The Strategic Importance of Asian Supermarkets in the New Zealand Market
In the New Zealand market, there are not only nationwide mainstream supermarket chains, but also a group of stores commonly referred to as Asian supermarkets.
While many Asian supermarkets are operated by independent owners, some are managed by groups that operate multiple stores.
For companies looking to expand sales in New Zealand, Asian supermarkets represent one of the most important and practical distribution channels to leverage.
Key Characteristics of Asian Supermarkets (Compared with Mainstream Supermarkets)
When compared with mainstream supermarkets, Asian supermarkets typically offer the following advantages:
- Faster speed to market for new product listings
- Simple trading terms, with no complex rebate or promotional agreements
- Easier product introduction once relationships with owners or buyers are established
- Higher tolerance for temporary out-of-stock situations
On the other hand, unlike major mainstream supermarket chains, Asian supermarkets usually require store-by-store account management, including individual accounts receivable and payment control for each outlet.
Difference in Listing Timelines
Even when starting as an approved supplier, listing a product with a mainstream supermarket typically takes four to six months, beginning with the category review and NPD process.
In contrast, Asian supermarkets can often accept new products within one month, and in some cases, the first delivery can be made within one week.
Market Size and Commercial Value
There are approximately 200 Asian supermarkets across New Zealand, ranging from small independent stores to larger operators.
This makes the Asian supermarket sector a commercially significant market rather than a niche channel.
Moreover, when pitching products to mainstream supermarkets, sales performance in Asian supermarkets serves as strong supporting evidence, helping to reinforce buyer confidence and influence listing decisions.
Role as a Risk Mitigation Channel
If a product is launched directly into a mainstream supermarket and later underperforms, it may be delisted.
Without alternative distribution channels, this can effectively result in market withdrawal.
By contrast, establishing sales performance in Asian supermarkets first provides:
- A hedge against delisting risk
- A solid performance base for future mainstream supermarket listings
For these reasons, using Asian supermarkets as an initial entry point is not only a practical approach, but also a highly rational market entry strategy for the New Zealand retail environment.