Proud to be different

New Zealand, which basically consists of two main islands, the North Island with the capital Wellington and the South Island, plus a number of smaller islands, has a population of no more than 4.2 mio. It is a country frequently hit by earthquakes: the number of seismic shocks experienced annually comes to more than 15 000. The most recent powerful aftershock was in June, following severe earthquakes that caused considerable destruction in September 2010 and February of this year. These natural disasters represent a considerable problem for the economy. The country was only just recovering from the global financial crisis in early 2010 when the upturn lost momentum once again. The reasons for this were a weak real estate market and a loss of consumer confidence. Then came the devastating earthquakes, with the result that the economy will grow by just one per cent in 2011 rather than the 3.5 per cent that had been forecast. The country is often lumped together with Australia, the next-door neighbour and a fellow member of the Commonwealth, though in fact more than 2 200 km of ocean separate Wellington from Sydney. Moreover, the country’s DIY market looks like a mini version of the Australian model only at first glance. Dominant in the land of the kiwi are the two big Australian names, Bunnings and Mitre 10. But this is exactly where the differences begin: “Mitre 10 New Zealand is proudly New Zealand owned and operated,” is how the company clarifies the situation on its website. Even if their logos do look very similar, the two companies have nothing to do with each other in economic terms. Founded in New Zealand in 1974 by 15 hardware retailers, the cooperative today comprises around 100 stores run by independent entrepreneurs. The portfolio includes three different brands. Mitre 10 Solutions is designed as a one-stop shopping format for maintaining and decorating the home. The Mitre 10 Home & Trade stores are geared to renovations and large projects undertaken by DIYers and the trade. Finally the current total of 28 Mitre 10 Mega stores constitute the cooperative’s large-format sales channel, where there are plans to expand the network to 40 outlets. The Australian market leader Bunnings is represented by 44 stores in both the North and South Islands. These break down into 20 Warehouse and 24 small format stores, while the company also operates one trade centre in each of the two islands. The third big name on the New Zealand market is Placemakers, the…