The proposed launch of Asia First is in line with DHL's Sector Management strategy, which was taken up by DHL Worldwide in the middle of 1998, to focus on the top sectors individually and to adopt measures to improve services in each sector. ``The aim is to continue to have the `best-in-class' transit times to all the top locations,'' says Raghunandhan.

Having identified the desired service levels for the Asia Pacific region, DHL is now firming up service improvements beforethe launch of Asia First. DHL had launched USA First in the fourth quarter of 1998 and Europe First on July 14, 1999. Europe First is a delivery service into Europe, which boasts of DHL's ``competitive pick-up and cut-off times, expedited customs clearance and a fast, secure delivery''.

On the commodity front, DHL is conducting a detailed study of the leather industry as it plans to roll out a leather-specific service solution. Already, its earlier offering of Fashion First -- targeted at the garments and textile sector -- during April-end has posted a growth of over 20 per cent in the last three months.

Operating under its global policy of ``being experts in cross-border movement,'' DHL will continue to focus on the international sector. However, in a bid to tap the growing domestic sector, a separate business entity is being formed by AFL Ltd called AFL Express.

As per industry estimates, 63 per cent of the express industry's revenue comes from the domestic sector and 37 per cent from theinternational sector. Hit by sluggish exports, the international sector has been growing at the rate of a modest 10-12 per cent a year as compared to a stupendous annual growth rate of around 30 per cent during mid-90s. ``Things are however set to improve with exports showing an upturn,'' says Raghunandhan.

With these new commodity and sector initiatives, DHL's focus is swinging away from documents in favour of packages segment (parcels). ``Packages is where the future of the business lies,'' says Rahgunandham.

In the last two-three years, the documents segment has witnessed a negligible growth whereas the packages segment has registered growth rates of close to 20 per cent. It is estimated that by the year 2015, packages would account for 85 per cent of the international air express business.

In the area of international air express business, DHL will increasingly focus on logistics. ``We have categorised certain segments of customers as advantage customers-they use international air express as asource of competitive advantage.'' says Rahgunandham. ``At present we handle direct distribution for some customers. We also offer repair and return services to select customers.''

DHL's objective: to mass customise the value-added offerings. Once the customised offerings are stabilised, DHL hopes to be able to offer these specialised services to new customers and new industry segments.

For the second consecutive year, its communication drive would revolve around commodity and sector initiatives. Supported by two agencies -- Ambience D'Arcy for creative work and O&M's Media Network for media planning and buying -- DHL plans to remain the largest media spender in the express industry.

``Our media expenditure has been nearly 90 per cent of the spend in the air express category. We intend to maintain a similar level of spends this year too,'' says Rahghunadhan adding: ``We have print campaigns running throughout the year with short four to six weeks peaks in between.''

DHL is also considering a TVC ``ata later date''. Close on the heels of DHL World Cup Express contest for which it also used the internet, DHL is in the process of finalising some long term internet advertising deals. With a reach wider than Coca-Cola's, DHL's network serves over 85,000 destinations in 227 countries and territories with a fleet of 225 aircrafts worldwide. In India, DHL covers over 200 locations and operates through regular commercial airlines.