DHL expects growth under one brand - Sea Freight And Containers - DHL International Ltd

Business Asia, May, 2003

The new DHL expects to increase its market share in the Asia Pacific following a massive global rebrand, and is confident its new model is one its competitors cannot easily replicate.

Deutsche Post World Net (DPWN) has rebranded its parcel, express and logistics arms under the one brand--DHL. The new DHL brand (a red DHL logo on a yellow background) incorporates the DHL, Danzas and Euro Express businesses. This follows the global consolidation of the three businesses in October last year and DPWN's acquisition of DHL's remaining shares to become the 100 per cent shareholder.

DHL Danzas Air and Ocean chief executive, South Pacific, Tony Boll, says growing DHL's slice of the logistics pie was the key reasoning behind the move. "We're not doing this to stand still--we definitely want to grow our respective market shares in the air ocean business, but we also want to get a bigger share of the logistic spend of our customers full stop," he said.

"We would like to think that what we are doing is what the customers are asking for--we are therefore confident that the model we are putting into place is the one that the market wants.

"Whether other competitors see our model as the best model, I can't tell. But we are quite confident that our approach will work. We have a head start of a considerable amount of time before others can follow. If you look at our major competitors, there is no one out there that even if they wanted to do it today are in the position of doing it."

Big exercise

The actual rebranding exercise itself will take up to a year to complete, with the "gigantic exercise" involving thousands of vehicles and hundreds of buildings, Boll says.

In the meantime, Boll is quick to reassure customers that the company's services would not be distrupted despite of the behind the scenes integrations.

"From an operations and customer service point of view it's business as usual," he said.

"We want to make clear (to customers) that we are merging the back offices, and we are coordinating and aligning our external efforts with our customers, but the engine rooms, our production facilities, continue to operate on a separate basis. There's no need for customers to be concerned that we will not be performing as well as we have in the past."

One brand

In Asia Pacific DHL now consists of three divisions: DHL Express, DHL Danzas Air & Ocean, and DHL Solutions. DHL Express will be the express delivery business, the present business of DHL Worldwide Express; DHL Danzas Air & Ocean represents the former business of Danzas AEI Intercontinental; and DHL Solutions will combine the strengths of the solutions business of DHL and 'Danzas Solutions including contract logistics, warehousing and distribution.

DHL is the region's largest international express cargo business and customized logistics solutions provider and Danzas is the world's leading air freight and ocean freight provider, with expertise in the development of customized industry-specific logistics solutions, global project forwarding, warehousing and distribution.

Boll said DPWN chose to focus on the DHL brand due to its well respected global presence and widely recognised values of reliability and speed. Taking effect immediately, the rebranding effects over 4300 vehicles, 900 building signages, aircraft, packaging, uniforms and stationery throughout the Asia Pacific region.