The same issues plaguing retailers in Australia are now being debated in New Zealand. NZ likes to copy Australia's follies. Any new issues for NZ? According to NZ Herald, their concerns are similar:
1. They argue that they are worried that importers will use products for commercial purposes. This was once and issue callled 'parallel importing', however the lack of warranty tends to discourage that, except when local companies are charging excessive mark-ups.
2. The same argument is made that people can enter a store, try it on, and then buy an imported product. True enough, I bulked at the idea recently of paying $NZ170 (PHP6500) for shoes available in the Philippines from an up-market department store for P3500-4000, and that is before I even consider sales. I bought Hush Puppies on sale for P2000 ($US40 or $NZ55). In this case, I go to the Philippines, or have someone buy them for me, but the issue is the same. Local business 'mark-up' product so much that people are compelled to go online.
The NZ retailers, which do include some of the same companies, want all imports charged GST, as all purchased in NZ less than $500 are exempt from GST, except gifts. The appeal of the change to the NZ government is that it would apparently raise an extra $500 million a year in GST revenue.
The moral of this story is that Western people ought not be selling low-margin products which are best sold by foreigners. Why deny developing countries jobs when we could be doing more valuable work. This is particularly true for NZ, where the country's average incomes are 30% lower than Australia's. This is an opportunity for some 325,000 New Zealanders to think about entering a sustainable career. Clearly those with no imminent need for work ought to be leaving the industry now, or otherwise reskilling themselves for the inevitable loss of work, or fall in wages. The other reason why NZ is losing jobs is because of wage pricing inflexibility. Minimum wage levels need to be discarded...at least in favour of the Japanese model of offering remuneration as bonuses for excess profits.
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