Characteristics of New Zealand’s distribution system
Goods distribution channels
In New Zealand, goods are distributed through various retail channels such as hypermarkets, supermarkets, department stores, convenience stores and online shopping channels...
The size of New Zealand's retail market is expanding. During the period 2013-2022, New Zealand's total retail trade has grown significantly, from NZD 74.7 billion in 2013 to NZD 118.9 billion in 2022 (Federal Reserve Bank of the United States, 2024).
Table 1 - Some types of retail distribution in New Zealand
|
Type |
Characteristics |
Popular brands |
|
Hypermarkets, Supermarkets & Hard Discounters |
Offers a wide range of products from food to consumer goods and household items. Often has competitive prices and many promotions to attract customers. |
Countdown, Pak'nSave, New World |
|
Convenience Stores |
Providing daily essential products with high convenience and flexibility. Usually open day and night, serving customers' shopping needs at any time of the day. |
Z Energy, Four Square, Night 'n Day |
|
Online Specialists |
Offers a wide range of products across a variety of industries. Provides convenience, allowing remote shopping with nationwide delivery. Often offers discounts and special offers for online shoppers. |
Trade Me, The Warehouse, GrabOne, Mighty Ape, Fishpond |
|
Department Stores |
Offers a wide range of products from clothing, cosmetics, homewares to toys and books. Often has extensive collections and popular brands. Provides a centralized and convenient shopping experience with many additional services such as cafes and gift wrapping services. |
Farmers |
Source: GlobalData (2022)
New Zealand consumers are increasingly shopping online due to its ease and convenience. As a result, e-commerce is becoming an important tool for businesses in the retail sector to reach New Zealand customers. Many traditional retailers in New Zealand are also shifting towards increasing online sales channels to keep up with consumer trends, which has led to the growing popularity of omnichannel sales in New Zealand.
Many New Zealand consumers often like to compare items and prices on different shopping channels, and check stock availability and product information before shopping directly in stores. According to 2023 data from Statista.com, more than two-thirds of people who shop directly in stores in New Zealand have previously researched product information online.
Trade Me is the most popular e-commerce platform in the New Zealand market. In addition, the New Zealand e-commerce market also has a number of other popular platforms such as The Warehouse, GrabOne, Amazon, Air New Zealand, eBay, Countdown, Mighty Ape, Fishpond...
Import channels
Foreign goods can access the New Zealand market through a variety of channels depending on the type of product, financial considerations, and other factors such as market size, demand, and long-term sales potential.
The following are some channels for importing foreign goods into New Zealand:
- Through a commercial presence in New Zealand
Foreign companies establish a commercial presence (establish a foreign-invested enterprise, business cooperation contract, establish a branch, representative office, etc.) in New Zealand to import, distribute to agents, stores or sell directly to consumers.
Establishing a commercial presence to import goods into New Zealand is considered a direct and effective access channel, but requires more investment capital than other forms, and the establishment procedures also take more time and cost. Therefore, this form is suitable for large companies, trading in large quantities and wanting to develop long-term in the New Zealand market.
- Through import partners in New Zealand
Import partners can be units that purchase goods for direct use (large, valuable industrial equipment; raw materials for production, etc.) or specialized import units (professional importers), importing goods for redistribution in the New Zealand market.
New Zealand's specialized import units are mainly wholesalers, distributors or intermediary agents that import goods for redistribution (for example, to stores, supermarkets, other units in need). Goods imported through these professional import units are often small machinery and equipment, common industrial supplies and consumer goods.
- Through online shopping channels
Foreign suppliers can also sell directly to buyers in New Zealand through many e-commerce channels familiar to New Zealand consumers such as: Trade Me, Mighty Ape, Fishpond, Amazon, eBay or Kmart... However, the channel is usually suitable for distributing mainly consumer products.
Source: Center for WTO and International Trade
