Source: NZ Business Roundtable in China
"The NZ Business Roundtable in China (NZBRiC) has released results from a survey of 170 New Zealand businesses trading with China. The survey quantified the material impact of the COVID-19 outbreak for Kiwi businesses with exposure to China.
81% of respondents expected China export revenue to be down at least 10% in 2020, with 87% expecting the reduction to take place in first quarter. Of these, almost one third expected at least a 40% reduction in Q1, although just 11% expected this level of impact to last for the full 2020 financial year results. The survey was conducted 10-16 February 2020 to provide clarity around how NZ businesses trading with China are faring during these unique times."
The most common change in business behaviour from the COVID-19 outbreak was cancelling business trips, which 81% had already experienced. 57% had adopted work from home practices. Half expected to rely more heavily on ecommerce and digital channels in future.
“China’s forceful quarantine measures taken to contain the spread of the virus have heavily impacted production and supply chain reliability. Once the restrictions are removed the economy is expected to bounce back quickly although it might not regain all of the lost ground,” says Ivan Kinsella, NZBRIC chair.
Kiwi businesses are using this crisis to adapt and grow their skills. 50% of NZ businesses are expected to rely more heavily on ecommerce/digital channels as a result of the Coronavirus. 32% are not planning to change their long-term China strategy, while 58% said it was too early to re-evaluate their strategy. Particularly interesting is this: "Two China-based respondents highlighted the challenges resulting from a loss in confidence in their companies’ China business from New Zealand-based decision makers." The China market is hard but not impossible. It requires - and rewards - fierce commitment from those who want a business relationship. While we often think about the challenges of communicating a value proposition from West-to-East, there's also the challenge of communicating China market nuances to decision-makers back "home", whether that be Auckland, Melbourne or Los Angeles. Emotional and Cultural Intelligence become crucial super powers in these times.
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