Acquisition to aid firm's growth in Africa

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Aramex first entered the South African market with the 2011 purchase of Berco Express, which it incorporated into the Aramex brand. Since then, the company, which trades on the Dubai Financial Market and operates across more than 60 different countries, has continued to pursue growth, primarily through acquisitions in Africa, Asia and the Middle East.

With more than 280 franchised outlets across the country, PostNet is the country's largest privately-owned counter network in the document and parcel industry. Founded in 1994, it markets itself as a "one-stop business centre for entrepreneurs, businesses, households and consumers" which offers services such as courier, copying, digital printing, mailboxes and stationery to more than 55,000 walk-in customers every day. With Aramex as the master franchise, PostNet stores will continue to be owned and operated by respective franchisees.

"Given that a large percentage of PostNet's revenue comes from courier services, the fit with Aramex is a good one," says CEO of Aramex SA, Andrew van der Velde. "Together, PostNet and Aramex will be able to make the most of the growing market for e-commerce."

The combination of PostNet's ability to provide customers with personalised, over-the-counter services and Aramex's global network and breadth of shipping and delivery options helps circumvent two problems people regularly encounter when buying things via e-commerce, says Van der Velde. First, online shoppers don't have to worry about being home to accept delivery because they can collect packages from their nearest PostNet office seven days a week. And second, customers have the convenience of paying taxes and duties on goods from abroad cash-on-delivery when they collect them.

Moreover, the acquisition gives Aramex the opportunity to promote its Aramex Global Shopper initiative to PostNet customers. Developed specifically for the e-commerce market, Aramex Global Shopper provides members with a costeffective international shipping service. Once registered for the service, people can shop from the US, UK, Spain, China, Turkey, UAE, India, Hong Kong, Germany, Italy, Spain, France, Singapore and Canada and benefit from preferential shipping rates to their home or business addresses.

Although Aramex and PostNet will retain their individual branding, the two businesses will explore other synergies too, says Van der Velde. In fact, Aramex is so optimistic about the PostNet model it plans to replicate it in India, which has a growing e-commerce market but has difficulties making deliveries to customers in small villages and remote areas. Like here, being able to send and collect goods at outlets such as PostNet would be advantageous for all involved in India.

Independent of PostNet, another Aramex innovation is its Store-to-Door Courier service, which was launched four years ago in partnership with Pick n Pay, FreshStop at Caltex and 3@1 stores. Ideal for sending documents, parcels and gifts throughout SA and documents internationally, the service works as follows: customers buy a sleeve at participating stores (R99 for local delivery and R299 for international); follow the instructions on the sleeve; place the sleeve containing the item into the drop box at the store; and Aramex collects and delivers. Recipients in main centres receive parcels by 10.30am the following business day, while outlying areas may take up to 72 hours to deliver. Parcels can be tracked on the Aramex website. There are about 350 stores around SA offering the service and customers don't need to have an account to use it.

"Aimed at the general public and smaller businesses, our Store-to-Door Courier service has really taken off, expedited by recent problems experienced by the South African postal services," says Van der Velde.

Source: Business Day