth of Internet users in New Zealand provides a developing prospect for E-marketers. New Zealanders are literate, educated, technology savvy citizens, who are willing to spend time and money over the Internet.

Main advertising agencies:

Distribution network

Evolution of the sector: An import company will use the services of an agent, a distributor-importer, or will sell directly its production or services. Using agents enables to sell a huge variety of products and to take the customer's needs into consideration. Sales are carried out through wholesalers and retailers. The concept of direct purchase is well established, in New Zealand. Agents and importers/distributors networks are known for their technique, service, their after-sale service and other useful services for the manufacturer.
A large number of foreign companies' subsidiaries directly import from their parent company and then distribute their products, or complete their local production.
Franchising is a recent concept experiencing a growing success in New Zealand.

The total retail sales trend has been flat since 2007. Half of the 24 retail industries had modest sales movements, increasing or decreasing by no more than $4 million. Core retailing (which excludes the four vehicle-related industries) fell 0.2 percent (NZD 8 million).
Leading the decrease in July's 2008 sales were motor vehicle retailing, down 5.3 percent (NZD 32 million) and supermarket and grocery stores, down 2.0 percent (NZD 24 million).

Industries that had the largest sales increases were clothing and softgoods retailing, up 9.0 percent (NZD18 million), and department stores, up 5.9 percent (NZD18 million).

Types of outlet: Supermarkets market share of sales is 45%, with Progressive enterprise and Foodstuffs forming a duopoly with several hundreds of outlets. Sales made by supermarkets have shown a stable growth over the last few years but the number of convenience stores is increasing, with a constantly growing volume of sales. New Zealand customers have a preference for shopping malls, but independent and specialized store have been able to adapt and are successfully targeting high revenue customers. Three chains of Department stores are sharing the market: Smith and Caughey’s in Auckland, Kirkcaldie and Stains in Wellington and Ballantynes in Christchurch.

Market access procedures

Economic Cooperation: New Zealand has signed a free trade agreement (CEPA) with Hong Kong.
Non tariff barriers: Import licenses are no longer required to import goods into New Zealand. The country does not impose any import restrictions or barriers to imports for purely trade-related reasons. Although, there are strict health, content, safety and origin-labeling rules, and stringent restrictions relating to live animal and plant health requirements.

Some goods are prohibited from importation. For more information you can log on the customs website

Average Customs Duty (excluding agricultural products): New Zealand applies Customs duties of 5% on average. The customs duties ad valorem duties, calculated on the FOB value or on specific duties. These are not excessively high and they give an average level of 15%. Higher duties, however, are levied on textile, clothing, shoes, motor cars and pneumatics imports. No duty is imposed on imported products having no local equivalent in New Zealand. Some imports are cheap and are subject to a special duty for the protection of the local production. New Zealand applies preferential tariffs to imports coming from Australia (zero tariffs), Canada, UK, and certain other developing countries.
For more details you can log on the customs website.
Customs classification: New Zealand has fully adopted the harmonized system of customs classification.
Import procedures: Customs Entry Form or Informal Clearance Document (ICD) filled in documents relative to goods transport (transport contracts: Airway bill or Bill of lading) ; all invoices or documents relative to import and which must include in particular a complete description of the goods, the currency of reference, the contact details of the seller and the buyer, the name of the vessel or the flight number of the plane used, etc.
Import procedures are described on the Customs website and on the New Zealand Customs Service.
Commencing July 2008 generic import clearance procedures are detailed on the Website of the Food Safety Authority.
Customs website: NZ Customs

Organizing goods transport

Organizing goods transport to and from: 99.5% of goods transportation in volume uses sea freight. These represent 83% of exports and 75% of imports.
Sea transport organizations:
Air transport organizations:
Rail transport organizations:

Domestic business directories

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