Calling Australian FMCG brands that want more gross profit. Don’t forget New Zealand.
Ready to conquer the ‘ditch’ and unlock New Zealand’s FMCG market for Australian brands?
While seemingly a natural next step, assuming a one-size-fits-all approach is a gamble; the Kiwi market demands precision and tailored execution.
The Kiwi Consumer: Same, but different - Don't mistake familiarity for sameness
Optimism and fiscal prudence: Kiwis are generally optimistic about finances (46% find it easy vs. 36% of Australians). However, they are value-focused; 73% actively shop for specials, compared to 55% of Australians. Your promotional strategy must consistently hit the mark.
Shopping habits and brand perception: Consumer behaviour differs significantly between Australia and New Zealand. Understanding local psychographics and demographics is paramount for tailoring effective campaigns. Your marketing communications and brand perception must be shaped to local sentiment
The competitive landscape - Less crowded, different but with opportunity
Australia's supermarket scene is very competitive. New Zealand’s market is highly concentrated with a duopoly of Foodstuffs and Woolworths NZ, offering distinct advantages for strategic new entrants.
Foodstuffs cooperative: Understanding this complex cooperative is critical; it's not like the Australian Independents. Partnering with local experts can accelerate understanding and growth.
Higher profitability and muted innovation: NZ major grocery retailers achieve higher profitability, indicating a lucrative market. There is also lower innovation pace and scale, plus a relatively low private label share. This presents opportunities to introduce fresh products or compelling brand stories that capture Kiwi attention.
Product and packaging - Local flavour, global standards
Your top-performing SKU in Australia may not automatically dominate in New Zealand; flavours and product ranges often follow different trends.
Tailored Offerings: Adjust your range by pinpointing the highest-potential SKUs for the NZ market based on sales data and consumer preferences.
Regulatory and consumer expectations: On-pack callouts and certifications differ. Ensure packaging aligns with local expectations while maintaining brand integrity.
Logistics and reach - navigating the last mile
While a single major Australian banner can reach more consumers than all NZ banners, New Zealand offers unique distribution advantages.
NZ distribution models need to allow for smaller shipments, direct to store and DC delivery.
Media costs are "astronomically more expensive" in Australia than in New Zealand. This means your marketing budget might stretch further, allowing for more impactful campaigns relative to spend.
Leverage Local Expertise: Winning requires precise field execution.
A full-service retail execution specialist provides experienced teams, infrastructure, and national scale, ensuring products get noticed and purchased.
Storelink offers these insights, industry connections, and field execution expertise to help Australian FMCG brands achieve visibility, strategic support, and profitable sales and distribution growth in New Zealand.
