Assessment 1: International Marketing Report

Wild Ferns: Viability assessment of Chinese Market

Jason Holdaway 1257260 Amanjeet Singh 14840597

Mable Mufanechiya 0592169 Radu Puiu 14862431

Word Count: 2130

Table of Contents Executive Summary Pg. 1 Key opportunities & Threats Pg. 2 Product background (NZ) Pg. 3 Pestle Analysis Pg. 4 Key Competition & Substitute Products Pg. 5 Market Segmentation & Customer Targeting Pg. 6 Stakeholders Pg. 7 Recommendations Market Entry Strategy Pg. 8 Short Term Pg. 8 Medium Term Pg. 10 Long Term Pg. 11 Implementation/Control issues & Contingency Plans Pg. 12 References Pg. 13 Appendices Pg. 15

Executive Summary The purpose of this report is to assess the viability of Wild Fern’s skin care products entering and being successful in the Chinese market. China has experienced a surge in the past decade of wealthy individuals who are demanding products that are proven to be safe and healthy. A multitude of fake and dangerous health products that flooded the Chinese market has produced a desire amongst these wealthy individuals to purchase safe and healthy products that have been manufactured in countries other than China. New Zealand Manuka honey has enjoyed huge benefits in China from the trend for a demand of foreign goods. With the value of NZ honey exports reaching $187m in 2014 and a goal backed by the government to reach $1.2bn by 2028 the honey industry will become as valuable as the NZ wine export industry. This provides the perfect setting for Wild Ferns to be entering the Chinese market with Manuka based skin care products. With Demand far exceeding supply abilities, Wild Ferns has an opportunity to expand their successful product range into the lucrative Chinese market. This report recommends that Wild Ferns adopt a Direct Export market entry strategy, which will allow control over the quality of the products and will encourage trust to be built with the Chinese consumers. The adoption of direct to consumer online sales and stocking in a small number of exclusive high-end retails stores will be the short-term recommendation. A strong focus on word of mouth marketing from entry is advised as research found traditional marketing is not trusted. The medium and long-term recommendations include expanding the online sales to increase profits and expanding the retail network is supply capabilities allow for it. If successful in the short-medium term it is also recommended that Wild Ferns introduce further product lines to increase sales and provide further products for the hungry Chinese market.

Key opportunities & Threats A growing number of wealthy health conscious individuals in China are wary over purchasing locally produced health products as there have been numerous cases of fake and dangerous replicas entering the market. The effect has been a surge in the demand of genuine foreign health products that are perceived as safer and healthier. The demand for New Zealand made Manuka honey has in recent years experienced a rapid growth rate where the demand has far outweighed the supply capabilities. The claimed antibacterial properties and an enzyme that produces hydrogen peroxide, which in combination with some other olive leaf extract ingredients would have brightening effects on skin, seems to have a big impact on Chinese market where skin clarity is a particular concern in this part of the world. This demand for Manuka honey provides a direct opportunity for Wild Ferns to introduce their full skin care range into the Chinese market, where there is already strong demand and trust in products manufactured in NZ. The main threat for Wild ferns, would not come from NZ competitors, but from potential fake products made somewhere else, but claiming to have similar active ingredients or even worse, have their brand copied and illegally sold on the Chinese market.

Product background (NZ) There is a strong skincare sector in New Zealand with equally a big number of importers and local producers as well. Also there are an increasing number of new ranges continuously launched from which some fail some succeed. The recipe seems to be very simple, starting with packaging, scents, back-stories and also secret powerful ingredients or lack of harmful ingredients. (Mackay, 2012) The current Wild Ferns marketing mix in NZ is to sell online, and to wholesale through retail stores in NZ. Wild Ferns promote the health benefits of their products heavily on their packaging. The price point of the products is comparative to other Manuka skin care products, so it sits in the middle price range. See appendix 2.2 for the Wild Ferns range of Products, Packaging, and Pricing, and further product market information.

Pestle Analysis Refer to appendix 2.1 for our full Pestle analysis. Our Pestle analysis showed us that health care spending has a 11% share of all online spending which is positive for Wild Ferns industry. It is Chinas growing online purchasing habits of consumers that is most exciting for Wild Ferns. Wild Ferns will benefit from direct to consumer online purchases, as this will provide maximum control and customer experience also while boosting profits. China’s economy is the 4th largest in the world and is growing, with an increasing number of middle and upper class citizens. This is a positive trend for Wild Ferns as it places more customers within their target customer segment of high-end consumers. The Legal climate in China may present a risk to Wild Ferns, as there can be a lot of bribery and corruption amongst officials. This means while it may be legal to do business in China, there could be some unforeseen circumstances that may arise that would unlikely occur in a more regulated market like NZ.

Key Competition & Substitute products The sale of foreign brands occupies 90% of skincare sales in China.

According to estimates, more than 4,000 enterprises are qualified to produce cosmetics in China, of which some 1,800 are located in Guangdong region. However, taking the whole cosmetics market into consideration, one will find that domestic players account for less than 20% of the market while foreign-invested enterprises and joint ventures take the largest share (80%). The rapid development of domestic cosmetics companies has, however, brought competition to and affected the sales performance of their foreign counterparts in China. It is reported that foreign brands like Revlon and Garnier might pull out of the mainland market

Although there has been negative news about the quality of cosmetic products from world-renowned brands, mainland consumers are still fond of international brands. They believe that these well-known enterprises have been producing cosmetics for years, and so even though problems have been reportedly spotted in individual products, the overall quality is still reliable. Besides, some young women consider it trendy to use cosmetic products of famous brands

Children’s skin care product is a market of huge potential. Frog Prince, Coati, Mentholatum, Yumeijing and Johnson & Johnson are major players in the children’s market. According to estimates, Johnson & Johnson has taken up nearly 80% of the children’s toiletries and skin care products market on the mainland. The remaining 20% is divided among scores of upmarket foreign brands as well as local childcare brands, and competition continues to intensify. (International monetary fund, 2011)

Market Segmentation & Customer Targeting According to McKinsey “2012 Annual Chinese Consumer Report” out of 10,000 people aged 18-45 surveyed in 44 cities, 37% of the consumers are willing to spend on personal care products. The survey reveals that location; related income level and a more broad availability of higher quality products play a big role in purchasing decisions of Chinese consumers. Tier 1 cities are the regions with the highest incomes and the study has found that people in this region would spend on personal care products 30% more than the ones in tier 2 cities. Based on this report, target consumer segment are the coastal cluster consumers (see appendix 1.7) located south of Shanghai, in the Hangzhou cluster, which in 2012 had a GDP with similar USD value of Finland. Due to a longer period of better income level and economic conditions, people located in this region have developed similar behaviours with the ones in developed countries, their purchasing decisions are more influenced by their personal needs and beliefs and less by others opinion. They are willing to spend more for new products and services to reward themselves for the hard work. 9% are willing to try new types of products, consumers have higher than average incomes, they are younger (aged between 18 and 34) than the overall population. Younger Chinese consumers are more content about their purchasing decisions, most of the respondents mentioned that they enjoy spending for their own satisfaction on personal care products, and willing to pay premium prices for premium products. Also, in the same income category, from the total consumers relying on Internet, the ones aged 18 to 34 are double than the elders (appendix 1.8). The UMF and brightening effect of the cream could be an advantage to be used in targeting these customers as the emotional benefits (such as taste, better life for their family) is becoming more important to these consumers (Atsmon et al, 2012).

Key Stakeholder groups Internal Stakeholders:

• Board Members • Investors • Employees

External Stakeholders:

• Creditors • The NZ & Chinese Government (legislators) • NZ Suppliers

Recommendations

Short Term (0-12 Months) Market entry Strategy: Direct exporting Direct exporting is the preferred market entry strategy, as it will provide the most control over the product quality and the ability to directly control the consumer’s perception of the product. The other market entry modes (Licencing, franchising, contract manufacturing, JV, Merger) (Kotabe, Marshall, Ang, Griffiths, Voola, Roberts, Helsen, 2014). are not suitable, as they would all require that the product be manufactured outside of NZ. Our research has found that the Chinese people trust NZ made Manuka products and are willing to pay a premium for it. Trust is a major factor in the purchasing decisions of the general public in China. Direct exporting is the only method that will provide a high level of trust in the product. Marketing Mix Product: Manufactured in NZ. Keep the same packaging as the product supplied to the NZ market, as this will give an authentic “Foreign” feel to the product, which is a desirable trait. Promotion: It has been found that ‘word of mouth’ is the most trusted form of promotion amongst the general public, and they are generally wary of traditional forms of advertising as they feel it cannot be trusted. Celebrity endorsements are also not trusted as these are seen as paid advertisements. The most valuable WOM is from a friend or relative. (ref BBC article) To create positive WOM, Wild Ferns should attend Skin care shows, and attend events with a product sample stand where they can interact directly with the consumer and explain the benefits of the brand to them. This initial promotion will be more costly, but it will encourage a positive brand experience and result in organic WOM referrals. Social media should also be used (Wiebo, Wechat) to interact with customers, and to allow people to share their positive experiences with the Wild Fern products. Price: In NZ Wild Fern products are moderately priced, as there is more competition and lower demand. In China we predict the demand to be much higher so the product needs to be priced at a premium price point to encourage exclusivity and excitement. A premium price will also increase profits and help cover transport costs to move the product from NZ to China. Distribution: In the short term as we test the demand, Online sales will be a good way to interact directly with the customers and ensure that they have a positive brand experience. This also allows for customer interaction and the ability to promote word of mouth referrals.

A small number of exclusive skin care stores based in the densely populated eastern coastal towns, (Shanghai, Hong Kong, Guangzhou) should be wholesaled to in the short term to see how well the consumers react to the product and if sales are in demand. Inventory can be kept in a 3PL warehousing facility in the short term, which will reduce, and upfront setup costs and will remove the need for a local distributor.

Medium Term (1-3 years) Market Strategy: Direct Exporting. It is important that Direct Exporting is the constant mode of market entry as it is vital that the Chinese consumer trusts the product and values that is has been made in NZ. Product: Manufactured in NZ. Keep the same packaging as the product supplied to the NZ market, as this will give an authentic “Foreign” feel to the product which is a desirable trait. Promotion: Continue to push the organic word of mouth referrals. Depending on the level of demand for the product, the level of promotion may need to be lowered at this stage. Many brand have found that demand far outweighs supply ability. Price: Keep the premium price point. Distribution: If online has worked well, and depending on supply abilities, it would be wise to look at keeping the majority of the sales online. This allows greater customer interaction, and a higher profit than wholesaling. If at this point the online sales have been poor, then increase the wholesale network of resellers and focus more on being stocked in more exclusive stores. Continue using 3PL inventory storage facilities.

Long Term (3-5 years) Market Strategy: Direct Exporting. Product: Manufactured in NZ. Keep the same packaging as the product supplied to the NZ market as this will give an authentic “Foreign” feel to the product which is a desirable trait. If the product has sold well, then at this stage look into introducing line extensions and increasing the number of products available. Promotion: Continue with word of mouth promotion. Attend tradeshows to find more retail stores. Initiate “in-store” sampling sessions Price: If demand is far exceeding supply capabilities then look to increasing the retail price to increase profits and lower demand. Distribution: Push online sales. Expand the retail wholesale network, and move into smaller towns if demand in the larger towns is being met. The key focus that our research has shown us is that the product must be manufactured in NZ, and that the trust in the authenticity of the product must be upheld. Wild Ferns need to keep an eye on the market and ensure that no fake/replica products are being introduced under the same brand name as this could have devastating effects. Continue using 3PL inventory storage facilities.

Implementation/Control issues & Contingency Plans With open trade markets between NZ and China, doing business has minimal boundaries and there should not be any issues with customs for and expensive tariffs in place. The utilisation of 3PL warehousing will reduce upfront distribution costs, and will reduce the risk if sales are much lower than expected. If in the unfortunate event that it was decided to exit the Chinese market following a failed attempt, then the 3PL warehousing would provide an easy exit from the market (all remaining inventory can be shipped back to NZ) and there would be no expensive infrastructure in place. The utilisation of Direct Export does reduce the risk if Wild Ferns did need to exit the market early. The major loss would be the promotional sales spend that will have been incurred. The biggest expected issue is that the demand for the product will far exceed the supply capabilities. In this case Wild Ferns will need to assess whether they can increase production.

References Apicare New Zealand. Retrieved 2015, September from:

http://www.apicare.co.nz/contact-us/ Atsmon Y et al (2012, August). Winning the $30 trillion decathlon: Going for gold in

emerging markets. McKinsey Quarterly. Retrieved from: http://www.mckinsey.com/insights/strategy/winning_the_30_trillion_decathlon_going_for_gold_in_emerging_markets

BeeBio antiaging skin-care New Zealand . Retrieved 2015, September from:

http://beebioskin.com/content/9-asia Comvita New Zealand. Retrieved 2015, September from:

http://www.comvita.co.nz/store/comvitanz/GlobalContacts Dobbs R et al (2013, March). China’s e-tail revolution. McKinsey Global Institute.

Retrieved from: http://www.mckinsey.com/insights/asia-pacific/china_e-tailing

Eight expectations of the global shopper (2014, February 25)., pwc. Retrieved from:

http://www.pwc.co.nz/news-releases/eight-expectations-of-the-global-shopper/

International monetary fund, world economic outlook Database, April 2011 Retrieved from: www.china-trade-research.hktdc.com/business-news/article/China- Consumer-Market/China-s-cosmetics-market

Kotabe, M., Marshall, A., Ang, S., Griffiths, K., Voola, R., Roberts, R., Helsen, K., (2014). International Marketing. (4th Asia Pacific ed.). Queensland, Australia: John Wiley & Sons. Mackay, J. (2012, January 11). Noteworthy newcomers in skincare. New Zealand

Herald Retrieved from: http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=10777970

Manuka Health New Zealand, Retrieved 2015, September from:

http://www.manukahealth.co.nz/contact_us.cfm New Zealand Economic and Financial Overview 2015. The Treasury. Retrieved

(2015, September 14) from: http://www.treasury.govt.nz/economy/overview/2015

Richardson B.J, (2005) Emerging chemicals of concern: pharmaceuticals and personal

care products (PPCPs) in Asia, with particular reference to Southern China,. Science direct. Retrieved from: http://www.sciencedirect.com/science/article/pii/S0025326X05002821

Peng, G. C. A., & Nunes, M. B. (2007, July). Using PEST analysis as a tool for refining and focusing contexts for information systems research. In 6th European conference on research methodology for business and management studies, Lisbon, Portugal (pp. 229-236). Retrieved from: http: //eprints.whiterose.ac.uk/78787/7/WRRO_78787.pdf

The Manuka Shop. Retrieved 2015, September from:

http://themanukashop.com/contacts/ Zhou, K. Z., & Poppo, L. (2010). Exchange hazards, relational reliability, and

contracts in china: The contingent role of legal enforceability. Journal of International Business Studies, 41(5), 861-881. doi:http://dx.doi.org/10.1057/jibs.2010.7

Wildferns New Zealand. Retrieved 2015, September from:

http://www.wildferns.co.nz/ World Development Indicators. The World Bank. Retrieved 2015, September from:

http://data.worldbank.org/products/wdi

Appendix 1.1 - Economic Factors:

1.2 - Technological factors: Online Spending

1.3 - Legal factors - Key regulators in China: General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) is the in-charge authority supervising quality inspections on imports and exports; China Banking Regulatory Commission (CBRC); China Insurance Regulatory Commission (CIRC); China Securities Regulatory Commission (CSRC); Ministry of Commerce (MOFCOM) and its local subsidiaries are the major government authorities that deal with matters relating to foreign investment in China; Ministry of Finance (MoF); People’s Bank of China (PBOC); State Administration of Foreign Exchange (SAFE); State Administration of Industry and Commerce (SAIC); State Administration of Industry and Commerce (SAIC) (Cheng et al., 2014)

1.4 Current New Zealand Manuka companies in the Chinese Market. Comvita & Beebio are the only two skincare manufacturing companies that have penetrated the Chinese market

Comvita-2015 report

Beebio-Anti-Aging products focus

Profit rose to a record $10.2 million in the year ended March 31, up from $8 million a year earlier, and exceeding the $9.5 million it flagged in April.Sales rose 32 per cent to $152.7 million, the company said in a statement. The board declared a dividend of 9 cents per share, taking total payments for the year to 13 cents, up from 12 cents a year earlier. Almost a third of Comvita sales come from Asian market, including 400 stores in the company's core market of China. Key ingredient: Manuka Honey

The Company aims to meet the needs of the travelling consumer. Their strategy includes the launch of bespoke travel retail products such as the BeeBio Luxury Travel Pack, featuring the Venomous Active Manuka Honey & Bee Venom Face Masque, Eye Crème and Royal Jelly Facial Crème. Niche Market Key ingredient: Manuka Honey & Bee venom

1.5 Chinese Market Environment In the world China is the 3rd cosmetic consumer market Natural and organic products As people become more and more aware of the environment, natural and organic products very popular.Once seen as a luxury items,imported organic products are an increasingly accessible option for a Chinese consumer base with a growing disposable income. The organic products market in China continues to increase The skin care products These represent the fastest growing sector in the cosmetics market. ‘Skin care containing botanical or herbal ingredients is expected to be a key growth category in China, along with sun care. Mintel found the strongest demand from Chinese consumers in sun care to be moisturisation with 27% of consumers looking for this aspect, followed by anti-ageing (41%).’ www.cosmeticsbusiness.com/document/101FZIB)

1.6 Substitute Products Shampoo & hair products The market is becoming saturated and it’s growth slowed Make-up products The makeup market is far from saturated, especially in the rural regions as well as inland cities. The sales of these products recorded significant growth recently Cosmetic products Sales for cosmetic products that are designed to be used by children continue to rise. ‘the men’s cosmetics sector exhibits strong growth, in particular skin care products for men. According to estimates by Euromonitor, the market of skin care products for men expanded by 15.4% year-on-year in 2013. Figures for 2013 from China Statistical Yearbook 2013 show that the male population accounted for 51.25% of the total in 2012. However, the share of cosmetic products for men in the overall cosmetics market is relatively small. Oil-control and cleansing are the two major concerns with respect to men’s skin care requirement. For men’s skin care products, while facial cleansers take the lion’s share in the market, demand for specialty products like masks and sun-blocks is also on the rise, demonstrating that male consumers are paying more attention to skin conditions such as aging and coarseness.’ (www.china-trade-research.hktdc.com/business-news/article/china-consumer-market) Sunscreen products Sunscreen products ensure sales in traditional quiet seasons Anti-aging Products Cosmetic products that assist in defying age are becoming more and more popular Sports Cosmetics Many consumers who are into sports and pursue body fitness are keen on maintaining attractive appearances. They need products that will help prevent the loss of moisture, prevent odour and are in compact packaging Cosmeceuticals Consumers are increasingly becoming aware of products that combine cosmetic and pharmaceutical features like spot lightening creams, acne treatment etc

www.stats.govt.cn

1.7 Segmentation:

Fig. 1.7 - South East coast clusters. Source: Winning the $30 trillion decathlon: Going for gold in emerging markets; McKinsey&Company

1.8 Local Chinese spending habits

1.9 Current Skincare Distributors

2.0 The New Zealand Economy New Zealand has a small economy which operates on free market principles. Total New Zealand population is estimated at 4.5 million people, with approx... 73% leaving in urban areas. More than half of New Zealand population lives in four main cities- Auckland, Hamilton, Wellington and Christchurch. The Gross Domestic Product (GDP) in New Zealand real GDP was 188.38 billion US dollars in 2013, the growth in 2014 was 2.5% and it is expected to be 3.4% in December 2015 and 3 % in 2016. Primary Industries account for approximately half

of the total New Zealand exports and make 7.5% of the real GDP. Manufacturing industry makes 11% of the GDP with estimated sales of $47.2 billion in 2014 from which $32.9 billion accounted for dairy and meat products. External trade is vital to New Zealand economy. In the recession period (2008/2009) most of the exports were sustained by a high commodity demand, mainly from China, and continued to grow in the next years, with most of the export sales represented by meat and dairy products(estimated sales of $20.8 billion in 2014). Principal Trading Partners for New Zealand are China, Australia and USA, accounting for almost half of New Zealand’s exports. China is the largest trading partner taking 22.20% of the total New Zealand Exports and supplying 16.70% of total New Zealand imports making a total of $19.3 billion trade for year end of 2014, with exports expected to increase in the coming years due to growing incomes in the industrialized areas. Main product categories exported to China are from food (dairy and meat) industry, forestry products and also other primary products.( treasury.govt.nz, 2015)

2.1 – Pestle Analysis Political Factors The People’s Republic of China, was established in 1949, the Chinese Communist Party (CCP) has been the dominating force and ruler of the country, with a soviet-style economic system from 1949 to 1978, with majority of resources controlled by the government. Deng Xiaoping’s motion in 1978 was aimed to reform the economic system in China to a modern market economy, allowing a competitive economic

system, with economic activities influenced by the market trends and conditions (Peng & Nunes, 2007). Economic Factors China is ranked the fourth-largest economy in the world behind the US, Japan and Germany with 53% of the population(total 1.357 billion ) living in the urban area. GDP growth of 7.7% in 2013 with a total GDP of 9.24 trillion USD in 2013 . 45% of the GDP represents the value of the merchandise trade, goods in and out of the country . In 2012 China has imported goods in value of $356 billion, almost 20% more, compared to the United States imports of $299 billion.(World Bank 2013). Sales of luxury goods in Greater China account for 20% of global sales. Private labels have new opportunities to increase their market share that has been slow growing. Rising incomes continue to drive growth of fast-moving consumer goods companies. As shown in Appendix 1.1, the seven regions (Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Tianjin and Beijing) with the per capita GDP above US$ 1,600 in 2002 are all coastal regions in eastern China (Peng & Nunes, 2007). Guangdong region had the highest regional GDP, estimated to be approximately 11% of China’s GDP, in 2014 the GDP of Guangdong 2014, was approx. $1104.05 billion, figure higher than that of Indonesia and similar to the GDP of the Los Angeles area. Social Factors Chinese culture is fundamentally different from that of western countries in terms of high power distance, low individualism and low uncertainty avoidance. Many recent studies demonstrate that this uniqueness in Chinese culture shapes the ways people conduct organisational and business activities (Peng & Nunes, 2007).

Technological Factors People using the IT technology and the internet in Guangdong region is highest in the country for many years, also Guangdong was the first region that was open to foreign investments and absorbed foreign technologies since early 80’s (Peng & Nunes, 2007) Online marketplaces are growing very fast and can affect the retails market, as shown in the figure below the health and care products have a 11% market share of the total online spending (see appendix 1.2). Online retailing continues to enjoy exponential growth in Asia with 2012 estimated sales of RMB 450 billion, representing 5% of total retail sales in China. 41% of the online shoppers bought products through a tablet, compared with 28% in 2012), also 43% purchased products through a smartphone, compared with 30% in 2012). With consumers increasingly shopping via tablet and smartphone, over half (55%) of internet shoppers globally say they now buy online because they get better deals than in-store, according to new research from PwC Also the extent and speed of the information that can be obtained and increased competitiveness can lower the price of the products, but also increase the efficiency in logistics and thus lowering the costs. It is estimated that by 2020, online markets could generate $420 billion to $650 billion in sales, and China’s market will equal that of the United States, Japan, the United Kingdom, Germany, and France combined today. Multi channel strategies will be recommended for China’s store-based retailers, and the manufacturers that supply the (PWC, 2012).

Environmental Factors Based on reports from developed countries, scientists have raised concerns that the use of pharmaceutical and personal care products, could contaminate the aquatic environment, and impact the natural resistance of bacterial populations, and also in long run, due to the presence of oestrogens or hormones, could cause effects such as masculinization or feminisation. This is particularly important to China’s environment where pharmaceutical and personal care products are produced in huge quantities and widespread used and may impact aquatic environments (Richardson, 2005). Legal Factors Since 1979 central government has changed the legal system to adapt the new economy to the market conditions, but left the law enforcement to the latitude and interpretation of the local and regional officials who have a very big influence and power and can help some businesses to grow or go bankrupt, this being considered and advantage for Chinese organizations who establish and develop strong ties with local government officials to even cause firms to go bankrupt, Chinese organizations benefit for strong political ties with officials. (Zhou & Poppo, 2010). Opposite to Chinese organizations that are used and have learned how to use the system and for which regulatory compliance is not a big risk, for foreign companies’ regulations could be a real issue. If they do not chose the right strategy and partnership, their business in China could end before they even start. (Cheng et al., 2014). Also, as presented in appendix 1.3, important to know some of the key regulators in China 2.2 Wild Ferns product range

One of the ingredients used in these skin care products, which differentiates some of the local producers from importers and also from many newcomers and is also unique to New Zealand is Manuka Honey, ingredient which is claimed to have natural positive effects when applied on skin or irritated, burned areas, and so on. There are a big number of New Zealand Manuka Honey skincare products manufacturers, in this report a number of nine producers have been identified and used to compare product range and prices. An analysis on their products indicates that all of them have similar products and price range. These producers are: Wild ferns, Comvita, Beebioskin, The Manuka Shop, Apicare, HoneyCollection, Manuka Health, Skindeep, and Manuka Dr. From the information found in their websites, only Comvita and Beebioskin advertise that they are selling their products in Asia with retail shops opened in Hong Kong and China. Based on the information available on their website, “Wild ferns” do sell overseas and have a number of retails stores in some Asian countries such as Vietnam, Malaysia, India and Thailand, but nothing either in Hong Kong or China. Wild ferns is a family owned company, has been founded in 1951 by Des and Margaret Parr in Auckland, initially named Parrs Products Ltd. Wild Ferns Manuka Honey skincare products all contain Active AAH 650+ (Active Antibacterial Antioxidant Honey 650+), which does have a high level of antibacterial activity and antioxidants compared to other honey products, and also it has antiseptic properties. (http://www.wildferns.co.nz/ )