Kiwis pay more than buyers elsewhere for some of the most
popular consumer goods, an international report shows.
New Zealand was the most expensive place in the world to buy
Coca-Cola and adidas sports shoes, according to the Deutsche
Bank report Mapping the World's Prices.
We also pay among the top prices for products from
high-profile brands, including Apple iPhones, MacBooks and
But a night in a hotel or a weekend away in Auckland or
Wellington was good value compared to most cities overseas
surveyed, including Sydney and Melbourne.
New Zealand's biggest city and its capital were among the
cheapest cities in the world for a night in a five-star room,
while Sydney was the second-most expensive, after Moscow.
The report, which was based on prices posted online or
secondary sources which collate price data, showed the price
for a 2-litre bottle of Coke in Auckland, $3.85 (US$3.33),
was the highest in the world, despite the drink being made
Manufacturer Coca-Cola Amatil said it played no role in
retail prices. But some factors that may affect pricing were
our location, the high New Zealand dollar, the cost of
getting goods to market, and the small size of the market.
Buying an adidas Superstar 2 shoe cost $150 (US$128.93) in
New Zealand, but just $129 (US$111) in Australia.
Adidas said the cost of its shoes was due to many factors,
including currency fluctuations, customs duties, local
delivery costs and taxes.
New Zealand country sales manager Quentin Bleakley said the
company was working on "harmonising prices on a global
New Zealand Retailers Association chief executive Mark
Johnston said local retailers operated on very tight margins,
but some multinational brands were making "double-digit
He said retailers needed to be aware they now operated in a
borderless environment, where customers could shop around
online - particularly as New Zealand had a high threshold
before GST was applied to goods bought overseas.
"We're not going to be the cheapest, and that's down to size,
geography, and that in bigger markets there's more price
competition," he said.
But there were other advantages to buying locally, such as
the protection of the Consumer Guarantees Act, personal
service, and being able to get the goods quickly.
"In New Zealand we've got some fantastic examples of retail
that's built around being competitive price-wise but also
delivering really good customer service, whether it's instore
or online," he said.
The report showed a weekend away in Auckland or Wellington,
including two nights in a hotel, car rental, meals, snacks,
beer and shopping, was less than half the price of a weekend
Hospitality Association president Adam Cunningham said he
wasn't surprised by the result.
"I think we're great value for money ... but sometimes as New
Zealanders we don't always see it," he said.
The hotel market here was very competitive, which kept prices
"That's outside of key events, when we go the opposite way.
But generally speaking, the market is incredibly
competitive," he said.
Mr Cunningham said Sydney's hotel prices - more than four
times the Auckland rate - reflected greater demand, and how
effectively the city was marketed as a destination.
But lower prices also meant hotels had less money to invest,
so a five-star property here may not be of the same standard
as one in Europe or Australia.
The report's authors said Australia ranked as the most
expensive major economy, while India was the cheapest.
The United States was the cheapest developed country.