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u p d a t in g a n d in f o rmin g t h e Gre a t e r E a st Ta ma ki b u sin e ss co mmu n it y



4 Powering through exporting challenges 8 Exporting to India & the Middle East 10 Keys to export success 12 World renowned packaging systems 22 Digital and Social Media Marketing 26 Industrial Property Update

Editor: Jane Tongatule E Advertising: Charlotte Haxaire E

From the Chair

PO Box 58 260 Botany Auckland 2163 P 09 273 6274

In this Winter issue we highlight the importance of exporting to the New Zealand economy, and feature several East Tamaki businesses who are successful exporters. There is also an article on turning mistakes into export success, and others by organisations including NZTE and ExportNZ ready to assist companies starting out in export, or venturing into new markets. There are updates on our regular work streams including Waste Minimisation and Crime Prevention, the latter outlining cost-effective solutions to common security issues. We have been fortunate to receive Ministry of Justice crime prevention funding for nearly a decade, but this funding will no longer be available to us in the future. We will however continue to offer crime prevention services to our members and seek alternative funding for specific projects. Thanks to those of you who responded to our recent member survey. The response confirmed the main local issues for business owners were traffic congestion and difficulty finding quality staff nearby. The main issues for property owners were crime, infrastructure provision/costs and problems dealing with Auckland Council. Responses also affirmed that GETBA should continue to have a wide area of focus providing a range of services and support.

Upcoming events 29 July Breakfast with Lt Commander Dave Casey, NZ Defence Force Youth Development Unit 20 August Business Owners Forum: Finding, growing and keeping great staff 24 September Breakfast 24 September GETBA Annual General Meeting


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GETBA advocacy on local issues and proposed Council plans on your behalf was also highlighted as very important to you. In the past year we have made 10 submissions on proposed changes impacting on East Tamaki businesses. In addition to ongoing Unitary Plan Hearings, we are currently working on the review by Local Boards of the alcohol bans in our area. To keep an alcohol ban in place, it is a legislative requirement to have documented evidence of alcoholrelated crime or disorder. It has been a solid first six months for the New Zealand economy with continuing strength in construction as well as a gain in retail spending. Coupled with low interest rates, low inflation and high immigration, the economy has continued to grow at around 3%, and this is expected to continue for the remainder of this year and through next year. Fortunately the stubborn NZ Dollar is continuing to retreat against the US Dollar, which is helping many exporters. This, however, is strengthening against the Euro, which will affect returns for many exporters too.

Richard Poole Chairman, Getba

The importance of exporting to the New Zealand economy New Zealand’s size means that we will never become prosperous selling to ourselves. The Government has committed to the high level goal of increasing the ratio of exports to GDP from 30% (2012) to 40% by 2025. Increased exports are seen by the New Zealand government as necessary to lift New Zealand’s economic growth and living standards. Business is in agreement. BusinessNZ chief executive Phil O’Reilly commented recently: “The biggest challenge for New Zealand businesses in the future is the road to building a global business. The future is global and we currently have relatively limited global engagement in New Zealand. I look forward to a future when the vast majority of businesses are acting, thinking and trading globally. Building export markets is one of six key areas identified in the Government’s Business Growth Agenda (BGA). The building export markets work stream is identifying and delivering on ways to improve businesses’ productivity competitiveness in the global market. A progress report released by the Ministry of Business, Innovation and

Employment (MBIE) in June 2014 (see below) shows progress on the 350 BGA actions across the six areas, and also outlines the 62 key priorities they intend to focus their future efforts on. These include the following nine priority actions seen as critical for boosting exports and reaching the 2025 target: • Negotiating comprehensive, high quality free trade agreements and implementing existing ones • Providing NZ Trade and Enterprise (NZTE) with more resources to assist more companies • Boosting our representation in China • Increasing our representation in other emerging markets

• Promoting the procurement of NZ capital goods and services with NZ’s Export Credit Office • Conducting fit-for-purpose checks on market-facing regulatory regimes • Completing the Trade Single Window for exporters and importers • Embedding the NZ Story, strategy and structure • Capitalising on the 2013 International Growth Package for tourism and education Most government assistance for business is targeted at exporting, whether through NZTE, Callaghan Innovation, or ATEED. In addition to such government agencies, business organisations such as the Chamber of Commerce, Manufacturers and Exporters Association (MEA) and Export New Zealand, (a division of BusinessNZ based in Auckland at the EMA), have resources, tools and forums to advise and assist exporters.

 Business Growth Agenda: Future Directions 2014 is available at:

Photo courtesy of Ports of Auckland



Managing Director Shane Lamont at the newly opened New Zealand Natural outlet at Botany Town Centre

Emerald Foods

Powering through exporting challenges If your business is established in East Tamaki, you have probably heard of Emerald Foods: with over 100 people employed, they are among the largest companies in the area. And, if the name still does not ring a bell, their celebrated brands of ice cream certainly will: Killinchy Gold, Chateau, and of course award-winning New Zealand Natural are all manufactured here. Shane Lamont, Managing Director of Emerald Foods, explains that their location is a key advertising point when exporting: 4

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“New Zealand is not only seen as clean and green, but also as very safe. Food safety is a huge aspect of our product, and New Zealand has a great reputation for it.” Emerald Foods exports to 34 different countries, and the company has received many awards for their product innovation, packaging and export. New Zealand Natural,

for instance, has grown over the last 25 years from a tiny ice creamery in Christchurch to a brand now found in over 700 outlets around the world. This is all the more impressive when you realise that exporting ice cream is a path filled with obstacles. The first issue, as with any fresh produce, is regulation. Since dairy is considered high risk, exporting companies dealing with animal products are required to provide a great deal of additional documentation: specifications, certificate of analysis, Animal Products E-cert… How does one keep up with such a mass of regulatory requirements? According to Shane, it requires a large technical team, a heavy cash flow, and a lot of time. The company also works closely with the Ministry for Primary Industries, who keep them informed of any new or predicted changes in regulation. Another daunting task to consider is transport: dealing with frozen food involves operating a very high scrutiny over temperatures. “If there’s been temperature abuse, even if it’s only been for a short time, ice cream remembers”, says Shane. To ensure the cold chain is never broken for even a few minutes during the several weeks of transport, the company uses temperature monitoring devices within their containers, coupled with a thorough

“We’ve had double-digit export growth for eight out of the last nine years”

mean we will soon be able to find their ice cream in Kenya or Greenland? “We’re not quite Coca-Cola yet! Our vision, rather than worrying about the number of new countries we’re getting into, is getting more out of each country.” And there is change up ahead: “We want to accelerate our expansion from here. We have a very exciting business plan for the next three to five years, and will be spending money on capital investments in East Tamaki through the next 12 to 24 months.” 

evaluation of the product upon arrival. This ensures the quality of the ice cream remains constant, even after an 18,000 km journey. If you ask any exporter about their main challenge, they are likely to reply “currency”. For Emerald Foods, however, an even bigger issue is the fluctuating cost of dairy inputs. “There are certain risk-mitigating tools, but at the end of the day, you are at the mercy of international dairy prices. You have to be ready to have an unpredictable profit curve, because you can’t change prices to reflect the variations in cost. This is probably our biggest challenge.” Finally, one of the complications Emerald Foods (and, indeed, any exporter) faces is tariff. The company’s biggest market is Japan, which applies 19% tariff; this effectively makes imported products less competitive than domestic options. Shane, along with many Kiwi business owners, has been intently following up negotiations about the Trans-Pacific Partnership (TPP), as one of the treaty’s premises is to eliminate all tariffs. “TPP could open up massive opportunities. It would change our dynamic with Japan, and would also allow us to access the US market.” Until then, Emerald Foods is working on other opportunities. “China is tariff-free under the Free Trade Agreement; and it has certainly been a major factor in our growth.” So what makes Emerald Foods successful in their exporting business? “First, it’s the quality of our product. Our brand is powerful and respected internationally. Then, there is the quality of our services, especially our fast turnaround: we can respond quickly to customers to get them what they need. Plus, we are still small enough to be flexible and adaptable. Finally, there’s our people: we have a very experienced team.” Despite the challenges inherent to exporting dairy products, Emerald Foods has managed to grow spectacularly over the last decade. “We’ve had double-digit export growth for eight out of the last nine years”, states Shane. Does this W I N T E R 2 0 1 5 FOCUS ON export


Thinking about exporting? Are you thinking about exporting for the first time, but not sure how to go about it? New Zealand Trade and Enterprise (NZTE) offers some general tips for companies starting to think about exports:

Preparation is key Like any business development and growth plans, exporting needs to be carefully considered and managed. Plans and budgets should be prepared, objectives need to be set. For example: • What does your business want to achieve? • How will it scale up? • What impact will this have on the rest of the business (people and resources)? • Is the product market ready? • What will the business need to do to get it market ready if it isn’t already? • Who are your competitors; how well do you know the market and what is your unique selling point? • Is your IP covered? • What channel(s) to market do you want to focus on? • Who do you need to target? • Where can you get help?

Advice on selecting an export market Researching the market will help determine whether your company is targeting the right market or not – is there actually a demand for what you are selling?

Validation is crucial – don’t just go by a friend or family member’s suggestion or jump at the first distributor or contact that shows interest in your product. Finding the right partner is vital.

 To sign up go to news-and-media/sign-up-to-exportnews Most of NZTE’s services and support are free. We can help with research, in-market connections, guidance on strategy, your capital plan, governance structure, pitching practice and much more.

A key consideration to make is whether or not the product or service is the right fit for the market. Replicating what the business does in New Zealand may not be the best way to approach other markets.

Resources available NZTE offers a range of online resources that businesses can access in their own time 24/7 so you can do your own research then come and to us when you are ready to talk about your plans. One of these is an Export Ready Questionnaire to help you – and NZTE – understand where you are on your export pathway, and how we can help you reach your goals.  Our website also offers various ‘how to guides’, including our Guide to Export, information on various markets and exporter case studies.

People can also sign up to Export News, a free fortnightly e-newsletter full of useful tips and information.

Our relationship with a company always starts with a conversation so we can get to know you better and match the right support to your needs. NZTE’s Customer Advisor Team is a free phone call away on 0800 555 888 or fill our email form to discuss your plans.  The Customer Adviser team will be able to guide you on the next best steps and help connect you to the key sources of support you need. This may include other agencies like Callaghan Innovation for support with your R&D plans, or your local Regional Business Partners for training and specific areas of capability support that you might need to ensure your business is ready to compete in international markets.


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Business and Commercial Property Litigation, Mediation & Intellectual Property Trusts and Asset Management Family and Matrimonial Employment Immigration Wills and Estates

Wynyard Wood Highbrook Business Park P 09 969 0126 E HIGHBROOK | AUCKLAND | WARKWORTH


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an association run by exporters for exporters

Missions take a collaborative approach to help achieve specific outcomes for businesses. Sir Kenneth Stevens KNZM will lead this Trade Mission. An exciting development for ExportNZ is the recent launch of its Excelerator Programme. Working closely with successful exporters, the programme was developed to accelerate the performance of existing exporters, and to help launch new businesses into exporting. An online questionnaire provides a report and benchmark against other exporters. On completion, members may be invited onto a mentoring programme to support their business through the complex issues and decisions often faced by exporters. A big event on ExportNZ’s calendar is the annual Air New Zealand Cargo ExportNZ Awards Auckland. Auckland exporters were invited to enter one of seven categories including; BDO Food & Beverage Exporter of the Year, TNT Express Emerging Exporter of the Year and Endace ICT Exporter of the Year. The winners were announced on 18 June at a black tie gala dinner at the Langham Hotel. Advocating for exporters is a key objective for ExportNZ. Catherine Beard (Executive Director) has been working closely to assist a number of members experiencing market access problems in the processed food and beverage category. She says: “Part of the service we offer members is to get your issues on the radar of Government Officials and policy makers. When we collectivise on issues we get better traction and better results.”

Recent Trade Mission to Malaysia and Singapore

Local exporter Rob Grimsey has found being part of an association like ExportNZ invaluable. He outlines below some of the resources and assistance available. East Tamaki based ICT Company Hitech Supplies was formed in 2005 and in 2008 rebranded Telstrom with the vision to expand sales through exporting. Telstrom had the majority of market share in New Zealand and the logical next step to continue their success was look at our neighbour Australia. In hindsight the saying “you don’t know what you don’t know” is so true. Other than the obvious hard work and market research, being part of industry specific associations, having an experienced advisory board and being part of an association like ExportNZ with a wealth of relevant knowledge proved a winning formula. ExportNZ is an association run by exporters for exporters. Its purpose is to “Inspire,

educate and accelerate its member companies into suitable and sustainable global markets.” This is achieved by building capability (for example, through training and seminars), organised networking and building connections, celebrating success and providing information. Breakfast workshops are held throughout the year on a wide range of topics. The workshops are tailored to plug knowledge gaps and address issues highlighted by exporters. Upcoming workshops in June and July are ‘Managing your export finance risks’ and ‘Tackling bribery and corruption’ – a current topic as highlighted by recent FIFA headlines. One of the ways ExportNZ builds connections is through Trade Missions. In partnership with the ASEAN NZ Business Council, ExportNZ is planning a Trade Mission to Malaysia and Singapore, August 23-28. This provides opportunities for businesses to participate in a co-ordinated visit with a structured programme of business briefings, company visits, networking events and one-on-one meetings. Trade

ExportNZ is a division of BusinessNZ; a national organisation representing the interests of New Zealand’s four regional business organisations (EMA is one of these), particularly in government. If you are a member of EMA, there is no additional cost to join ExportNZ. ExportNZ Auckland’s Executive Committee is a dedicated group of over 30 people, mostly Auckland exporters, who meet monthly to ensure that objectives are achieved for the Auckland region and to help realise the organisation’s overall purpose (above). Members are encouraged to attend these meetings. If you are thinking about exporting and are already a member of EMA, let them know you are an exporter and they will join you up with ExportNZ at no extra cost. What are you waiting for? 

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Exporting to India & the Middle East The Middle East and India present many attractive opportunities for exporters, but you would do well to hear about these regions in detail before attempting to enter their markets. Dean Viljoen, CEO of Color Communications Inc., has agreed to share his experience with us.


pace yourself

to initial meetings. You can also contact the India New Zealand Business Council, which can help introduce your company to Indian business owners.

When we see India on a map, we tend to underestimate how truly immense the country is. Therefore, it is vital to target only one or two cities to begin with. Once you have, select the companies you wish to do business with. One of your best assets will be New Zealand Trade and Enterprise, who can help you with market research, set you up with a number of credible contacts, and accompany you

Dean’s main piece of advice with India is to take your time. “You can’t think that you are going to walk into India on Monday morning, and go home on Friday with an order. It took us over eight visits to a single customer to finally get our first order. So, financially, you have to plan ahead.” Dean estimates the cost of implementing a foothold in India to anything between $30,000 and $40,000 a year.


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Make the most of your time while waiting for your first order by ensuring you have the capacity to deliver. “From a manufacturing point of view, any order you’re going to get is probably going to be five or six times bigger than the biggest order you’ve ever done. Make sure you are ready for it.” It is important to decide up front which currency you would like to operate in, as many Indian companies are very good at playing the currency exchange game. “The sweetness of a potentially massive order can be very tempting, and you can easily be manipulated into accepting very strange quoting and payment terms.” Therefore, it is crucial to always stick to the currency you have established from the beginning. Finally, remember to cultivate business (and personal) connections with your customers. “Legal contracts are fine in principle. But ask yourself: how easy will it be to enforce that contract if something should go wrong?” Dean advises to rather spend time building a face-to-face relationship: “In India, this is worth more than any words on a contract.”

Middle East:

documentation maze Initially, dealing with the Middle East may seem much easier than India. The catch comes later, once you realise that each of the dozen Middle Eastern countries has their own documentation requirements. Documentation is critical, as it can hold up both delivery and payment. It is therefore important to make sure you have the capacity to monitor and track shipments efficiently. “The way we usually proceed is: we prepare all the documents and email them to the customer, then wait for a response to say the documentation is correct. At this point only do we ship, and then we courier the original documents to the customer. And even then, we’ve had situations where a black and white original invoice was not acceptable – it had to be colour!”

Useful contacts:  New Zealand Trade and Enterprise

 India New Zealand Business Council

Dealing with documentation is difficult enough, so you do not need a shipping company that makes things harder for you. Dean’s advice: use a reputable company, preferably one that does both sea and air freight, and especially one that has offices in your destination port (as opposed to using an agent). “When something goes wrong, you need somebody on the other side to answer questions directly. You don’t want to be talking to a third party and complicate things even further.” Billing is also a complicated matter in the Middle East, due to the heavy taxation laws in place between each country. This means that, if you are dealing with a large company located in several States, ordering may be centralised, but payment will come from each individual country. The best solution here is to prepare one global quote for the company, then get purchase orders from each country. Seeing how difficult business with the Middle East can get in terms of

documentation, monitoring and invoicing, it is important that you take a moment to scrutinise the way your company works. Dean believes this is a good exercise, even if you do not end up with a large exporting turnover. “When we were preparing to export to India and the Middle-East, we took some time to check where we could improve, become more productive, and cut costs internally. This has had a positive impact on the rest of our business. Ultimately, even if we don’t export a lot to these countries, it has taught us a great deal.” Finally, regardless of the country you export to, it is vital to know your customer. This will help you determine whether they are trustworthy and will save you a lot of trouble in the long run. “With export, there is always risk. You can’t fetch back and resell if the product is not paid for, damaged or faulty. Which is why it is vital to know what your customer expects of you. That one last late-night phone call can save you a fortune.”

Exporting is a good way to grow your business, and India and the Middle East are ripe with opportunities. Just remember to take plenty of time to research the market before you decide to enter it. “Entering any new export market is like investing in a new business”, says Dean. “You can’t do it on a whim. You should not be exporting just because you want a bigger turnover figure; you need to make sure that you can actually make a profit.” In this case, as with many things, your motto should be:

If you can’t do it properly, don’t do it at all.

Color Communications Inc. produces colour marketing material for major paint companies (including worldwide brands such as Resene). 65% of the products manufactured at their East Tamaki factory are exported worldwide. 

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into successES Learn from the mistakes of others; whilst many of us are already exporting, there is always room for growth and improvement, and for those thinking about dipping our toe in the warm Pacific waters here are a few ideas to ensure that the experience is a pleasurable one.

1. Quality The common mistake: Companies assume that overseas customers have the same quality requirements as their domestic ones. They may ‘get away with it’ for the first few shipments but it is usually just a matter of time before a shipment is rejected. A company exported a food ingredient to a very demanding customer. One day they complained that they had inspected a shipment on receipt and found fragments of paper in it…. under the electron microscope in their laboratory! Suggesting that the foreign matter was neither visible nor dangerous only led them to point out that paper was not in the specification.

Photo courtesy of Ports of Auckland


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Successful exporters make export their quality driver. Quality becomes a differentiator for them domestically and sets them ‘ahead of the pack’.

They adhere to written specifications, use documented quality management systems and ‘put their products under the microscope’ frequently and before their customers do.

2. Documentation The common mistake: When export is a recent addition to a business, staff will probably not have any knowledge of export logistics and documentation so they make errors, which are often costly. • Country of origin: Logistics documents incorrectly prepared or not ready in time, which causes delays. • Documents for bank: Discrepancies in documents called for in a Letter of Credit or draft. • Destination country: Documentation missing, incomplete or incorrect, causing shipment to be denied entry by officials or charged the wrong (higher) rate of duty. Successful exporters ensure that everyone involved in the creation of export documents understand what they are for, when they are needed and by whom. If selling via a Letter of Credit, then an additional level of care is taken to ensure that all requirements are met, so that the exporter gets paid. Destination country requirements are also carefully researched and understood.

3. Risk management

so long procrastinating and perfecting that they don’t actually launch.

The most common mistakes:

The consequences are: • the door is left open for competitors • the project loses momentum internally • or the market just moves on

• No formal supply agreements or contracts of sale. • Insecure methods of payment. • Supplying out of specification product. A company exported an out of specification food ingredient to a manufacturer who used 500kg of it to make 10,000 bottles of retail product.

Whilst careful planning is required, it is also important that when you reach a certain point, you take a leap of faith and get on with it.

Testing picked up problems with the final product and showed that the ingredient was out of specification.

A small company developed a new product, built a prototype and tested it. Everything worked just fine, but they saw ways to improve it.

The customer requested compensation for the unsaleable bottles, removal of the balance of the ingredient and replacement by air-freight.

They showed it to a potential customer who immediately decided that he wanted to buy as many as he could, as quickly as he could.

Successful exporters understand and minimise their risks. They use supply agreements and contracts of sale which clearly outline the responsibilities of each party. They negotiate appropriate methods of payment and have tried and tested quality systems to meet market requirements. They have a culture of quality and monitor production to ensure that any risk is contained or minimised within the factory gates.

4. Procrastinating The common mistake: companies don’t get into export because they don’t get into export i.e. they spend

But the inventor said: “Sorry, we are working on version 3B and will come back to you as soon as it’s ready.”

I was talking to an old friend about his latest business idea of exporting second hand bouncy castles to Asia. He had made some enquiries with a freight forwarder, who had advised a rate for a full container. “Have you considered sending them by LCL?” I asked. LCL means less than container load – a service whereby you pay for just the amount of space you need. “What’s LCL?” he replied. Next we talked about pallets, duty rates and phyto-sanitary regulations and in just a few minutes I was able to offer him all kinds of useful advice. Successful exporters keep abreast of their products, markets and end users, and, as their business develops, they ensure that their expertise is keeping pace to ensure that returns are maximised.

By the time 3B was ready the customer had lost interest. Successful exporters understand the balance between research, product development and ‘just doing it’.

5. Continuous improvement


The common mistake: Companies expect their staff to just magically acquire the skills and experience necessary, or go from one month to the next, unaware of better and cheaper ways of doing things.

 This article is an abridged version of The Biggest Mistakes Exporters Make. The full version is available from

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Worldrenowned packaging systems

What makes giant US dairy industries choose a small New Zealand firm as their main supplier for powder packing machines? Henri Hermans, Director of Technopak, knows it’s not for the sake of convenience. “People in New Zealand often question: why don’t US companies just build their own packing systems? But for high-value powders, and particularly for high-value dairy powders, the technology resides here, in New Zealand.” Technopak was established in 2002, and has grown to become one of the top worldwide specialists in the production of powder packaging lines for the dairy industry. The company designs and manufactures all of their machines from their East Tamaki facility, with approximately half of the equipment produced going to export. “Virtually all of our equipment is New Zealand supplied, and all mechanical and electrical components are assembled here”, says Henri. Once the 20,000-odd components that make up the packing lines are assembled, they are wired and tested at the facility. “Quite often, the customer will visit us from overseas to witness the Factory Acceptance Testing. They will view the machine, and if they require anything extra, we’ll catch that before they’re dispatched”. The equipment is then disassembled and


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shipped overseas. “We also send our engineers over to the site – typically three to four people per project – to supervise the unpacking of the containers and install, then commission the system.” Why not simply rely on an instruction manual? : “The machines are not that straightforward to operate: people need to be trained to use them, and not just operators, but maintenance staff as well”. Once the Technopak engineers return to New Zealand, the company must guarantee effective support and follow-up. How do they manage this from halfway across the world? First of all, Technopak ensures that customers maintain a constant inventory of spares parts, which circumvents the extra cost of having to urgently courier components. Technopak also provides remote support to avoid stationing employees abroad. “With the VPN system, we can view the machines online, and our experts can communicate directly with the customer”, states Henri. The company’s engineers also provide phone support. “Typically, customers are mindful of the

One of Technopak’s bag filling systems

time difference – although if there’s an emergency, we still get the odd call in the middle of our night!” Overall, 90% to 95% of all issues are solved through remote support. Technopak is now considering installing a permanent office in their main market, the USA, in order to deal with the remaining issues that require direct contact. “We have over 20 packing systems installed in the USA, so we have reached the point where the revenue we would receive from supporting these customers can sustain a permanent USA-based employee.” Some of Technopak’s more recent customers are from the growing Chinese dairy industry. “We’ve installed four systems in China so far. We have employed Chinese engineers who travelled to site, provided technical translations, and are available on phone support for these customers.” The company now has an agent in Beijing who provides them with leads, but they know this market requires more time to fully develop: “Controls are a lot tighter than they used to be at the time

of the melamine scandal, but the Chinese still trust their overseas suppliers more than their own. So some of our current market is not actually with China, it’s with dairy companies supplying China.” With the exponentially growing demand in dairy products from Asian countries, it’s no wonder most milk producers around the world are gearing up to supply these new booming markets. This is good news for Technopak’s future: in addition to their business with the USA and China, the company recently installed systems in Indonesia and Malaysia, and has ongoing business with Australian customers. Technopak has gradually established itself as a worldwide expert, all the while exercising caution in their expanding strategy. “The world is a big place, and we’re a small company”, concludes Henri. “The reason we’ve had success is the quality and reliability of our equipment. So we don’t want to spread ourselves too thinly, promising too much and not delivering.” 

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BREAKFAST with Andy hamilton, CEO, the ICEHOUSE


Photographs by Grant Southam,


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breakfast with paul blackwell, owner, SKYCITY BREAKERS

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Methods of Payment in International Trade PAYMENT risk diagram

To succeed in today’s global marketplace, exporters must offer their customers attractive sales terms supported by the appropriate payment method to win sales against foreign competitors. As getting paid in full and on time is the primary goal of each export sale, an appropriate payment method must be chosen carefully to minimise payment risk while also accommodating the needs of the buyer.


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Open account Documentary collections

Letters of credit


Least secure

Most secure

Importer Letters of credit Cash-in-Advance

As shown on the diagram, there are four primary methods of payment for international transactions (open account, documentary collections, letters of credit

Documentary collections Open account

and cash-in-advance). During or before contract negotiations, it is advisable to consider which method is mutually desirable for you and your customer.

Key Points • International trade presents a spectrum of risk, causing uncertainty over the timing of payments between the exporter (seller) and the importer (foreign buyer) • To exporters, any sale is a gift until payment is received • Therefore, the exporter wants payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer • To Importers, any payment is a donation until the goods are received • There the importer wants to receive the goods as soon as possible, but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to make payment to the exporter.

If you’re in the business of exporting, you need to manage the risk of dealing with trade and foreign exchange. Our Foreign Currency Accounts, International Payment options and Trade Finance can all help. We also work with the New Zealand Export Credit Office (NZECO) which offers New Zealand government backed trade credit insurance and financial guarantees to mitigate against payment risk, secure overseas contracts and gain access to additional Trade Finance solutions from BNZ. For example, NZECO may underwrite payment terms required by your foreign buyer. Or, if you are able to negotiate an advance payment but need to provide an advance payment bond to your buyer, NZECO may also help you secure this bond with the BNZ. You can visit NZECO’s website for more detailed information about the type of assistance that NZECO provides to exporters.   Contact a BNZ Trade Specialist to talk about how they can help you. Bruce Atkinson Ph 09 524 3912 Visit our website:

The Importance of

Focus With our small population and compact geographic footprint, the ability to segment a market and focus on key customer groups is often not a top priority.

It is not something that Kiwi businesses are doing well or even often thinking about, and with the strong allure of larger offshore markets and our uniquely Kiwi ‘she’ll be right’ attitude, this weakness can quickly become the foundation of failure. Take Australia as an example; our mates across the ditch. It’s just a bigger version of New Zealand, isn’t it? Whilst similar in a lot of ways, the population is over five times larger and dispersed over a significantly larger geographical area. One Australian city has the population of the entire population of New Zealand, with much greater cultural diversity. Heading off to Australia (or anywhere else for that matter) without focus or a clear target customer, you’re going to quickly find that your efforts are unsustainable. When thinking about any market, new or existing, take the time to group potential customers into segments based on common needs, and think carefully about whose needs you can best satisfy. This is a great way to make sure you’re delivering value efficiently and not wasting time, energy or resource on pushing out products and marketing material to the masses. By focusing on the most valuable segments whose needs best align with what you provide, you can tailor your products and messages for competitiveness and profitability.

Amongst the 500 Kiwi businesses that have completed the Business of International Quality (BIQ™) Barometer, Segmentation and Focus has emerged as one of the weakest areas.

and weakness within their business. Of the 21 subcomponents that make up the framework, Segmentation and Focus ranks fourth from last with an average score of just 49%. Half of the businesses that have completed BIQ™ are scoring less than a pass mark in this area. The data also shows that segmentation and focus is strongly related to another area of the framework: effective marketing and sales. Businesses that are expertly segmenting their market also have better marketing and sales – and there aren’t many businesses that aren’t interested in improving their sales! A good place to start is to work with your team to make a “customer profile” for each different type of person that buys from you in each of your markets or prospective markets. Think about each “type”, and then write down some things about them. What do they do for fun? Are they good with technology? What frustrates them? Stick these profiles on the wall so they are front and centre when making decisions, “what would ‘Kate’ do if she saw this? Would ‘Bob’ react the same way?” You can also use freely available information online to research the state of play in other countries. Conducting an analysis of potential international markets is crucial if you are thinking of expanding overseas, so that you can decide exactly who you are going to target, where they are, and what they need that you can provide. Finally, if you’re serious about growing your business (offshore or locally), find an advisor who has experience in the markets you’re interested in. The Icehouse has a strong network of experts who can help guide you along this path, and most of all, remember you can’t be everything to everyone.  About the author: Pip Gilbert is Manager, Partnerships & Strategic Projects at The Icehouse.

The BIQ™ Barometer is an online tool developed by The Icehouse to help businesses identify areas of strength W I N T E R 2 0 1 5 FOCUS ON export



Are you unintentionally Polluting waterways? Businesses that handle oils, chemicals, or any material that can spill, are faced with the risk that these substances could accidentally enter local rivers and harbours. East Tamaki, as one of Auckland’s largest industrial areas, has many businesses with such risks. The Howick Local Board recently funded a business advisory programme to help East Tamaki companies to avoid accidental water pollution. Between November 2014 and February 2015 the team from Wilkinson Environmental Ltd visited 261 East Tamaki businesses as part of this Local Board funded, business-friendly water pollution prevention programme. Companies were given information about how their site connects to the Tamaki Estuary, and about common pollution risks. A site assessment was conducted for 18

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each site, with the focus on education, not enforcement, and encouraging businesses to manage their risks around water pollution. Of the 261 businesses visited in the northern half of the East Tamaki business district, 74 sites had room for improvement in their current practices. Those businesses were given a wide range of practical recommendations for improvements. Next are some common issues found throughout the East Tamaki area (not all photos are from the area) and some suggested easy solutions.

An example of how badly things can go wrong

identify risks

SEWER OR STORMWATER SYSTEM People often get confused between the sewer and the stormwater system. The sewer takes toilet, sink, and process wastewater off to a treatment plant. The stormwater system takes rainwater from your roof and yard directly to a local waterway or harbour. Try to think of the drains in your yard or carpark as being the beginning of the river. It can be useful to have a permanent reminder of this connection attached to the drain.

You never know when a spill might occur – a valve might fail, a tap might get stuck on, or a drum could rust out. Always make sure environmentally hazardous liquids are stored inside, or within secondary containment (such as a bund), to contain any accidental spills. Think about high spill risk areas like outdoor loading and unloading areas, where spills can quickly flow into stormwater catchpits and potentially into the Tamaki River. Concentrate resources such as spill kits in these areas. Have something that you can use to rapidly block any stormwater drains.


contain wash water Make sure any wash water is contained and sent to the sewer, not discharged to the stormwater system. It has been estimated that in Auckland, about 500,000 litres of detergent from the washing of vehicles ends up in the harbour every year, mixed with up to 250 million litres of water.

Plan for the worst case scenario. It happens. Being prepared for the worst possible spill could save you thousands in clean-up costs and fines. Have an appropriate spill kit (not just a bag of rags) available at all times to contain and clean up any spills on site. Spill kit suppliers can advise on the best type of spill kit for the substances you are handling.

The East Tamaki Pollution Prevention Programme was well received by businesses visited, with many finding the friendly advice very useful and delivered in a non-threatening way. A second phase of the programme is planned for later in

An Auckland freight company recently had a spill of 1,000 litres of highly concentrated dye they were handling for a client. The spill occurred during the night when a full IBC that was stored incorrectly outside and stacked too high, fell and ruptured. The highly toxic dye flowed into the yard stormwater catchpit and into a nearby creek. The dye killed all fish and as much as half of all shellfish in the creek. The company received fines and costs totalling $130,000 and is facing a clean-up bill of up to $3 million to remediate the creek.

2015, and will involve visits to businesses in the southern half of the East Tamaki precinct. In the meantime, if you would like confidential advice on how to manage your pollution risks, or simply want to find out where you can get good spill equipment, please feel free to contact: Wilkinson Environmental Ltd Ph (09) 948 2597 Email  Wilkinson Environmental Ltd is a small local environmental consultancy that specialises in practical environmental advice for businesses, including pollution prevention, energy efficiency, waste minimisation and water conservation. They don’t sell equipment or expensive solutions, just good, practical, independent advice. W I N T E R 2 0 1 5 FOCUS ON export



ANNUAL EAST TAMAKI PALLET migration This year the trend continues. Locally based Global charity Habitat for Humanity, are fitting out their East Tamaki ReStore facility with recycled pallets; including walls, shelving, and office furniture, utilising pallets from East Tamaki businesses.

Last year we started an annual pallet collection for GETBA members in East Tamaki, and diverted 1500+ pallets away from Auckland landfills. More than 100 of those pallets were converted into a portable social space to re-utilise part of the Otara Shopping Centre car park, and promote recycling to the local community. The remainder were recycled into woodchips, which are repurposed as garden mulch and playground bark chips, via Auckland company - Reharvest.


Our experienced team works with you to find the perfect training pathway. We come to you and discuss options that will best meet the needs of your workplace. Customised workplace communication programme – Government funded Targeted Language, Literacy and Numeracy course for staff who are permanent residents or New Zealand citizens. The programme is customised to your workplace needs.


Workplace Assessment – Unit Standard 4098 $320 +GST Assess skills and knowledge on the job. This course is offered online.

20 or 968 8628 FOCUS ON export W I N T E R 2 0 1 5

We’re also providing another East Tamaki based national not-for-profit organisation, Keep New Zealand Beautiful, with 50 pallets to manufacture their office furniture. We will be recycling and upcycling more than 1600 pallets this year.

In total we have diverted roughly 82 tonnes of waste away from landfill in the past 24 months in pallets alone. It might be a small step, but the East Tamaki business community is definitely on a positive path towards sustainability.

Pass it on web facility

Finding new life for used items We have recently launched a new web facility, which enables GETBA members to submit unsaleable items, seconds, used electronic equipment or appliances, useful manufacturing by-products, or any other items that are clogging up your business place! The submission process is easy; an electronic form on the ‘Pass it on’ webpage will prompt you to fill out your contact details, along with a title and description of the items you are submitting, and any photos you may have to support your listing. Once your submission has been approved, we will post it to our ‘Pass it on’ webpage, and contact local charities and community groups to let them know items have been posted. If you have a storage room in your business that’s getting filled with stuff you’ll never use again, or you’re sick of seeing useful by-products being discarded from the production line, check out the ‘Pass it on’ page on our website.  For more info contact GETBA Project Manager Troy Greenfield at 09 273 6274 or

A place for used polystyrene Once polystyrene has served its purpose, it’s almost like plastic’s bloated outcast cousin. It’s not as versatile as plastic due to its restricted recyclable capacity. It takes up all the room in your waste bin, resulting in an inefficient use of space. And it’s incredibly expensive to dispose of at landfills. However polystyrene no longer needs to be such a pain in the polymer, as local business owner Damon Berry has recently purchased a company which specialises in recycling this material! The polystyrene is effectively heated and compressed into small chunks using purpose built machinery, and is then shipped to China as a recycled commodity. Polystyrene is even more popular now in the construction industry, and is still widely used for packaging and refrigeration, so it’s important we have a process to complete its life cycle.  If you have polystyrene you would like to recycle, please contact Damon Berry on 274 1548

W I N T E R 2 0 1 5 FOCUS ON export



Marketing Step 8:

April’s Business Owners Forum focused on topical aspects of Marketing. On these pages, panellists Kathryn Reid of Website Words and Tali Rose, then Digital Marketing Manager for Panasonic New Zealand, provide summaries with their key messages.

Is Your Website Making You Money Yet? Most business owners never generate a single cent from their website. No new customers. No new sales. Worse... they’re paying monthly hosting fees for the privilege of having a hopeless website! Here’s 10 steps to get your website finally making you money.

Step 1:

A website gets you in front of target clients without being face-to-face. Don’t rely only on business directories because people don’t wade through them. They jump onto websites. What to do: Have a website.

Step 2:

Make your website a funnel for converting leads into customers. What to do: Take your ‘real world’ (offline) sales system that already works. Look at your best clients and how you made those sales, how often you followed up and what information you provided. Replicate it online.

Step 3:

Harness this formula: Traffic x Conversions = Profits. What to do: Bring more traffic to your website (Steps 4 and 5) and convert visitors into paying customers (Steps 6 to 10).

Step 4: Free traffic comes from

people clicking the organic listings of a 22

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Google search. Google’s algorithm controls rankings and SEO speaks to Google’s algorithm. Around 90% of people click organic listings so volume is sizeable. What to do: Create content and use SEO tactics month in, month out. Note: This traffic isn’t ‘free’. The work requires time and effort.

Develop the relationship. Over 80% of this happens in email marketing. People do read emails from companies… if they’re not spammy, boring or just sell! What to do: Give people simple, personal and relevant emails (no fancy templates).

Step 9:

Use different presentational styles like audio, video and written text to entice people to respond. What to do: Use web copy, ads, emails, direct mail, phone calls and videos.

Step 10:

Use emotion to build trust. It gets people in the gut and moves them to act. What to do: Profile their wants, aspirations, fears and problems and use them in your writing.  About the Author: helps business owners get more customers by solving their two biggest issues: their website and their marketing.

Step 5:

Paid traffic comes from people clicking on Pay Per Click (PPC) ads like Google ads, Facebook ads or YouTube ads. PPC immediately gets you seen, plus people who already have a desire for what you offer do click on them (over 90% of Google’s revenue comes from PPC). What to do: Use PPC ads.

Step 6:

Conversions start when people stop surfing. 50% of people arriving on a typical website leave within 8 seconds. A good headline stops that. What to do: Write attention-grabbing headlines like “We turn it around in a day” not “Welcome to our website”.

Step 7:

Begin a relationship. Only 1% of people do anything on a typical website. This increases if you begin a relationship first. What to do: Give visitors something genuinely valuable in exchange for their name and email address like a free ‘tips’ report or voucher.

Digital marketing: is social media an appropriate channel for your business? Considering the full gamut of digital marketing channels available these days, it is important to ask yourself whether social media is the right channel in the marketing mix for your business. Is it where your potential customers are? Is it the best context in which to talk to them? Can you get what you need out of the social media platform or are there more suitable systems that can better deliver to your business goals? The biggest question to ask yourself is: do you have the right resource to sustain your brand presence in social media? It’s

Business Owners Forum panelists James Smith, Tali Rose and Kathryn Reid

important to think of what ‘success’ means in your business and whether social media is the right priority given your available resources. Social media never sleeps and there is nothing sadder than a company page with sparse updates that get no interactions, or un-monitored spam on your company social media page.

much resource will be required internally to sustain what will soon become your communications plan. There are plenty of tools out there to help you with this, hootsuite ( being one of the larger ones with a free package available, but any calendar tool or even an Excel spreadsheet will do.

A good way to work through this process is by tying your greater business goals to the social media channel or platform of your choice and mapping out how you will be delivering to those. Is it making people aware of your brand and the custom-made cakes you make? Is it positioning yourself as the authority on plastic bin manufacturing technology? Is it about connecting and building affiliation with the Z generation through competitions for your products? Is it about getting your Customer Care team to communicate more effectively with your off-shore customer base?

You don’t need to have the entire year mapped out – no one knows what’s in the future and the appeal of social media is that it’s always current. You want to allow yourself room for movement and flexibility. What is important to be clear about is your content themes – identify 3 or 4 topics that you think you are likely to talk about, given the considerations mentioned earlier.

As you start to work through these questions, you should also start to plan your social media content. This will give you an idea of what you’ll be saying, how often, on which platform and how

Doing this will also help you identify which social media platform to focus on: Facebook, Twitter, YouTube, LinkedIn, Google+, Instagram, or Pinterest. These are just some of the platforms available and they each have a different ‘flavour’, content formats, user demographics, stereotypical user and expected behaviour. If you are not sure, just jump online, sign up and have a look around – they are all free!

Slot in content headings on your calendar, ensuring they are frequent enough but not too far apart, and be realistic about the time it will take you or your team to create those. Try sticking to your communications calendar as much as you can, but accept that sometimes things will need to change or swap. Always aim to work 2 weeks in advance so you have enough content in your arsenal for quick or unexpected changes. Lastly, most things in digital marketing are measureable and each social media platform comes with its free suite of analytic tools. Make sure you track these closely – most of the metrics are selfexplanatory, but there are help centres attached to each platform to guide you along the way. Always measure back to what you initially set out to achieve, tweak, refine, redeploy and repeat the cycle. Good luck!  About the Author: Tali Rose is the former Digital Marketing Manager for Panasonic New Zealand

W I N T E R 2 0 1 5 FOCUS ON export


Crime prevention

Cost effective solutions to common security problems

Vehicle crime on the rise

East Tamaki has experienced a growing trend in ram raid burglaries targeting lunch bars and liquor outlets, and cigarettes and cash appear to be the main items of interest.

Recent reports from the Police show that vehicle crime has reached unacceptable levels in the Counties Manukau East area. This involves both vehicle thefts and thefts of valuables form vehicles.

Tagging offences are also reappearing. Report these to Auckland Council immediately on Ph 301 0101.Tags will be removed without charge if they can be seen from the main road. Immediate removal will deter further offences to your property.

To assist in reinforcing the security message with regard to valuables, we are supplying stickers as an insert in this magazine which we encourage you to distribute amongst staff.

You will find some simple solutions on these pages. These are also on the crime prevention section of the GETBA website and are available as a laminated wall hanger.

ď ľ Contact us if you would like more: Ph 273 6274

ď ľ Contact us if you would like the wall hangers: Ph 273 6274

Opportunist thieves stealing workplace tools

Thieves gaining access through roof

Install expandable door barriers across roller door entry points to prevent opportunist theft.

Regularly empty rubbish bins and remove any drums, pallets etc. to prevent thieves using them as ladders to your roof. Review the layout of your yard and, where possible, move items that can be used as ladders at least two metres from boundary fences.

Unwanted vehicles entering premises after hours Erect a mobile barrier, e.g. chain, cone & sign: A large centre piece with chains and No Unauthorised Entry signs on it erected across the driveway at the end of your business day as a disincentive to entry.

Opportunist thieves wandering on to your site Erect good sized signage at strategic points alerting of unauthorised access on fences and/or entry points. If an area is clearly not authorised for access then Police can act.

Install CCTV that is activated by a motion sensor and can be monitored on your smartphone or home computer. Place large signs around to show you have cameras. Smartphone Monitoring can be set up to alert you when your burglar alarm is activated, a camera will allow you to see whether there is anyone obviously on site. You can request a visit from a security company or dial 111 to alert Police there is someone breaking in.


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Unattended reception or entrance Install a door monitoring system (buzzer alert to allow manual activation of door).

Cash registers targeted by thieves

Vulnerability of valuable items in exposed locations

Empty till at the end of each working day. Sit it on the counter in full view to show it is obviously empty.

Use a wireless security system around what you need protected. If the electronic barrier is penetrated, an alarm will be activated to notify either your monitoring station or your smartphone, depending on the set up chosen.

Place No Cash on Premises sign at entry points. Contact GETBA on 273 6274 for one of these signs for your premises.

Encase truck batteries in a cage to prevent theft.

Glass windows easily accessed by intruders

Vulnerability of buildings storing valuable goods

Plant prickly shrubs under vulnerable windows to discourage thieves (pyracantha, hawthorn or beriberi).

Install a sound barrier device designed to produce an unbearable high-pitch sound once its siren has been activated by well-placed sensors.

A glass smashing noise activator will be useful too in a situation where there are other windows in close proximity.

Door broken into or needing strengthening Install good length (approx. 1 metre) solid metal security bar down the opening side of your outside door to prevent it being ‘jimmied’.

This can be combined with strobe lighting, an blinding high-speed flashing light intented to put burglars under stress.

Staff vehicles being broken into

Staff vehicles being stolen

Remove everything from view inside your vehicle, lock it securely and stow valuables in boot of vehicle. Goods inside your vehicle can be an open invitation to thieves.

Keep an eye out for people parked near or hanging around your office car park that do not appear to have a purpose, particularly at close of business. Call 111 if behaviour is suspicious. Note the registration and description of vehicles and occupants where possible.

Ram raids through doors and walls Install bollards along vulnerable windows and walls. Keep them well maintained and they can be an attractive addition to your premises.

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property update

Auckland Industrial Review

Equally, smaller to medium sized developers are being pushed out of the market due to a lack of scale and the high cost of construction. Excessive council charges relating to service connections, especially for water, are another major obstacle to development. The upshot is that a few, larger developers such as Goodmans (Highbrook Business Park) and Auckland Airport (The District precinct) who have land banked large tracks of land for many years are controlling supply.

Reflecting strong economic drivers, conditions within the Auckland industrial market are now the tightest they have been for at least a decade. Supply is simply not matching the current high levels of occupier demand. Development activity is improving, but not fast enough, and is being hamstrung by rising land and build costs.

Vacancies remain super low

tightest they have been for 21 years with little, if any, space available in the smaller 100m2 to 200m2 range. Tenants are finding it next to impossible to compete with owner occupiers who are paying record prices to secure premises and have the ability to spread the cost over 10 to 15 years of occupation.

Bayleys Research latest annual industrial vacancy survey shows overall vacancies in Auckland falling to a super low 3.6% at January 2015 from 3.8% a year earlier. Leasing conditions in East Tamaki are the

JAN 2014

The vacancy survey results reflect a strong year in the industrial leasing markets. Continued buoyant economic conditions are seeing more businesses expand their operations and seek further space. Tenants are competing with owner occupiers for limited space and this is resulting in further upward pressure on rents, especially within better quality grades. Incentives have fallen sharply and, where possible, more landlords are looking to extend lease terms to improve the financial performance of their properties. Rents for new builds, in particular, have risen sharply due to escalating construction and land costs. Just

Auckland Industrial Building Consent

Auckland Industrial Vacancy rates


Strong occupier demand triggering supply response


JAN 2015

Industrial / Factory Airport



 250m2 -







Mt Wellington



Rosebank Rd



200m2 -

150m2 -

100m2 East Tamaki



Albany Basin






50m2 -

0m2 2009

Source: Bayleys Research 26

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Source: Statistic New Zealand and Bayleys Research


Our associate members More than 60 businesses from outside the East Tamaki precinct have chosen to join GETBA as Associate Members. Here are two of them: how far occupiers will be prepared to accept further increases in occupancy costs will be a key theme in the Auckland industrial market this year. Development activity is increasing. Using the Statistics NZ time series on Auckland industrial building consents as a proxy for construction activity shows an increase in consents over the last two years, especially for storage buildings.

Your LocaL ELEctronic SEcuritY SpEciaLiSt

Capital returns improving The results of the latest Investment Property Databank (IPD) index show returns for industrial property nationally continue to improve. In the 12 months to December 2014, industrial property generated a total return of 12.3% (income plus capital growth), levels last seen pre GFC in March 2008. In particular capital returns have almost doubled over the last 12 months (from 2.4% to 4.2%), driven by significant cap rate compression as owner occupiers and investors (both local and off-shore) aggressively compete for stock. Income returns over the same period have remained relatively constant at 7.8%, slightly below the long term average of around 8.3%.

Industrial property capital return



MT WEllington

east tamaki



























Free Site Survey HigH DeFinition CCtv ACCeSS Control intruDer AlArm AnD interCom ServiCeS

As suppliers of Integrated Security Services to Botany Town Centre and the newly deployed CCTV networks at Highbrook and Otara Town Centres, we are in a unique position to offer your business a professional and comprehensive security service based on our local knowledge. With our offices on Carbine Road we are on your door step and ready to help secure your business property and assets. caLL uS on

0800 735 873

Source: IPD and Bayleys Research

Outlook Given the positive economic backdrop for 2015, Auckland industrial property should put in another solid performance. Super low vacancies across the key Auckland industrial precincts will place greater upward pressure on rents. Equally, a combination of continued strong investor demand and a shortage of investment grade industrial property will ensure the tremendous yield compression already seen will be maintained. Looking further out the new road and transport infrastructure currently underway should act as a major growth catalyst for further industrial property development in Auckland.  Contact: Ian Little Manager Property Research Division, Bayleys Web link to the full report:

“I lIkE noThIng MorE Than hElpIng coMpanIEs To succEEd In ExporT” • Free “Biggest Mistakes” guide • Export Assessments • Export Strategy • Export Implementation • Export Training; customised and public nExT puBlIc coursEs

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For further details and bookings please visit my website or give me a call right now and let’s get started!

David Broadhead

T 09 575 7896 M 021 324 762 E W

GETBA advocates on Council plans & infrastructure issues

Reduce costs to business Become more business-friendly Remove rates differential Keep people & freight moving Remove transmission corridors Protect industrial land

Focus Winter 2015  
Focus Winter 2015  

Our winter Focus magazine provides businesses in the Greater East Tamaki area with more valuable information for future and existing exporte...