New zealand Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in new zealand, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Distribution & Sales Channels
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Most company head offices are based in Auckland, New Zealand’s largest city.  The Port of Tauranga is the country’s largest commercial port by total cargo volume and container throughput, handling over 950,000 TEUs (Twenty-Foot Equivalent Units).   Sales agents market a variety of products, including custom materials and consumer goods for mass distribution.  New Zealanders prefer buying directly from manufacturers, so agents often employ trained staff to provide technical and sales support.

New Zealand’s modern distribution infrastructure supports diverse supply chain and inventory strategies.  Many well-established companies with nationwide networks provide trading, transportation, packaging, manufacturing, and distribution services at wholesale and retail levels.  These firms represent new products effectively in the New Zealand market, often importing goods to complement their existing lines.
Parallel importing is legal in New Zealand.

Distribution & Sales Channels

Using an Agent or Distributor 

Importer distributors are common for products requiring technical knowledge, servicing, repairs, or spare parts.  Given New Zealand’s market size, most unique products or manufacturers have a single distributor, though many distributors represent multiple manufacturers.  Stocking importers are crucial for goods where supply continuity is a key selling point, such as industrial or consumer products.  Large retailers often use purchasing agents or consolidators in the U.S. and other countries. 

Foreign manufacturers with New Zealand subsidiaries frequently import directly from their parent companies, supplementing local production.  Direct import and distribution by a New Zealand branch or subsidiary are typical for high-volume sales, allowing the parent company to maintain control.

Establishing an Office 

Setting up a business in New Zealand is straightforward, provided U.S. companies complete their due diligence and ensure they follow local procedures for tax, banking, and employment conditions.  Businesses in New Zealand are generally structured as Sole Traders, Partnerships, or Limited Liability companies.  New Zealand’s Ministry of Business, Innovation and Employment offers advice on setting up a business via its website.

For the latest Investment Climate Statement (ICS), which provides information about the investment and business environments in foreign economies—including guidance on establishing operations and hiring employees—visit the U.S. Department of State’s Investment Climate Statements website.

Franchising

Franchising is a popular business model in New Zealand as self-employment is highly valued.  Globally, New Zealand has the highest number of franchise systems per capita.  New Zealand offers a good mix of international and domestic franchise opportunities, although hospitality franchises dominate the industry.  There is no specific legislation governing franchising in New Zealand; the sale of businesses and business practices are covered by standard commercial law.  Of particular importance to incoming franchises are the Fair-Trading Act, Health & Safety in Employment Act, Consumer Guarantees Act and the Employment Act. 

Direct Marketing

Digital marketing is common practice in New Zealand reflecting this country’s high level of internet usage.  New Zealand’s Unsolicited Electronic Messages Act 2007:

  • prohibits unsolicited commercial electronic messages (this includes email, fax, instant messaging, and text messages of a commercial nature;
  • requires commercial electronic messages to include accurate information about who authorized the message to be sent;
  • requires a functional unsubscribe facility to be included so that the recipient can instruct the sender not to send the recipient further messages; and
  • prohibits using address-harvesting software to create address lists for sending unsolicited commercial electronic messages.

Joint Ventures/Licensing

There are no compulsory requirements for foreign companies to form a joint venture with a New Zealand entity when starting up operations.  However, some U.S. firms choose to join forces with established New Zealand firms to manufacture and market their products.  A strategic alliance between U.S. and New Zealand organizations offers partners access to technologies or patented processes owned by the other partner and/or access to their distribution network. U.S. companies planning to partner via a strategic alliance are advised to undertake due diligence on prospective partners and to seek expert legal advice for negotiating an agreement.

Express Delivery

New Zealanders are very familiar with express delivery services, known locally as “courier services.”  Well-known U.S. express delivery services, including DHL, FedEx, and UPS, operate between the United States and New Zealand.  Express delivery times from the United States to New Zealand range from 7-10 days.  Domestically, New Zealand has many home-grown companies providing similar services to U.S. brands.  Overnight express delivery services from Auckland to Wellington are available.

Due Diligence

Although New Zealand businesses enjoy a reputation for integrity, it is important for U.S. companies to perform appropriate due diligence on new and existing business partners.  Due diligence should confirm that a business partner is who they claim to be and has the financial ability and the necessary capability to deliver over the life of the contract.  All due diligence should be contracted.  Due diligence reports are offered by the U.S. Commercial Service to U.S. companies via its International Company Profile  service.