NEW ZEALANDERS OPEN TO NEW PRODUCT CONCEPTS.

(From Market - Asia Pacific)

Real household income in New Zealand is on the rise and consumers are becoming increasingly receptive to innovative domestic and imported products

New Zealand is a moderately price-sensitive consumer market. Local products and those from Australia enjoy a cost-competitive edge and strong market share. Australian products account for over 50 percent of all consumer goods imported by New Zealand. However, an increased willingness to experiment with new and different products will create opportunities for expansion for major consumer goods companies based in Europe and the United States

A 33 percent increase in the value of the national currency (the New Zealand dollar) relative to the US dollar since January of 2002 is giving a cost competitive edge to imported goods and services. The currency is likely to remain strong throughout 2004 and that will contribute to an overall increase in the value of consumer goods imports in the range of 5 to 10 percent

With unemployment running well below the 5 percent mark, consumer confidence is strong and should remain so through the first half of this year. That bodes well for sales of imported high-end goods including automobiles and major household appliances. The greatest beneficiaries of the upswing in high-end sales will be Asian manufacturers that are already well positioned in New Zealand

Producers of major name brand consumer goods with a reputation for quality are particularly well positioned to take advantage of increased interest in new and unique products. Products that offer features not generally available from competitors in Australia and New Zealand should have a better chance at carving out a market niche in 2004 than in previous years

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