New call to buy Kiwi-made

They're some of our best-known brands - products such as Bendon, Macpac and Swanndri - and the companies that own them once employed thousands.

But no longer. In recent years, many New Zealand manufacturers have shifted their production to countries such as China, sparking a national debate about our economic future.

To date, there's been little evidence of a consumer backlash. But that could be about to change if Greens co-leader Rod Donald gets his way. A Buy Kiwi Made campaign is one of the party's key policies, and it would be an easy one for Labour to agree to in the tricky talks taking place to form a new government.

Trade and Enterprise New Zealand figures show that every $1 million of imports that is replaced with local products creates almost 12 jobs, cuts welfare bills by $119,310 and ups the tax take by $108,650.

Says Donald: "Shopping should be as political as voting. We want New Zealanders to look at the label when they're shopping and realise that the cheapest price is not always the best deal. Sometimes it's better to pay a little bit more."

But some New Zealand companies, now making everything from underwear to outdoor clothing in China, have slammed the idea of promoting locally made products as outdated.

"Do we want a country that is lined with factories, or a country that is filled with exciting companies that design and conceive products?" says Bendon chief executive Stefan Preston.

Macpac managing director Bruce McIntyre agrees. The company's decision two years ago to lay off 150 factory staff and produce its outdoor clothing, tents and backpacks in China was a tough one, says McIntyre, but it has ultimately paid off.

Since facing closure, Macpac has lifted its exports and is now profitable again. "Our sales have grown substantially since we moved offshore. The quality of the product has actually improved. It has enabled us to put more money into the things we do best in New Zealand - the design, sales and marketing - and we've doubled our staff in those areas," he says.

McIntyre wouldn't use the Buy Kiwi Made logo when he was manufacturing in Christchurch. "If every country in the world did it, there'd never be any exporting. It's a pretty nationalistic and parochial idea and I would hope that New Zealand would be more outward looking."

In Waikanae, Dalton Kelly employs 12 factory workers at his packaging firm, and is also president of the Buy New Zealand Made organisation. Set up in 1988 by the former Manufacturers Federation and trade unions, the campaign had about 5000 members in its heyday.

Today, it's overseen by Business New Zealand, and about 800 companies pay to use the triangular Kiwi logo that you'll see on products like Griffins biscuits, Sanitarium breakfast cereal, lawnmowers and furniture.

Kelly is thrilled that after years of lobbying, Kiwi-made goods may finally be promoted by the Government. Across the Tasman, the Buy Australian Made organisation receives $2 million a year in federal funding, while his has received nothing.

New Zealanders do seem to recognise the Kiwi Made logo though, according to research by ACNielsen, which found 850 out of 1000 New Zealanders knew what it was.

Three-quarters of those surveyed said they would prefer to buy New Zealand-made products (11 per cent less than Australians).

The 240 people who didn't show a preference rated other factors - product and quality - as deciding factors when shopping. They also thought NZ-made goods were typically more expensive (16 per cent) and 9 per cent believed the quality was inferior.

Says Kelly: "The biggest problem for them was being able to identify what was a New Zealand-made product. We're saying to producers - put a logo on it. We'd rather see jobs for New Zealanders than Australians or Asians."

Preston reckons he should be able to put the logo on Bendon underwear. To qualify, products and services have to be "substantially transformed" in New Zealand.

He argues that Bendon is a local brand, as its head office, designers, pattern makers, sample machinists, marketing staff and visual merchandisers are all based in Auckland. Since shifting production, Bendon has been able to triple its local staff.

"It's an old-fashioned definition of Kiwi-made. We're governed by the rules of 10 years ago. The New Zealand consumer sees Bendon as a Kiwi brand, and so they should. By far the biggest component in the real value of the product is done here."

Preston also says the quality of the product is superior to what was being made in Bendon factories in the 90s. "The Chinese are the best seamstresses in the world. Some of our products are so detailed that I'm not confident we could make them anywhere else," he says.

Major retailers say that between 20 and 95 per cent of their goods are sourced internationally. Shoppers are always making a trade-off between price and other factors, such as quality, service, and country of origin, says Retailers Association chief executive John Albertson.

"I think if people are given an option, they'll support local endeavours, but you have to ensure that locally made goods are competitive. Any major campaign has to be very carefully thought through so it's not just done to tap into the conscience of the country," he argues.

At The Warehouse, "Made in China" labels dominate. About 15 per cent of goods stocked on Warehouse shelves in the past year were made in New Zealand - about the same or slightly less than the previous year. Spokeswoman Cynthia Church says gardening products and manchester are most likely to be locally-produced, because they're bulky and difficult to transport from overseas.

Local goods must beat rivals on cost, quality, innovation, service and delivery. "When we do our research, we ask 'Do you like to buy New Zealand-made products' and most people say 'yes'," she says.

But some of those who continue to make their goods in New Zealand aren't sure that a patriotic campaign is the way to go.

Click Clack has a $30 million turnover and employs 330 manufacturing staff in Levin, Christchurch and Palmerston North. None of the plastics have the Kiwi logo on them - the company has instead come up with its own, which reads: "Proudly Made in New Zealand".

Chief executive John Heng thinks the Greens have got it wrong and he would prefer to see free trade agreements with some of the country's 54 export destinations.

"Think of all the benefits that imports have brought us - televisions, computers and the like. We also can't restrict products from coming here and then want to send ours to their countries."

But if the Greens succeed, Donald is confident that Kiwis will pick up a Griffins biscuit rather than an Arnotts one, and buy a Tip Top icecream rather than one made by Australian-based Streets.

"If we get the opportunity to run a decent marketing campaign then no one in their right minds should be choosing Wave chocolate milk, which is made in Australia, when we have so much chocolate milk that is made here."