K for Kayseri!

Hello Earthlings, how you doin’?

I have decided to cut sugar from my diet which made me desperately hungry somehow. And therefore I decided to blow your mind with some amazing dishes from Turkish cuisine. As you may see below, almost every city in Turkey has a famous dish of its own.

turkish-food

Except for Kayseri! Kayseri is famous for something really different!

kaysseri

Yeah, this post has nothing to do with Turkish food, I just wanted you to share my misery. Now that you do, I can start telling you this story about a young man from Kayseri, the only city in Turkey that is famous for the business minds of its residents.

In 1994, a young man from Kayseri goes to the United States to pursue his business education. While also working as a lorry driver for a shipping company, this young man discovered an opportunity. In 2001, he opened up his own firm, NEX Worldwide Shipping, and 300 clients of the company that he used to work with decided to work with this young man instead. By 2010, his company became the market leader in express shipping from the US to Turkey.

What’s The Big Idea?

Everything starts with seeing the gap that the existing shipping companies left behind. By 2017, there were 44.5 million immigrants living in the US and 1.1 million of them are international students. Each school year, at least 291,000 new international students are enrolling to the US institutions.

This means, there are already 44.5 million people in the US who have families or friends outside the US and each year at least 291.000 new people are joining this group. Can you imagine how many of them will have international shipping needs? And please think about the ones moving to the country and then moving out of the country, the ones that need to ship all their belongings, sometimes even their vehicles…

Now, here’s what happens when you go to a market leader shipping company when you need to ship some personal item internationally as an individual…

dhlups

And here is what happens if you would like to ship the same thing with Nex Worldwide Shipping.

nexprice

How it could be possible, you asked? Magic!

 

Magic

Of course, it is not magic! Nex is actually an account holder with all these three companies and acts like a 3rd party shipping company or a broker, whichever sounds better to you guys. Since Nex could provide over a hundred shipments per day, these service providers offer Nex a special rate. As Nex’s customers make their shipments through the company account, Nex can offer them even 60% cheaper rate than the actual service providers as well.

What is so “Digital” about it?

Well, Nex’s office is located in New Jersey and they have no other office around the US. Still, they are able to provide service all around the world. This would never be possible if the main idea was not based on digital. Here is how the system works…

  1. Create an account.

shipnex1

2. Select “Create a Package Shipment” from the Shipping tab.

packageship

3. Fill out an online form which will eventually become your shipping label.

onlineform

4. Once you put in all the information, you will be able to click on the “Reload Services&Rates” button and see the available services for your shipment with their rates and estimated delivery dates.

rates

5. Select whichever is suitable for you and click on “Ship”. Fill out the credit card information on the new screen and once again, click on “Ship”.

creditcard

6. Your label is now ready. All you need to do is print it out and stick it on the package that you would like to send before you drop the package off to the nearest store of the assigned carrier company or handing in your package to the assigned carrier company’s driver when he/she comes to pick up your package from your location.

Nex also provides a tracking number to their clients so that they can track the package on the company website.

Is it all flawless though?

The process seems and actually is super easy. However, there are still some gaps that need to be filled.

Social: The company uses Facebook and Instagram pretty active, however, the number of likes is still very low. Also, there are negative comments that could affect the trust of potential customers. Most of the new customers discover the company through Google and Facebook ads but still, word of mouth still seems to be the strongest advertising tool in their case, especially when it comes to the Turkish community.

Mobile: No mobile application. Yet. Such a shame!

Analytics: Social media is recently being used by the company as they used to use more traditional techniques before. Now they are trying to focus on analytics in order to get customer insights.

Cloud: They do have a cloud-based system as they have many employees working remotely around the world such as Turkey and the UK.

All the employees in the company are from a Turkish background. This makes the company preferable for the Turkish customers as they are able to discuss their own needs in their own language. Having remote workers and being able to follow up everything online must be very cost effective. Still, I think a little more transparency is needed since I highly doubt that all the customers clearly understand what a third party shipping company means. Facebook page of the company is full of negative customer reviews blaming the company for losing their package even though the company is not the actual service provider.

I strongly believe the idea is genius as it is easy to conduct and apparently very profitable, all thanks to Kayseri! Is it ethical though? That, I don’t know. There are still ethical accusations towards companies like Airbnb and Uber and I think this is a whole new discussion topic…

Oh, by the way, I lied about Kayseri, it is also famous for pastirma and manti. There is no single city in Turkey that doesn’t have its local dish.

mantipastirma

I saved the best to the last though, Istanbul: my love…

istanbulmezeStay hungry till the next post Earthlings… Cheers!

The Visitor

 

REFERENCES

Botsman, R. (2016). Currency of Trust. Retrieved from: https://rachelbotsman.com/thinking/

Camarota, S. A. and Zeigler, K. (September 15, 2018). Record 44.5 Million Immigrants in 2017: Non-Mexico Latin American, Asian, and African populations grew most. Retrieved from: https://cis.org/Report/Record-445-Million-Immigrants-2017#1

Forbes (Feb 13, 2017). Did Uber And Airbnb Grow Ethically? Retrieved from: https://www.forbes.com/sites/quora/2017/02/13/did-uber-and-airbnb-grow-ethically/#48780f114052

Herman, L. (2019). Sirkeci Restaurant: Sirkeci, Istanbul Neighbourhood Restaurant Guide. Retrieved from: http://sirkecirestaurants.com

ShipNex (2019). Lowest Shipping Rates. Retrieved from: https://www.shipnex.com/default.aspx

TurkAvenue (April 28, 2010). Amerika’daki Türklerin Fedex’i: Nex Worldwide Express. Retrieved from: http://www.turkavenue.com/index.php?option=com_content&view=article&id=872:amerikadaki-turklerin-fedexi-nex-worldwide-express&catid=106:sirket-tanitimlari&Itemid=648

Zong, J. and Batalova, J. (May 9, 2018). International Students in the United States. Retrieved from: https://www.migrationpolicy.org/article/international-students-united-states

 

4 Replies to “K for Kayseri!”

  1. Hi Isil!

    I genuinely don’t know how I feel about this business! On the one hand, the actions of Nex could be seen as a genius Robin Hood style business- highlighting the hugely inflated shipping costs offered by the industry, circumventing this and passing the savings onto individuals. On the other hand, it could also be seen as a bit of a leech business, hacking the discount model of the traditional shippers! Ultimately, this is no real business at all, as it’s sole asset is a discount structure given by another company- no wonder they need only one office space!

    With this in mind, with digital technology it would be feasible for anybody to do this at home with any kind of industry or existing company that offers discounts for bulk, ultimately cutting the original supplier away from a section of it’s customer base. Arguably this would only lead to a race to the bottom style of price structuring, which although initially seeming beneficial to customers, this would have far reaching consequences in terms of wages paid to staff etc! I’ve decided now, I’m not onboard with this business practise!!

    Jack

    Liked by 1 person

  2. Hello Jack,

    Thank you for the comment!

    At first, I felt as confused as you are but the funny thing is the carrier companies seem to know about these third-party shipping companies (there are more than one of course) and they seem okay with it. And as I am doing jewellery business myself and have to deal with international shipments all the time, I can honestly say that I find the pricing strategy of main players very cruel! Therefore I ended up deciding if the main players already know these companies and they are fine with it, there is no reason for me to being against it! 🙂

    Best,

    Isil

    Like

  3. Hi Isil,

    Thanks for writing such an interesting Blog.

    I had never heard of nex before, however, will have to consider them when looking to ship items in the future. I understand Jack’s concern that it seems as though they are just taking advantage of an opportunity provided by the bulk discounts provided. However, the fact that the guy saw a market opportunity and had the nouse to set up a digital business based upon this is very admirable.

    One could argue that he is undercutting the traditional shipping companies and causing them some serious margin erosion, however, I slightly err towards your feeling that if there was not such a high margin placed upon the shipping costs in the first place the business opportunity wouldn’t be there. Do you feel that this is a sustainable business model? Why do you feel that the main providers are happy to have their margins eroded in such a way?

    Please add a link to your Jewellery website 🙂

    Kind regards,

    Reza

    Like

    1. Hello Reza,

      Many thanks for the comment! I don’t know if this would be sustainable as it depends on how they are going to run the company and if they will achieve to modify their business model according to the new demands from the market or from the customer. At the moment the business structure doesn’t seem very professional and it is mostly based on the entrepreneur’s ability to see the opportunity. If someone in the future can offer something better to the customer even that might end the business very easily so, for now, I believe the company is really vulnerable but we’ll see 🙂

      I just wish for once in a while I could come up with this kind of idea and have the courage to create a real business out of it!

      Here is the website link btw;

      https://www.etsy.com/uk/shop/SHAMANOxford

      Best,

      Isil

      Like

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