Market Research in Tonga
Tonga is a country in Oceania. This small island chain in the South Pacific Ocean, known as the Kingdom of Tonga, is northeast of Samoa, west of Vanuatu, and east of Niue. It is also northwest of Fiji and Wallis and Futuna (France) and nearly two-thirds between Hawaii and New Zealand. It’s about 1,100 miles east of Brisbane and about the same distance north of New Zealand’s North Island. Nuku’alofa is Tonga’s largest city and capital.
Tonga comprises 171 islands, only 45 of which are livable. The island of Tongatapu is home to two-thirds of the people. Fiji, Samoa, and American Samoa are all close to Tonga.
Key Industries
Agriculture is a vital part of Tonga’s economy, as it is both a source of jobs and of foreign cash. Farming is a common practice in the country’s rural areas. Coconuts, beans, coffee, and taro are crops grown for the local market. People also use these products for home consumption. Also, root crops are the most common on the islands, covering about two-thirds of the arable land. Keeping livestock, such as poultry and pigs, is common in Tonga. The amount of cattle kept in the country has grown, which has led to a decrease in beef imports.
Neighborhoods
Nukualofa, Tonga’s capital and main port is on the northern shore of Tongatapu Island in the southwest Pacific Ocean. Reefs protect the city’s deep-draft harbor. The Royal Tombs and the Royal House (1865–67), home of the Tongan royal family) are on the waterfront at the end of the old wharf. One can also find the teachers’ training school and Vaiola Hospital, located in the town. Visitors will also find a big Wesleyan church, a radio studio, and, of course, a town square. Outside the city is a large housing development with, joinery works, and the Copra Board.
Trends
The biggest export prospect for American companies to Tonga is raw materials. The country also imports poultry, essential goods, and capital goods.
The number of tourists visiting Tonga has increased. Still, strangers are not allowed by law to own land in Tonga. Freight costs are also very high, so U.S. firms should keep this in mind. However, it is essential to note that Tongans seek out American items for their excellent quality.
Benefit and Strength in the Market
As seen by its near 100 percent literacy rate, the country has educated a large part of the society. It has also reduced poverty. Also, the World Bank has raised Tonga’s income rating from lower to upper middle income. The healthcare system is also excellent.
Consumer Base
Market surveys show that price plays the most vital role in the decision to buy.
Further research reveals a stark contrast. Those in higher and lower-income groups have different buying habits. Tongans buy and use products based on their economic and social status and their access to cash. They are also more willing to purchase local foods than imported foods.
Reasons to Grow Your Business in the Market
In 2010, the country signed a plan to expand its growth over the next five years. Later progress reflects the country’s current political balance. For example, the government rebuilt Nuku’alofa’s business sector after protestors wrecked it.
Political corruption is a bar to overseas trade. Even so, the World Bank reports that Tonga has made much progress in curbing corruption.
Tonga has been moving to renewable power with the aid of New Zealand. It aims to limit dependence on oil imports.
About Market Research in Tonga
It is vital to conduct qualitative, quantitative, and strategy research. Firms also use focus groups to reveal the actual customer’s points of view and opinions. Investors should also conduct surveys to ensure the market’s approval before entering. Also, the method of entering the market in Tonga is like that of many other nations. It is vital to first travel to the country. Firms can make helpful industry contacts during a visit, which can help them succeed in the market.