FedEx forays into the highly competitive domestic express market in India

The entry of major multinational transport and logistics firms into the Indian domestic CEP market continues, with FedEx unveiling new offerings for the segment. Considering that other firms such as Deccan 360 and major airlines are meanwhile planning to introduce dedicated freighters to the express and cargo sector, the market share of smaller local express companies is expected to suffer.
FedEx has launched a next-business-day service for the domestic Indian express market. The company offers two products for shipments weighing up to 32kg, with delivery available to 50 Indian cities from 14 key cities. The service comes with a money-back guarantee, a real-time online tracking facility and on-call pick up. FedEx is extending its portfolio to cater to the rapidly growing courier, express and parcels (CEP) business through the launch of this service.
The domestic CEP market, which grew at an average annual rate of 14% during 2004-08, has seen an intensification of competition. Most of the multinational players have made a foray into India with their international air express services, although DHL, along with its Indian subsidiary Blue Dart, is so far the only firm using its own scheduled cargo airline for the domestic express market. This scenario is expected to change in the future, with many companies expanding their service portfolio or fleet in the domestic market.
The growth of services output in India, at an average of 17% over the period 2008-13, is a strong indicator of the high growth potential for express deliveries. As a result of this, along with the surge in domestic consumption, businesses in India are increasingly dependent on express services for the time-sensitive delivery of cargo and documents. Demand for time-critical deliveries is rising in sectors such as automobile, healthcare, telecoms and electronics that either operate in a just-in-time environment or need to be extremely responsive to changing consumer demands.
03/12/09 Datamonitor/Trading Markets.com

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Categories: Cargo Dec 2009, Foreign Dec 2009