Business
April 01, 2005
TNT takes 1st step in Shanghai
Logistics company TNT kicked off its data collection campaign in Shanghai on Wednesday in a first step to building its direct marketing business in China.
A total of five million questionnaires will be sent out to local households in the next three months in the first wave of the data collection programme, said Kenneth McCall, chief executive officer of TNT China.
The questionnaires are going out via mailings, newspaper and magazine inserts, telephone and face-to-face interviews in order to collect consumer data for products and services ranging from cars to banking.
"Data is direct marketing's oxygen and without it, marketers will not be able to effectively reach their targeted consumers," said McCall.
Direct marketing is a channel that offers custom-tailored solutions to companies wishing to reach distinct market segments. Unlike mainstream advertising like TV or billboards, it allows firms to provide information to targeted customers when they want or need it.
As part of TNT's long-term investment plan in China, the campaign will expand to 10 cities over the next three years.
McCall said TNT's investment in China is expected to reach up to 2 billion yuan (US$242 million) in the next few years.
"Direct marketing in China is still in its infancy and offers major growth potential," said McCall.
The average Chinese person receives only eight pieces of direct mail per year compared with an average of 88 pieces per person in Europe.
By 2010, 400 million urban residents in China are expected to belong to the upper and middle class income brackets.
They will be "the key drivers of urban economies," said Eric van den Berg, director of mail development of TNT China.
With increasing buying power and more discerning tastes, effective channels like direct marketing will be needed to reach these consumers effectively, Berg said.
He said the potential of China's direct marketing industry is estimated at between US$100 billion to US$200 billion per year.
"It is clear that there are vast growth opportunities for direct marketing in China and TNT is determined to fully realize this potential," McCall said.
He said in yesterday's interview with China Daily that TNT is discussing with China Post the possibility of a joint venture to push forward its business in China.
"But the timetable for the venture is not set yet," he said.
Source: China Daily
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