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Direct Mail in Hong Kong Suresh
Mansukhani Director, External Affairs Hongkong
Post DMAB Plenary Meeting, Berne 10 Feb 2004
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Content of Presentation

• DM market in Hong Kong and Hongkong Posts
  position in the DM Market
• Efforts to foster the DM Market
• Assistance from the DMAB

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• DM Market in Hong Kong and Hongkong Posts
  position in the DM Market

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DM Market in Hong Kong

• Promising
• DM constitutes 14 of total traffic in HK
• High market share of HKP on DM delivery
• 98 for both addressed and unaddressed mail
• Still in developing stage
• Room to Growth
• DM is commonly used in CRM
• Popularity and importance growing in commercial
  sector

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HKPs Position in the DM Market

• Perceived value of DM
• Very high as it contributes significant share of
  revenue to HKP

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HKPs Position in DM Market (2)

• Act as facilitator
• HKP does not sell address lists
• Understand the needs of the DM market players by
  participating in the HK Direct Mail Association
  Executive Committee
• Understand the needs of the major DM end-users
  through dedicated account management team
• Develop infrastructure/services to cope with the
  changing needs
• (e.g. BRS, Freepost, increase acceptance
  points)

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Difficulties Encountered in Growing DM in HK in
recent years

• Economic recession
• - contracting marketing budget in commercial
  sector
• SARS in early 2003
• - economy adversely affected and a lot of
  marketing activities were shelved.

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Difficulties Encountered in Growing DM in HK in
recent years (2)

• Well developed DM value chain with professional
  service suppliers
• - reducing HKPs competitive edge to develop
  supplementary services
• Competition from other media
• Knowledge gap in DM
• - Difficult to promote DM to SMEs

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Work Done by HKPfor Different DM Customers

• Sophisticated customers
• Relax mail make-up to allow greater degree of
  creativity
• e.g. accept mail of irregular size and shape
• Seminars
• Account Management Teams assistance on posting
  activities and custom-made solutions

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Work Done by HKPfor Different DM Customers (2)

• Un-sophisticated customers
• Seminars
• DM Information website for self-learning
• Develop and promote unaddressed DM

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DM Seminar

• Fill in knowledge gap of DM
• Update the DM trend
• Speakers include DM industry players such as
• List brokers
• DM consultants
• DM customers

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DM Information Website - hongkongpost.com/dm
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DM Information Website (2)

• Part I Profitable DM Guide
• Ways to build business with Direct Mail
• Part II DM Updates
• Observing local regulations, mailing services, DM
  Trends, seminars and award programmes
• Part III DM Encyclopaedia
• Acquire knowledge to launch DM
• DM Glossary
• List of useful links
• FAQ, plus a search engine

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Addressed DM Vs Un-addressed DM

• Addressed mail
• Popular especially for luxurious goods, banking
  services, etc
• Price per address data is declining

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Addressed DM Vs Un-addressed DM (2)

• Unaddressed mail HKP Circular Service
• General Circular Service
• un-addressed mailing service
• extremely popular among DM customers because of
  HKs uniqueness i.e. residents of the same
  housing complex share similar profile and/or
  lifestyle

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Addressed DM Vs Un-addressed DM (2)

• Premium Circular Service
• more targeted service offering selection of
  census attributes, such as
• Household income
• Household size
• Household rent
• Property ownership
• Competitive Postage
• US0.12 (Circular Service) vs US0.18 (addressed
  mail)

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HKP Circular Service
Wine
Food delivery
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HKP Circular Service (2)
Jewelry
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HKP Circular Service (3)
Kindergarten
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HKP Circular Service (4)
Electrical Appliances/ Houseware
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HKP Circular Service (5)
Taxi
Housekeeping
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HKP Circular Service (6)
Food delivery
Printing
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Efforts to foster the DM Market
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Efforts to Foster the DM Market

• HKP acts as the DM facilitator
• Infrastructure
• (BRS, Freepost, acceptance points)
• quality service
• (1st class, economy, deferred)
• flexible posting policies
• (Size, shape, colour, printing)

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Efforts to Foster the DM Market (2)

• Facilitate other industry players to provide
  quality services in the following areas
• creativity
• mailing list rental
• printing
• fulfillment
• response management

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Assistance from the DMAB
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Assistance from the DMAB

• Cultivate cross-border DM amongst postal
  administrations
• e.g. DM guide listing all DM related services
  being provided by Posts
• Update of DM activities organized by members of
  DMAB
• Learning kits for new DM users

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Assistance from the DMAB (2)

• In depth research on HK or regional DM markets
• Organizing international DM Fair in HK

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• Thank You