Mahesh Muralidhar, the CEO of Phase One Ventures, is urging New Zealand businesses to set their sights beyond the Pacific and explore international markets, particularly the lucrative US.
New Zealand is currently dealing with its economic challenges, and Muralidhar believes the solution lies in the untapped potential of international markets.
The business leader is advocating for expansion into the expansive US market, Muralidhar argues that Kiwi companies risk stagnation if they remain too focused on local opportunities. His message is to go global or risk being left behind.
Embracing Global Opportunities
Mahesh Muralidhar is calling on Kiwi startups to expand their horizons and prioritise international growth. He urges local businesses to venture beyond national borders, tapping into new markets to diversify their revenue and enhance their market impact and to adopt in today’s competitive business landscape.
According to Forbes research, companies that grow beyond their domestic markets tend to be rewarded by shareholders, highlighting a strong connection between global expansion and revenue growth.
This research is complemented by a study from Equinix, which found that 72% of surveyed organisations plan to expand into new cities, countries, or regions within the next year, with 82% of companies in the Asia-Pacific region expressing the highest confidence, compared to 78% in the Americas.
Strategies for International Expansion
Muralidhar offers clear strategies for those looking to expand. He recommends allocating a portion of revenue specifically for international ventures, especially in sectors like technology and software where scaling can happen quickly. Additionally, utilising current resources efficiently while building overseas networks allows for smoother transitions into new markets, reducing the friction associated with global expansion.
A strong example is the trade agreement between New Zealand and the UAE, creating new avenues in the rapidly growing halal meat market.
The recent bilateral agreement between the two countries shows how local firms can tap into global demand by leveraging international partnerships. Muralidhar’s call for expansion aligns with this strategic move, urging other businesses to take a similar global outlook.
UBCO, a New Zealand electric vehicle manufacturer, has recently ventured into the Australian market. The brand’s expansion serves as a valuable case study on how to use established resources to explore international opportunities effectively.
Similarly, Pure Mama, a Kiwi-owned skincare brand, has recently made great progress in the US market. Founded by sisters Lara Henderson and Yasmin Shepherd, Pure Mama focuses on pregnancy and postpartum skincare. It took them 18 months of preparation to launch in the US.
The brand partnered with well-known retailers like Erewhon, Macy’s, and Nordstrom, and gained huge traction in popularity after being promoted by celebrities like Kourtney Kardashian. Pure Mama’s increase in visibility and sales is a strong example of how Kiwi business can use their specialised expertise to succeed internationally.
Recognising Challenges in Global Markets
Muralidhar recognises the difficulties of entering global markets. The fierce competition and the substantial resources required to adapt to new environments can be overwhelming.
However, despite these challenges, he believes the potential rewards, broader market access, and exposure to a variety of perspectives render the investments worthwhile for many enterprises.
Another Kiwi brand that local business leaders can take a cue from Fonterra’s expansion of its Studholme site in response to rising global dairy demand, which shows how industries can capitalise on increasing global demand.
Fonterra’s recent investment is a testament to the importance of aligning production capacity with global needs, illustrating the benefits of international growth for long-term success.
Conclusion
Muralidhar’s call for New Zealand companies to actively pursue international growth is not merely advice; it serves as a crucial roadmap for economic and business resilience. Sustainable business growth is achievable only when companies tap into larger markets, diversify their revenue streams, and embrace long-term success in a rapidly evolving world.
Firms can draw inspiration from the expansion strategies of Kiwi brands such as UBCO and Fonterra, which exemplify the immense opportunities that global expansion offers.
Additionally, Pure Mama’s successful entry into the US market showcases how careful preparation, strong partnerships, and leveraging international visibility can propel a brand to new heights in foreign markets.