DHL in Sweden offers international parcels service to private customers
Customers can collect and deposit DHL parcels at over 1,000 centersStockholm, 09/24/2007, 11:30 AM CEST
November sees the launch of DHL's assault on a completely new area - the private market. Competitive prices combined with rapid delivery are designed to persuade Swedes to send their parcels with DHL. In the first phase, the new B2C service covers Sweden only. From next year, Swedes will be able to send their parcels all over the world via DHL.
Until now, DHL Express in Sweden has focused on the business-to-business market. But now the company is breaking new ground and taking on the private market. The recipe for success is based on a completely new business model.
"Private customers will pay for the parcels service according to volume, not weight. This is a modern and logical way to think about transport. Our intention is to offer fixed prices for parcels of various sizes", says Ulf Gejhammar, Sales and Marketing Manager for DHL Express.
Initially, the service will be available in 1,000 posting and collection centers in Sweden. Apart from signing a number of contracts with local dealers in various industries, DHL has also established a cooperative agreement with a nationwide franchise chain in the service sector. But this is just the beginning. Access to the so-called SERVICEPOINT for private individuals and for the existing 50,000 business customers will be exceptionally good. In future, it will be just as common to see a sign advertising SERVICEPOINT as a yellow and red DHL van.
Along with a new business model, rapid delivery combined with a high level of security should persuade customers to choose DHL. To achieve this, DHL has an extensive network of local operations, an efficient global air network and robust boxes. The packaging materials have been specially developed to be extra resilient and to allow maximum utilization of the trucks.
With this arrangement, DHL is creating optimum conditions to ensure that the goods reach their destination undamaged the very next day. The high level of utilization also has two key benefits.
On the one hand, DHL is able to reduce its carbon dioxide emissions by consolidating the goods into fewer loads, and at the same time, with the world's largest and most extensive parcels network, covering over 220 countries and territories, it can offer competitive prices.
The concept of SERVICEPOINT has been around for some time in places like Germany, Spain, the UK, Italy and the Benelux countries. As early as 2008, DHL expects to be able to offer Swedish customers shipments worldwide. There is great demand for the concept from existing customers and also from private individuals who need a quick and easy way to send parcels to relatives and friends all round the globe.
There are many producers who want to be able to transport their goods directly to consumers. A good example of this are eCommerce companies.
"A barrier to international long-distance trade has been a lack of really good transport solutions. With our SERVICEPOINT offering, an entrepreneur can set up an online shop and offer tailor-made suits from Thailand to the whole world, for example," says Gejhammar.
A study by the Swedish Retail Institute (Handelns Utredningsinstitut - HUI) shows that eCommerce increased by more than 20% in the second quarter of this year. There is no sign that this trend is about to slow down.