EXPORT

40% of NZ exporters say RWC will boost their business

Thursday 1 September 2011, 9:35AM
By DHL
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AUCKLAND

- Export confidence for coming year hits 70%
- NZ exporters diversifying into Asian markets
- Online commerce presents growth opportunities
- NZ exporters considerably more confident than Australian exporters
whose confidence is at all time low


Despite the Tournament lasting six weeks, Rugby World
Cup 2011 is set to give a much-needed boost to the New Zealand export industry, with the
impact felt into 2012 and beyond, says the 2011 DHL New Zealand Export Barometer.

Exchange rates, fuel prices and the Christchurch disasters topped the list of factors that
have negatively impacted exporters in the past 12 months, but New Zealand exporters
are positive about the year ahead with 70% saying their export orders will increase in the
coming year.

Phil Corcoran, National Sales Manager – New Zealand, DHL Express says confidence is
improving:

“The DHL Export Barometer provides accurate insights into the factors impacting on New
Zealand’s export trade. The export industry has taken a hit due to several factors in the
last few years, but there is a slow-burning confidence, with two thirds believing orders will
increase over the next year.”

Rugby World Cup 2011

Corcoran says some of this confidence can be attributed to Rugby World Cup effect:

“Rugby World Cup 2011 has put a bit of energy into the sector, with 40% saying they
believe it will have a positive impact on their business’ bottom line.”

Nine out of ten of those who believe it will have a positive impact say this will continue
beyond 2011.

Economic Impact of Asia

Showing the increasing reliance on the Asian markets, those exporting to Korea, China
and Taiwan are most confident of orders increasing over the next 12 months. To prove
this, 68% of those surveyed feel orders from Korea will increase over the next year.

“Australia continues to be the top export destination. China has emerged as another top
export destination in 2011 coming in ahead of North America, Europe and the UK for the
first time,” says Corcoran.

Online Commerce

Corcoran said the exporter community has had a difficult year but online commerce is
presenting growth opportunities.

“Half of the exporters surveyed reported an increase in the levels of online commerce
they have undertaken in the last year. Although competition has increased, e-commerce
is making it easier for exporters to reach out to a wider market and will help many
businesses react to opportunities in a timely and efficient way,” Mr Corcoran says.

The impact of online commerce on the industry has now been felt to a much greater
extent. Social media in particular has crept up as a big factor, as Corcoran comments:

“Almost a third of New Zealand exporters say they rely on social media for their marketing.
This is a huge percentage when we consider that the export industry is mainly made up of
people who haven’t grown up with this technology as the norm.”

Australia

In comparison, the DHL Australia Export Barometer shows the strong dollar and natural
disasters at home and overseas has significantly dented the confidence of Australian
exporters. Corcoran highlights the stark contrast in confidence between New Zealand and
Australia:

“Interestingly, only 48% of Australian exporters expect an increase in orders over the next
12 months, compared to 70% in New Zealand.”

The annual survey of Australian exporters found that exchange rates are challenging 81%
of exporters, affecting their ability to compete with overseas rivals (72%), the prices they
charge (70%), sales revenue (69%) and profit (68%).