Blog

And while Muldoon found humour in the situation, we all know the compelling reasons why young, qualified Kiwis are crossing the ditch.

Historically Australia has been economically prosperous, offering employment in most, if not all, sectors, not to mention the endless space and amazing beaches. No wonder Russell, the Finn brothers and Phar Lap all skipped town.

Map_of_Australia_and_New_Zealand_coloured

And while Muldoon found humour in the situation, we all know the compelling reasons why young, qualified Kiwis are crossing the ditch.

Historically Australia has been economically prosperous, offering employment in most, if not all, sectors, not to mention the endless space and amazing beaches. No wonder Russell, the Finn brothers and Phar Lap all skipped town.

For those of us that call New Zealand home, however, it is likely that the earth, sea and sky, full of grounded, self-reliant, proudly antipodean family and friends offers a greater draw card. But New Zealand is small, and for Kiwi businesses looking for greater challenges and growth, tapping into the Australian market seems a natural fit – perhaps more so than China. In 2013 Australia was knocked off as New Zealand’s number one export destination by China, but Australia remains of prime importance to many New Zealand non-dairy exporters.

But Australia is not New Zealand (collective sigh), and it is important to make yourself aware of both the differences as well as the similarities between the two cultures before dipping your toe in the West Island’s market. In that respect, while Australia is very important to Kiwi exporters, in 2012-2013[1] New Zealand ranked ninth on the list of merchandise importers to that country. In other words Aussie is more important to New Zealand than New Zealand is to Aussie.

Now for the disclaimer: I grew up in Australia… but if you are still reading this piece then let me assure you that I call New Zealand home now and am able to provide some perspective on both cultures. I think the recent America’s Cup® campaign in San

Francisco acts as a useful metaphor (too soon?). Oracle® might have branded its crew as Team USA but we all recognised Jimmy Spithill’s accent in the press conferences – abrasive, cocky, full of swagger. Australian. While Dean Barker spoke softly and calmly of the strong self-belief within the team that Emirates™ Team New Zealand® could win that elusive final race, Jimmy Spithill defied logic saying that he believed that his team could win the series from 8-1 down. We all know the result – Oracle® Team USA changed tactics and sailed away victors. The drive to win is ingrained in Aussies from an early age, which is why Aussies are such bad losers (don’t mention the rugby).

That’s the market you are operating in.

In recent years, the Australian dollar has remained buoyant due to the growth of the mining sector and the insatiable Chinese economy, but most people will recognise that this growth has now slowed. Nonetheless the Australian consumer has become accustomed to strong buying-power, competitive pricing and value-for-money. This scenario is often coupled with high operating costs – Woolworths® can attract a 40% margin on groceries in its stores and typically expects the goods provider to pay for regular promotions and discounting.

However, on weight of numbers, the Australian consumer continues to represent a prime target for the savvy businessperson, especially if you accept that the average Aussie household has a disposable income approximately 32% higher than the average Kiwi household.[2] Furthermore, New Zealand has a reputation in Australia for producing high quality products and services, often worth paying a premium for.


So what tactics can you employ to make sure you extend your New Zealand success to Australia? Here are a few tips.

Know your target market

Sounds like a good opportunity for a trip to Aussie! Just make sure you don’t spend all your time on the beach. Get a feel for how the consumer thinks, how business is done and what legal requirements must be met.

Get physical!

Depending on the size of your business and your level of experience, this may involve engaging an Australian agent or distributor, or establishing a physical presence in Australia. It can be difficult directing traffic from this side of the Tasman, so having someone on the ground might help avoid costly mistakes and may also streamline your marketing.

Protect your brand and your goods and/or services

Do you know what your intellectual property is worth? IP is often thought to represent as much as 80% of the value of a company’s assets.[3] Do you know how to establish ownership of your IP and control it? Remember we are playing to win here. Relying on the courtesy of your fellow Kiwi doesn’t wash in Australia. Unless you are well-positioned, adaptable, and ruthlessly aggressive (and even then) you could easily be out-maneuvered by a more capable competitor.

Kiwis are exceptionally innovative – it’s the number 8 wire mentality. But unfortunately that attitude doesn’t always produce sustainable business growth.[4] In some industries being first-to-market might be the best strategy, but in many industries blindly rushing to make your first dollar severely hampers your ability to make your millionth. A well thought-out intellectual property strategy allows you to deter would-be competitors, increase value through licensing and define boundaries for joint ventures.

Registered trade marks and granted patents are business tools that allow you and your business partners to operate in markets such as Australia with some degree of surety that you will not be ripped-off by the sharp business practice of a competitor. As with all aspects of intellectual property, seeking professional advice at an early stage will help you avoid making the same mistakes as those before you.

This article was written by Andrew Scott, Associate, James & Wells. Based in Christchurch, Andrew is a registered patent attorney in both Australia and New Zealand specialising in chemical, biological, agri- and food-technologies. Like the Kiwi[5], Andrew arrived from Australia a number of years ago, and now works in Christchurch assisting South Island firms to own and control their intellectual property. For more information and for expert IP advice contact Andrew on Email: andrews@jaws.co.nz or Phone: +64 3 961 2460 or 0800 INNOV8.

[1] Source – Department of Foreign Affairs and Trade (Australia) 
[2] Source – OECD better life index 
[3] See Kate Wilson’s article on developing an IP strategy 
[4] See Ian Finch’s article on why New Zealand’s “Number 8 Wire” mentality is bad for the economy 
[5] Source – Flinders University blog (Australia)