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Kiwi invasion
Stuart JackSon GoES DowN UNDER To ExpLoRE NEw ZEALAND AS A
NATURAL SoURcE of hEALTh.
the UK has long benefited from
years, however, we have seen changes in the most popular countries to import from, and New Zealand is one of the latest rising stars. experience their industry at first hand. In passionate innovators and attended their opportunities that exist for UK retailers to to landmass has led to a very unstressed opportunity for sales. In contrast to the trade with New Zealand suppliers and their business community. Being able to travel UK, however, the New Zealand consumer is very health aware and shopping for natural health products is a conventional part of New Zealand is similar in size to the UK but with a fraction of the population – just four In terms of international influence, the million people emerging from a pre-settled has fashioned a very interesting scenario. country of 130,000. It comprises two main by events in the United States. That which adjacent islands (North Island and South Island) and a number of smaller islands. be the next big thing in UK shops. Rising With more than 1 million living in Auckland concern over EU legislation, and negative number of health food shops plus various alone, it is easy to appreciate that over half pressure from the media on our consumers’ of New Zealand’s total land area is pasture sales, however, international business is and arable land, while more than a quarter begun to alter this trend. To the detriment of some US suppliers, UK retailers have had to focus on proven and scientific solutions for health in order to match the demands hilly, including many peaks exceeding 3000 metres. Such a small population in relation become ever more “fad” driven with brash packaging covered in medicinal claims. The companies are already fairly large with the UK and USA markets, although still strongly result of having outgrown the independent retailer or, at best, viewing us as a minor with less synergistic opportunity. As the The first advantage to the UK retailer is sources must present themselves, and New that exporters from New Zealand have not Zealand is indisputably one of the leading become such corporate entities, and we can often find a great deal of empathy. Both the New Zealand consumer and the legislative climate are akin to those here in the UK, Four million people in a territory roughly leading to products with similar pricing, the size of the UK results in very limited quality, purpose and packaging. They are hfb • july 2005
With UK independents persistently under threat from
supermarkets, it is essential to regularly introduce products
that permit us to differentiate ourselves. New Zealand
offers a unique opportunity to purchase products from
a similar consumer market and from suppliers who are
stil passionately privately owned. Next month we wil be
taking a closer look at New Zealand-based products and the
companies that supply them.
therefore often eminently suitable for UK sales.
The main anomaly is the contrast in the relationship between suppliers, independent retailers and supermarkets. In New Zealand there are none of the all-powerful Walmart or Tesco- type supermarkets; that role is filled by much smaller, friendlier local versions that sit much more comfortably in the same marketplace as health food shops. The hitch this creates is that New Zealand suppliers often bring their products to the UK expecting to sell them quite cheerfully in both health food shops and supermarkets. They don’t always comprehend either the competitive edge or the nature of the supermarket beast here.
With such potential for fresh, innovative products from New Zealand, it would be a great shame if UK independent retailers lost the chance to be the sole sellers of these new brands simply because the exporter doesn’t appreciate that UK independents offer more than ample opportunity (especially if including pharmacies) in comparison to the growth they will have achieved at home to a market of around 300 health food shops. the product climAteNew Zealand’s pioneering history and distance from major markets has shaped a strong culture of innovation and creativity, with a natural products export industry estimated to be worth $NZ100 million annually and growing rapidly. The UK and Europe is becoming a very significant market for them, and in contrast to many other export countries where UK trade is merely a sideline, our importance to their growth secures, in return, New Zealand companies believe the UK retailer is interested in their products because of their pristine environment with ideal growing conditions (as a result of geography and numerous different microclimates), relatively low levels of pollution and their reputation for innovation and research and development, resulting in high quality raw materials. Certainly two of New Zealand’s most appealing selling points are the increasing use of unique indigenous ingredients and the application of traditional Maori medicine.
The main natural products supplied from New Zealand that are relevant to the UK include all types of body care, essential oils, herbal products (especially from manuka and Echinacea), fish oils, chondroitin sulphate, bee products (including pollen, propolis, royal jelly and active honey), mussel extract powder and More about these and their producers next month.
If you have any questions for Talking Shop or would like further information on Stuart Jackson’s consultancy service, contact him on 0131 315 0303 or email [email protected] or visit www.forceofnature.co.uk

Source: http://www.forceofnature.co.uk/upload/1019%20SJ%20Retail%20New%20Zealand%20market%20explored%20PT%201%20Jul05.pdf

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