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American Express Global SalesWorld’s Top Traveler Cheque Issuer Focuses on Credit & Charge Cards
Well-established in Brazil, India & China, American Express is also positioned to benefit from millions of tourists during Beijing's 2008 Olympic Games.
Generating more than US$27 billion in sales during 2006, American Express is a leader in credit cards and charge cards. Increasingly popular are American Express gift cards, particularly during the holiday season. In addition, the company is one of the world’s largest travel agencies offering services including travelers cheques and other prepaid products. International OperationsAmerican Express operates in more than 130 countries around the globe. In the quarter ending September 2007, the company’s international operations grew their revenues much faster than the 12% gain that its U.S. Card Services enjoyed from the same quarter last year. Below is a summary of revenues by American Express business segment for third quarter 2007.
While some investors are aware that American Express is one of the largest holdings in Warren Buffet’s fabled Berkshire Hathaway portfolio, many business analysts don’t realize that the company has long been established in foreign markets. American Express holds a strategic brand advantage in growing its global card member base – particularly in key markets including Brazil, China and India. American Express in BrazilAmerican Exress has offered travel services, sold travelers cheques and conducted general financial business in Brazil since 1923. In the late 1970s, American Express partnered with Banco Credito de Nacional of Sao Paulo – the first bank in the world to issue an American Express-branded credit card. In Brazil, the company also has card partnerships with HSBC and BankBoston. American Express in IndiaIn 1921, American Express opened an office in Calcutta (now Kolkata) to handle financial activities, shipping, travel arrangements and tours for American and European visitors. In 1922, the company opened a second Indian office in Bombay (now Mumbai). Today American Express is the largest travel network in India. In 1987, American Express introduced the U.S. currency-based Corporate Card – the only card issued in India that could be used overseas. The company has since launched several cards in rupees for use in India, including the Indian Airlines American Express Gold Card. The company also offers a full range of Indian retail banking services. American Express in ChinaAmerican Express first conducted banking and travel operations in Hong Kong in 1916. During the 1970s, the company opened additional offices in Beijing, Shanghai, Guangzhou and Xiamen. The American Express Card is widely accepted by thousands of establishments all over China. American Express has signed an agreement with Bank of China to provide customers easy withdrawal through automated teller machines (ATMs) across the country. This is a significant international business advantage, given the upcoming 2008 Olympic Games in Beijing. Sources for this ArticleThis article presents independent insights from data including the third quarter 2007 press release and the 2006 annual report on americanexpress.com.
The copyright of the article American Express Global Sales in International Trade is owned by Daniel Workman. Permission to republish American Express Global Sales in print or online must be granted by the author in writing.
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