Distribution breaker in China in New-Zealand
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FAQS 4
Did NZ companies pull out of China in the last 12 months?
Pudong, Shanghai, China. Photo: Unsplash Anna May Isbey, Executive Director of the NZ Business Roundtable in China (NZBRiC) and Richard Dunsheath, NZ Trade Commissioner, both based in Shanghai, confirm that some NZ companies have pulled out of China in the last 12 months or switched back to using local distributors.
Are smaller New Zealand businesses entering the Chinese market?
But experts report a fall in the number of smaller New Zealand businesses entering the market. Crozier comments that interest in China among smaller exporters that were already flat before COVID, has further declined, reflecting vibes around business risks and geopolitical tensions, but mostly the challenging nature of the Chinese market.
Should New Zealand exporters take a multi-distributor approach in China?
New Zealand exporters at market-entry stage can adopt an exclusive distributor or take a multi-distributor approach in China. There are pros and cons for each, and both can succeed or fail.
How does a Chinese partner work with a New Zealand exporter?
The New Zealand exporter and the Chinese partner collaborate more closely to distribute products or services in the market. Partners may create a new entity registered in either New Zealand, Hong Kong, or China (each option has pros and cons).
