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10 Jun 2025 • 4 min read

The Australian Expansion Trap: Why NZ Businesses Fail Without the Right Market Research

By Braden Dawson Founder & Director

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dHeading to Australia feels like a no-brainer for many New Zealand businesses. Same language, shared history, and only a short flight away, it should be simple, right? Unfortunately, that thinking is exactly where things go wrong. Australia isn’t just a bigger New Zealand. It’s an entirely different beast, with its own market dynamics, consumer behaviours, and regulatory quirks.

What works well here won’t necessarily land over there. Success across the ditch requires much more than copying and pasting your current strategy. To stand a real chance, you’ve got to dig into what makes the Australian market tick. That means doing your homework, understanding the way Aussies shop, and knowing where your business fits—or doesn’t fit—into the landscape.

"In 2024 alone, New Zealand businesses exported over $9.09 billion in goods to Australia, with almost 90% entering via the Eastern states-each with its own consumer quirks and competitive landscape." 

 

Source: United Nations COMTRADE database on international trade

 

Understanding Aussie Consumers: Not Just Bigger, Different!

Australian shoppers expect more—plain and simple. More product variety, more responsive customer service, and more streamlined online experiences. They want fast delivery, flexible return policies, and convenient payment options. And they’re not afraid to go elsewhere if they don’t get it.

Add to that the fact that Aussies are highly brand loyal but also bargain hunters. They’re happy to pay more—but only if they feel the value stacks up. For Kiwi brands, this means thinking hard about how your product will be perceived and whether your pricing strategy reflects the expectations of an Australian customer.

Then there’s the online shopping experience. In Australia, it’s shaped by large platforms, sophisticated logistics, and high levels of consumer trust in e-commerce. It’s not just about having a website—it’s about having the right experience, channels, and payment infrastructure in place.

Regional Differences: Six Markets, Not One

Another mistake Kiwi businesses often make is treating Australia as one unified market. It’s not. Sydney shoppers act differently to those in Melbourne, and Brisbane brings its own set of preferences again. Each state and city has different vibes, incomes, cultural norms, and product expectations.

Melbourne tends to be brand-conscious and follows trends more closely, so positioning and presentation matter. Sydney leans more transactional and price-sensitive, making it critical to get your pricing and promotion strategy spot-on. Brisbane can feel a bit more relaxed, but you still need to show up with a tailored message.

These differences mean your market research can’t be one-size-fits-all. You need insights that go beyond averages and tell you what your target audience looks like in each region.

"The whole cut and copy New Zealand and go to Australia, I would say it's far more complex, because a few more moving parts in terms of retailers, you've got distribution costs across the states and again, we know how far away Western Australia is." 

 

Peter Torrington - Commercialisation Expert

The True Cost of Competing

Australia is a big pond—and it’s full of fish. That makes customer acquisition more expensive, especially if you’re entering a category where Aussie or global players already dominate. Without a clear view of your competitors, you risk going in blind. And that usually ends with either pricing too low to make a profit or too high to drive volume.

Pricing in Australia needs to be backed by a strong value proposition. Consumers want to feel like they’re getting their money’s worth. They won’t just pay more because something is from New Zealand. They need to understand what makes it special and why they should care. This is where research into both your competitors and your customer becomes essential.

Why Australian Research Agencies Miss the Mark

It’s tempting to engage a big-name Australian agency to scope the market for you. But there’s a problem. These firms usually provide high-level reports that are great at explaining broad trends but fall short when it comes to niche positioning or the unique challenges of a New Zealand brand.

They don’t always understand what it’s like trying to bridge the gap between New Zealand’s scale and Australia’s. You may end up with pages of insights that sound useful but don’t give you a clear go-to-market plan. Worse still, you might pay top dollar for a strategy that doesn’t reflect your budget, capabilities, or customer base.

NZ-Led Research That Gets Both Sides

At Web Antler, we take a different approach to Australia market research. We start with an understanding of New Zealand businesses and the realities they face when entering Australia. That includes knowing what’s achievable on a Kiwi budget and how to craft a strategy that reflects your brand’s strengths, not just market trends.

Our research isn’t about flooding you with data. It’s about clarity. We focus on giving you actionable insights—where your opportunities lie, who your competitors are, what pricing models will work, and which regions to prioritise. It’s insight with impact, not just information.

Laying the Groundwork Before You Launch

Before you even think about shipping a product across the Tasman, you need to know your market inside out. That means talking to customers, visiting stores, running focus groups, and analysing competitors. It means understanding what people are already buying, how your offer compares, and what gaps you might fill.

From there, you need a region-specific go-to-market strategy. Don’t try to do everything at once. Choose the cities or retail channels where you’ve got the best shot and build from there. Keep your plans focused, your messaging sharp, and your execution nimble.

Pricing and promotion should be carefully planned so they speak to value—not just cost. And if you’re working with distributors or retailers, make sure there’s a win-win structure in place. Everyone in the chain needs to make money. If one link breaks—whether it’s the retailer, the distributor, or the customer perception—it all falls over.

Think Long-Term, Not Just First Shipment

Sending over a container is one thing. Selling through it and building a repeatable sales engine is another. You don’t want your expansion to be a one-hit wonder. To succeed long term, every part of your commercial strategy needs to support the next move—whether that’s range expansion, new regions, or additional categories.

That’s why planning matters. And that’s why market research isn’t just a box to tick. It’s the foundation that everything else is built on. You want to know where the risks are, where the money is, and what needs to happen to grow steadily—not just sell once.

"New Zealand's mid-sized business segment is dominated by exporting businesses. More than two thirds (67%) of the business leaders surveyed say their organisation sells goods and services overseas - and exporting is fundamental to the growth of many of these businesses, with traditional industries, such as the manufacturing sector (82%), the agricultural industry (78%), and wholesalers (74%) in particular, highly engaged with international markets." 

 

Source: MYOB - The Bigger Picture Report, March 2025

Do the Work, Reap the Rewards

Plenty of Kiwi businesses have made the leap to Australia and thrived—but not by chance. They’ve done it by understanding the market deeply, planning thoroughly, and executing with focus. The ones that stumble are usually those who assumed Australia would work the same way as home.

Don’t be that business. Treat Australia with the respect it deserves. Do the research, plan with intent, and take it step by step. Done right, it’s one of the most powerful growth moves your business can make.

About the author
By Braden Dawson Founder & Director

Braden is the founder of Web Antler – a digital marketing expert who is passionate about quality and standout campaign results.

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