Deutsche Post to Offer Mail Service in Japan
Deutsche Post AG, Europe’s largest postal/transport services company, plans to begin an international mail service in Japan this autumn, sources close to the matter said, the Nihon Keizai Shimbun Sunday edition reported. The German company will use the parcel-collection network that affiliate DHL International Ltd. operates in Japan to send overseas large quantities of direct mail of Japanese companies at cut-rate prices. The planned move is designed to pre-empt the Japanese government plan to expand the scope of overseas mail services when Postal Public Corp. is established next year. The new public corporation is expected to face immediate competition from private companies in the international business. Deutsche Post is entering the Japanese market as part of efforts to expand its Global Mail Service worldwide. Most of the work will be outsourced to affiliate DHL Japan Inc., but the service will be offered under the Deutsche Post brand. Deutsche Post will mainly handle direct mail, including pamphlets and product catalogues, and send them worldwide. The company aims to begin the service as early as this October after reporting its planned service charges by the end of August to the Ministry of Land, Infrastructure and Transport. Deutsche Post will operate mainly in major urban areas, such as Tokyo, Osaka and Nagoya, so that it can offer low-cost services. DHL Japan operates 29 mail-collection points across the country. To deliver mail overseas, Deutsche Post will use the distribution networks that DHL has in some 230 countries and those of other companies with which the German firm has alliances. It will cost 56,000 yen to send 1,000 copies of direct mail weighing 10g per item to the U.S. Post offices charge 59,000 yen for the same service. Deutsche Post will offer a volume discount for 3,000 copies or more. The Japanese market for international mail service was worth an estimated Y80 billion in fiscal 2001, 20% of which is accounted for by large-lot deliveries by corporate users. Since the Deutsche Post group already operates a fleet of airplanes, the Japanese service would require almost no additional costs. The company therefore believes it is well positioned to compete with post offices. Deutsche Post will likely expand into other services while scrutinizing the outcome of Japan’s debate on liberalization of its postal service. Since the German company will not handle ordinary letters, it can start the planned business without obtaining approval from the Posts Ministry.
11th August 2002
DEUTSCHE POST TO HANDLE DIRECT MAIL IN 3 JAPANESE CITIES – REPORT
TOKYO (AFX) – Deutsche Post World Net AG will begin handling direct mail such as pamphlets and catalogues from Japanese companies mainly in the cities of Tokyo, Osaka and Nagoya, the Nihon Keizai Shimbun reported, citing sources close to the matter.
It will use the parcel-collection network of affiliate DHL International Ltd for the service, the paper said.
“The planned move is designed to pre-empt the Japanese government plan to expand the scope of overseas mail services” with the establishment of the Postal Public Corp, the paper said.
The company does not need government approval for its plans as it will not handle ordinary letters, the paper added.
