New Zealand is a land filled with opportunity for you and your business. It’s a multi-faceted market that offers a multitude of both import and export opportunities for small businesses. These range from technological advancements to agriculture fresh off the farm.
New Zealand has many perks that might entice small businesses specifically. These advantages can ease the process of doing business, offer long-term benefits, or improve the overall quality of the business relationship between the supplier and buyer.
New Zealand has what is known as a high-income economy, meaning that it’s a country with an income per capita of US$12,236 or higher (calculated using the Atlas method). Or in simpler terms, it’s a first-world country with a lot of money and abundant trade.
To be more precise, New Zealand is ranked as the 13th most developed country in the Human Development index in 2017, with a GDP per capita of US$36,254. The index is understood as a measurement of the best country to live in and to do business with.
Numerous Sea and Air Ports
One of the principal advantages to doing business within New Zealand is the island’s vast options for international shipping.
For sea-based importing and exporting there are a multitude of port options, but the most notable ones are the ports in the two major cities, Auckland and Tauranga. On average each year, upwards of a million shipping containers pass through those two ports alone, not even considering the major ports in Wellington, Otago, Napier, and Lyttelton.
Between the islands, transportation of large goods is typically done via ferry. The ferries run constantly and offer an alternative to aircraft that’s faster, cheaper, environmentally friendly.
For air travel there are five cities with international airports in New Zealand that can be used to ship both imports and exports. The international airports are located in Wellington, Queenstown, Dunedin, Christchurch, and Auckland.
Having this many options for transport is great for small businesses. They can reduce transportation times and costs and make shipping more convenient.
Tariff Exemption on Specific Goods
New Zealand’s import and export scene has a few tariff laws put in place by their government to help grow their economy while limiting the options of importers. On its face that might sound distressing, however the laws only limit the importation of goods that are already mass produced in New Zealand, which would be unlikely to find a market anyway. A good example of this would be agricultural goods.
Laws only limit the importation of goods that are already mass produced in New Zealand, which would be unlikely to find a market anyway
This does however come with certain benefits. Goods not readily produced in New Zealand, primarily manufactured goods that they like to export, can usually find themselves with severely reduced or completely slashed import costs.
The tariff reductions on most manufactured goods are in flux, however the goods that are always in high demand and can be imported free of any tariff costs are passenger vehicles and computer parts (both software and hardware.)
New Zealand’s market is still considered to be relatively new, having turned into a standard market economy in the 1980’s.
In addition, New Zealand is very particular about not allowing too many businesses with the same product to do business at once. In that sense it’s something of a, “Once you’re in, you’re in for good” economy.
It’s definitely a market that can be difficult to enter, but the returns can be more than worth the effort.
Opportunity for Growth
Another benefit of this newer and closely regulated market is that it provides an ideal environment for a new small business to grow.
New businesses can typically find their place in the New Zealand market. This is because New Zealand both tightly regulates the number businesses offering each type of product, and the amount of products entering the country. If you’re doing business in New Zealand you can rest assured that you’re not entering an overcrowded market.. As a result of this, New Zealand has fewer new businesses but many of them that form stick around longer than those in the US.
One of the best aspects of doing business in New Zealand is the location itself. This isn’t just because of the numerous sightseeing locales and gorgeous vistas.
New Zealand, and Auckland in particular, is seen as a prime location for foreign offices. The city holds a degree of clout that will impress your partners
New Zealand, and Auckland in particular, is seen as a prime location for foreign offices. The city holds a degree of clout that will impress your partners. Many larger corporations have forward offices in New Zealand due to its prime location for exporting. Other benefits include New Zealand businesses preferring to do business in person, and the prestige associated with the location.
Establishing a Foothold
Now that you have a better understanding of why you should do business with New Zealand, you’ll need to consider how to begin. The most important part of doing business is the movement of currency.
This can be difficult considering the remote nature on New Zealand, and it’s distance from all other countries. This is where Veem can step in and provide a simple solution for your payment needs.
The reliability and security offered by Veem will give your New Zealand associates confidence in you and your business. Bypass the costs and delays that come with banks.
By taking advantage of Veem’s fast and remarkably simple B2B payments system you can jump-start your businesses entrance into New Zealand’s market.