Public Services
In 2003, taking business restructuring and optimization as the focus, China Post maintained the sound growth of letter mail service. By the end of December 2003, the letter mail traffic nationwide reached 10.38 billion pieces, 2% lower than that of the previous year. The traffic of direct mail increased rapidly, hitting 1.78 billion pieces, up 9.4% over last year, and its proportion to the total letter mail stood at 17.1%, 1.7 percentage points higher than the previous year. The accumulated turnover of letter mail numbered RMB 5.255 billion yuan, dropping by 3.29% compared with the previous year.
Great efforts were also made to develop the bill, direct mail, stamped envelop and postcard services as well as the advertisement-through-post service. The construction of the name and address information center and direct mail manufacturing center were accelerated. China Post strengthened communications and cooperation with big customers and maintained the sustained development of bill service. It developed the business of stamped postcard tickets in scenic spots and launched the special Format of Best Wishes for students sitting in the National Entrance Examination in China Post Direct Delivery Advertisement which was issued on line simultaneously in 16 cities.
The examination and approval of the special design for regular stamped envelopes and postcards were strengthened, and a three-tier supervision and management system for regular stamped envelopes and postcards was formed. China Post paid special attention to the design and issue of lottery New Year stamped postcards. Measures such as diversifying the categories, renovating designs and setting more prizes helped to make the lottery New Year stamped postcards more attractive.
Parcel Service
In 2003, the total volume of the national parcel services accumulated 110 million pieces, up 4.7% over the previous year. The volume of international parcel services(including those to and from Hong Kong, Macao and Taiwan) reached 1.31 million, increasing by 15.3% compared with the previous year. The accumulated volume of domestic express parcel services was 39,662 million, growing by 75.9% over the previous year. The accumulated revenue of the national parcel services stood at RMB 2.267 billion yuan, up 8.16% over the previous year. The revenue of domestic express parcel service hit RMB 830 million yuan, with a year-on-year increase of 77.51%. The proportion of express parcel service also rose considerably, with focus gradually shifting to high added value and profits.
While focusing on the traditional parcel services, China Post paid special attention to the development of express parcel service. The business was expanded rapidly and good results have been achieved. On September 26, 2003, China Post and the Ministry of Railway signed the Framework Agreement of Strategic Cooperation in an effort to jointly build an international modern logistics brand. The delivery service for HP maintenance parts was continued, and discounted parcel postage was offered to the Program of Serving the West by Volunteer University Students.
Subscription and Distribution of Newspapers and Periodicals
In 2003, China Post altogether distributed 7,405 kinds of newspapers and periodicals, of which 1,311 were newspapers and 6,094 were periodicals. The annual revenue reached RMB 5.601 billion yuan, 1.0% lower than that of the previous year. The year-round subscription and distribution of newspapers reached 16.61 billion copies, decreasing by 3.3% compared with the previous year, among which the proportion of retail business was 14.9%, 0.3 percentage point lower than that of the previous year. The accumulated subscription and distribution of periodicals reached 1.13 billion copies, falling by 0.7% than that of the previous year, among which the proportion of retail business stood at 50%, 1.4 percentage points higher than that of the previous year.
New marketing strategies such as the big customer marketing, seasonal marketing and exquisite newspapers and periodicals marketing were adopted. Special attention was paid to business innovation, and cross-year subscription was launched. Institutional reform was encouraged, the construction and management experiences of Shanghai Orient Books & Newspapers and Periodicals Kiosk were disseminated, and the retail chains of newspapers and periodicals were further developed. By the end of 2003, the retail distribution network of newspapers and periodicals in large and medium-sized cities nationwide has preliminarily taken shape. China Post continued to expand the distribution market of books and teaching materials and make special efforts to obtain the qualification for distributing teaching materials and the license for running publications. Information technology played an increasing role in supporting the subscription business. From April 1, 2003, on-line placing of subscription orders for newspapers and periodicals was realized, considerably enhancing the business efficiency, market competitiveness and service quality.
Service Quality
In 2003, China Post made great efforts to improve service quality, faithfully fulfill the responsibility of universal postal services, enhance the operational and delivery quality and upgrade the image of post in t
he minds of the
public. The postal delivery service system was further improved. The increased input in delivery, strengthening of delivery management, standardization of delivery practice, building of delivery teams and improvement of service quality have effectively facilitated the profit increase and sustainable development of China Post. The door-to-door delivery of parcels in cities above county level has been realized. The satisfaction scores of customers for the postal delivery service rose from 84.73 in 2002 to 91.4 in 2003.
