Markets available on U.S. west coast

Press, 16 August 1978, Page 30

Markets available on U.S. west coast

From

JOHN HUTCHISON

in San Francisco

Markets are ready and waiting for New Zealand manufacturers who can meet the requirements and exercise the persistence demanded by traders on the American west coast, says New Zealand’s senior trade commissioner in the United States. He is Mr Donald J. Walker, the commercial minister in the embassy in Washington, who visited California recently. “California is the place of greatest opportunity for New Zealand trade,” he said. “It is the closest state to New Zealand. It has similarities in its outdoor life style. It has an extrovert air and reservoir of good will toward New Zealand that is not matched on the east coast of America.” But there were some cautions and conditions to be observed before the New Zealand supplier could establish an enduring business, Mr Walker said.

“It is not just a matter of stepping through the door and signing up the orders,” he said. “There is need for thorough preparation before he comes. A good many businessmen are still not doing their homework properly, or making as much use as

they should of our trade offices. We are here expressly to help New Zealand business.” Other requirements for success he listed as: — The trader must offer a product precisely tailored to satisfy the market, regardless of how suitable the item is to other markets.

— He should not take orders if his ability to fill them is uncertain. Once a commitment is made, he must deliver.

— He should reply promptly to customer inquiries. — He should be patient and persistent. — He should focus his sales effort on products which offer the best potential and on geographical areas where consumer interest and distribution efficiency offer the best opportunities. Emphasis was given to Mr Walker’s advice by an American importer interviewed within hours of my conversation with Mr Walker. Preferring anonymity because he feared his irritated comments might compromise his business relationships, the American numbered instances in which New Zealand companies had failed to capitalise on good trade opportunities

or had simply let him down.

He mentioned failure to provide adequate information about products and production capacity, inadequate knowledge of American market requirements, customs regulations, duties and distribution costs, and default on delivery agreements. “What really bugs me,” he said, “is that some of the suppliers, after coming over here and offering or selling a first order, do not even answer the letter when we need later to correspond with them.” He recited a list of marketable items offered by New Zealand manufacturers who had then not follwed through. “To introduce a product to the United States, a supplier must provide generous samples, advertising materials, illustrations and specifications,” the importer said. "He must know his f.o.b. and C.i.f. costs, the weights and cubes of his shipping units, the size conversions between the United States and New Zealand, and the colours and styles he can supply.

“And he must know that delivery is sacred. Many American buyers, in fact, require performance contracts.”