Exporting From New Zealand - Overseas Distribution

Every single time you want to distribute something in a foreign market, there are things that influence all choices you will make. Exporting from New Zealand and doing it overseas depends a lot on market size, what service or good you export, how much control you want, and the export strategy.

With export from NZ, several options are available, including:

• Distributors or agents – This is the best initial option, the easiest one to take advantage of. You can contract or employ an agent. Also, the distributor would buy a product from you and then sell it.
• An office can be established overseas. This offers much higher control and efficiency. While the option is expensive, it can be considered when there is a suitable overseas experience.
• Based on the offered services or products, some of the businesses use the internet and a site to handle exporting, all together with a good email address. In this case, for many situations, you need to quickly supply the markets.
• Informercials and catalogues can be used with success. This is especially the case when dealing with specialized products. The problem is that in this case it is mandatory to have a website.

You should also consider the following really important things:

• With contract manufacturing, you deal with another firm for manufacturing the product. For this, a contractual agreement is needed. Even so, you are still responsible for the end product. When you work with another firm, the advantage is that you get reductions with distributions and cost. In addition, there are tax incentives in New Zealand and there can be some in the target you export to. As an example, there are tax breaks possible for different overseas business kinds when the local economy is supported.
• You can consider franchising. This involves selling services or products that belong to you but through a company that uses your branding. In this case, training is necessary. Franchising will expand the business at quite minimal costs. This is because the franchisee bears most costs. The problem is that franchising just works when the business system is well-developed and the track record is proven. You have to offer ongoing training and support. Just remember that the initial commitment is greater than most people realize.
• Exporting from New Zealand is also possible through a joint venture deal you sign with a business located in the targeted overseas market. This an easily overcome trade barriers. In such a partnership, both businesses commit resources and funds to develop markets for services or products. Experience showed that it is quite difficult to establish such a deal that is beneficial for both parties.
• You can license services or products. This would bring in royalties, which practically means selling intellectual property for an amount for every single sale. In such a situation, you need advice from consultants and lawyers. Such transactions can be quite complicated.
• Last but not least, you can consider strategic alliances. These are very similar to the joint ventures. However, they are less former and usually last for a shorter time frame. The focus is obviously put on a market niche.