ew Zealand market. What was once viewed as a straightforward plan for international expansion has become a strategic dilemma with the market’s low consumer confidence, high operating costs, established local preferences and overall economic uncertainty. This week, it was revealed that New Zealand’s economy shrank by 0.9 per cent in the June quarter – a greater contraction than the Reserve Bank of New Zealand’s forecast of a 0.3 per cent decline. Now more than ever, it’s necessary for Australian retailers and brands to understand the nuances of New Zealand’s landscape and prevent a copy-and-paste strategy that is doomed to fail. Crossing the ditch According to retail consultant and Kiwi, Nicola Clement, despite their similarities and proximity, Australia and New Zealand’s cultures, behaviours and attitudes are very different. “Most Australians think they can treat New Zealand as an extension of Australia, but Kiwis are very attuned to this and notice the difference,” Clement told. “The challenge for retailers is that the population of New Zealand is roughly the same as Queensland and they don’t feel it is worth the additional cost and resources to run a dedicated country site or business,” she added. Clement recalled that when Adore Beauty first launched into the New Zealand market in 2019, it swapped out its infamous Tim Tam gift with purchase for a locally sourced Whittaker’s chocolate bar. However, the Australian beauty retailer no longer does this. One of the greatest differences between the Australian and New Zealand markets is that 25 per cent of Kiwis live outside of major metropolitan areas. “The shopping experiences vary significantly for these customers; however, there is significant opportunity for online retailers with New Zealand being at the forefront of significant global firsts in satellite technology,” Clement said. In June of this year, One New Zealand, a regional telecommunications company, announced that it would offer Starlink-powered satellite Internet of Things connectivity, a world-first that benefits both businesses and consumers. When tapping into this digital opportunity, Clement warned that Australian retailers should avoid performing the “sin” of making Kiwis shop from their ‘.au’ Australian site. Not only is the population spread in New Zealand different from Australia, the seasons are also different and vary across the country’s geography. “Auckland can get very humid, whereas the Antarctic winds in Dunedin would chill even the most hardened Tasmanian – the range and stock availability needs to reflect this,” Clement explained. Moreover, if Australian retailers want to take advantage of the proximity of New Zealand consumers, the shipping costs should reflect it. Notably, Australian department store David Jones has a physical store in Auckland but does not ship to New Zealand. Whereas its local competitor Myer doesn’t have a physical presence in New Zealand, it does ship to the market. Clement shared that up until last year, Kiwis could get an order from Selfridges in London to New Zealand faster than they could get an order from Adore Beauty. “Often, Kiwis pay for higher-cost international shipping from Australia, but with slow delivery timelines,” Clement said. “Why would you shop Australian if you can get a wider range in the same timeframe or faster from overseas? The cost wasn’t that different at the time,” she added. If Australian retailers want to win over New Zealand consumers they know the basic areas of improvement.