New Zealand retailers are overlooking significant potential for growth says e-commerce for business specialist Mark Presnell. By concentrating on the perceived threat posed by global giants like Amazon, local retailers are not embracing e-commerce as a means to expand into lucrative international markets.
Mark Presnell, Managing Director of Convergence, an eCommerce integration firm based in Auckland, says that local businesses should shift their focus from merely defending their domestic market. “With the right strategy, Kiwi businesses – whether B2B or B2C – can turn the tables and thrive internationally without needing a physical presence in those countries,” he says.
According to Presnell, e-commerce has fundamentally changed the landscape for local businesses. “e-commerce has broken down the barriers that once limited local businesses to domestic buyers. Now, companies can expand beyond New Zealand through digital platforms,” he explains.
He notes that even seemingly generic products can be uniquely marketed to overseas consumers by leveraging New Zealand’s esteemed global reputation. “Consider a company selling soft furnishings. These items might seem ordinary, but offerings with a New Zealand theme will be much more appealing to overseas consumers in markets like the UK or Australia,” Presnell says.
For B2B companies, he points to agricultural products such as dietary supplements as prime examples. “Supplements made with New Zealand ingredients, like manuka honey or pasture-fed dairy, have strong appeal in international markets. These items can be positioned as premium, natural products sourced from one of the most pristine environments in the world – you don’t have to make them, just source them.”
Despite the challenges of competing with multinational retailers, Presnell believes that with the right tools and planning, entering overseas markets can be manageable. He advises retailers to concentrate on localisation, adapting product names and marketing content to resonate with different regions.
Mark Presnell.
“Retailers also need to be mindful of regional preferences,” he says. “For example, terms like ‘jumper’, ‘jersey’, and ‘hood’ vary across English-speaking countries. Using the right language and cultural references is crucial for customer engagement.”
Furthermore, he highlights the importance of having the appropriate technology in place. “The integration of business systems such as Enterprise Resource Planning (ERP) or Inventory Management Systems (IMS) with e-commerce platforms can significantly streamline operations,” Presnell says.
“Businesses need to ensure their backend systems are properly integrated, allowing for real-time inventory tracking, order management, and seamless product updates across multiple channels – this is especially important when managing sales across different countries, where product availability and shipping logistics can vary greatly.”
Providing multiple payment options and accommodating different currencies is also essential for global reach. “Customers expect to pay in their local currency, so having a system that supports various currencies and dynamic pricing is key,” he says. “Payment gateways must also be secure and compliant with regional regulations, reducing friction during checkout.”
Presnell further emphasises the role of automated shipping systems, integrated directly with fulfillment providers, to offer accurate delivery estimates and tracking. “You don’t need a physical presence in a foreign country, but you do need robust infrastructure, especially around shipping and returns, to build trust with international buyers.”
For New Zealand retailers eager to tap into international markets, Presnell shares three critical pieces of advice:
- Differentiate your brand: Leverage New Zealand’s reputation for quality, sustainability, or unique ingredients to make your products stand out.
- Research your target market: Understand the nuances of the overseas market you’re entering, including language, regional SEO, and market-specific customer preferences.
- Invest in the right infrastructure: Ensure your e-commerce setup, from software integration to payment options, supports global expansion without necessitating a local physical presence.
“Don’t be content to just survive in the shadow of multi-nationals. Challenge them by leveraging the unique strengths and tools already within reach,” Presnell says.
