Direct Marketing Monitor International 2006
Direct Marketing Monitor International 2006
Read MoreTag: Japan
Japan Post looks to an exciting future after the privatisation
World Mail Review was extremely fortunate to be able to pose a series of questions to Yoshiaki Honpo, Senior Managing Executive Officer of Japan Post, in early 2007.
Read MoreJapan Post expects FY 2006 profit on mail service instead of loss+
Japan Post said Wednesday its mail service will likely register a net profit of several billion yen for the year through March, up from the 27.9 billion yen loss projected last November.
The black-ink figure is expected to top the 2.6 billion yen profit booked in the preceding year, thanks to increased turnover of the parcel delivery service and cost reductions, the public postal corporation said.
The fiscal 2006 earnings results will be announced May 23 after data has been finalized, according to Japan Post.
The mail service posted a net loss of 71.4 billion yen in the six months through September, as regular mail traffic decreased while personnel and other costs rose.
The service typically sees strong revenue in the second half of a business year because of delivery of New Year cards.
But Japan Post disbursed considerable costs, including investment in computer networks in preparation for the postal system privatization due to start in October. This led the company last November to expect the mail service to plunge into the red.
However, parcel deliveries increased and privatization costs were curbed in the second half of the fiscal year, enabling Japan Post’s mail service to stay in the black for four years in a row since the establishment of the corporation.
The postal savings business is expected to have suffered a sharp profit fall in fiscal 2006 after it made a substantial profit in the previous year from equity investment.
Read MoreDeutsche Post rules out takeovers
Deutsche Post has announced that it intends to focus on organic growth and has ruled out investing in other postal service companies outside Germany. This counters reports that the company was interested in acquiring Israeli postal service company Israel Postal Company. It is also said that representatives for Japanese and Chinese postal services could be in discussion with Deutsche Post.
However, the integration of newly acquired business in the express business has been slower than expected. The impending liberalisation of the European postal market threatens to entail a drop in figures for Deutsche Post.
Read MoreJapan Post actively joining hands with private-sector firms
Japan Post Corp., a planning company for the breakup and privatization of state-owned Japan Post, has been scrambling to team up with private financial service firms to ensure smooth launches of new products.
The partnership efforts may also be aimed at dodging criticism that a privatized group could crowd out private-sector businesses, sources close to the matter said.
Japan Post will be broken into a “Yucho” postal savings bank, a “Kampo” insurance firm, a mail delivery firm and a post office network management company in October as the first step of a 10-year privatization process. Japan Post Corp., as a government-controlled holding company, will own those firms.
In the run-up to the breakup, the planning firm last month asked life insurance companies to provide variable annuity products for sale through Yucho bank offices, starting as early as May 2008.
Variable annuities will be a key addition to the menu of financial products at the Yucho bank to complement postal savings and investment trust funds Japan Post now offers as mainstay fund management vehicles for individuals.
The planning company also eyes tie-ups with JCB Co. and Sumitomo Mitsui Card Co. for the planned launch of Yucho bank-brand credit cards. It is also considering having the bank offer housing loan products of partner companies in a bid to accumulate knowhow in the business field, Japan Post Corp. officials say.
The post office network management company, which will take over 24,000 post offices nationwide, will seek to expand earnings through the sale of auto insurance products, initially at 23 post offices in the Tokyo metropolitan area at the October launch of the firm. Seven nonlife insurers are already set to provide their products to the firm.
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