Peter Torrington, a commercialisation specialist, has seen it all: businesses chasing one-off sales, underestimating Australia’s challenges, and failing to validate market demand. In this blog, we’ll explore his top lessons on avoiding pitfalls, choosing the right sales model, and setting up for long-term success. Too often, companies dive in without a solid strategy—leading to costly mistakes.
One of the most common mistakes Kiwi businesses make is expanding opportunistically rather than strategically. It’s easy to get excited about a one-off deal or an unexpected opportunity—perhaps through a personal contact or a trade show—but without a clear market-entry strategy, these ventures often end up being short-lived. A sale alone doesn’t equal long-term success. Businesses must ensure demand exists beyond the initial transaction.
Another major pitfall is being spread too thin. Many companies attempt to enter multiple markets simultaneously, believing that casting a wide net will increase their chances of success. However, each market requires focus, financial investment, and tailored marketing strategies. A business that properly commits to one or two markets will always outperform one that takes a scattergun approach.
Failing to understand local consumer behaviour is another critical misstep. Just because a product sells well in New Zealand doesn’t mean it will resonate the same way abroad. Shopping habits, cultural preferences, and pricing expectations vary widely. Businesses need to conduct in-depth market research, visit stores, talk to retailers, and test demand before fully committing.
Lastly, choosing the wrong partner can cripple expansion efforts. Many businesses assume they need a distributor, but that’s not always the best approach. Some markets allow for direct-to-retailer models, while others benefit from a hybrid strategy. The key is to select partners carefully, set clear KPIs, and maintain control over brand positioning and customer relationships.
Proper validation ensures you invest in the right opportunities. Start with desk research. Analyse competitors, pricing, and demand using online tools, industry reports, and government resources like NZTE’s market insights. Look for similar products and assess how they’re positioned.
Next, visit the market in person. Walk the aisles of supermarkets, specialty stores, or department stores. Speak with retailers and distributors to understand sales trends, pricing, and customer demand.
If possible, test before committing. Start with e-commerce or a small-scale launch through select retailers to gauge interest. Consider trade shows or pop-up activations to generate real-world feedback.
Finally, identify your unique selling point. If you can’t clearly articulate why your product stands out, you risk competing on price alone—a race to the bottom. A well-researched approach ensures a market is worth the investment.
"You need a really clear selling story. That's a big part of what I want to do. Because if you can get the retailer hooked on, what's different and this is how you're going to advance their category, then you're away."
Australia seems like a natural first step for NZ businesses—it’s close, shares cultural ties, and has a large consumer base. But many Kiwi exporters underestimate its complexities.
The biggest challenge when it comes to the food and beverage sector? Coles and Woolworths dominate the market. Getting on their shelves is one thing—staying there is another. These retailers expect high sales volumes, strict margins, and consistent promotional investment. Many businesses secure a listing only to be delisted when sales don’t meet expectations.
Distribution is another hurdle. Australia is vast, and logistics costs vary by state. National distributors often prioritise bigger brands, making it difficult for NZ companies to gain traction.
Consumer behaviour isn’t a carbon copy of NZ’s. Pricing expectations, product positioning, and promotional strategies all differ, so be prepared to do the work.
So how should you tackle it? Target independent retailers or premium grocers first, refine your model, and scale gradually—rather than betting everything on a major supermarket listing too soon.
Selecting the right sales model can make or break an international expansion. Many NZ businesses default to using distributors, but that’s not always the best fit.
Distributors can help scale quickly but come with risks. If they don’t prioritise your product, sales can stagnate. Setting clear KPIs and maintaining direct retailer relationships can prevent this.
Direct-to-retailer models offer better margins and control but require strong sales capabilities. Some brands, like Bostock Brothers, have succeeded by skipping distributors and working directly with retailers in overseas markets.
E-commerce is another option, especially in markets where online shopping is dominant. It allows businesses to test demand before committing to large-scale distribution.
Hybrid approaches—mixing direct sales, e-commerce, and strategic distributor partnerships—often work best. The key is to regularly assess performance. If a channel isn’t delivering, be prepared to pivot before losses start adding up.
The biggest mistake NZ businesses make when expanding overseas is going in without a clear, strategic plan. Peter Torrington’s top advice? Take a rational, phased approach—don’t just chase opportunities.
Rather than diving into multiple markets at once, start with one or two well-researched markets. Understand their unique consumer behaviours, pricing expectations, and competitive landscape before committing resources.
A strong value proposition is essential. If you can’t clearly explain why your product is different—and why consumers will choose it over local options—you risk competing on price alone.
Set clear KPIs and track performance. If sales aren’t meeting expectations, reassess your pricing, promotional strategy, or distribution model. Be willing to pivot or pull out if necessary.
Finally, seek outside expertise. A commercialisation specialist or mentor can help challenge assumptions and refine your strategy—saving time, money, and costly mistakes.
Many NZ businesses make the mistake of chasing deals without a plan, underestimating market complexities, or choosing the wrong sales model. Success comes from validating demand, understanding market differences, and selecting the right distribution strategy.
Australia, while close, presents unique challenges that require careful navigation. The key to sustainable expansion? Start small, differentiate your offering, and track performance closely.
