It’s Christmas week again, a time of great gift-sharing and plenty of shopping. A major spectacle during this celebration is the movement of gift items in the form of baskets and other wrapped gifts from one destination to another.
Christmas is a time when people especially show love and affection to their loved ones and families by giving them gifts and spending time with them. An act which symbolizes the homage paid by the three wise men to the baby Jesus after his birth, according to the Holy Bible.
However, with the reduction in travel caused by the pandemic, people are more inclined to send their gifts rather than to travel personally to deliver these gift items. On a related note, consumers who now embrace more online shopping must also rely on couriers and delivery service companies to deliver their items to them.
Due to recent developments, the delivery and logistics activities have registered a significant increase during this Christmas period compared to previous months and even more than the previous year.
Christmas, a gold mine for delivery companies
This act of giving gifts has become a major business opportunity for retailers involved in the sale of gift items and, by extension, delivery companies. Due to travel restrictions, following the covid-19 pandemic, delivery and logistics companies have mushroomed across the country, and especially in metropolitan cities.
Delivery companies now play a major role in Nigeria’s economy, helping to bridge the affected supply chain by transporting items from retailers to their desired consumers. The Christmas celebration has proven to be a gold mine for delivery and logistics companies, locally and internationally.
According to Adeola of Peacock Logistics, she explained that the delivery business has seen a significant increase during this period compared to previous months, with increased demand for the delivery of items both locally and internationally.
“Compared to the previous months, many customers have really turned to us to help them deliver various items both locally and internationally” she said.
A major challenge, however, which has been taken up during this period according to her, is the inability to meet certain very tight deadlines. She explained that some customers will bring their items and would like them to be delivered within 2 hours, which has been a major task for the company and its passengers, especially in a very congested area like the state of Lagos. However, she felt that they were able to handle these challenges and ensure their customers’ satisfaction in the end.
In a discussion with Mr Kingsley, a dispatcher operating in Lagos State, he confirmed that delivery business is currently at its best due to the Christmas festivities. He added that, “I’ve had to deliver every day for the past week both on the island and on the mainland, actually, it’s like it doesn’t have to end.”
He also added that the increased demand for delivery services will help the infant sector to grow significantly as adoption and trust for the service continue to grow.
Why it matters
The logistics and delivery services sector is a growing sector and plays a central role in the efficiency of trade in the economy. According to the BNS, the sector, which is a sub-activity of the transportation and warehousing sector, experienced impressive growth in the third quarter of 2021.
The transportation services industry grew 6.49% year-on-year in real terms in the third quarter of 2021, while the post and courier services grew 3.9% year-on-year in the same. period. Despite the positive numbers, there is room for growth in this sector, as the periods leading up to the covid-19 pandemic were not as impressive as the later ones.
With the increase in activity in this sector, it will be interesting to see the GDP figures for the last quarter of the year, and how this will be reflected in the country’s economy.