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Which NZ products have the largest mark-ups?
Which NZ products have the largest mark-ups?

09 July 2024, 3:01 AM

When it was recently revealed that Italian prosecutors looking into LVMH subsidiary Dior's use of third-party suppliers had found that it paid US$57 - excluding some materials - to produce bags that sold for $2870, it might have come as a shock to some luxury shoppers.But Dior chief executive Delphine Arnault's father is the world's third-richest person - Bernard Arnault - so perhaps it's not surprise that they know how to turn a profit.It prompted RNZ to investigate which New Zealand products might possibly have the largest mark-ups.While it's hard to get a perfect picture because the data is often commercially sensitive, you can get a sense of it from Stats NZ, which compiles data regularly on the gross profit ratio of various sectors.The caveat to the data is it will not include operating expenses, interest or taxes. While taxes should be consistent across businesses, operating expenses and interest could be varied depending on how much online versus physical retailing is happening and how many staff are employed.But at a high level, it shows that for micro retail businesses, marine equipment retailing is currently the most profitable sector. But among small, medium and large businesses, antique and used goods dealers are making the largest profits.Chris Wilkinson of First Retail Group said antique and used goods retailers were probably more profitable because shoppers had nothing to compare their prices to."If you've got a unique piece of whether it be art… you can't say I could get that down the road for this price."Across all business sizes, gardening businesses tended to be more profitable than clothing, which was marginally ahead of furniture and footwear - but among large businesses, they were very similar.Wilkinson said the strongest margins would be in businesses that were "vertical retailers" - selling their own products to consumers rather than selling other manufacturers' goods."More and more we see high streets and malls filled with retailers that are actively selling their own products, versus 10 or 15 years ago the streets were filled with retailers with products from lots of manufacturers. Another aspect is retailers that are selling directly, like the Levi's store or Dyson."He said Kmart had differentiated itself from The Warehouse in this way, and it gave it the same advantage the antique dealers had - customers could not compare the products' prices elsewhere.Unlike Gucci, Wilkinson said in New Zealand, higher-end garments would generally have less margin than that sold by businesses such as Hallenstein Brothers and Glassons."There's margin there but it has to be good because these retailers have large stores, infrastructure - it's expensive."Fuel retailing and car retailing were among the least profitable by this measure. MBIE monitors fuel importer margins and said the margin on petrol was about 35 cents per litre - but fuel retailers would have to cover costs such as transport, distribution and the cost of providing fuel from this.Motor Industry Association chief executive Aimee Wiley said her understanding was that car dealer margins for a new car sale were wide-ranging and variable. They could as low as 0.5 percent and 1 percent to 2 percent was not uncommon, she said.Supermarkets were also near the bottom of the Stats NZ data, but senior lecturer in Otago University's department of marketing Rob Hamlin said margins were not consistent through a supermarket.He said the higher-margin items were positioned at the start of of supermarkets."You are kind of encouraged to go around the supermarket in a certain way - the early parts of the journey are a pleasant place to be as it's attempting to slow you down and turn you around and keep you in that part of the store. Then all of a sudden when you arrive at a certain part of the store, the whole layout changes... at that point they've got you through all the high-margin parts, now they just want to get you out of the store."They've made their money selling you cakes and meat and bananas but they know to get you to come back every week you have to be able to buy beans and bleach and bog roll."He said "mouse trap cheddar costing $20 a block" often captured attention but could take 14 months to make. "If you go to the specialist cheese and look at the soft and squishy French style that don't take two ticks to produce, and work out per kilogram, some can be $60 or $80 or $100 a kilogram. The margins in that part of the supermarket are extremely attractive."Woolworths said in its 2023 financial year, it made 0.8c for every dollar spent.None of the mark-ups appear to be on the same level as Gucci's - and Wilkinson said New Zealand retailers were facing more competitive pressure than ever."It's really related to the multitude of channels that are now available. There's online - all these other aspects of competition from overseas retailers coming to New Zealand."He said market demand could change rapidly."I would say it's more dynamic than it's ever been... At certain times there might be a flavour of the month that can do no wrong, and now it's completely different."

Media student worried about finding a secure job in journalism
Media student worried about finding a secure job in journalism

09 July 2024, 12:28 AM

Students are thinking twice about a career in the news industry due to the uncertainties facing it.With the recent layoffs at major news outlets causing concerns about jobs, students could be put off pursuing a journalism career.Last April, Warner Brothers Discovery announced the closure of Newshub and a loss of 294 jobs, with TVNZ also announcing job cuts.Newshub closed on Friday after 35 years of delivering daily news bulletins.AUT senior lecturer of communications Dr Gregory Treadwell said it was a difficult time in the industry and students were right to be worried."It is a complex situation at the moment, especially with students worrying about whether journalism is the right thing to get into. If the health system is under pressure, fewer people want to go to medical school, if the media sector is facing problems, fewer people will want to become journalist."The number of people in New Zealand who listed their profession as journalist, according to the 2018 census was roughly 1635 across the industry.Final year journalism student Ben McQueen said he was uncertain about his chances of entering the industry."As a media student, I do worry about what the future is going to look like. At the current internship I'm doing, no one on the team is on a full-term contract. I find this concerning and I fail to see how an up-and-coming student can be able to make a solid start."Dr Treadwell said it was disappointing that interest in journalism was dropping. He said the role of a journalist was important in a democracy and more needed to be done to train the next generation."We need more journalists in this country, our media is not big enough to function. Journalism is an important position in our society and is needed for the public interest."Back when I started teaching 20 years ago, there were specialised journalism schools all across the country, they are all gone now. There are only a few institutes left that teach journalism and it is not enough."

New space prizes announced
New space prizes announced

08 July 2024, 8:15 PM

Hibiscus Coast space enthusiasts have reason to celebrate as the government launches the inaugural Prime Minister’s Space Prizes. Announced by Space Minister Judith Collins, these awards aim to recognise and encourage innovation within New Zealand’s burgeoning space sector.Minister Collins highlighted the importance of celebrating the high-calibre individuals contributing to the sector's success. “These outstanding achievements will be recognised by an award for professionals which carries a $100,000 prize,” Collins stated."It is crucial to celebrate the people who are making an impact now and to inspire the next generation.”The prizes include an annual award for professionals, with a substantial $100,000 prize, and a youth-focused award for students in Years 12 and 13. The student prize, worth $50,000 towards tertiary education, also offers a unique opportunity to visit Rocket Lab’s facilities in both New Zealand and the United States.Prime Minister Christopher Luxon expressed excitement about the initiative, emphasising New Zealand’s growing reputation in space missions and research. “These prizes will showcase the high calibre individuals working in our space sector now who have greatly contributed to its success,” Luxon said.Collins added that fostering young talent is essential for the sector's future growth. “Encouraging our young people to aim high and develop their talents is essential in helping us maintain the momentum and grow the local talent needed for our space sector to thrive in the future,” she said.

Increased security for Hibiscus Coast during holidays
Increased security for Hibiscus Coast during holidays

08 July 2024, 7:04 PM

Coasties can expect enhanced security measures this school holiday season as Auckland Transport (AT) and NZ Police increase their presence across the region. The initiative aims to ensure the safety of locals as they travel through Tāmaki Makaurau.From the Northern Busway to the south, additional security personnel will be on duty, and several stations will host customer BBQs. Hibiscus Coast and Albany stations will have security from 8 am to midnight daily, supported by Transport Officers.Auckland Mayor Wayne Brown highlighted the importance of listening to residents' concerns. "I’m glad AT is also taking on board people’s concerns and prioritising safety more in its operations. People deserve to feel safe while moving about Auckland and public transport is a big part of this."Stacey van der Putten, AT’s Director of Public Transport and Active Modes, acknowledged the recent incidents causing unease. “Everybody has the right to catch public transport without being subjected to this unacceptable behaviour, so we are working closely with Police to make sure the transport network is a safe place for everyone."Inspector Jason Edwards, Waitematā West Area Commander, emphasised the Police's commitment to visibility at busy transport hubs. "Police do not tolerate violent or intimidatory behaviour and we will remain visible across key transport hubs. These are important spaces for the public to go about their business and get to where they need to be."The Auckland Transport Operation Centre (ATOC) will maintain high-level surveillance across the network, and AT encourages the public to report any concerning behaviour anonymously via Crimestoppers on 4030 or through the AT website.

Researchers recommend balanced screen use in schools
Researchers recommend balanced screen use in schools

08 July 2024, 6:30 PM

Coasties are urged to balance screen time for students, as new guidelines recommend limiting digital technology use in schools to mitigate health risks while harnessing educational benefits.Kiwi children have some of the highest screen usage rates globally, with Māori and low socioeconomic-background young people over-represented, according to Julie Cullen, a paediatric physiotherapist and screen researcher at the University of Auckland.“A number of years ago, I started noticing an increasing number of children coming through the clinic who had issues that seemed to relate to frequent screen use,” Cullen said.Cullen and her team evaluated evidence and consulted with health researchers, educators, clinicians, and technology experts.Their findings show that while moderate use of digital technologies can offer educational and social benefits, excessive screen time has been linked to health issues, including dry eye, myopia, loss of physical fitness, noise-induced hearing loss, and pain syndromes.For older children, technology can offer mental health and cognitive benefits if quality content is prioritised over screen time.The researchers’ recommendations, endorsed by the New Zealand Paediatric Society, aim to find a balance between educational benefits and potential harms.The guidelines suggest minimal screen use for children up to six years old, with no screens for under two-year-olds.For six to 12-year-olds, screen use for learning should be limited to no more than a third of the school day. From 13 to 18 years, the emphasis is on balanced screen use, with regular eye breaks and limited headphone or earbud use.“Our hope is to spark conversation and offer evidence on how to find a healthy balance between the educational benefits of technology and potential harms,” Cullen said.These recommendations come as the United Nations calls for urgent discussion and regulation of digitisation in education.

Gulf Harbour body discovery: What we know so far
Gulf Harbour body discovery: What we know so far

07 July 2024, 8:04 PM

The remains of a woman believed to be Chinese were found inside a bag, fished out of the sea in North Auckland's Gulf Harbour on 12 March.Police ruled out early on that the victim could possibly be Yanfei Bao, who went missing from Christchurch in July and has yet to be found.To this day, the identity of the woman in the bag remains a mystery.Here's what we know so far.Victim is female, middle-agedEarly on, acting Detective Inspector Tim Williams said police had determined the victim was female and middle-aged.She was wearing blue pyjama bottoms with pink hearts on it, and a light-coloured singlet with an emblem.The woman's pyjama bottoms. Photo: Supplied / PoliceStuff reported the singlet was branded with a Chinese logo, translating it to read: "Juan Yan Brand, 80cm, Juan Yan Knitting Garment Factory".According to Chinese netizens, the brand of the pyjamas is thought to be old-fashioned, perhaps something an older woman would wear. Two shops with that name can be found in the Jiangsu province of China, Stuff reported.Williams said: "She's small in stature. We estimate the height to be around 160cm. We believe she's of Asian descent and our enquiries lead us to believe she's probably Chinese."Interpol had been contacted in the hope of identifying the woman, Williams said.The emblem on the woman's top. Photo: Supplied / PoliceArrests made, four months on from discoveryA man and woman have been charged in connection to the homicide investigation.The pair, both aged 36, made a first appearance at the North Shore District Court on 1 July.They were arrested on the evening of 30 June after attempts to leave the country.The two are each facing a charge of offering an indignity to a dead human body.They were accompanied by a Mandarin interpreter in court.The defence counsel's application for continued name suppression was declined, however, their names are still suppressed due to a pending appeal from the defence.Fisherman pulled body outPaul Middleton was fishing in the Whangaparāoa area when he saw the bag in the water near Laurie Southwick Parade.He hooked it and pulled it into the shore, saying it was heavy but easy to move, managing to pull it up the rocks a little.He thought it might have been a bag of rubbish so struggled through "layer and layer" of plastic to open the bag.There was "a bit of clothing ... and then there was this hand sticking out".Paul Middleton speaks with police after finding the woman's body. Photo: RNZ / Nick MonroIt was at that point that he called police."Two cops turned up and they thought I'd actually said there's just a hand in a bag and then they went down there and went, 'Oh no we've got a body'," Middleton said.Middleton said he did not try to open the bag further once he discovered the hand.Black Notice issued through InterpolA Black Notice was issued through Interpol in April, and police have received information from a number of countries.A black notice is an international request for information on unidentified bodies.It allows police in member countries to share critical crime-related information.Williams said: "While we cannot go into the specifics, Interpol continues to receive information from a myriad of countries, the most recent being from Canada earlier this month (May)."Police investigating at the scene. Photo: RNZ / Nick MonroPolice receive more than 140 tipsLast month, Stuff reported police had received more than 140 tips about the mystery woman in the bag.The tips were based about the circumstances surrounding the woman's death.At the time, Williams said the investigation team was continuing to work with partner agencies overseas, including "working closely" with Interpol."We continue to have a committed and dedicated team who are focused on identifying this woman and the circumstances behind her death," he said."Our enquiries are still very much active to determine the who, when, and why."Williams told Stuff he was still "very interested" in hearing from anyone who might have information about the case.Plastic wrap helped preserve cluesOtago University lecturer Dr Angela Clark - a forensic anthropologist who also works with police - told RNZ's Checkpoint in March the several layers of plastic the woman was wrapped in could help the investigation by preserving the clothes and slowing the decomposition process."It will probably preserve the body for a short period of time, it'll protect the body from the effects of water."She said the plastic, combined with the immersion in water, would affect the decomposition time.The plastic would also help to preserve any clothing found on the body, allowing more evidence to be collected."The decomposition process will be a lot slower than you might expect if the body was on land."Dr Clark - who specialises in water forensics - said there were many factors to consider when investigating a body found in the ocean, including the warmth of the water, the speed of the current and how salty the water is.A hearse arrives at the scene. Photo: RNZ / Nick MonroShe said it could be possible to work out where the body entered the water, with similar mappings on other cases where experts on local water flow were called in.The body was found floating on top of the water and Clark said this could indicate it had not been in the ocean for long.But she said in most cases the body would initially sink, before floating back to the surface as the body broke down."Water is a very variable medium, so it's hard to predict."Domestic violence possibleNeil Hallett is a director of Helix Private Investigation Services director who spoke to the New Zealand Herald about the case in April.He spent 35 years in the New Zealand police before he retired at the rank of Detective Inspector.Hallett told the Herald the fact she was wearing pyjamas suggested her killing could be a domestic violence case.Once she was identified, he said he would be looking closely at any partner or ex-partner.Police still want to hear from peopleThe investigation team can be called directly on 0800 755 021, or information can be provided via police's 105 phone or online service, referencing file number 240312/9837.Information can also be provided anonymously via Crime Stoppers on 0800 555 111.

Tourism NZ revamps ‘IF YOU SEEK’ campaign
Tourism NZ revamps ‘IF YOU SEEK’ campaign

07 July 2024, 6:01 PM

Locals and visitors alike can look forward to more enticing travel opportunities as Tourism New Zealand has refreshed its 100% Pure New Zealand global brand campaign, ‘IF YOU SEEK’. This update emphasises the diverse, year-round experiences the country has to offer.The campaign, which has significantly supported tourism recovery over the past two years, is now focusing on inspiring travellers to visit New Zealand throughout the year. “Tourism is now New Zealand’s second-largest export earner, and it’s important we maintain that momentum,” said Tourism New Zealand Chief Executive René de Monchy.Mr de Monchy noted that the campaign has been successful in driving a record high preference for New Zealand as a visitor destination. “We know 46% of people who are seriously considering visiting New Zealand have us at the top of their bucket list. This puts Tourism New Zealand in a great position to convert that desire into bookings,” he said.The refreshed content highlights New Zealand’s unique offerings, showcasing various regions and experiences, such as the Manea Footprints of Kupe in Northland, West Coast beaches in Auckland, Waka Abel Tasman in Nelson/Tasman, Cloudy Bay in Marlborough, and Skylark Lodge in the Mackenzie District.Tourism New Zealand’s new four-year strategy aims to increase international tourism revenue by $5 billion to $13.2 billion by 2028, with a significant portion of growth expected from off-peak visits. “Growing off-peak tourism supports the government’s goal to double the value of exports over the next ten years and helps alleviate seasonal challenges faced by New Zealand’s tourism industry,” Mr de Monchy added.The campaign, first launched in August 2022, marks Tourism New Zealand’s first global effort since the reopening of borders. The initiative will also see updates to the organisation’s consumer website and trade channels, featuring content tailored to off-peak seasons and resources to assist trade partners in promoting New Zealand holidays from March to November.

Government wants to 'flood the market' to make houses more affordable - how will that work?
Government wants to 'flood the market' to make houses more affordable - how will that work?

06 July 2024, 10:13 PM

Housing Minister Chris Bishop has told real estate agents that the government wants to "flood the market" with opportunities for housing development.It has agreed to a range of changes that would free up land for housing, and, the government hopes, make housing more affordable.Here is what is planned and how it might work.Housing growth targets for tier one and two councilsTier one (places like Auckland, Wellington, Christchurch and Tauranga), and tier two (places like Whangārei, Rotorua, New Plymouth, Dunedin) councils will have to "live zone" for land with enough feasible development capacity to cater to 30 years of housing demand at one time.Live zoning means the land can be used under a plan that is already in effect, not planned to become available in future - feasible development refers to being commercially viable for a developer to undertake the work.Infometrics chief executive Brad Olsen. Photo: RNZ / Samuel RillstoneA wider range of funding sources will be able to be used to meet medium-term infrastructure requirements. Prescriptive rules will be set for councils to determine how much capacity they need, such as requiring that they use "high" demand projections rather than more cautious estimates.Infometrics chief executive Brad Olsen said it could be difficult for councils to allow for 30 years' worth of development when the infrastructure was not yet there."But equally the infrastructure wasn't there beforehand either, so at least with the more permissive options, it will force a greater need to develop infrastructure at a greater pace over time."New rules requiring cities to be allowed to expand outCouncils will not be able to impose rural-urban boundary lines in their planning documents, but they will still be able to have rurally zoned land.Ministry officials are also looking at options to improve councils' future development strategies, potentially requiring them to plan for growth over 50 years, not 30.Strengthening of intensification provisions in the National Policy Statement on Urban Development (NPS-UD)Tier one councils will have to enable "appropriate" levels of density across their urban areas, and they must deliver housing intensification along "strategic" transport corridors like major bus routes.They must also offset, with more development elsewhere, any capacity they lose due to deciding some areas are "special character" and should not be intensified.Housing Minister Chris Bishop.New rules require councils to enable mixed-use developmentTier one and two councils will need to allow things such as cafes, dairies and other retail in urban areas. Industrial activities will still be able to be kept away from housing.No minimum floor area and balcony requirementsIt will be up to developers, not councils, how big apartments have to be and whether they have a balcony.Bishop said these requirements could significantly increase the cost of new apartments and reduce the supply of lower-cost apartments.He said evidence from 2015 showed in Auckland, balcony size requirements pushed up the cost of an apartment by $40,000 to $70,000 per unit.AUT professor John Tookey. Photo: https://www.aut.ac.nz/Bishop told the Real Estate Institute that people complained about shoebox apartments."I agree that they won't be the right housing solution for everyone. But do you know what is smaller than a shoebox apartment? A car or an emergency housing motel room."AUT professor John Tookey said there would be questions around how far the rules were relaxed. "We might have to draw a line and say there needs to be toilet facilities separated off, for example.""What do we sacrifice on the altar of lowest cost?"MDRS is made optionalThe MDRS was the bipartisan agreement between National and Labour that was designed to allow for more density - enabling houses up to three-storeys without a resource consent.All councils currently required to implement the MDRS will have to vote on whether they retain, alter or remove its standards from their areas.If they remove or alter the MDRS they need to implement their housing growth targets, the intensification changes to the NPS-UD and the mixed-use provisions.What will it mean for house prices?Olsen said the plan would make a difference."We spend a lot of time talking about how awful the housing market is, how bad affordability is, I don't know if that's going to change immediately but I certainly feel more optimistic about the outlook for the future and that feels like a big thing to say."He said New Zealand had failed horribly at trying to dictate terms to the housing market, to the country's' "utter detriment"."Anything that will create more housing is a good thing, full stop."Tookey said it would probably lead to more apartments being built, if the new rules made it more profitable for builders to do so.But he said the availability of more affordable apartments would not necessarily make other types of housing more affordable."We're assuming they're all competing in the same marketplace, and they're not. People who want to buy a standalone property on a quarter-acre aren't going to be competing in that space, anyway."Olsen said if apartments were what people needed, more would be built."It shouldn't be up to us whether that's good, bad or otherwise."Tookey said, for prices to fall, there would need to be more homes available than there was demand for them - and there was no guarantee that builders and developers would rush to build houses before there were sufficient buyers because it would reduce their margins."The way in which government could ultimately change the game is by using the power of the public purse to procure and build the right sort of houses in the right sort of places... Even if you went for 10,000 homes in a particular location you could actually get houses built ahead of the market."Corelogic head of research Nick Goosall said the changes were welcome."It's the right thing to do."He agreed that any development would still need to stack up for builders and developers to make use of the new rules."It will take some time for them to have a major impact on the market. It's definitely the right thing to do to say you can build in more places, make it more available, make it more palatable. As that demand comes, as it becomes more affordable, we'll start to see them build off the back of that."

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