Going global from home
Rapidly evolving internet technologies and business models, means a host of Kiwi businesses are finding they don’t need to leave the long white cloud to access the clear skies of bigger markets.
THE INTERNET HAS made our world so much smaller on many levels. A hobbyist in Hamilton can order rare parts direct from suppliers in Shanghai and receive delivery quickly and affordably, while a music lover in Manukau can buy and listen to the latest Beyonce album just minutes after release. And thanks to the internet, Kiwi products can go just as seamlessly in the other direction.
It is probably easier now than at any time before to run a small business with a global reach, from New Zealand. And that’s not only true for software developers – although that’s probably the easiest sell.
(According to recent figures from the New Zealand Game Developers Association, the industry doubled its exports in 2014 to $80.2 million, largely off the back of digital distribution platforms like App Store and Steam.)
But even for tangible goods exporters, there is a range of internet-based export options that make accessing world markets possible from the comfort of a Kiwi base.
Hardy brands may bank on their ability to sell from their own e- commerce platforms, but there are other options for brands that lack name recognition on their own – including well-
Managing risk
established online marketplaces like Amazon.
It’s a strategy more and more Kiwi businesses are experimenting with, as they look to take advantage of a large existing customer base, and the online commerce and fulfillment capabilities of a player like Amazon, says Mark Hargreaves, a partner at intellectual property law firm AJ Park.
“Rather than developing separate channels to overseas markets, Amazon can provide a huge market opportunity very quickly for New Zealand businesses if their product is good.”
Of course, the gear still needs to be shipped to Amazon’s warehouses, but once it is, picking and packing is taken care of. The downside, says Hargreaves, are the fees and the hassle of managing inventory remotely – though there are businesses popping up that specialise in handling the logistics of selling products through these channels.
One of these is Auckland-based ExportX. Managing director Paul Grey says the company consolidates shipments among its clients so exporters can avoid sky-high freight costs for small quantities. It also offers offshore warehousing options so companies can cut the time and cost of delivery for their customers.