From Print to Parcels: How Wijeya Newspapers is Diversifying to Survive in Sri Lanka
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In 2015, Sri Lanka’s newspaper circulation and revenue were strong. Though,following COVID-19 and subsequent social and economic disruptions,circulation plummeted. Wijeya Newspapers was forced to increase prices, successfully retaining around 85 percent of it’s peak COVID-era circulation revenue (approximately LKR 3 billion or $9.7 million),but advertising revenue suffered a significant decline,dropping from LKR 5 billion ($16.2 million) to roughly LKR 2 billion ($6.5 million).
Teh group publishes over 13 titles,including three Sunday editions,daily and weekly papers in English,Sinhala,and tamil,and notably,Sri Lanka’s first Braille newspaper for visually impaired students.
transforming the business to stay sustainable
“Before COVID, our presses ran seven days a week, because our Sunday newspaper alone exceeded 400 pages with over 100 pages of classifieds. But after COVID and Sri Lanka’s economic crisis, we couldn’t even import paper or ink, and print volume fell dramatically,” explained Janaka Rathnakumara, COO of Wijeya Newspapers, during the Indian Printers Summit in Delhi.
To sustain the business and alleviate financial pressure, the publisher embarked on diversifying its operations beyond traditional newspaper publishing.”After COVID, we introduced new strategies to diversify our business. our core challenge was business sustainability,” Rathnakumara stated.
Key initiatives included the launch of Times School of Higher Education,offering undergraduate and postgraduate programs,and the establishment of a notebook manufacturing plant. Staff were transitioned to book production during daytime hours, with newspaper printing resuming at night. Within a year, the publisher’s exercise book brand secured the third-largest market share in the country. Strengthening its digital presence – through websites, mobile apps, and social media – was also a priority. However, “digital revenue remains minimal and that’s why sustaining print remains essential,” Rathnakumara noted.
Introduction of line-haul services to boost revenue
A major turning point was the launch of Reach Transport Service, a collaborative distribution model leveraging the publisher’s existing truck fleet to deliver e-commerce and FMCG goods.
The service operates with four core goals:
* Convert the publisher’s newspaper fleet into a commercial logistics network.
* Provide reliable transport and courier services across Sri Lanka.
* Utilize Wijeya Newspapers’ brand trust and operational expertise to enter logistics and last-mile delivery.
* Operate 362 days a year.
“When print volumes dropped, I looked for ways to use the empty space in our vehicles. We started collaborating with other businesses to transport their products along with our newspapers,” Rathnakumara explained.
Wijeya Newspapers partnered with Toyota Lanka for spare parts transportation and with Daraz (Sri Lanka’s leading e-commerce platform, operated by Alibaba/amazon) to manage their line-haul services. Parcels are loaded onto the trucks before newspapers, ensuring morning newspaper delivery remains unaffected.
Wijeya Newspapers Transforms Logistics Network into Revenue Generator
Wijeya Newspapers, a leading media company in Sri Lanka, has successfully transformed its internal newspaper distribution network into a thriving logistics operation, “Reach by Wijeya.” This strategic shift leverages the company’s existing infrastructure and extensive agency network to provide comprehensive logistics solutions, targeting SMEs, pharmaceutical companies, and aiming for significant revenue growth. The company is investing in digital transformation and route optimization to further expand its reach and efficiency.
from Cost Centre to Revenue Stream
Historically, Wijeya Newspapers’ extensive distribution network – comprising over 1,500 agencies nationwide – was primarily a cost center supporting newspaper delivery. Recognizing the potential of this infrastructure, the company reimagined it as a valuable asset for broader logistics services.
“We identified our resources and then explored how to use them. This turned our newspaper transport from a cost centre into a revenue-generating logistics system,” stated Rathnakumara, as reported by WAN-IFRA https://www.wan-ifra.org/2024/12/wijeya-newspapers-transforms-logistics-network-into-revenue-generator/. This pivot allows Wijeya to capitalize on its existing network and expertise, offering a cost-effective solution for businesses needing reliable transportation.
Expansion Plans and Target Markets
Wijeya’s ambitions extend beyond its current operational scope. The company is focused on several key expansion strategies:
* Increased Fleet Utilization: Wijeya aims to boost fleet utilization from 70% to 95% through optimized route planning and efficient resource allocation.
* Geographic Expansion: The company plans to extend its logistics services beyond the Western Province, targeting key hubs in the Central, Northern, and Southern regions of Sri Lanka.
* Targeting Key Sectors: A significant focus is placed on serving the needs of pharmaceutical companies and small and Medium enterprises (SMEs). SMEs contribute a significant 45% to Sri Lanka’s GDP, and often face challenges related to transport infrastructure. Wijeya’s extensive agency network is positioned to address this gap.
Revenue Optimization Strategies
To maximize revenue generation, Wijeya is implementing a range of strategies:
* Dynamic Pricing: Adjusting pricing based on factors like weight and volume to optimize profitability.
* SME Subscription Contracts: Offering tailored subscription packages to meet the specific logistics needs of SMEs.
* Fleet Capacity Monetization: Generating revenue from unused fleet capacity through truck-sharing or leasing arrangements.
Digital Transformation for Enhanced Efficiency
A core component of Wijeya’s growth strategy is a comprehensive digital transformation initiative. This includes the advancement and implementation of:
* Reach Mobile App: A user-friendly mobile submission for booking, tracking shipments, and processing payments.
* AI Integration: Integrating Artificial Intelligence (AI) with partner systems to streamline B2B courier requests and automate processes.
* Customer Dashboards: Providing customers with online dashboards for real-time tracking, invoicing, and access to proof of delivery documentation.
The transformation of Wijeya Newspapers’ logistics network demonstrates a successful example of resourcefulness and strategic adaptation in a changing media landscape. By leveraging existing assets and embracing digital innovation, the company is poised for continued growth and expansion in the Sri Lankan logistics market.
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