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DHL Unveils Asia's Greater Expectations - Emphasis on customer service key to gaining competitive advantage in Asia

Singapore, 29 September 2010 – DHL, the world's leading logistics company, today revealed the findings of a study on consumer behaviour and customer service commissioned by DHL and undertaken by the Economist Intelligence Unit (EIU). The report, entitled "Greater expectations: Keeping pace with customer service demands in Asia Pacific," uncovers the gaps between what companies believe consumers want and what consumers actually say, using findings from two surveys – one of over 300 senior executives and another of over 700 consumers – conducted in 10 markets across Asia.

View the report:
DHL EIU Report - Foreword FINAL.pdf
DHL EIU Report - Greater Expectations FINAL.pdf

Roger Crook, incoming[1] CEO of DHL Express Asia Pacific, Eastern Europe, Middle East and Africa said: "Asia's consumers are expected to increase their spending from US$4.3 trillion in 2008 to US$32 trillion annually by 2030 – equal to some 43% of global consumer spending by then[2].

With an established presence in 42 countries and territories in Asia Pacific, it is critical that DHL remains at the forefront of customer insights. Findings from the report provide valuable region-wide perspectives and enhance DHL's customer service approach, upping the ante for service in Asia's logistics industry."

Forming the centrepiece of DHL's Leadership Dialog Series held in conjunction with the ASEAN 100 Leadership Forum 2010 in Kuala Lumpur, the study confirmed that along with its economies, the region's customer service standards as well as customers' perceptions and demands of service have changed dramatically in recent years, and not necessarily evenly. In fact, service, like products, should be tailored to individual markets as consumers in different parts of Asia have quite different service expectations.

"These rising expectations amongst Asia's consumers are driven by information and competition, not income," said Yasmin Aladad Khan, Senior Vice President, Southeast Asia, DHL Express. "As the leading logistics company, we must be conscious of what our customers are aware of in order to provide the best service and differentiate ourselves from the competition. And this study is just the beginning."

Highlights of the study's report[3] include the finding that in today's Asia, price is no longer the only factor in purchasing decisions. In parts of Asia, companies are still focussed on price, but many consumers are willing to pay for better service. For instance, half of the Indonesian firms surveyed feel that their customers are concerned only about price, not service. However, less than one-quarter of the Indonesian consumers surveyed agree. This suggests that firms which start competing on service will be more successful.

Sudhir Vadaketh, senior editor at The Economist Intelligence Unit, said: "The gap between what companies are providing and what consumers say they want is an opportunity. As competition in the region intensifies those companies who put more emphasis on customer service should gain an edge."

About the surveys

The surveys, conducted between July 2010 and August 2010, spoke to consumers and corporations in Asia. The consumer survey encompassed of 764 consumers, with at least 70 each from 10 countries: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, South Korea, and Thailand. Some 48% were aged 30-35, with the rest aged 36-50. They are largely middle-class and residing in urban areas.

The corporate portion of the research involved surveying 313 executives familiar with their company's customer service strategy, with at least 30 each from the same countries as the consumer research. Some 54% of respondents were at the manager level, with the rest senior executives, professionals and entrepreneurs. 22% of respondents were from the manufacturing sector; 19% from IT/Telecoms; 19% from professional services; 19% from retail; and the rest from travel & transport, hospitality, finance, and others.

DHL – The Logistics company for the world

DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 300,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 46 billion euros in 2009.

For the latest news and happenings about DHL in Asia Pacific, visit press.ap.dhl.com.

For more information contact:

DHL Asia Pacific/EEMEA
Corporate Communications and Sustainability
Anita Gupta
Tel: +65 6216 6290
Fax: +65 6216 6603
Email: APEEMEACorpCommunications@dhl.com

Submitted by: LogisticsWorld
news@logisticsworld.com, 10/3/2010 4:01:50 AM

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