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ABSTRACT
This Industry Sector Analysis (ISA) covers the New Zealand
Apparel market, a sub-sector of the Apparel, Textile and Footwear
industry sector. The industry has experienced significant
restructuring from 1986 following the deregulation of the New
Zealand economy. This restructuring has led to a significant
decline in the number of New Zealand based apparel manufacturing
concerns, and a rationalization of all related industry sub-sectors.

There has been an increase in apparel imports from all
international sources due to the progressive removal of tariff
barriers.
The volume of apparel imports to New Zealand in June 1998 was
141.4 million units with an associated value of $152.28 million
(USD). The level of New Zealand exports have made a significant
contribution to the total apparel industry, amounting to $92.91
million (US) in the year ended June 1998.

It has been identified that various opportunities exist for U.S.
investors, in terms of specific product lines and broader market
investment opportunities. Specific product lines that should be
evaluated include the importation of designer apparel, plus size
clothing and branded recycled clothing. Emerging market
opportunities include Internet commerce, direct mail catalogues,
and strategic partnerships with New Zealand companies.
Domestic production within New Zealand is becoming increasingly
limited due to the introduction of low-cost product imports. In
response, New Zealand designers, manufacturers and retailers have
taken advantage of core competencies in production and design,
enabling them to produce smaller production runs and be highly
flexible.
Third country imports represent the most significant threat to
U.S. exporters and investors wishing to enter the domestic
market, currently dominated by China.

Apparel imports from the United States represent only a 2% share
of the total New Zealand apparel market (1996), and are not
considered a threat to domestic industry in the near future.

For the purposes of this report, end-user groups within New
Zealand comprise manufacturers, wholesalers and agents,
retailers, and consumers. New Zealand based wholesalers and
agents are involved at all stages of the industry and should be
approached as a first point of market entry.
A. MARKET HIGHLIGHTS AND BEST PROSPECTS

Market Profile

The New Zealand economy is dependent upon export growth.
Government policy actively encourages New Zealand industry to
become involved in export activities and seeks to attract foreign
investment capital and skills for productive export oriented
industries. New Zealand has an international reputation in
forestry, horticulture, pastoral farming, tourism and niche
manufacturing industries. It is renowned for its clean,
unpolluted environment and quality of life.
New Zealand is situated in the Pacific Ocean and consists of two
major islands. The capital city, Wellington and New Zealand's
largest city, Auckland, are both situated in the North Island.
New Zealand has a diverse and multi-cultural society and a
comparatively small population of approximately 3.5 million
people, with an annual growth rate of less than 1.4%.
The New Zealand apparel industry sector analysis for the purposes
of this report consists of the following categories:

Women's and Unisex outerclothing
Women's and Unisex underclothing and hosiery
Men's outerclothing
Men's underclothing and hosiery
Girls and unisex (2 to 12 years) outerclothing
Girls and unisex (2to 12 years) underclothing and hosiery
Boys (2 to 12 years) outerclothing
Boys (2 to 12 years) underclothing and hosiery
Babies and young infants (under 2 years) outerclothing
Babies and young infants (under 2 years) underclothing and
hosiery.

The sub-sectors of the apparel industry examined are:

New Zealand based apparel Designers
New Zealand based apparel Manufacturers
New Zealand based apparel Retailers
New Zealand based apparel Importers
New Zealand based apparel Agents

From 1986 onwards, New Zealand government policy has been
engineered towards the encouragement of efficient competition,
through removal of barriers to international trade. This
restructuring led to a significant decline in the number of New
Zealand based apparel manufacturing concerns, and a
rationalization of all related industry sub-sectors.

Because of these factors, the New Zealand apparel industry sector
is expected to demonstrate an increasing propensity towards
innovation, enterprise and an efficient response to market
demands, as the domestic industry faces escalating international
competition (Source: New Zealand Herald, Jan 17, 1998:G3).
The apparel industry sector was among the last of producer groups
in New Zealand to retain strict licensing and tariff control of
imports. The New Zealand Government's commitment to removing
barriers to importation has seen non-preferential tariffs in the
apparel sector reduced from 40% in 1989 to 26.5% in 1997. These
reductions are likely to continue with the anticipated removal of
all import tariffs by the year2007.

It is expected that the New Zealand apparel sector will continue
to face significant competition. The removal of tariff barriers
up to 1997 has been met with an increase in apparel imports from
all international sources. In 1990, the volume of apparel imports
was 32.3 million units, with an associated value of $67.769(US).
These figures increased to an import volume of 141.4 million
units with an associated value of $152.28(US) in 1998 (Source:
New Zealand Apparel and Textile Federation Statistics).

International competition has led to considerable restructuring
within the industry sector. Accompanying this restructuring have
been significant reductions in employee numbers, from 28,451 in
1995 to 25,578 in 1997. Influencing factors for this reduction
include, increased automation of domestic production, increased
offshore manufacturing, and contraction of the overall industry
sector.
Conversely, the level of New Zealand export success has been
significant, with the value of apparel exports alone increasing
from $30.90 million (US) in 1989 to $92.91 million (US) in the
year ended June 1997. Government agencies, such as Style EX and
Tradenz have been established to facilitate and encourage New
Zealand apparel exports. Depreciation of the New Zealand dollar
against all major currencies has further assisted exporters.

New Zealand manufacturers maintain production in all major
garment categories. These include outerwear, underwear, hosiery,
nightwear, swimwear, ties, headwear and leather apparel.

Domestic manufacturing is primarily concentrated in the middle to
upper range of the market, with sizable imports from Asia
dominating the lower end of the market. It is difficult to
isolate third country imports originating in the U.S. due to the
increasing globalization of apparel production and distribution.
The recent introduction of parallel importing has the potential
to damage the existing brand equity and image of higher end U.S.
designer products. Parallel importing allows domestic and
international importers to acquire bulk quantities of branded and
non-branded apparel at greatly reduced costs, which are then
passed on the consumer, undercutting traditional distribution
channel members. The remaining manufacturers within New Zealand
have refocused their operations and developed new or niche
markets both domestically and abroad. These companies have
consolidated their existing operations to take advantage of
shorter production runs and greater flexibility.
The levels of finished clothing and unfinished fabric imports
from Asian nations has increased dramatically, with imports from
China alone amounting to $41.52 million (US) in 1992, and
increasing to $120.03 million (US) in 1997.

Levels of third country imports will increase as the New Zealand
Government continues to expose the industry sector to
international competition. The review of import tariffs post 2000
is still in progress, with New Zealand being a signatory to the
AEC (Asia Pacific Economic Co-operation) agreement. This accord
is anticipated to remove all tariff barriers to international
trade in the Asia Pacific region by the year 2010. It should be
noted that the industry sector has expressed concern that if
tariff removal occurs before this date, complete competitive
restructuring will not be possible (Source: Paul Bloomfield,
Apparel Magazine, 1998). Consequently, many of the remaining New
Zealand manufacturers within the sector have undertaken out-sourcing of areas of their production in an effort to reduce
their overall costs. Much of the manufacturing in the domestic
industry is contracted out to Asian countries; the garments are
then transported back to New Zealand for distribution and re-export.
Statistical Data

Table 1

New Zealand Apparel Market (US DOLLARS MILLIONS)

1997 1998 Est. 1999 Av+2 Years

Import Market 163.02 152.28 201.20 12.5%(E)
Local Prod'n 190.86 231.52 285.98 Exports 115.03 92.91 106.84 Total Market 238.85 290.89 380.34 12.5% US Imports 0.05 4.60 9.25 7.47 Exchange Rates 0.62 0.50 0.48
Estimated Future Inflation Rate: 0.8%

1996-97 NZ Import Market Share (%U.S. and Major Competitors):
U.S.: 2.0% Australia: 23.8% China: 47.0% Asia: 27.2%
(E) = Estimated Value

Sources: New Zealand Yearbook 1998
Trade NZ Webpage www.tradenz.govt.nz
Oanda 164 Currency Converter http://www.oanda.com
US Department of Commerce Statistics
Receptivity Score = 5

End-user receptivity for acceptance and desirability of United
States products and services is on a score of 5 down to 1.
5 = Extremely receptive
4 = Very receptive
3 = Fairly receptive
2 = Somewhat receptive
1 = Not receptive

Best Sales Prospects

The following are the best identified sales prospects and market
opportunities for U.S. based apparel organizations within the NZ
industry sector for the period 1998 - 2000:

Best Sales Prospects (specific product lines)
Women's, men's and children's designer apparel. U.S. apparel
companies are regarded by those within the industry as
setting international standards in terms of quality and
design specifications.

Plus size clothing for men and women. Garments catering
specifically to the outsize person are required for a fast
growing and potentially lucrative market segment.
Traditionally, this market segment has been catered for by
made to measure designer/manufacturers. It has now become an
accepted product class by the New Zealand industry and
consumers as a whole.

Apparel lines for the elderly. An aging New Zealand population
demographic requires that a variety of garments be designed
specifically to meet their particular needs.

Sportswear and leisurewear for the whole family. New Zealand's
active sports oriented culture and outdoor lifestyle makes
these types of products a popular New Zealand consumer
choice. It should be noted that New Zealand is renowned for
its superior quality products in this area, for example
Canterbury International and Fairydown.

Recycled clothing imports. Imports of quality used U.S. clothing,
particularly branded clothing is a growing industry sub-sector within New Zealand. Demand for these products is
essentially based upon a resurgence of "Retro" fashion
trends and the on-going economic down-turn with its impact
upon all parts of New Zealand society.

Market Opportunities

International export of third country produced, U.S. branded
apparel products to established distribution channels within New
Zealand. This is currently accepted practice in New Zealand, but
has the potential to be further developed.

The availability of relatively inexpensive, highly skilled
personnel from all areas of the industry, together with
underdeveloped existing manufacturing premises and potential
sites for development.

The advent of Internet commerce, which allows U.S. based
manufacturing, retail and design concerns to interact with and
take orders from New Zealand end-users, without establishing
physical presence in the market.

The proximity of New Zealand industry to the Pacific Islands, a
potentially lucrative source of inexpensive production facilities
and labor resources.

High end market opportunities for branded products. New Zealand
has witnessed a recent introduction of high fashion lines by U.S.
design labels such as Tommy Hilfiger and Donna Karan in response
to increasing consumer awareness and demand.

Direct mail catalogues as an increasingly popular marketing and
distribution channel. A catalogue could be produced individually
or collectively by U.S. manufacturers and promoted via
traditional New Zealand distribution and media channels or
through the Internet.

Ladies and men's apparel in larger sizes constitutes a growing
market segment, which is highly developed in the U.S. and only in
the initial growth stages here in New Zealand. Many retail stores
are opening which cater specifically for the outsize person.
There appears to be fewer designers and manufacturers catering
specifically for men's clothing (outer and underclothing) but
this is a market segment offering considerable growth potential
and substantial margins for quality branded product.

Utilization of a mix of New Zealand design talent and inexpensive
off shore production. Potentially, a New Zealand inspired brand
could be created produced and exported back to the U.S. This
venture could involve establishing a strategic partnership with a
New Zealand firm to ensure authenticity and market fit.

The New Zealand market could be used as a test market for U.S.
new product developments or for investigating a change in design
or manufacturing direction for an established label. The
similarities between New Zealand and parts of the U.S.A., (e.g.
Southern California, New Jersey, Colorado) in terms of culture
and lifestyle would enable a close comparison study to be carried
out.

Investors could look to strategically acquire or refloat
companies who are close to exiting the market or going into
receivership. B. COMPETITIVE ANALYSIS

Domestic Production

Domestic apparel production within New Zealand is becoming
increasingly limited, due to the entry of low-cost product (from
international manufacturers and distributors) into the market.
Smaller, niche domestic competitors are also suffering the
detrimental effects of deregulation within the industry,
particularly those retailers and manufacturers who cater to the
low to middle market. Some retailers and independent designers at
the top-end of the market are encountering relatively less impact
from the increase in overall imports.
Productivity improvements have followed from import deregulation,
increased competition and economic hardship experienced by the
New Zealand industry. Many of the productivity gains have been
achieved in the ancillary production areas (e.g. cutting, grading
and handling of raw material), the same areas in which large
automation gains have been made internationally.

New Zealand design, manufacturing and retail operations have
become increasingly rationalized entities. By taking advantage of
key strengths and core competencies in production and design,
these designers, retailers and manufacturers are able to produce
smaller production runs and be highly flexible. New Zealand
manufacturers typically produce a variety of product lines for a
diverse range of end-users.
Close working relationships and industry co-operatives such as
Style Ex have developed between domestic manufacturers and
retailers to ensure fast response times between the industry and
end-users, in order to remain competitive.

To avoid internal competition in a shrinking domestic market,
Style Ex New Zealand was established. This Trade NZ operated body
is an export support organization created specifically to meet
the needs of apparel, textile and footwear manufacturers in
export markets. The willingness of domestic manufacturers to
collaborate and share resources stems from the recognition that
presently foreign competition presents the greatest threat to the
domestic market. The small scale of operations in the New Zealand
apparel industry and the homogeneity of industry players ensure
that industry informational networks are well established. Other
strengths of the New Zealand apparel and textile industry include
(Source: New Zealand Manufacturers Federation Inc.):

- High quality of locally produced apparel product
- Responsiveness to market requirements and changing fashions
- Strengths in specialist fabrics production
- A strong industry-wide commitment to training and skills development.

Rapid over-expansion in the New Zealand apparel industry has seen
companies unable to sustain costs when faced with progressively
decreasing margins. In spite of these difficulties, domestic production is still
significant in terms of meeting total market demand, although
increasingly imports are satisfying the apparel needs of the low
to medium end of the market.
Geographically New Zealand is a small country, smaller in
physical size than the state of Colorado. In consequence, it is
important for U.S. organizations to keep up to date with New
Zealand industry developments and changes in market dynamics.

Statistical Data

Table 2

New Zealand Clothing Production by Category (US DOLLARS MILLIONS)
Year Ended 30 June 1997

Women/US Men Girl(>12) Boy(>12)

Outerclothing 130.12 73.22 7.52 2.97
Underclothing 51.04 23.11 5.03 (Combined)
Exchange Rate 0.62
U/S = Unisex
Sources: Statistics New Zealand 1997
Oanda 164 Currency Converter http://www.oanda.com
Table 3

New Zealand Clothing Production by Category (Number of Units MILLIONS)
Year Ended June 1997

Women/US Men Girl(<12) Boy(<12)

Outerclothing 8.921 3.542 1.177 .401
Underclothing 14.311 11.720 2.553 (Combined)

U/S = Unisex

Sources: New Zealand Statistics 1997
Apparel & Textile Federation of New Zealand

Major Domestic Apparel Manufacturers
Rembrandt Cambridge
Deane Apparel
Tamahine/MacKenzie Country
Longbeach Holdings

Third Country Imports

The major percentages of apparel imports to New Zealand come from
the Asian countries (which account for almost 60% of total
imports), particularly China, which dominated 47% of the total
market in 1998. Close ethno-graphic similarities and economic
trade agreements with Australia (CER, GATT) have meant that
Australia (24%) and the other Asia-Pacific nations represent New
Zealand's second largest source of clothing and apparel imports.

Third country imports represent the most significant threat to
U.S. exporters and investors. Asian exporters compete primarily
on a price basis. This factor coupled with the decreasing value
of the New Zealand dollar against international currencies makes
Asian nations an attractive alternative as a source of raw
materials and finished apparel products.

It is suggested that U.S. firms enter the mid to high end of the
apparel market, rather than attempting to compete in an already
saturated, highly competitive low end market with extremely tight
margins.
Significance of imports in meeting total market demand
Imports of apparel products are vital to the New Zealand market
in terms of supplying both the low and high end. Asian imports
cater to markets that New Zealand manufacturers are no longer
able to compete in due to their higher production costs. U.S.,
U.K., Australian and European imports supply international
branded products, which are demanded by the high end of the
apparel market.
In terms of the lower-end of the market, imports are very
significant in relation to everyday garments purchased from the
major retail outlets. New Zealand is able to supply the market
with a substantial amount of mid to high end branded products,
but this must be supplemented with specific overseas brands that
are demanded by consumers, which New Zealand companies either do
not have rights or facilities to produce domestically.

Further reduction of tariffs will ensure that the levels of
imports to New Zealand will increase. This makes New Zealand
particularly vulnerable to dumped' merchandise from producer
nations, and the impact of unfair pricing strategies. It should
be noted that heavy judicial penalty and strict legislative
sanction regulates these particular practices (The Dumping and
Countervailing Duties Act 1988).
U.S. Market Position

Imports of apparel represent a significant proportion of the
total New Zealand apparel market. In 1996, the level of U.S.
imports represented only a 2.0% share of the total New Zealand
apparel market. Industry sources do not regard U.S. involvement
in the industry as significant and perceive no immediate threat
(Source: Retail Apparel Group: Barry Green, Charles Parsons Ltd.,
1998). This is due to the small size of New Zealand awareness and
demand for U.S. branded apparel.
Changes in total import figures from the U.S.

Imports of completed products from the U.S. increased between
1996 and 1998 from 2% to 3%. However, increasing economic
uncertainty in the New Zealand environment has seen levels of
U.S. imports fall to 2% at June 1998.
Significant market developments and factors

New Zealand consumers are among the earliest adopters of new
technology in the world. The increase in global technologies such
as the Internet and satellite television has meant that New
Zealand consumers are much more aware of U.S. design trends and
labels than other nations of a similar size and will create
demand for certain brands. Many New Zealanders are frequent
travelers and bring back products and innovations from the U.S.,
which are then demanded by other consumers.
Current and future U.S. position
U.S. companies are not currently strong in terms of the low end
of the New Zealand apparel market. They would need to be highly
competitive to enter and survive against strong competition from
third country imports. Entering the market at this level could
negatively affect the current perception that U.S. apparel brands
are of high quality and should therefore command premium prices.
C. END-USER ANALYSIS

End-user groups can be divided into four primary classifications;
Manufacturers, Wholesalers, Retailers and Consumers. Government
is involved as a regulatory and legislative body for industry,
but not classified as an end-user.
The majority of fabrics used by apparel designers and
manufacturers in New Zealand are imported. However, New Zealand
continues to produce domestic yarn and fabric for natural
garments and outdoor clothing.

New Zealand based wholesalers and agents are involved at all
stages of the industry. Wholesaler and agent activity ranges from
small goods and fabric importation to branded apparel licensing.
The main New Zealand wholesalers and agents at 1998 are:

IBEX Trading Company
Season Product Sourcing International Ltd.
Hardcore Enterprises (NZ) Ltd.
ESP Apparel Ltd.
Longbeach Holdings Ltd
Bruce Moore Agencies

Many domestic retailers are facing difficult times financially
and are less likely to take risks in placing orders for new
product lines which involve an element of risk. Retailers favor
imports that have proven brand power overseas, as this reduces
the perceived risk.
The main apparel retailers within New Zealand at 1998 are:

DEKA NZ Ltd.
Farmers Trading Company Ltd.
The Warehouse Ltd.
Hallensteins Glassons Holdings Ltd MacKenzie Country

Consumers demonstrate typical consumption patterns in relation to
apparel products. Those within a lower socio-economic bracket
generally tend to purchase products on a price sensitive basis,
while those in the middle to upper thirds of the population make
consumption decisions based upon quality, fashion and image
attributes of products. These consumption patterns are broad
generalizations and do not apply to all apparel product
categories. Statistical Data

Table 3

Actual New Zealand Retail Sales by Category (US MILLIONS)
Year Ended Feb 1997

Jan96 Mar96 Jul96 Dec96 Feb97

Footwear 14.29 13.86 13.44 15.62 11.47
Clothing 73.55 81.46 79.92 37.26 45.42

Sources: New Zealand Apparel Trade Directory 1997
Oanda 164 Currency Converter http://www.oanda.com
D. MARKET ACCESS

Import Climate

New Zealand's international competitiveness is a consequence of a
decade of restructuring the economy to reduce government
intervention to the minimum and to permit market forces to work
freely. Reforms in this period included floating the New Zealand
dollar, removal of quotas and the reduction if tariff levels,
corporatisation of state trading enterprises, and the
deregulation of the labor market.

The withdrawal of local subsidies, the removal of import quotas
and an increasing global market orientation within New Zealand
ensures that there are few significant obstacles to the market
entry of U.S. importers. Increasing acceptance and demand for
imported products, the availability of foreign exchange and ready
access to distribution networks allow importers to trade freely
in the New Zealand apparel sector.

Legislation

Two primary consumer-oriented statutes, the Fair Trading Act 1986
and the Consumer Guarantees Act 1993 guard the New Zealand public
against misleading and deceptive conduct on the part of
importers; while creating implicit guarantees that any products
or services sold in New Zealand are both safe for consumption and
of an acceptable quality. Consumer-oriented legislation is
rigorously enforced by the New Zealand judiciary and should be
carefully examined before commencing any exporting activity.

Duty Rates

New Zealand once had some of the highest tariffs in the world.
However, since 30 June 1988 there has been a steady phasing-down
of tariff rates for all goods imported into New Zealand. A four-year programme of tariff reductions to apply from 1 July 1997 to 1 July 2000 was announced in December 1994. Under the programme, tariffs were to be reduced to three levels of 15%, 10% and 5% by 1 July 2000. At 1998, tariffs on apparel imports are set at 15%.

Importers may obtain exemptions from tariffs by duty concessions,
if they can show that comparable goods are not and cannot be
manufactured or produced in New Zealand. However, to date there
is no recorded instance of this occurring.
The value for duty is normally based on the Free On Board (FOB)
price. Depending upon the transaction, deductions can be made
from the FOB price, which will reduce the total customs duty
payable. Special care must be taken when there are related party
transactions, and the interaction of transfer pricing policies,
although the value declared for customs purposes may require
particular attention.
The movement away from the quotas and import tariffs to a free
market economy has made the price of imported products a critical
factor when considering exporting to New Zealand. With the
continuing reduction in tariff protection, dumping and
countervailing laws are the primary means by which New Zealand
industry is likely to protect itself against the importation of
unfairly priced products.
Value-added Tax

All goods and services in New Zealand attract a Goods and
Services tax (GST). GST is levied indirectly on each sale or
supply of goods and services, and accrues from the commencement
of the production process through to the final sale to the end-user. Intermediate suppliers of goods and services receive a
credit for any GST paid, and the true cost the tax is in fact
borne by the final consumer. The Government determines the
percentage level of GST. The current rate is 12.5%. This tax is
normally payable to the New Zealand Customs Department, by the
importer, at the time of importation, i.e. receipt of the goods
or services.

Standards

U.S. apparel products will require the following modifications to
be permitted entry to the New Zealand market.

Textiles Care Labeling

Words, phrases and symbols detailing the care treatment of
upholstery, garments and other articles should supply relevant
and accurate information to a prospective New Zealand customer at
the point of sale. This is a mandatory standard, cited in
Consumer Information Standards (Care Labeling) Regulations
1992/89.

Low fire danger fabrics for domestic apparel

Production of certain apparel items, particularly children's
nightclothes, must comply with NZ Standards Authority
requirements for low fire danger fabrics.
Textile Fiber Content

Information is required as to the content and composite
percentages of fibre in textile imports to New Zealand.
Size Coding and Country of Origin

Finished garments must carry both a universal sizes coding (i.e.
S, M, and L) in addition to information detailing the fabric and
manufacturer's country of origin.

For further information, contact:

Jane Budge
Standards New Zealand
Private Bag 2439
Wellington 6020
NEW ZEALAND
Ph: (64) (4) 498-5990
Fax: (64) (4) 498-5994
http://www.standards.co.nz

Business Practices

Business practices and social customs from the United States will
be generally acceptable in New Zealand. Similarities in media
sources, language and commercial trading partners ensure that
access to information relating to immigration, overseas
investment regulations and commercial legislation is readily
available.

The majority of business is conducted on sight of draft or on
open account terms. Letters of credit may be used in the
formative stages of a business relationship, however once a
measure of trust has been established, payment typically takes
place through the open account system.

New Zealand enjoys a flatter organizational hierarchy than most
United States commercial and governmental entities. In
consequence, corporate and government officers to the most senior
levels are usually accessible and available for business
discussion.

General hours of trade are between 9.00 am 5.30pm Monday to
Friday, although 7 day trading is now commonplace in most larger
regional centers.

The major banks and financial institutions are ANZ, Westpac
Trust, National Bank of New Zealand, Bank of New Zealand, and
ASB.
Distribution

The major ports of New Zealand are by Sea Auckland, Tauranga,
Napier, Wellington, Lyttleton, Southport (Timaru). By Air Auckland, Wellington, Christchurch.

The complete New Zealand distribution process is as follows,
although under certain circumstances (i.e. direct marketing
between manufacturer and consumer), some of the stages will not
apply:

Raw Material Fiber & Yarn Producers Textile & Trim Producers Apparel Manufacturers Sales Representatives, Wholesalers, Agents Retailers to Consumers.

Advantages and Disadvantages of Distribution Choice

Sales Representatives, Wholesalers and Agents

Distribution through an intermediary allows the U.S. competitor
to eliminate a degree of risk associated with market entry. This
entry strategy is recommended for exporters, in particular, those
with less experience and market intelligence.

Retailers

Direct contact with retailers is not recommended as a viable
entry strategy. The complexity of New Zealand market dynamics
requires a degree of internal knowledge normally unavailable to
the U.S. competitor, which is required in order to compete
effectively. It is recommended that a New Zealand based liaison
agent be established, to reduce set-up costs and assist in
developing distribution channels with retailers.

Major New Zealand apparel retailers include:

Farmers (number one apparel retailer in the lower-middle market)
T'N'T (infant and children's wear retailing chain)
Glassons and Hallensteins (men's and women's retail chains)
DEKA The Warehouse (low-middle market, diverse product range,
increasing interest in the apparel sector)

The majority of these apparel retailers' source their goods from
Third Country imports either through agents and distributors or
in the case of the Warehouse, directly from the manufacturing
nation. Parallel imports as a source of apparel is expected to
increase, particularly with respect to the major low cost
retailing chain, the Warehouse.

Consumers

Direct and Internet marketing using the World Wide Web, direct
mail catalogs, and television infomercials, is an acceptable part
of the lives of the New Zealand consumer. These distribution
channels allow the U.S. competitor direct access to the New
Zealand consumer, without a physical presence in the market.
Further, this method of distribution presents a lower capital
expenditure risk for investors, and may be used as an initial
means of effective market testing.
Financial and Payment Practices

Import and export opportunities are supported in New Zealand by
standard financial products. Secured bank credit and trade
finance vehicles are offered by New Zealand based financial
institutions. With specific reference to agents, payment is usually made by letter of credit or telegraphic transfer. With
smaller quantities, COD or cash against documents may beacceptable practice.

Key Contacts NZ Apparel Industry Sector

Manufacturing

AJ Don & Sons Ltd.
7C Burns Street
Grey Lynn
AUCKLAND
PO Box 28-345
Remuera AUCKLAND 1136
Ph: (64)(9) 360-8226
Fax: (64)(9) 360-8227

Tamahine Holdings Ltd.
11 Glenelg Street
Bradford
Dunedin
Ph: (64)(3) 453-6177
Fax: (64)(3) 453-6816

Alliance Textiles (Timaru)
Michael Oliver
23 Bank Street
PO Box 533 TIMARU Ph: (64)(3) 688 6079
Fax: (64)(3) 688 9621

Cambridge Clothing Co. Ltd.
3094 Great North Road
New Lynn
AUCKLAND
Ph: (64)(9) 827-1199
Fax: (64)(9) 827-1298

Deane Apparel
501 Wairakei Road
WELLINGTON
Ph: (64)(4) 359-5922
Fax: (64)(0800) 877-626

Lane Walker Rudken Group (LWR) Hosiery
Alice Haslet Ph: (64)(3) 379-185
LWR Hosiery
Simon Hay
Manager
Ph: (64)(3) 379-1850
Fax: (64)(3) 364-8522
Bob Byfield Canterbury Label Operations Manager
Ph: (64)(3) 379-4220
Fax: (64)(3) 364-8530

Service
Michael Major
2MD Design
1st Floor
6 Osborne Street
Newmarket
AUCKLAND
Ph: (64)(9) 522-2669
Fax: (64)(9) 522-2665

L Duckmanton
Academy Dyers Ltd.
142 Maces Road
Bromley
CHRISTCHURCH 8006
Ph: (64)(3) 384-2659
Fax: (64)(3) 384-2659

New Zealand Government Organizations

Helen Williams
TradeNZ
P O Box 8680
Symonds St
Auckland
Ph: (64)(9) 366-4768
Fax: (64)(9) 366-4767
Email helen.williams@nro.tradenz.govt.nz

Jane Budge
Standards New Zealand
Private Bag 2439
Wellington 6020
NEW ZEALAND
Ph: (64) (4) 498-5990
Fax: (64) (4) 498-5994
http://www.standards.co.nz

Retail

DEKA NZ Ltd.
220 Queen St
AUCKLAND
Ph: (64)(9) 377-8800
Fax: (64)(9) 358-7999

Farmers Trading Company Ltd.
270 Nelson St
Onehunga
AUCKLAND
Ph: (64)(9) 634-5153
Fax: (64)(9) 634-3504

The Warehouse Ltd.
26 The Warehouse Way
off Akoranga Drive
Northcote
Ph: (64)(9) 489-7000
Fax: (64)(9) 489-7444

Hallensteins Glassons Holdings Ltd.
1 Ron Driver Place
East Tamaki
AUCKLAND
Ph: (64)(9) 274-4677
Fax: (64)(9) 274-5220

David Dewhurst
MacKenzie Country
258 Kaikorai Valley Road
DUNEDIN Ph: (64)(3) 453-6177

Agents and Importers

Jocelyln Hogg
Active Leisure NZ
PO Box 157
LEVIN 5500
Ph: (64)(9) 631-0012
Fax: (64)(9) 368-2241

Trevor Cooke
Affiliated Agencies Ltd.
PO Box 68-000
Newton
AUCKLAND 1032
Ph: (64)(9) 478-5152
Fax: (64)(9) 478-9218

IBEX Trading Company
Importers and wholesalers of casual fashion
20/H Sylvia Park Road
Mt Wellington
AUCKLAND
Ph: (64)(9) 573-0054

Season Product Sourcing International Ltd.
P O Box 100-911
North Shore, Manukau City
AUCKLAND
Ph: (64)(9) 443-0073 Fax: (64)(9) 443-0075

Hardcore Enterprises (NZ) Ltd.
14 Haultain Street
Eden Terrace
AUCKLAND
Ph: (64)(9) 358-4217

ESP Apparel Ltd.
6/15 Piermark Drive
Albany AUCKLAND
Ph: (64)(9) 415-6484

Longbeach Holdings Ltd.
117 Newton Road
Newton
AUCKLAND
Ph: (64)(9) 623-3511

Bruce Moore Agencies
P O Box 12160
CHRISTCHURCH
Ph: (64)(3) 332-8899

Canterbury International Ltd. (sports and leisurewear) Eden House
44 Khyber Pass Road
Grafton
AUCKLAND Ph: (64)(9) 358-0167
Fax: (64)(9) 358-0175

Dalton Apparel Ltd.
3 Fenton Street
Eden Terrace
AUCKLAND
Ph: (64)(9) 300-3183
Fax: (64)(9) 300-3182

David Pond Ltd. (designer branded apparel)
56 Brown Street
Ponsonby
AUCKLAND
Ph: (64)(9) 376-4691

Moontide International Ltd.
166 Marua Road
Ellerslie
AUCKLAND
Ph: (64)(9) 579-1645

Rembrandt Suits
Cnr Gregory St and Cambridge Tce
WELLINGTON
Ph: (64)(4) 567-4054

Barry Green
Charles Parsons (NZ) Ltd.
Textile wholesalers and importers
1 Lancaster Street
Linwood
CHRISTCHURCH
Ph: (64)(3) 366-1669
Fax: (64)(3) 366-8160

Trade Associations

Karen Hopkinson
Wools of New Zealand
Christchurch
Apparel Manager
Ph: (64)(3) 343-7910

Deryk Thomson
Chief Executive
The Apparel & Textile Industry Training Organization
P O Box 17-371 Greenlane, Auckland
Ph: (64)(9) 522-5410
Fax: (64)(9) 522-5606

Mr. Paul Bloomfield (Executive Director)
New Zealand Apparel and Textile Federation
P.O. Box 11543
6034 WELLINGTON
Ph: (64) (4) 473-3000 Fax: (64) (4) 473-3004
Trade Publications

Apparel Magazine Paul Bloomfield (Publisher)
Apparel Publishing Ltd.
P O Box 56071
Dominion road
AUCKLAND 1030
Ph: (64)(9) 306-5860
Fax: (64)(9) 303-0414
Email apparel@iprolink.co.nz

New Zealand Apparel Trade Directory
(Cost NZ$20)
Apparel Publishing Ltd.
P O Box 56071
Dominion Road
Auckland 1030

Recruitment

Linda Pope
Pope Personnel Ltd.
Ph: (64)(9) 575-6059
Fax: (64)(9) 575-6054
1998 - 99 Trade Promotion Opportunities

XPO Exhibitions Ltd. Exhibition and trade show organizers
1st floor KPMG Building
9 Princess St
Auckland Center
AUCKLAND
Ph: (64)(9) 300-3950
Fax: (64)(9) 379-3358

Creative Solutions Linda Morgan
80 Omapere Street
Whitby
WELLINGTON 6006
Ph: (64)(4) 235-7768
Fax: (64)(4) 235-7768

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: New Zealand
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000326