Following our recent participation in the British New Zealand Business Association breakfast event looking at the growth opportunities and key market considerations for the Food and Drink industry targeting strategic export growth, we have taken the main theme of our contribution and captured it in this blog.
Recognising the hunger or determination New Zealand businesses consistently demonstrate when looking at export markets we are regularly asked the question, where next Australia or the UK. The two markets whilst very similar are also significantly different. Ultimately success is about understanding your customer journey then identifying where your target consumer group shop and the size of the prize. New Zealand reputation for clean, green and safe food production creates the opportunity but really understanding the market through clear market insights identifies the opportunity. At a macro level Australia with its proximity to New Zealand its shared Food Safety Standards and similarity in cuisine can make it a priority export market for many, however a landmass approx. 2.5 times the size of Europe and a population of 26m people brings it challenges. The UK on the other had significantly smaller from a landmass perspective with a higher density of population making almost 75m people within reach.
A critical consideration for any export focused business is to build gradually targeting retailers where volumes are manageable, and brand positioning unlocks the maximum value. Sometimes selling less units for more $ is the optimum outcome vs winning high volume sales and depreciating a brand.
Globally New Zealand has a leading reputation for food safety, the environment and ultimately one of the places consumers trust to produce their food. However, this is becoming increasingly challenges as other countries look to accelerate their food credentials, move towards environmental reporting and dial up the focus on food with provenance. The level of reputational trust in New Zealand business continues to build buyer interest in export markets but needs to be nurtured and nit taken for granted.
Coverage of the Australian grocery sector is reporting the growth and strategic focus of Own Brand or Private Label by both the major retailers, whilst many consider this as a threat to branded growth it also creates an opportunity. Firstly, it’s important to remember why a strong Private Label is important to a retailer, it drives value, and it delivers differentiation. Having a portfolio of products which consumers can only buy with that grocery store helps influence where shoppers choose to shop. Secondly Private Label volume is usually significant and can help deliver operational efficiencies to those supplying retailer products. In today’s increasingly competitive market, several food manufacturers are increasingly targeting Private Label supply to complement their branded volume.
Winning a listing with an overseas retailer is today just the start of the journey, as soon as the products arrive on shelf, your competition are looking to take your place. Ensuring that your supply chain is robust and agile enough to meet the demands of your customer are crucial alongside having in country representation to monitor your business, understand availability challenges, changing strategies from competing brands and build your relationship with the category managers for longer term success.
Are you looking to break into the Australian food industry? Look no further than Prof. Consulting Group! With our team of industry-leading experts and extensive range of services, we’ll help you take your business to the next level.
For more information or to discuss how Prof. Consulting Group can support your business, Contact Us Today.
