Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kiwi Land Riding On Wave Of Digitalisation: Three Emerging Trends Under Spotlight

Kiwi Land Riding on Wave of Digitalisation: Three Emerging Trends Under Spotlight


  • COVID-19 pandemic has accelerated digital transformation across different channels and business models.
  • The recent developments concerning DEPA, Wine Collective Direct and E-invoicing reflect NZ’s extensive support for digitalisation.
  • Keeping an eye out on cybersecurity and data protection risks is important for businesses hopping onto the digital bandwagon.

COVID-19 pandemic pushed the NZ economy into a tailspin while taking a huge toll on households & businesses. It also sparked a ferocious wave of digitalisation across multiple domains. Recognising the importance of this digital transformation amid changing consumer preferences and business survival prospects, Kiwi Land is actively embracing digital solutions at a macro level.

A study unveiled by Microsoft in October 2020 indicated that 62% of NZ organisations are accelerating digitalisation to adapt to COVID-driven new reality. Moreover, the research stated that Kiwi businesses are adopting digitalisation by way of introducing digital payments, launching digital products, and endorsing innovation & e-commerce.

Undoubtedly, digitalisation played a crucial role in pulling the NZ economy out of COVID-19 recession in 2020, with businesses deploying innovative digital solutions for seamless operations. As the nation enters into 2021, digital transformation is further expected to remain instrumental in getting the economy back to its pre-pandemic shape.

Given the scenario, three promising macro trends reflecting NZ’s growing support for digital trends deserve closer attention:

DEPA with Singapore Takes Effect

NZ exporters and SMEs can now take advantage of opportunities emerging from digital trade. The Digital Economy Partnership Agreement (DEPA) inked between NZ and Singapore in June 2020 has recently come into force, eradicating digital barriers for businesses. Notably, Canada has also an exhibited interest in joining the DEPA agreement alongside Singapore, NZ, and Chile.

The digital trade agreement is likely to rule in favour of SMEs, reducing the cost of trade and expediting their growth prospects. Additionally, DEPA can operate as a stepping-stone to launch NZ SMEs in international markets, which are usually accessible to only large businesses. Simplification of burdensome custom procedures via DEPA is further expected to accelerate SMEs entry into export markets.

Despite these lucrative benefits, SMEs need to stay ahead of the curve and tap the competitive space with strategic business initiative and innovative solutions. Besides, a successful operation of DEPA is anticipated to persuade more countries to form digital cooperation agreements with NZ, thereby unfolding fresh opportunities for SMEs.

Online Wine Marketplace Launched

NZ wine producers now have access to an innovative digital solution to sell their premium wine directly to international customers. NZ online wine marketplace, Wine Collective Direct will operate as an international sales channel for local producers in the ultra-premium and premium wine segments, starting February 2021. Wine Collective Direct is expected to emerge as a highly profitable sales channel for NZ producers, supporting the prosperity of the nation’s wine industry.

The initial market launch of this wine marketplace will comprise Hong Kong and Australian markets, followed by the UK and the US. Notably, the e-commerce platform has been launched at a time when the alcohol category is witnessing a substantial surge in online shopping.

The introduction of this innovative digital platform is likely to provide some sort of cushion to Kiwi producers severely hit by COVID-19 border closures and a sharp dip in wine tourists. Besides, the move is expected to extend the reach of local wine producers, helping them attain high-return export sales.

E-invoicing Now a Reality

E-invoicing has now received the backing of both NZ and Australian governments and could bring radical changes for Kiwi businesses. Both the nations are ready to start paying their suppliers via E-invoicing in the coming months.

The Australian government has recently made adoption of e-invoicing mandatory by businesses and across all levels of government. As part of government’s digital transformation plans, large corporates are required to adopt e-invoicing from 1 July 2021, with all other agencies embracing it by 1 July 2022.

The decision rules in favour of Kiwi Land, which has also signed up E-invoicing framework Pan-European Public Procurement Online (PEPPOL), akin to Australia. NZ government is also eyeing the acceptance of E-invoicing across all businesses through 2021 and into 2022.

The automation of E-invoicing is anticipated to promote huge cost savings in NZ, underpinning solid economic growth over the coming years. E-invoicing is also expected to remain instrumental in stimulating post-COVID SME recovery, limiting delays through manual invoicing and payment processes.

Bottom Line

The road to digitalisation is unfurling a slew of opportunities for NZ businesses, fostering innovation and paving the way for new contact channels with customers. However, before hopping onto the digitalisation bandwagon, it is imperative for businesses to beware of cybersecurity and data protection threats accompanying digital transformation.

Integration of efficient risk management solutions in business ecosystems appears instrumental for businesses to thrive in the realm of digitalisation. Additionally, it seems crucial for companies to evaluate their individual situation and strike a balance between automation and manual processes.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>