New Zealand Post helps local firms to access Chinese market

New Zealand Post helps local firms to access Chinese market

New Zealand Post is helping companies enter the huge Chinese market by opening a dedicated New Zealand store within the Tmall Global e-commerce website. The “Gift from New Zealand (Xinxilan) website brings in a host of New Zealand businesses to sell direct to Chinese consumers — and boost cross-border shipping in the process.

New Zealand Post executive general manager for e-commerce and customer solutions, Sohail Choudry, said the new web store is backed by an end-to-end supply chain system designed specifically for New Zealand companies looking to expand into the Chinese market.

He said the store puts New Zealand businesses in front of an audience of “hundreds of millions” in China.

“Inclusion in the web store means Kiwi companies can share web hosting costs and New Zealand Post’s support removes a lot of the complexity of selling into China,” Choudry said.

“Companies will be able to focus more on strategy, marketing and customer relationships and less on digital operations and logistics by capitalising on New Zealand Post’s extensive networks and trusted relationships in China to get their products to consumers.”

Supply chain

In providing the new web store and accompanying supply chain, New Zealand Post makes use of its links with Chinese organisations including China Post, freight company Cargo Services Far East, and e-commerce giant Alibaba Group, which runs the Tmall Global website.

The launch followed a visit to New Zealand by Alibaba Group in May.

New Zealand Post said since the visit it has received “significant” interest from local companies in accessing the Chinese market.

But for a few months the New Zealand store is being limited to four businesses — “Lord of the Rings” production company Weta Workshop, natural health firm Xtend-Life, premium honey manufacturer Hauora Honey, and New Zealand Post’s own stamps and coins business — to give the Post time to fine tune the system.

New Zealand Post said the new web store is part of its growing focus on parcels and e-commerce. This year has seen the state-owned company generating more revenue from parcels than letters for the first time in its history.

The companies already selling through the Gift from New Zealand web store have already seen the impacts of entering such a huge market as China.

“China’s not an easy market – there’s a lot to know and it takes time, resources and local knowledge to get it right. This is a perfect way to dip our toes in the water for minimal risk,” said Xtend-Life chairman Warren Matthews.

“I’d be disappointed if we weren’t selling in the six figures (NZ$) and beyond per month when we’re fully set up.”

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