Published in the National Business Review of 10 August 2007

Consumers want to buy Kiwi but the chain stores are reluctant starters

Ten days out from the official launch of the advertising campaign for the government's Buy Kiwi Made campaign, none of the county's major retail chains have signed up have signed up to use the associated Buy New Zealand Made logo to attract customers.

Despite a report commissioned by the Ministry of Economic Development showing that 31% of consumers, and 39% of retailers, feel it is either 'difficult' or 'very difficult' to identify goods made in New Zealand, retailers aren't keen on joining the 'kiwi in a triangle' scheme.

Buy New Zealand Made director Samantha Seath says 680 manufactures "are on board, and we've got about 20 retailers so far." She said that no retail chains have joined although the campaign was "in discussions" with one chain, understood to be the Farmers group.

The Retailers Association's Chief Executive John Albertson, who is on the steering committee of the Buy Kiwi Made campaign, said that to be successful the campaign has to get the support of the buyers from the major department and chain stores.

In the last five weeks the Ministry of Economic Development has been contacting retailers by email but Mr Albertson says that hasn't resulted in "every chain leaping in and wanting to be part of (the campaign).

"We're likely to see one or two major chains coming in to get some marketing advantage. If you get two or three majors on board the others will follow."

The Research International report commissioned by the Ministry also found that 35% of consumers and 44% of retailers 'always' or 'often' consider whether goods are made in New Zealand, according to Research International in a report commissioned by the Ministry of Economic Development for this campaign while 88% of consumers and 75% of retailers would be prepared to pay more for a New Zealand product over an imported one, but only up to 10% more.

The report identifies a 'key challenge' as ascertaining whether goods are made in New Zealand. Most respondents wanted to be able to easily identify goods which were made in New Zealand to assist their purchasing decision.

Buy Kiwi Made is a separate entity from Buy New Zealand Made, the scheme promoting the use of the 'kiwi in a triangle' logo. It has been running for 20 years.

Buy New Zealand Made is owned by Business New Zealand and has licensed its symbol to the Ministry of Economic Development for the Buy Kiwi made campaign.

Funding Buy Kiwi Made is one of the prices taxpayers have paid for Labour's post election cooperation agreements with the Green Party.