Analysis
The courier industry has continued to record double digit growth over the last decade . This growth has been fuelled by trade liberalization in many countries, improved engineering and information technologies improvements and better access to aviation markets . the global express companies have opened up branches, agencies and subsidiaries in order to connect Nigeria to the world. Indigenous courier firms have also established operations in response to the growth of the sector.
In the wake of the noticeable growth in the sector, indigenous and global express companies are changing strategies to take their share in the marketplace. They have invested in offices, vehicles, airplanes and information technology in their bid to improve products and services they offer. Some indigenous express companies are making incursions into the West African subregion extending their services to those countries. There is also increased network expansion in Nigeria where operators are taking their services to all the nooks and crannies of the country.
To increase presence and feasibility, some courier companies are entering into agreements with trade partners in form of franchising where sales outlets are opened but are managed by franchisees for the parent company.
Some indigenous express companies have also shown some great strength and courage by advertising their products and services in the print media which hitherto was unthinkable. They have also increased their operational vehicles to make sure that services are delivered timely and safe. Others are also engaged in re-branding of products to reflect the modern day business outlook. The courier sector is also witnessing increased number of professionals who have worked with global express companies before establishing their own. They use the experience they acquired in the multinational companies to run their companies and this has contributed in improving the sector.
The entrance of motor transport courier companies in the sector has also changed the face of the business. Services are now made more affordable and available even in the remotest part of the country. Because of the price and large fleet of vehicles available, motor transport courier companies control larger share of the market than their other local counterparts. Some of the indigenous courier firms are just scratching the surface as they don’t have the wherewithal and capacity to make their presence felt in the market. Some of them exist for sometime and wither away. The global express companies are not in the same kind of competition with their indigenous counterparts. They control most of the inbound mails as well as the outbound ones, especially those coming from multinational organizations and high flying companies.
The global express ones are perceived to deliver fast and intact
As three are improved activities of the sector, more would have been achieved if things that act as impediments to the business are addressed. The lack of infrastructure capacity in the country is crippling the activities of many industries including the postal and courier. Regulation of the sector is another factor that has not made the industry where it is expected to be. Analysts argue that a postal commission for the sector will change the face of the business and increase investments in the sector. The present practice whereby the Courier Regulatory Department, an offspring of Nigerian Postal Service (Nipost) controls proceedings in the sector is considered as an aberration and has acted as a clog in the wheel of the progress of the industry.
