Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.
As the U.S. Commercial Service in New Zealand, we often advise U.S. companies to establish a local sales presence to improve their market position and chances of success in New Zealand.  While some businesses will open a subsidiary in New Zealand, for most American exporters this means appointing an agent or distributor. Whether a distributor can “cover” the New Zealand market from a base in Australia, or elsewhere in the region, depends on the industry and the product or service.  We encourage U.S. firms to research three key determinants: the purchasing practices of their target customers, the competitive climate in the New Zealand market, and the importance of after-sales service.  Companies producing specialized products with limited and finite potential accounts can easily justify a single distributor for the two countries and should select a distributor who is prepared to commit the additional resources to pursuing and supporting the New Zealand market. 

New Zealand can offer steady and profitable sales, but it is also a competitive market.  New Zealand agents and distributors are aware of global developments in their industries and participate in trade shows worldwide as both exhibitors and attendees.  This activity places them in direct contact with new and competing products and technologies.  U.S.  companies need to demonstrate the competitive advantages of their own products or services.

Although Government procurements do not legally require a local agent, appointing a local representative can help achieve a successful outcome e.g. defense contracts.   
 

Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.