Delivery bodies vie for convenience
convenience stores nationwide
The turf battle has broken out as Yamato Transport expands its services into areas that were once the exclusive remit of the state postal serviceIn July, the company began accepting printed matter for home delivery at outlets of Seven-Eleven Japan Co
Under the law that governs mail delivery services by private-sector business, Yamato Transport is not licensed to deliver letters, postcards and other personal mail
For its new mail service, Yamato Transport is targeting magazines, books, photos, catalogues, CDs and the like
So far, Yamato has stolen the march in the push for maximum neighborhood presence. It has signed exclusive contracts for parcel delivery with seven of the nine major chain operators
In June, Japan Post clinched deals with the two other chains, Daily Yamazaki Co. and am/pm Japan Co., to offer its Yu-Pack parcel delivery service
Yamato Transport's mail delivery service operates around the clock at Seven-Eleven outlets. It costs less than the postal mail service and enables senders to trace their mail. In most cases, mail will be delivered the next day
The alliance with Seven-Eleven has added significant geographical reach to Yamato Transport's service. At the end of June, 10,389 Seven-Eleven outlets had joined Yamato Transport's drop-off network with 2,600 offices
A senior Seven-Eleven official said that while the mail delivery service has yet to take off with customers, it has huge potential for growth
When sending printed items at a Seven-Eleven outlet, the customer is required to fill in an invoice, which includes a clause stipulating that the content is not a letter
According to the post ministry guidelines, personal correspondence includes letters, postcards and bills
However, Japan Post officials say that the definition is ambiguous and needs to be cleared up. They express doubts over whether Yamato Transport's mail service completely excludes the prohibited categories
These legal concerns-and the resulting paperwork at the counter-have made other convenience store operators wary about introducing Yamato Transport's mail service
Since taking over from the former Postal Services Agency on April 1, 2003, Japan Post has placed a high priority on its parcel delivery services
Growth in this sector helped the incorporated agency move into the black in its first fiscal year. Japan Post's share in the domestic parcel delivery market increased to 6 percent in fiscal 2003 from 5.7 percent a year earlier. Now it's gunning for a 10-percent share
For parcel delivery services at Daily Yamazaki and am/pm convenience stores, Japan Post entrusted distribution of parcels between the convenience stores and post offices to Nippon Express Co. The transport company had already handled home delivery packages for the two convenience store chains
To meet its growth targets, Japan Post needs to find a way to gain access to other major chain operators, such as Seven-Eleven and Lawson Inc. Yamato Transport's exclusive contracts require the operators to obtain Yamato's approval before tying up with other parcel delivery companies
“The entry of Japan Post will benefit convenience store customers, who will have more options,'' a senior official of Japan Post's Postal Business Headquarters said
A senior Lawson official agrees that customers should have a choice. Other convenience stores are considering reviewing their exclusive contracts with Yamato Transport
But Yamato Transport says it has no intention of changing its partnership system
