Mumbai: In recent years, there has been a growing global emphasis on sustainability and reducing carbon footprints. Businesses across all sectors are facing pressure from consumers, governments, and environmental organisations to adopt greener practices. DHL Express recognises its role in this shift and has committed to mitigating its environmental impact through the Go Green initiative.
Indiantelevision caught up with DHL Express India VP – Sales and Marketing, Sandeep Juneja, who talked about the strategy behind launching Go Green and Go Trade initiatives in line with the evolving needs and preferences of cross-border customers and much more.
Edited excerpts
Could you elaborate on the objectives and key components of the Go Trade initiative?
In recent years, micro, small, and medium enterprises (MSMEs) have emerged as significant contributors to the global economy. In India, MSMEs play a pivotal role, contributing around 30 per cent to the country’s GDP, 48 per cent to exports, and employing over 110 million people. However, despite the opportunities presented by e-commerce, many MSMEs face challenges when it comes to reliably shipping their products to customers worldwide, particularly for those in developing countries. International shipping complexities, such as customs procedures, can be overwhelming, and inefficient import and export processes often hinder their growth. This is where our GoTrade program plays a crucial role.
GoTrade is an initiative to foster international trade and promote sustainable and inclusive economic growth by empowering MSMEs to engage in cross-border commerce. Leveraging our expertise in logistics, customs, and trade, the program seeks to educate MSMEs on the strategic advantages of global trade and equip them with the necessary tools to access international markets. As a global trade facilitator with a presence in over 220 markets and territories, our objective with GoTrade is to integrate MSMEs into the larger narrative of globalisation. Through this, we have been able to train over 6,400 MSMEs globally (since launch of GoTrade in 2020).
To achieve our objective, we collaborate with governments and international organizations to streamline border processes and enhance cross-border trade for MSMEs in developing countries. For instance, we partner with stakeholders like the German Federal Ministry for Economic Cooperation and Development to improve e-commerce platforms in Africa and promote digital customs and trade processes. Through ongoing projects with the governments of Rwanda and Germany, we raise awareness about e-commerce and train Rwandan SMEs to establish online businesses and shipping products internationally. In cooperation with the Global Business School Network, we empower SMEs through a fellowship program that teaches the value of cross-border trade and the skills needed to navigate the global marketplace.
In India, we have signed an MoU with the Directorate General of Foreign Trade (DGFT), initiating a collaboration to facilitate capacity-building sessions, training, and workshops across 76 districts in three phases. This collaboration aims to equip Indian MSMEs with the necessary tools and knowledge to thrive in the international e-commerce market.
Additionally, GoTrade actively supports the implementation of the Trade Facilitation Agreement (TFA) by collaborating with WTO Member Countries, particularly those requiring external support. This involves establishing national trade facilitation committees that include key stakeholders from the public sector, such as customs and trade ministries. Through these committees, we closely work with governments to develop policies and practices that drive sustainable economic growth, ensuring seamless integration of TFA reforms into national trade frameworks.
The GoTrade program aims to empower MSMEs to participate in international trade, supporting their growth and contributing to sustainable economic development. By collaborating with governments and organizations, streamlining border processes, and leveraging our expertise, we help MSMEs overcome barriers and connect with the global market.
How does this program specifically benefit Indian SMEs, and what feedback have you received from participants?
India is a developing economy with huge potential for MSME backed economic growth. At present, there are a total of 633.9 lakh registered MSMEs in India providing 7.56 lakh employment opportunities. Indian SMEs can gain a lot from the GoTrade program as it allows them to grow their presence and tap into international markets.
Through GoTrade, DHL recently partnered with the Directorate General of Foreign Trade (DGFT) of the Ministry of Commerce and Industry, Government of India, to empower MSMEs to gain a strong foothold in the international market. This collaboration leverages GoTrade’s expertise alongside the Indian government’s focus on identifying and nurturing export potential across various districts.
Moreover, these strategic partnerships have facilitated outreach events, onboarded new exporters, and empowered MSME producers to venture into cross-border e-commerce sales, furthering India’s ‘District as Export Hub’ initiative. Outreach events also include the recently concluded Bengaluru export summit, the Ahmedabad e-commerce export summit and even the Hyderabad e-commerce export summit. These events follow a single rule of thumb – “help me, help you”. Participating in these events, we can reach exporters and entrepreneurs from the deep hinterlands of the country along with those from the tier 1 cities.
Apart from the MoU with the DGFT, we also extend a helping hand to MSMEs through other associations such as the Gem and Jewellery Export Promotion Council (GJEPC), Engineering Export Promotion Council of India (EEPC India) etc.
We are proud of the work we have been doing to promote India and its MSMEs to the world, helping these enterprises become globally recognised brands. However, our partners too love doing business with us. The recently launched ‘Logistically Speaking’ series records our MSME customers’ journeys from when they began as a micro-enterprise, their growth within the Indian market, their goals to take their businesses cross-border and their relationship with DHL. The feedback has been phenomenal. From customers understanding the importance of having a good logistics partner who will represent their brand to the end customer, to customers who have been able to significantly grow their business cross-border through our expertise and product portfolio; we are proud to be their provider of choice, helping them scale their businesses to new levels and bring India to the world.
How do you decide which sports partnerships or sponsorships to pursue? Can you discuss a particular sports marketing campaign that significantly strengthened DHL Express’ brand connect?
When making decisions about sports partnerships or sponsorships, we prioritize the visibility that our brand will receive. It is essential to ensure that our target audience sees and recognizes our brand, and sports or event marketing is instrumental in achieving this goal. Additionally, I also consider the emotional connection between the sport and its fans. For instance, cricket holds immense cultural significance in India and is celebrated as a national passion. The Indian Premier League (IPL) is revered as one of the biggest tournaments in the country and is possibly celebrated on par with some of our biggest festivals. Given this context, our partnership with the Mumbai Indians is an obvious choice, as it allows us to tap into the deep emotional bond that fans have with the team and the sport. Moreover, the collaboration allows customers to connect the sponsorship with our values. By associating with sports that embody qualities like speed, passion, team spirit, and a can-do attitude, customers develop trust in the brand and recognize our commitment to excellence.
Globally, our partnerships with Formula 1, Formula E, the HSBC World Rugby Sevens series, ESL, MotoGP, and Manchester United or even being Coldplay’s official logistics provider, give us significant exposure as well as relaying our brand capabilities. For example, as an express logistics player, we could showcase DHL’s capacity and dedication to sustainability through the partnership with Formula E, where we transported 415 tons of freight per race.
This goes beyond just increased brand awareness. It allows us to connect with fans on a deeper level. We position ourselves as the “team behind the team,” the silent force that facilitates success – not just on the field, but also in the business world through our efficient logistics solutions.
How do you plan to integrate digital and traditional marketing efforts to reach your target audience?
It is important to recognize that a well-rounded marketing strategy requires a balanced mix of traditional and digital marketing methods. Therefore, in each project, we strategize how to fuse these two forms of marketing to maximize our reach. A great example is our partnership with the Mumbai Indians cricket team.
This collaboration has allowed us to leverage traditional marketing channels through sports sponsorship, visible branding on player jerseys, billboards, and press releases. These traditional mediums offer widespread and tangible visibility for our brand.
In parallel, we executed an engaging digital marketing campaign. This included creating entertaining social media content such as player interviews and interactive games, which presented a more personable and entertaining aspect of our collaboration. This online campaign not only entertained fans but also provided them, along with our customers and target audience, with a closer look at their favourite cricket players.
By combining these traditional and digital marketing efforts, we were able to create a comprehensive marketing strategy that broadened our visibility while engaging our audience on multiple levels. We strive for this synergy between traditional and digital mediums in each of our marketing projects.
What are the main challenges Indian SMEs face when entering the global marketplace, and how do you address these challenges?
Globally, MSMEs encounter substantial hurdles when navigating the intricacies of international trade. These challenges can range from complex customs procedures, limited knowledge about export and international trade rules, to inadequate staffing and financial resources, all of which can restrict their entry into worldwide markets. This is a common scenario for Indian MSMEs trying to expand their business globally as well.
Acknowledging these obstacles, DHL Express has designed an extensive array of digital solutions. These tools facilitate MSMEs and startups to easily set up an account at any time and from any location, kickstarting their global sales. The solutions help from the planning stage to after-sales, enabling MSMEs to simplify cross-border trade operations, decrease costs, and boost operational efficacy, ultimately fostering growth and competitiveness on a global scale.
A tool like My Global Trade Services (myGTS) is particularly beneficial to sellers in their business strategy development phase. As a free, online, self-service pre-shipment planner, companies can identify the correct Harmonized System (HS) codes to categorize products for shipping. It also offers preliminary data on existing free trade agreements between the source and target countries. This information gives sellers a transparent understanding of the associated costs, enabling effective product pricing. When the business is prepared to make the leap, they can open a DHL account from anywhere and at any time. The setup is also accessible to startups and individual shippers lacking a credit history.
DHL’s modular logistics platforms, driven by API, connect businesses, carriers, shippers, and customers in a streamlined and integrated manner. This provides efficient, cost-effective options for tracking and billing orders.
DHL Express Commerce, integrating DHL Express shipping services with numerous e-commerce platforms, aids businesses in automating shipment creation and managing the fulfillment process. This feature is particularly useful for sellers needing to efficiently ship multiple orders.
Visibility of the shipment journey is beneficial for companies as a proactive measure to minimize delays. Track & Trace offers accurate shipment tracking across the DHL Express network. Additionally, On Demand Delivery allows the shipper and recipient to customize their delivery preferences, reducing the likelihood of undelivered shipments and enhancing the customer experience.
With DHL Pass, customers can access DHL online services using a single login. The provision of multi-factor authentication offers customers a seamless and secure digital experience. This feature is progressively being implemented worldwide.
What are some of the biggest trends you foresee in the logistics industry over the next five years?
The logistics industry is on the cusp of significant transformation over the next five years, driven by emerging trends that emphasize sustainability, globalisation, e-commerce, technological advancements, and supply chain diversification.
1 Globalisation: Globalisation is here to stay, and logistics remains a key enabler. As reported in the DHL Global Connectedness Report 2024, global connectedness reached a record high in 2022 and remained close to that level in 2023. The resilience and growth of international flows of trade, capital, information, and people in the face of recent crises strongly rebuts the notion that globalisation has gone into reverse.
2 Sustainable Logistics: Environmental sustainability is at the top of everyone’s agenda. Some of the key topics are decarbonization, alternative energy solutions, circularity, and environmental stewardship. At DHL Express, a key priority is leveraging Sustainable Aviation Fuels (SAF) to inset Scope three emissions. . Attention and investments towards e-cargo planes may also grow.
3 Technology: To meet escalating consumer demand, companies must embrace automation and efficiency technologies, focusing on indoor mobile and stationary robots. These innovations support ground staff, revolutionizing logistics through collaborative robots. Imagining logistics without automation seems implausible. Furthermore, integrating drone deliveries addresses last-mile inefficiencies, mitigates traffic bottlenecks, reduces emissions, and satisfies the growing consumer demand for on-demand, instant delivery.
4 E-commerce: E-commerce is a huge driver of parcel volumes and new last-mile services that better serve customer demands. E-commerce represents one of the chief opportunities for logistics companies.
5 Supply chain diversification: Diversification will significantly impact globalized supply chain networks in the next five to ten years. As the Global Connectedness Report stated, globalization is far from dead. The prospects for future trade growth are surprisingly upbeat, despite the recent shockwaves caused by a global pandemic, geopolitical crises, natural disasters, and patterns of protectionism. These events have put pressure on the business world to reimagine supply chains – to take a new path of resilience rather than receding from the global stage. The answer: supply chain diversification. Supply chain diversification means developing flexibility and redundancy to minimize risk and increase agility. Working with multiple suppliers is one way to achieve it. Another way is to expand and reimagine manufacturing and distribution networks. Yet another is using redundant and multimodal logistics solutions.
