A bridge to European exports

By Yoke Har Lee

What does a company selling an expandable cake tin, one repackaging second-hand British stamps and a high-tech manufacturer of telephone switching technology have in common? They are all New Zealand niche exporters to the highly-diversified European market.

The senior trade commissioner for the New Zealand Trade Development Board, John Waugh, told the Business Herald that many New Zealand companies have done well out of finding niche markets.

Europe, even after stripping out the traditional commodities exports such as dairy, sheep meat, wool, apple and pear and kiwifruit, was one of New Zealand's top 10 markets, Mr Waugh said.

Finding a niche and spending time and resources were some of the success factors for New Zealand exporters.

Palmerston North-based company Kadine Stamps, for example, packages up second-hand British stamps and sells them back to Britain, he said.

Central North Island company Kutner exports expandable cake tins across Europe while GHC, a Christchurch-based company, exports band converters to Europe for owners of second-hand Japanese imported cars needing a device to convert their radio frequencies.

From lighting, spinning wheels, outdoor gear and aids for the visually-impaired to software for dental practice management, New Zealand's innovative companies have done well in Europe, Mr Waugh said.

These niche exporters have changed the perception in Europe of New Zealand-made products and the New Zealand brand, indicated by the premium pricing for New Zealand's wine in Britain.

Rating the overall performance for our European exports, however, he said: "We could do better.

"New Zealand is now highly regarded. Our people on their OE [overseas experience] are seen as people with a can-do attitude, bringing a huge amount of respect and changing opinion in Europe towards Kiwis."

Small New Zealand companies wanting access to the European market can do it as long as they are willing to spend time and resources, Mr Waugh said.

Trade NZ's market intelligence service could help exporters link up with European agents for less than $3000.

Mr Waugh said using agents was a good start for small companies wanting to reach the European markets.

"You have to put a lot of due diligence into ensuring you select the right partner. Often we see companies too happy to sign up with the first person that comes along.

"It is worthwhile taking a step back, to see what is happening. It can do a lot of damage having the wrong agent and having to start all over again choosing someone else. That is a typical big mistake some people make."

While Europe was working towards a common market, New Zealand companies still had to be aware of language and market sensitivities held by the members of the European Union, Mr Waugh said.

Otherwise, Europe's business and legal structure was one which New Zealand could well understand and could operate in with a degree of confidence.