on Apr 25th, 2011 in Ideas Worth Exploring | 5 comments
 
While many posts, including the U.S. Postal Service, are downsizing due to shrinking domestic markets, China Post is aggressively expanding. By the end of 2015, the China Post Group plans to extend universal service to all villages, increase urban residential letterboxes, and add 300,000 jobs. This development presents an opportunity for the Postal Service to partner with China Post to expand the reach of both posts, as the demand for end-to-end solutions between the Chinese and U.S. markets grows. The major factors that fuel expansion and justify development are an increasing residential delivery network, major growth in small-to-medium enterprises (SME) and exports, and a developing direct marketing industry. The Chinese government also fosters China Post’s growth by permitting non-postal activities like banking and shielding some profitable segments of the express mail market from competition. Although industry players question the legality in an international context, China Posts’ Express Mail unit has the exclusive rights to a profitable product segment. Together these factors guarantee steady mail volume increases and help China Post secure a position in the burgeoning direct mail industry, e-commerce market, and other non-postal sectors. By tapping into its far-flung network of post offices to provide customers a wide range of services in one convenient location, new opportunities will emerge for China Post as well as the Postal Service. The Postal Service is taking action to capitalize on these opportunities. Last year, the Postal Service introduced a new, small-packet product targeting China’s small, lightweight exports, such as electronics and apparel. The Postal Service also signed a memorandum of understanding with China Post and eBay to provide an end-to-end, e-commerce solution. Earlier this year the Postal Service hosted a 20-member China Post delegation to discuss the direct mail industry. As the demand for postal products and services grows with China Post’s expansion, the Postal Service is uniquely positioned to establish a partnership that connects and fosters Chinese and U.S. markets. What other opportunities do you think the Postal Service should pursue with China Post? This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).

5 Comments

I think the most important issue is whether the USPS is desperate enough to partner with a country that has such a terrible human rights record, environmental record, and serves as the single greatest threat to our country's economic status within the world. Each one of the issues above, if elaborated upon, alone would serve as reason enough not to go along with a partnership, but our country has continuously made exceptions and I wouldn't be surprised if that continued.

A United States Postal Service contract postal unit operates inside City Hall. It is located on the first floor, across from the Utility Billing area. The contract postal unit services most of the needs customers would take care of at the main post office; however, please note that Global Express shipping is not available.

To go off on a tangent, I think the USPS themselves would do well to get back into the postal banking business. Aside from being a potential revenue stream, the lot of the un- and underbanked is getting worse and they could use a "bank of last resort" of sorts.

Something like simple savings account and a discount on USPS money orders for account holders (rather than a true checking account). Maybe insist that deposits be limited to cash and payroll checks (if not direct deposit outright).

It would be a public good to have an alternative to what's available to them now.

GREAT PUBLISHING. The contract postal unit services most of the needs customers would take care of at the main post office; however, please note that Global Express shipping is not available.

Something like simple savings account and a discount on USPS money orders for account holders (rather than a true checking account).
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