DHL 1998 Annual Report Download - page 53

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49
Business developed positively in the international business customer segment
during the 1998 financial year. Despite the rapid spread of electronic means
of communication, letter mail was able to hold its strong position among the
various vehicles being used by corporations for their communication needs.
Market surveys confirm that the market for cross-border mailings is still
growing. Having consolidated its position in foreign markets, International
Mail Service will continue its systematic pursuit of growth in 1999 by open-
ing additional sales and marketing offices abroad. Looking to the future,
International Mail Service will be giving priority to its value-added letter mail
products and to the development of customized product solutions. Using
these package solutions as our springboard, we plan to become the world-
wide market leader in this field.
International parcel mail sector in flux
With the help of cooperative agreements, joint ventures and the establish-
ment of new companies, we are developing a pan-European parcel mail
network through our subsidiary International Parcel Post.Our goal is to
develop and launch a standardized, Europe-wide parcel mail service that
satisfies the needs of business customers with business contacts in Europe.
This network emphasizes reliable, day-certain delivery, easy handling,
tracking and tracing, and straightforward, attractive pricing.
Deutsche Post’s international parcel mail products for business customers –
which are marketed only in Germany – put in a positive performance in
1998. Sales volume, for example, grew by 18.3 per cent to some six million
parcels and revenue increased by more than three per cent over 1997 to
DM 141 million.
By launching new products (such as the small prepaid package) and orga-
nizing campaigns for special occasions (promotional activities during the
Christmas season, for example) it was possible to stop the decline previ-
ously reported in the private parcel mail customer field.We also stimulated
counter business by adding more convenience to our products. Our parcel
and small package product portfolio is to be reorganized and made more
attractive to customers.
These efforts have already produced results, with sales climbing by 4.4 per
cent over 1997. Revenue grew by 1.2 per cent for the year. The pursuit of
this strategy is helping Deutsche Post expand its share of the European and
international markets as one of the leading letter mail and logistics service
companies operating in Europe today.