Swiss Post to buy its Singapore franchisee
Swiss Post, Switzerland’s dominant mail operator, is buying its Singapore-based franchisee as part of a plan to increase its presence in the Asia-Pacific region.
“Singapore is a key market for us, and we are committed to further expanding our reach in this region by using Singapore as a gateway,” Swiss Post’s chief executive, Ulrich Gygi, said in an interview Friday.
Gygi declined to say how much Swiss Post is paying its former Singapore franchisee.
Swiss Post expects to complete by year-end the takeover of Singapore-based SPI Mail International Pte. Ltd., providing the Swiss firm with a direct presence in Singapore, Malaysia and Hong Kong. The company will then focus on expanding into new markets including China and Thailand, Gygi said.
Swiss Post has also signed direct entry and international mail agreements with Singapore Post Ltd. (S08.SG) and Pos Indonesia to enhance its distribution network in Asia, he added.
Swiss Post’s Asian operations will focus on delivering letters and small parcels on behalf of companies in the region, with services including mass mailing, management of mailing lists and other data, and the insertion of letters, brochures and magazines into envelopes.
In future, the Asian operations may also provide consultancy services in the region, which Swiss Post already does in Eastern Europe, added Daniel Baettig, chief financial officer of Swiss Post International.
Swiss Post won’t compete directly with companies like Fedex Corp. (FDX) and United Parcel Services Inc. (UPS) in Asia, as the latter are courier services and are relatively new entrants in the mail business, Gygi said.
Swiss Post’s moves come as former national postal monopolies face increasing competition, not just from specialist mail and courier companies but also the use of the internet to deliver mail and documents, Gygi said.
The key to survival, he said, is to protect the domestic market by offering high quality services while being innovative in providing new products and services, including those in the electronic arena.
Next year, Swiss Post will introduce electronic registered mail, which will involve electronic signatures, encryption and the use of electronic keys to identify users of the system.
Swiss Post operates a network of about 2,700 post offices across Switzerland, offering delivery services as well as payments collection and financial products such as savings accounts, mortgage lending and mutual funds.
Its other businesses include Switzerland’s largest online search engine, search.ch.
