FedEx: How Green is my China?
The Silicon Hutong Suite,
Intercontinental Hotel,
Singapore
Dan Reed wrote a very
good piece in USA Today on the 8th about FedEx's focus on China. I enjoyed the
article (both generally and as a PR guy - their agency must be very happy with
it) very much, but Dan was clearly reporting from Memphis. Several key points
that could have balanced the piece a bit and made it more
credible:
• There was substantial
mention of UPS as a competitor, but apart from the matter of international
flights, the real competitor that both UPS and FedEx face on the ground is DHL.
The European-owned company has been open and in business in China for 18 years
and has a far deeper penetration in the ground than FedEx. They leverage cargo
space on other airlines, allowing them to focus their China efforts on building
their local network, where they far outclass
FedEx.
• There was no mention of
the fact that FedEx was actually relatively late to China, leaving them few
choices for joint-venture partners, which continues to beleaguer the
company.
• Dan all but ignored
the serious challenges FedEx and its competitors have in a growing battle with
ChinaPost, and ongoing problems with customs clearance, security, and speed of
delivery. Why is it that the U.S. Mail and Deutche Post get their packages from
Amazon to me quicker than FedEx as measured from time-of-dispatch to arrival at
destination?
• FedEx Kinkos is my
office-away-from-office in the U.S., but I won't touch them in China. Their few
outlets are poorly located and dying of neglect, and the service is abysmal.
FedEx has opportunities in China, to
be sure, and the company desperately needs its full scope of services. But they
will not make a success of it here until they make substantial investments
beyond airplanes and routes and significantly improve their offering on the
ground in China.
Posted: Mon - October 11, 2004 at 08:38 AM