Cautious optimism in the time of COVID

So far in my career I have experienced working through five major crises, starting with the 1987 stock market crash.

All of the previous crises have been of a financial nature and resulted in market reforms and new regulations, while the COVID-19 pandemic is driven by health concerns with significant lifestyle challenges and financial implications.

Nothing prepared us for the situation where countries would go into isolation and global travel would be severely restricted.

The good news among the economic fallout is there are some really positive signs emerging - changes to the way we work have accelerated, businesses have adapted quickly, technology adoption is at a high. These will all lead to productivity gains in the future.

Some of these changes will revert upon re-opening of economies but so much will become the new normal.

The "work from home" economy totally upended the food service industry with companies pivoting to B2C. Interestingly, as markets reopen many consumers are still opting for home delivery. There are many signs in the global economy that companies may reduce commercial office space as employees prove that they can work productively from home.

The "study from home" economy has created opportunities in edtech for both adults and students. E-commerce is definitely here to stay, and according to a report published by Facebook and Bain & Co, there will be 310 million digital consumers in Southeast Asia by the end of 2020; a number that was previously forecast to be reached only by 2025.

Several New Zealand companies have benefited from the surge in online learning during the pandemic, and travel restrictions have meant new business opportunities are now sometimes made over video and voice calls where a series of in-person meetings was previously a necessary requirement.

Further good news can be seen in the performance of our markets overall, where despite the COVID disruptions, New Zealand exports to East Asia actually grew by 3% to $11.6 billion (YE June 20) and exports to Southeast Asia actually grew by 5% to $6.2 billion (YE June 2020).

It's a great time to be leveraging Brand New Zealand and for the 'Made with Care' global food and beverage campaign to be launching ahead of year-end festivities.

So while there is still a considerable amount of uncertainty out there, there are many reasons why New Zealand exporters can be optimistic that we are in a good position to take advantage of opportunities as they increasingly present themselves on the world stage.

In the past few months the East Asia team has hosted twelve virtual events and webinars with over 1,500 attendees in total. The positive feedback continues to come in as we find customers are thrilled with assistance in bridging the communication gaps that have come up as a result of closed borders and workplace shut downs.

The situation is changing quickly and we are keen to ensure our events adapt with our customers' needs. Post event surveys have indicated that webinars are useful in supporting relationship building with existing in-market partners and enabling meetings with key people who normally cannot be reached. Virtual events enable customers to validate their position and address objectives to grow their business in the market, and keep up to date with trends from a distance.

But with some 'webinar fatigue' setting in, we are also offering more personalised experiences with pitch preparation and coaching. We will continue to provide these services where they are most needed and help connect New Zealand businesses with the right partners and investors for growth, including recommendations in partnership opportunities, and introductions to agencies that may be able to help you launch into East Asia.

Our advice for customers operating or thinking about launching into East Asia is to be aware of infrastructure opportunities - and limitations - between countries and regional jurisdictions. In the technology sector, we recommend companies become familiar with government priorities for development and consider aligning with a local partner to help in realising these goals.

Where possible, take advantage of new opportunities for new business meetings to take place via video conferencing and remain in regular communication with your partners in-market to stay on top of developments in each country of interest.

With signs that most economies in the East Asia region are on the up again, we look forward to talking to more innovative New Zealand companies about the markets in our region and the unique opportunities you'll find no where else.

Register or log into our free online portal, myNZTE for the latest in-depth information on how to enter the market and grow your business in East Asia. Our NZTE East Asia team is committed to support you through these changing times, get in touch.