Forum Archive Index - March 2000

[Chris Darby <darby@ak.planet.gen.nz>]

John,

Natonal Mail's target market is business mail especially large corporate 
delivery contracts.  Check your own letter box and if it is anything like 
mine it is full of business mail bar the  odd postcard from friends 
travelling.  95% of my personal letter writing is via email so I see the 
private to private postal market to be an ever diminishing one.  Bank 
statements, subscriptions, utility invoices, broker mail and local 
authority communication fill my battered unfashionable galvanised box.

When sentry like royal blue postal boxes started appearing on Auckland 
streets about 6-8 months ago I was quite dismissive.  The courier market 
was already so competitive I could see no place for another player in 
mail/parcel delivery.  Last spring I noticed a little blue motor scooter 
criss-crossing my road darting it's nose up to letter boxes like a 
pollinating bee.  Six months ago it was a task that would have taken no 
more than 10 minutes, covering a 2km stretch of peninsular road.  More 
recently, the little blue scooter regularly pollinates my letter box with 
business mail.  ASB Bank are a noticeable sender.  The 2km journey is now 
one that takes more than 30 minutes.

So, what do I make of this.  Experience reinforced by media reports 
suggests business is growing nicely for National Mail.  They are not that 
interested in the private market and neither should they be at this 
stage.  Their marketing to private senders is almost nil and all 
envelopes must be typed for scanning.  Now that is a healthy deterrent.   

They commonly use the NZ Post network and contracting couriers to reach 
areas that their own delivery system does not cover.  This must be a 
costly but neccessary practice until their infrastructure develops.  I 
guess that is what the IPO cash is aimed at.

Although I am yet to sight the prospectus, National Mail looks 
superficially alive and healthy and coming your way soon.

BUT, they are up against arguably the best, most efficient, most cost 
effective  mail system in the world, NZ POST.  With a determined Ross 
Armstrong at the helm I expect it will be a battle royal, with only a 
smidgen of royal blue in early days.  But a smidgen of profitable 
business mail may be enough to stamp the brand and grow from. 

Chris     

      

 

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