Deutsche Post happy with Japanese mail venture

30th November 2006, Comments 0 comments

30 November 2006, Bonn, Germany (dpa) - A new mail distribution venture in Japan, set up by German logistics group Deutsche Post, has made a good start in its first eight months, a spokesman said Wednesday in Bonn. "The business is developing according to plan," said Deutsche Post spokesman Uwe Bensien. Yamato Dialog & Media (YDM) was established in April as a joint venture between Japanese services group Yamato, which owns 51 per cent, and stockmarket-listed Deutsche Post, with 49 per cent. It intends

30 November 2006

Bonn, Germany (dpa) - A new mail distribution venture in Japan, set up by German logistics group Deutsche Post, has made a good start in its first eight months, a spokesman said Wednesday in Bonn.

"The business is developing according to plan," said Deutsche Post spokesman Uwe Bensien.

Yamato Dialog & Media (YDM) was established in April as a joint venture between Japanese services group Yamato, which owns 51 per cent, and stockmarket-listed Deutsche Post, with 49 per cent.

It intends to offer not just mail delivery but also wider direct marketing services.

Japan's mail-carrying market is the world's second largest by sales after that of the United States, with an annual value of about 17 billion dollars.

Japan has partly liberalized the business, but "correspondence", the delivery of letters in the classic sense, remains a monopoly, Bensien explained. That business is valued at nearly 12 billion dollars.

Competition has opened up in the remaining business, worth more than 5 billion dollars, comprising services such as home delivery of periodicals or the mass distribution of direct-marketing brochures and samples, usually without addresses on them.

Post also sees potential in the 9-billion-dollar-per-year ancillary business of value-added services. In other nations, those services include printing, putting the paper in envelopes and ensuring the mail shots reach the target groups.

Yamato is one of Japan's leading commercial providers of mail and parcel services.

Bensien noted, "Yamato has a delivery network covering the whole country, while we have the expertise in direct marketing."

The venture in Japan is Post's sole full-scale venture in Asia. Bonn-based Post says it is the first non-Japanese company to enter the mail business in Japan. "No one has copied us so far," said Bensien.

He said no sales figures for YDM were available yet, but it was proceeding "according to plan." YDM's first product of its own was a database to select customers matching the desired target group.

"A decent pool of addresses is the most essential thing, and we've created one," the spokesman said, adding that liberalization of letter-delivery markets was a worldwide trend.

DPA

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