The notable red and yellow German logistics company DHL Express recently announced a massive growth milestone of 1000% within the last three years in sub-Saharan Africa. This impressive growth is mostly attributed to its third party business partnership strategy.
In the press release, DHL Express notes that it’s increased its service points from 300 to over 3 300. Apart from the DHL outlets, the company has also partnered with key business owners or resellers including electronic stores and travel agencies across Africa.
“It’s really a win-win approach. We having given these small shop owners a unique business opportunity to grow their revenues and gain credibility by aligning themselves with an international brand. If they do well, we do well,” explains Sumesh Rahavendra, head of marketing for DHL Express Sub Saharan Africa.
DHL has also forged similar partnerships with larger companies such as mobile network operators, retail business centres, supermarkets and fuel retailers.
Rahavendra says that this initiative not only improves logistics distribution, but helps empower small business owners. “Perhaps most gratifying is the fact that we are empowering business owners and aspiring entrepreneurs across Africa with an additional opportunity to earn money and live better,” he says.
“In a continent like Africa where the informal economy rules, a company’s retail strategy cannot revolve around high-end shopping malls,” adds Rahavendra. “You have to operate on a level where customers can understand, feel and relate to your product. You really need to ensure that your brand connects to the average person on the street,” concludes Rahavendra.
DHL is furthermore seeking entrepreneurial businesses to become DHL resellers. These partners are given a branding kit and put through a training programme.
Image via APO.