TNT Group eyes Philippines as hub for direct marketing

By Gil C. Cabacungan Jr.

TNT and its partners in a newly formed venture for international business mail is keen on making the Philippines a direct marketing hub in the region.

TNT International Mail emerging market director B. Retnam said TNT and its partners-Consignia (British Post Office) and the Singapore Post-have looked at business opportunities in the Philippines and they were impressed with the country’s capacity for promoting direct marketing services in the region.

Retnam said the Philippines had a fast-growing call center, a vastly improved print publishing business, and efficient and relatively cheap telecommunication services that are crucial in implementing direct marketing efforts.

Retnam said TNT, Consignia and Singapore Post were keen on forming alliances with ad agencies and call centers to provide a full package of services for a company’s direct marketing strategy. Retnam said TNT and its partners would take care of the distribution end of the business as well as provide mail room service consultancy to firms wanting to improve their correspondence with customers.

Retnam said the Philippines and Asia were slow in embracing direct marketing largely because of the inefficient postal services and corporate cynicism on the benefits of such strategy.

But with the improvement in technology and the new generation of Asians having a more liberal attitude, Retnam said the region was now ready for direct marketing. The biggest hurdle remaining is the local companies’ unwillingness to share their database, but Retnam expressed confidence that companies would eventually relent specially if a major multinational company is doing the convincing.

TNT International Mail country manager May Antonia Z. Sinnung said the group expected direct marketing activities to increase by 25 percent next year from P125 million at present. Direct mail accounts for 20 percent of TNT’s Philippine operations with an annual turnover of more than P400 million. Copyright 2001 Philippine Daily Inquirer.