DHL offers Chinese cheaper delivery
CHINA, December 27, AsiaPort — DHL-Sinotrans Ltd, a unit of DHL World wide Express, a leading international express delivery company, launches two new products recently.
Industry analysts predict the move will sharpen the already cutthroat competition in China’s delivery services market.
They said the two products, Jumbo Box and Jumbo Junior, are 40 to 50 percent cheaper than similar services provided by Chinese deliverers and those in the European and US markets.
For example, Jumbo Box charges 488 yuan (US$59) for a 10-kilogram shipment from Shanghai to Taiwan and 888 yuan for 25 kilograms.
The new services will provide high quality international delivery to the Chinese people and help the company meet the rising demand for heavier shipments, according to Xie Yaonong, general manager of DHL-Sinotrans.
These cheaper services will increase the fierce competition with EMS, China’s local express delivery company, and DHL’s overseas rivals. Those include the three other top international deliverers, UPS, TNT and FEDEX.
DHL has seen its business grow by an average 40 percent a year since it entered China while its annual sales have increased about 60 times over. It holds 36 percent of China’s express delivery market.
China’s delivery market saw a yearly 17 percent jump from 1990 to 1999, experts in the industry said. After the foreign rivals moved in, the market share of China’s local companies dropped to 40 percent. They held more than 95 percent of the market in 1987. Copyright 2001 Asiainfo Services, Inc. Source: World Reporter (Trade Mark) – Asia Intelligence Wire.
