Page 13 - Export and Trade

US Market Focus

struggle to understand the size of the market and the doesn’t believe it will greatly affect trade between New
quantities that may be required, he adds, and Kiwis tend Zealand and the US.
WR WDUJHW WKH :HVW &RDVW DV LW LV DQ HDV\ VLQJOH ÀLJKW He can rattle off at least 30 Kiwi companies that
away. are having major success in the US across all sectors,
“But there are tremendous opportunities throughout the and points out that annual bilateral trade of goods has
rest of the country too.” continued to run at just under $11 billion per year.
Hearn agrees that one of the key issues companies have “However [trade in] technology and services
is not being based in market or fully understanding how to continues to grow with total bilateral trade of about $16
sell and market in the US. billion a year.
“Also, those that do set up and base themselves there “Trade goes on irrespective of government, and with
¿QG WKH FRVW RI VHWWLQJ XS DQG REWDLQLQJ FUHGLW DUH D ORW some 331 million population the US market will continue to
higher/harder than they expected.” be a key one for New Zealand businesses, particularly the
Hearn’s advice is to do your research and talk to tech sector.”
experts. Mike Hearn’s six top tips for Kiwi entrepreneurs looking to
“Technology advancements have meant that companies base themselves in the US in order to grow sales there are:
looking to do business in the US are now able to research • Getting a visa can take a lot longer than you think, so
the marketplace; look for potential customers or agents/ plan well in advance.
distributors; and check for any regulations for their • Setting up in the US will cost you more than you expect,
products/services, so they are more prepared than in the so do your research.
past.” • Check what US Government or State incentives may
For smaller exporters selling products and looking at be available (each state offers different incentives for
online sales, he recommends talking to Export X. “They’ve VHWWLQJ XS D EXVLQHVV DQG HPSOR\LQJ VWDII
been extremely successful in helping companies with their • Make sure you understand all legal aspects including
e-commerce expertise and automated systems that by- employment laws, product liability, and contracts.
pass conventional distribution [channels] and harness the • Understand who you are selling to and be more
power of the world’s biggest online marketplace.” ‘American’ in your approach.
Despite the US preference for bilateral FTAs rather • Make sure you utilise available networks and ask for
than multilateral ones like the TPP in recent times, Hearn introductions.

NZ Export & Trade Handbook 2018 11