KPMG - Evolving a truly customer-centric industry
MEDIA RELEASE – 16th October 2013
Agribusiness Agenda volume 3 Evolving a truly
Evolving a truly customer-centric industry
Embargoed until 6.00am Wednesday 16th October 2013
New Zealand’s primary sector needs to develop a customer-centric approach to its marketing – by creating products with unique attributes that are sought after by global consumers.
That was a key theme of the just-released Volume 3 of the KPMG Agribusiness Agenda, titled “Evolving a truly customer-centric industry”.
KPMG’s Global Head of Agribusiness, Ian Proudfoot, says the sector needs to replace its traditional ‘trading mentality’ with a more targeted approach.
“Those customers who see the most value in what we produce – and are consequently willing to pay a higher price for the attributes they value – must be at the centre of everything we do.”
“During our Roundtable discussions, it was widely recognised our producers need to be more selective about the opportunities we pursue.”
Another key theme was the need to increase the contribution the primary sector makes to New Zealand’s economy. In order to meet the Government’s goal to double exports from the primary sector to $60 billion by 2025, the sector will need to find ways to increase scale – through mergers, joint ventures, or pan-industry initiatives.
Proudfoot says while the market potential for our products is “almost frightening” in size – New Zealand will not capture the benefits if we compete on price alone. Instead, we need to create unique products for the premium end of the market.
As part of this, the Agenda
recommends that the sector explores the development of
an over-arching brand to tell the provenance story of our
“Although the 100% Pure tourism brand has been successful in building New Zealand’s profile globally, it does not tell the full story of our food, fibre and timber products. The safety and quality of our products needs to be at the core of New Zealand’s primary provenance story.”
Another view expressed by industry leaders, and reported in the Agenda, was that New Zealand exporters should take a fresh look at their to-market business model. Instead of working through intermediaries or distributors when entering offshore markets, New Zealand companies would benefit from ‘owning’ the customer relationship directly and explore opportunities to gain greater exposure to consumer trends in the market niches with the greatest potential.
The attached Agribusiness Agenda explores these issues – and more – in further depth.