Perceptions research overview
Australia 2007

“High in human values, low in business acumen”

• Australians generally see New Zealand as an extension of their domestic market. Products from New Zealand are considered top quality, and as good as Australian products.
  
• Australia sees itself as part of the ‘big league’ and perceives that New Zealand needs Australia more than Australia needs New Zealand.  However Australian companies are willing to partner with New Zealand businesses – more than New Zealand companies perhaps realise.
  
• Familiarity means New Zealand is taken for granted and awareness of New Zealand-specific companies and brands is relatively low. A lack of identity means New Zealand products can be wrongly identified as Australian products.
  
• There are many similarities between the business culture and values of the two countries. Consequently (and in contrast to other New Zealand trading partners) Australians perceive New Zealand business skills to be generally sharp and sound. Indeed, New Zealanders can be somewhat aggressive in business and this is perceived to be due to an inferiority complex or expectation that Australia will try to take advantage of ‘the little guys’.
  
• New Zealand businesses are seen as having limited resources (eg capital and government support) and are admired for using their resources in limited ways – making them efficient, flexible, adaptable and willing to try alternatives.
  
• Human values are high in New Zealand and add to the positive perceptions of the country. Commitment to bi-culturalism, respect for the land, nuclear policy and environmental policies are all admired. New Zealand businesses are honest, open, direct and trustworthy – “you can trust a New Zealander”.
  
• However, this trustworthiness can work against New Zealand businesses. Australians talk of New Zealanders being relatively naïve in business negotiations, often showing their cards too early and absorbing more costs than they should.
  
• New Zealand businesses are also lacking in other areas of business acumen. Their attitude to business can verge on “she’ll be right” casualness and is evidenced in the lack of understanding of the complexities of the Australian market.  An unwillingness to partner means New Zealand businesses take a more transactional approach to business and are not interested in building long term relationships.  Sophisticated strategies also tend to be missing from New Zealand businesses.
  
• To improve business dealings with Australia, New Zealand businesses need to take the following steps:
  
  
  • Spend time and effort learning about the Australian market. For example, in retail this means understanding the target market, competition, price points and positioning etc.
    
  • Become more commercially minded and less naïve when it comes to negotiations
    
  • Be willing to partner and commit to a long term relationship
  
  
• If New Zealand is perceived to be part of the furniture in Australia, a stronger identity is important to enable companies to differentiate themselves and better promote their New Zealandness.  Companies need to provide tangible evidence of their sophistication and technical know-how to create higher visibility in the Australian market.

Research conducted in Sydney and Melbourne, July 2007 by the Nielsen Company. 30 business people interviewed. For more details please contact Jennifer.andrewes@nzte.govt.nz

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