16 Nov 2017 - Sales of Anchor UHT milk were particularly strong and the brand was the leading imported UHT product across all online sales platforms during the sales window. Double 11 is characterised by deep-discounting and wide-ranging promotions, generating a level of hype similar to a holiday festival in China. According to data from Syntun, China’s 16 largest e-commerce merchants achieved a combined RMB 254 billion (NZD $55.1 billion) in sales this year during the period, up 43 per cent on last year’s total.
President of Fonterra Greater China Christina Zhu said Fonterra’s strong growth on last year reflects the strategic partnerships that the Co-operative has been building with China’s e-commerce giants.
“Forming win-win relationships with the major platforms has been a point of focus for us over the past 12 months,” said Ms Zhu. “We’ve gotten closer to Alibaba and its Tmall platform, demonstrated by how we secured a feature spot on the platform’s homepage in the lead up to November 11. We’ve also developed a good relationship with JD.com, having been identified as one of the platform’s strategic growth partners in the dairy category.”
Fonterra’s Vice President of Brands in Greater China, Chester Cao, said that the Co-operative took a different approach to this year’s sales period, which was the fifth time Fonterra had taken part.
“We were pleased to offer a much broader portfolio of product to consumers this year,” said Mr Cao. “In addition to our strong-selling Anchor UHT and powder products, Anlene and Anmum, we were also able to push our new premium and organic Anchor range and our Anchor Dairy Foods range of cream, cheese and butter.
“For us, it’s much more than just a window to sell more product than usual,” said Mr Cao. “With high levels of online traffic, it’s a real chance for us to reach a greater number of consumers with our brand and educate them about the goodness of our dairy. Given this, we had a strong focus on investing in the right media channels by using a data-driven approach, and creating engaging content for a range of different online and social channels. This approach paid off, as we had more than 30 million consumers visiting our online stores.”
Fonterra has flagship stores for Anchor, Anmum, Anlene products and has partnerships with eight major e-commerce platforms, including front-runners Tmall and JD.com as well as other companies such as Suning and Yihaodian.
China’s e-commerce market is far-and-away the world’s largest and an estimated USD $800 billion is set to be spent this calendar year according to figures from McKinsey & Company. This matches the market size of the next six largest countries combined: the United States, United Kingdom, Japan, Germany, Korea, and France. Growth is set to continue, with a compound annual growth rate of 18 per cent expected between 2016 and 2018.
“We are excited by the future of e-commerce,” said Mr Cao. “While some categories like electronics or apparel are starting to show signs of maturity, the fresh and packaged food categories have very low online penetration rates by comparison, so there is a lot of room for growth and we’re positioning ourselves well to capture it.”
16 Nov 2017 - Foreign Minister’s APEC and EAS visit. Deputy Prime Minister and Foreign Minister the Rt Hon Winston Peters returns to New Zealand overnight following a visit to Viet Nam and the Philippines where he attended the APEC Meetings in Da Nang, and the East Asia Summit in Manila. “My first visit to these two major regional summits as Foreign Minister provided a valuable opportunity to be reacquainted with counterparts who I have previously met, and to have introductory meetings with Foreign Ministers from a significant number of countries where New Zealand has strong economic and strategic interests”, Mr Peters said.
Across both summits, Mr Peters had formal meetings with the Foreign Ministers of eleven countries, including Australia, China, Japan, the Republic of Korea, Lao Peoples’ Democratic Republic, Papua New Guinea, Russia, Singapore, Thailand, Viet Nam, and the United States.
Additionally, Mr Peters met informally with Foreign Ministers from a range of other countries, including Brunei Darussalam, Canada, Indonesia and Malaysia. Mr Peters also accompanied the Prime Minister the Rt Hon Jacinda Ardern to meetings with her counterparts.
“The visit allowed me to participate in discussions on the big issues facing the Asia‑Pacific region, including the threat posed by North Korea’s actions, the territorial disputes in the South China Sea, the challenge of countering terrorism in South East Asia, and the conflict and resulting humanitarian crisis in Myanmar’s Rakhine State”, Mr Peters said.
Mr Peters also launched a new phase of New Zealand Official Development Assistance supporting the development of Viet Nam’s dragon fruit industry. In the Philippines, the Minister also announced a new phase of New Zealand assistance to support agriculture‑based livelihoods and agribusiness in Mindanao.
Mr Peters also confirmed the appointment of New Zealand Honorary‑Consuls to Davao and Cebu, further strengthening New Zealand’s relationship with the Philippines.
16 Nov 2017 - The NZ deer industry has agreed to support one of South Korea’s largest pharmaceutical companies in its plans to develop and market a product with proven health benefits based on NZ deer velvet. The Chief Executive of Yuhan Corporation Mr Jung Hee Lee, and the Chief Executive of Deer Industry New Zealand (DINZ), Mr Dan Coup, this morning signed a memorandum of understanding in Wellington, witnessed by the Minister of Agriculture Damien O’Connor and the Ambassador for the Republic of Korea, Mr Seung-bae Yeo.
Mr Lee said Yuhan’s objective is to successfully develop, register and market a health food product containing scientifically validated components of New Zealand deer velvet.
“This will be a world-first. In recent years a number of Korean companies have developed easy-to-consume formulations of traditional herbal products based on deer velvet, but none have commissioned supporting research in New Zealand to the same level of detail that Yuhan will do,” he said.
“AgResearch and Yuhan scientists will be working together to build on existing scientific knowledge. AgResearch is recognised internationally for its knowledge of velvet processing techniques, the composition of deer velvet and the potential health benefits.”
Mr Coup says DINZ and Yuhan have a shared interest in the registration of NZ deer velvet as a health food.
“If this is achieved it will further strengthen the reputation of NZ deer velvet as a natural, safe and quality food ingredient in Korea.”
He says DINZ will work with Yuhan to help promote the “New Zealand velvet story” and support the successful launch of its velvet products where appropriate.
“The two parties may also co-fund some specific areas of research and marketing activities, but these will be subject to separate agreements.”
Ms Ashley Kyung-in Chung, head of Yuhan’s food and health marketing team, said the company would be investing a minimum of $1.5 million on research with AgResearch and had budgeted for the substantial costs involved in registering a functional food claim and taking a product to market.
She said Yuhan had chosen New Zealand as the source of velvet because of the country’s transparency on three fronts – the farming environment, animal welfare and the traceable and hygienic supply chain.
“Yuhan is one of the most respected companies in Korea – consumers trust us and trust our partners. We travel the world looking for ingredients that are produced in systems as close to nature as possible and where animals are treated with care – that’s why we have come to New Zealand. Velvet from other countries does not have the same standards as New Zealand.”
As part of its market positioning, Yuhan has also signed an agreement with Alpine Deer Group.
“In our marketing we will be using images and videos of one of Alpine’s iconic high-country deer stations that will be one of our main sources of velvet. Our marketing materials will strongly reflect our connection with New Zealand as both the source of our velvet as well as the technology we are using to bring innovative velvet-based products to the market,” Ms Chung said.
Yuhan Corporation was established as a health company in 1926 by Dr Ilhan New. Today it is one of South Korea’s largest pharmaceutical companies, formulating and marketing high quality and innovative health products.
Yuhan’s 2016 sales turnover was approximately US$1.18 billion. Approximately 9% of its revenue was reinvested into research and development.
Yuhan’s mission is to create a balanced portfolio of health food products and supplements from the most natural sources for every life stage. Yuhan has been awarded the most respected company title in South Korea for the last 14 consecutive years (2017).
Yuhan has 220 highly trained scientists involved in product development and commercialisation.
For more information on Yuhan Corporation, refer to www.yuhan.co.kr
Deer Industry New Zealand (DINZ) is a marketing authority established by the Deer Industry New Zealand Regulations 2004 pursuant to the Primary Products Marketing Act 1953. Functions of DINZ relevant to the MOU with Yuhan are:
a. to promote and assist the development of the deer industry in New Zealand b. to assist in the organisation and development of the marketing of products derived from deer c. to assist in the development of existing and new markets for products derived from deer.
DINZ works closely with New Zealand’s leading Crown Research Institute, AgResearch, and has a joint venture partnership with AgResearch called Velvet Antler Research New Zealand (VARNZ).
15 Nov 2017 - Paints supplier DuluxGroup is reviewing the future of its underperforming business in China but is set to launch into the Indonesian market. Paint supplier DuluxGroup may consider pulling out of its joint-venture business in China as its paints brand struggles but has flagged higher hopes for Indonesia, with plans to start selling some its Selleys products into the growing market there.
DuluxGroup lifted profit by 9.6 per cent to $142.9 million for the year to September 30, and said on Wednesday it expects to deliver an even better result in the year ahead.
Strong growth in the group's Dulux Australia-New Zealand business contributed the bulk of earnings, driven by positive markets and good margin management, and Selleys Australia and New Zealand also lifted.
But earnings from DuluxGroup's "other businesses" segment, which includes the Yates garden care range, PNG, south-east Asia, and China's DGL Camel paints business fell because of a weaker Camel result.
DuluxGroup managing director Patrick Houlihan says DuluxGroup's China business generates about $50 million in revenue, or about three per cent of group revenue.
The China business comprises Camel paints, which is the largest part, and the Selleys range.
Camel and Selleys are profitable in Hong Kong, and Selley's has prospects for success on mainland China, but the Camel paints business has struggled from lack of scale and lack of brand awareness and delivered a poor result in fiscal 2017.
The Camel paints joint-venture started in 2012.
"We just don't have the competitive ratio (with Camel)," Mr Houlihan told reporters on Wednesday
"We doing a strategic review of that business at the moment, particularly the coatings (Camel) portion of it.
"As to what that concludes, I won't pre-empt."
Mr Houlihan said Indonesia has good prospects.
DuluxGroup is partnering with Avian Paints, one of the largest paint companies in Indonesia, to sell some of the Selleys adhesives and sealants range starting in mid-2018.
Mr Houlihan said the joint-venture with Avian has the potential to ultimately access about 40,000 retail hardware outlets in a large and growing market.
"It's going to take a few years to build - this won't be transformative overnight," Mr Houlihan said.
"Over the short term, it will really be about launching in quite a considered matter, portions of the range, one at a time."
DuluxGroup expects its Australia-New Zealand business to remain resilient in the year ahead with its core markets - home renovation, housing construction and commercial markets - forecast to provide solid growth in 2018.
DuluxGroup also said its new paint factory in Merrifield in Melbourne is schedule to begin commercial production in the first half of the 218 financial year and will support the company for decades to come.
Shares in DuluxGroup were 20 cents, or 2.6 per cent, higher at $7.74 at 1117 AEDT.
DULUX LIFTS ANNUAL PROFIT, DIVIDEND
* Full-year profit up 9.6pct to $142.9m
* Revenue up 4pct to $1.8b
* Fully-franked final dividend of 13.5cps, up from 12.5 cents
14 Nov 2017 - Former Prime Minister Sir John Key spoke to a crowd of 350 at the launch party of professional services firm K3 last Thursday night. he event at Auckland’s Maritime Room celebrated the establishment of K3, a professional services firm which brings together legal, accounting and consulting services under one roof. With more than half of K3’s Legal team fluent in Mandarin and the firm’s extensive links with the Chinese community, Sir John spoke at length about New Zealand’s relationship with China.
“As PM I went to China seven times and everyone knows that I’m a massive China fan. I think the opportunities are enormous, the country is amazing, and the leadership is doing extremely well,” said Sir John, who noted he arrived at the K3 event in an Uber, not a Crown car.
Challenging convention was a subject also covered by K3 Directors Mark Kirkland and Marcus Morrison who spoke about how K3 is looking at business differently, and their desire to make a genuine difference to New Zealand businesses.
“Professional services firms have been run in the same way for generations. But the market has changed extremely rapidly so we think that traditional model needs to change too. Businesses today want a greater depth and breadth of service that is outcome oriented. Our goal is to become New Zealand’s most trusted professional service firm,” said Morrison.
Reflecting on his time as Prime Minister, Sir John said while he has no wish to be PM now, he is extremely grateful for the time he had as leader of New Zealand
“One of the things you can do when you’re Prime Minister is you can shape the country and you really can make a difference. Hopefully [during] the time I was there, we were able, as a government, to economically put New Zealand on a much stronger footing.
“Whatever you think of the world, I reckon most people get up in the morning and they don’t want to be dependent on the state and they do want to look after themselves, they do want to look after their family and they have a lot of personal pride,” said Sir John, to much applause from the audience.
He’d been doing a lot of travelling and had realised New Zealanders tended to overestimate how much other countries knew about “a country of 4.8 million at the bottom of the planet. New Zealand has an amazing reputation but, man, we have to keep fighting for our place in the world.”
The impact of technology was covered by Sir John, who recalled a recent incident at an Under Armour store in China, where he wanted to buy a pair of Jordan Speith golf shoes. At the counter he tried to pay for the shoes using AMEX, Visa, Mastercard and even cash, all of which were rejected by the salesperson.
“So I said, what do you take? And she said, WeChat or Alipay, and that’s it, that was the only thing they accepted. There’s a lot happening in the world that’s really changing. If you look at China, they have some of the most impressive leadership that you’ll find and they’re developing some of the most amazing technology.” He said China’s tech industry was out-stripping Silicon Valley and predicted it would be well ahead of the USA in a decade.
Although Sir John avoided talking specifically about the new coalition government, he did allude to it. “There’s a lot of rhetoric out there that’s anti-migration, anti-investment, anti-trade. But we have to back ourselves to succeed and not be afraid of people coming to New Zealand, don’t be afraid about foreign capital coming in to our companies, don’t be afraid about engaging in free trade deals. If we buy into the Trump rhetoric, we’re going in the wrong direction,” he said.
14 Nov 2017 - The Green Party of Aotearoa New Zealand maintains its strong opposition to the Trans-Pacific Partnership Agreement (TPPA). “The Green Party has long opposed the TPPA. The new proposed deal, which came out of the weekend’s talks, still contains key ISDS concessions to corporations that put our democracy at risk, so our position remains the same,” said Green Party trade spokesperson Golriz Ghahraman.
“We support fair trade that brings real benefit to all New Zealanders – not trade deals that put our rights and our Government’s ability to legislate to protect our people and our environment at risk.
“ISDS mechanisms are a particular threat to environmental protections, with 85% of ISDS cases being brought by corporations focused on exploiting the environment and natural resources.
“The Green Party will be seeking to introduce new measures that require all trade agreements in the future to be part of the solution to climate change, global and local inequality and the protection of human rights.
“Standing in opposition to the TPPA does not make a difference to our relationship with Labour. Indeed it is a sign of the strength of that relationship that we can respectfully disagree on an important issue like the TPPA but still get on with the business of government.
“We made it clear to Labour in negotiations that we cannot support the TPPA, and they understand our policy difference.
“We will continue to use our position in Government to fight for better trade agreements that protect the interests of people and the planet, not just corporations,” said Ms Ghahraman.
13 Nov 2017 - Recent changes to the TPP agreement, now called CPTPP, appear to be a step forward, particularly with the potential removal of some of the more controversial parts, such as Investor State Dispute Settlement (ISDS) clauses. Yet, we need to remind ourselves that the primary target of these FTAs is the reduction of tariffs, providing benefits to our primary commodity exporters, but little relief to our high value manufacturers, who frequently encounter obstacles to free trade in the form of non-tariff barriers.
“Non-tariff barriers are the ‘dirty little secrets’ rarely written into trade agreements, but a matter of daily practice far away from glamorous trade talks. And probably, just as harmful to local manufacturers is the almost complete lack of enforcement of product standards in our domestic markets, allowing imported goods to trade on a price advantage. Not to mention government procurement practices that in most cases pay lip service only to the principle of giving local manufacturers a fair chance, says Mr Dieter Adam, CE, The Manufacturers’ Network.
“The removal of some of the contentious parts of the previous agreement is a positive move from the Government, giving the eventual agreement broader support in New Zealand. However, we know from past experience that the really hard work starts once the agreement comes into force, in working to remove the non-tariff barriers that form the biggest challenges for high-value manufacturers making the most of the markets involved, says Mr Adam.
“Quality trade agreements are a vital component of improving our export competitiveness, especially when non-tariff barriers that effect manufacturers are properly addressed. We cannot ignore the fact, however, that in spite of a string of recent FTAs, such as the China and Korean FTAs, the share of exports in GDP has been dropping over the past decade, rather than growing by 25% - the goal the previous Government had set itself not long after coming into power in 2008. As the new Government is rightly pointing out, New Zealand’s future prosperity can only be secured by significantly growing our exports of high-value products and services. And one of the key preconditions for that lies in improving our productivity, which has lagged through successive governments. Improving productivity and thus increasing our ability to create high-value goods and services is where the new Government should focus.
“The other critical enabler to a more balanced approach to growth in our economy is a more favourable and fair exchange rate, especially against the Australian Dollar, given that Australia is a key market for our manufacturing exports. And in that context comments made by the Acting Governor of the RBNZ, Grant Spencer, at the November MPS press conference that “We’re happy with this [the current] level of our currency, it’s in the vicinity of fair value” are certainly not helpful and point to a change from recent RBNZ statements under Graeme Wheeler, setting around 60 cents as a target rate. It will be interesting to see the response of the new Government to this new assessment of ‘fair value’ by the RBNZ. Addressing our exchange rate, which has remained significantly above trends in the previous decade, need to be part of the discussion in the upcoming review and appointment of a new Governor, said Mr Adam.
| A The Manufacturiers Network release || November 13, 2017 |||
13 Nov 2017 - The 2017 ExportNZ DHL Export Barometer released today shows Kiwi exporters are feeling confident and expecting orders to increase over the next 12 months, Business New Zealand says.
Optimism is very positive with 71% of New Zealand exporters expecting international orders to increase - this is a jump from 63% in 2016.
The research shows that overall 2017 has been a good year, with just over half (55%) of exporters achieving an increase in international orders.
While the survey was carried out prior to the election, ongoing political support for the export environment will be crucial to ensure Kiwi businesses achieve the perceived upcoming boost to orders.
Exporters responding to the survey cited several key ways in which assistance from the New Zealand Government could help their business. Research and development assistance came out top at 26%, closely followed by help attending trade shows with other NZ companies, and more free trade agreements (both 25%).
ExportNZ executive director Catherine Beard said: "The results show that trading with the USA has increased significantly over the past year, with more than half of Kiwi exporters sending orders to the USA and over half (55%) seeing the Trump administration as having a neutral impact on exports, while 41% thought it had a negative impact on exports,” Beard added.
"The fact that R&D has been flagged up as a key area for assistance is significant as more than half (52%) of exporters developed new products and services in a bid to boost export orders. Innovation can be a powerful tool for overcoming the ‘strength of competition in overseas markets’, which is the number one concern among exporters (42%).
Online commerce holds steady The 2017 ExportNZ DHL Export Barometer shows that while some exporters have embraced online commerce, not much has changed in the last two years.
One-fifth of exporters generate more than half of their international orders online, including 6% who generate all export orders this way. There is still plenty of room for growth as 26% said that none of their export orders are generated online.
DHL Express NZ country manager Mark Foy said: "Online commerce is a massive growth area for Kiwi exporters with huge potential to reach international audiences. Currently most businesses, 80%, are only spending one-fifth of their marketing budget online.
"Social media holds much untapped potential to reach overseas consumers looking for innovative and unique goods. However, 68% of companies say they do not use social media to generate orders or enquiries."
While Australia remains by far our number one trading partner (72%), we are shifting towards the ever-growing China (30%) and away from our traditional chief trading partner, the UK (26%), post-Brexit.
A joint initiative between ExportNZ and DHL, a total of 379 New Zealand exporters were surveyed for the ExportNZ DHL Export Barometer 2017.
13 Nov 2017 - After a few fraught days, the TPP was given new life. However, the struggles to get the deal across the line and other issues at the Apec summit raise questions about obstacles to multilateral trade and what that means for New Zealand, as Sam Sachdeva reports. The ideological battle for the future of Asia-Pacific trade played out on the big screen at Da Nang.
Of course, there was the stuttering, stumbling, but ultimately successful (or near enough) negotiations to reach agreement on the TPP (now known as the CPTPP - the Comprehensive and Progressive agreement for the Trans-Pacific Partnership).
While the New Zealand team was cautiously hailing the outcome, other events at the Apec summit may have given them cause for concern when it comes to multilateralism.
In his speech to the Apec CEO’s Summit, US President Donald Trump railled against what he saw as unfair trading arrangements, saying the US had “not been treated fairly” by the WTO and other countries had not reciprocated the favours extended by his country.
While the US was open to bilateral agreements with any Asia-Pacific country, he made no bones about its approach to multilateralism.
“What we will no longer do is enter into large agreements that tie our hands, surrender our sovereignty, and make meaningful enforcement practically impossible.”
Worryingly, there are some concerns about whether Trump wants to kill the WTO: an article in the New York Times suggested American negotiators had warned their Mexican and Canadian counterparts that they could not expect their trade to “simply snap back to WTO rules” if the US leaves NAFTA.
12 Nov 2017 - Minister for Trade and Export Growth David Parker has welcomed the 11-member Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) which incorporates the TPP. A Ministerial Statement has been issued today by all eleven Ministers in Da Nang, Viet Nam, which confirms the core elements of the deal are now agreed, with just four issues requiring further technical work and discussion.
"My Ministerial counterparts and I also agreed this week to suspend a number of the most controversial parts of the of the original TPP in the new Agreement,” says Minister Parker.
“At the same time, there will be no change to the goods market access outcomes contained in the original TPP.
“This is a now an improved deal for New Zealand.
“The overall outcome satisfies the five conditions that the Labour-led Government laid out for a revised TPP:
• It achieves meaningful gains in market access for farmers and supports the more than 620,000 New Zealanders whose jobs depend on exports. The CPTPP will also provide New Zealand for the first time with preferential market access into Japan, the world’s third-largest economy, as well as Canada, Mexico and Peru;
• It upholds the unique status of the Treaty of Waitangi;
• It preserves New Zealand’s right to regulate in the public interest. We have also retained the reciprocal agreement with Australia, which is the source of 80 per cent of our overseas investment from this new grouping, that ISDS clauses will not apply between our countries. We continue to seek similar agreements with the other countries in this new Agreement. In addition, the scope to make ISDS claims has also been narrowed;
• The Pharmac model continues to be protected. Further improvements now achieved include suspension of patent extensions which could have increased the cost of medicine to the government; and
• The ability to control the sale of New Zealand homes is being preserved by separate legislation in New Zealand.
“New Zealand will now be focused on working together with our partner countries toward signature, including on the four specific items to be finalised by the date of signature of the new Agreement.
“I expect negotiators will need to meet again in the next few months to take this forward.
“In the meantime, I want New Zealanders to have the opportunity to understand what has been agreed and what it means for them, their families and their country, before anything is signed or ratified.
“Like all free trade agreements, the Foreign Affairs, Defence and Trade Select Committee will scrutinise the CPTPP and Parliament will consider the necessary legislative changes needed to give effect to the agreement.”
The CPTPP was negotiated between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, Viet Nam, and New Zealand.
The four remaining specific items to be finalised by the date of signature are included at the end of the list of suspended provisions. Beehive.govt.nz