The goal of your group assignments is to be acquainted with New Zealand as a target country market for Zu, an Australian footwear product line owned by the Betts Group and to use that knowledge to assess the viability of New Zealand as a target export market through their e-commerce website. Therefore, the group assignment will consist of three inter-related parts: a country study, an industry and market study, and an international marketing plan.
Economic Analysis of New Zealand Footwear Industry
New Zealand is considered to be one of the most beautiful countries in the world and the population is generally termed as “kiwis” because of their national bird “Kiwi”. It is a multi-ethnic country with people compromising from different countries and religions. New Zealand presents huge opportunity for trade of goods and services from neighboring countries and especially Australia. Every target market present in Australia is also present in New Zealand thus provide similar type of market as well as customer behavior (Hunter, 2010, p. 23).
The estimated population of New Zealand in year 2011 is approximately 4.5 million with diverse ethnic groups. Median age for male is around 35 years and female median age is 38 years. New Zealand makes a good market for products because 66% of population is of working age i.e. 15 years to 60 years. Median age for working age population in New Zealand is 39 years. There has been significant increase of around 14% in working population thus economic prosperity has also enhanced.
Economy of New Zealand is considered to be decently prosperous and is ranked 60th in the world. Gross domestic product of New Zealand is about 170 USD and GDP growth rate was 2.2%. Major chunk of GDP is contributed by service industry which is 75% of GDP. The major motivating factor of doing business in New Zealand is its ease in business transactions. Because of this fact, New Zealand is ranked 3rd in world on the factor of ease in doing business. Majority of the export and import from New Zealand is to Australia. New Zealand and Australia are partners in “Closer Economic Relation” (Labrum, 2011, p. 13). CER is a form of relation between countries which allows free trade of good as well as most of the services which can be exported or imported.