Ask Paul White managing director of Beca International, about challenges his company faces in exporting from New Zealand and he says firmly, “We don’t perceive challenges”
That is the kind of attitude you would expect from a company with 19 offices offshore, projects completed in 70 countries and growth in its export markets of around 30%.
And the kind of attitude to expect from the company named overall winner at the New Zealand Trade and Enterprise International Business Awards. Ninety companies entered the awards and the finalists ranged from software companies like Author-it, which provides content management software to more than 3500 clients in 50 countries, to Les Mills International, which offers its Group Fitness System in more than 75 countries to an estimated 6 million people every week. And the Gallagher Group, which designs, manufactures and exports its products to more than 130 countries.
How do you pick winners from that lot? Judges looked for those that showed good results, a thorough understanding of their markets, a strong competitive advantage and an ability to innovate.
Beca International, which also won the category for companies earning more than $50 million, started out as three men, and quite possibly a dog, and now exports its engineering expertise around the globe. If you’re looking for an export champion, it’s hard to go past Beca with its international reach, and a business model that uses Kiwi knowhow to complete projects all over the world. Key to its growth strategy has been the development of three hubs — in New Zealand, Australia and Asia (centered in Singapore).
The recession has hardly had a look-in at the company over the past 18 months, says White, as countries have focused on building infrastructure, to Beca’s advantage.
Beca is part of the consortium that won the contract to build Melbourne’s new desalination plant, which White describes as a huge win.
The company always ensures it has a good understanding of any new market it enters. There must be a real demand for its skills and services and it prefers to have a committed Beca person in-market, although part of its international growth strategy is to localise the brand by employing local people.
Beca’s focus on business offshore is all about building relationships; it’s not driven by deals, says White. The company prefers repeat business from known clients rather than constantly breaking new ground.
Success offshore is not just a case of spotting a gap in the market and expecting customers to come calling. New Zealand companies must be clear on their unique selling point, he says. “If you can’t point to what differentiates you and how you add value, then it’s a hard sell.”
Emerald Foods Group, winner of the category for companies with revenue between $10 million and $50 million, is certainly clear about its unique selling point, says managing director Shane Lamont (left).
“We are just growing on the back of New Zealand’s clean, green identity and a big part of our international push is the New Zealand name and linking it to natural. It’s a nice fit,” says Lamont, also a finalist in the ‘emerging leader’ category for his role in turning the company around since 2006.
There’s a lot of talk around the need for New Zealand companies to add value as they export. Emerald Foods’ New Zealand Natural icecream franchise starts with raw milk in New Zealand and ends up with icecream in a cone in a place like Russia. All its icecream, apart from that required for the Vietnam market, is manufactured here and then shipped offshore. “We’re adding a lot of value here,” Lamont says.
When the Emerald Group purchased New Zealand Natural in 2005, it created New Zealand’s biggest franchise exporter. In the past three years, Emerald Foods has increased export sales by 300% and expanded into 20 new countries, taking its total number of markets to 29. The company makes premium icecream and its brands include Killinchy Gold and Movenpick. It also manufactures icecream for clients offshore and the New Zealand Natural franchise operates in 21 countries.