Japan Post expanding presence in parcel delivery market

Japan Post has been rapidly expanding its presence in the door-to-door parcel delivery business, especially since last October’s revamp of its Yu-Pack service.

In fiscal 2004 ended in March, the state-backed postal entity accepted a record 214,688,000 parcels for delivery under the Yu-Pack service, far above the previous record of 184,720,000 set in fiscal 1970.

Yamato Transport Co. is credited with the growth of the market for door-to-door parcel delivery services, by creating innovative and consumer-friendly services, including tie-ups with convenience store chains.

Japan Post considers it imperative to reinforce its Yu-Pack business, as its mail delivery service continues to contract in the age of the Internet and mobile phone.

Last October, therefore, Japan Post made the Yu-Pack service more friendly to consumers through such reforms as a simplified fee structure, an expansion of areas with overnight deliveries and the launch of deliveries of golf gear and skis.

Following the Yu-Pack reforms, convenience store chain Lawson Inc. canceled its contract with Yamato Transport in favor of Japan Post last November.

As a public corporation, Japan Post is subject to restrictions on business hours, but the alliance with Lawson has given it outlets for handling parcels around the clock.

Ministop Co., another convenience store chain, followed Lawson’s move in June this year.

Less than a year after the tie-up with Lawson, Japan Post now competes on delivery routes based on convenience store chains with Yamato Transport, which is aligned with Seven-Eleven Japan Co. and FamilyMart Co. .

Circle K Sunkus Co. , meanwhile, is considering handling parcels for the Yu-Pack service at its convenience store chain. If the company decides to do so, Japan Post, with 19,000 outlets, would have a bigger service network than Yamato Transport.