2015MARKETINTELLIGENCE MARKETFLASH Afortnightlynewslettercoveringthelatestnewsfromtheglobalpostalsector Issue50205February2015 www.ipc.be OVERVIEWTOPSTORY INTHISISSUE AMERICAS ASIAPACIFIC EUROPE >TOPSTORY GLOBALE-COMMERCETOEXCEEDUS$2TNIN2015ASASIANMARKETSSHOWSTRONGGROWTH Worldwidee-CommerceissettogrowwellbeyondUS$2tnthisyeardrivenbyhighdouble-digitgrowthinChinaandtherestofAsiaandcontinuedstronggrowthinNorthAmericaandEurope,generatinganotherhighriseinconsumerparcelvolumes,ordingtorecentfiguresfromthemerceEuropeassociation. Globale-Commercegrewby23.6%toUS$1.6tnin2013,theassociation’slatestGlobalB2CmerceReportshowed.Worldwideonlinesaleswereexpectedtogrowby22.9%toUS$1.9tnlastyear. AsiaPacificovertookEuropeandNorthAmericain2013toetheworld’slargeste-Commerceregion,andlookssettoextenditsleadthisyear,theresearchfortheassociationofEuropeane-retailersfound.B2Ce-CommercesalesintheAsiaPacificregionsurgedby44.5%in2013,drivenbythestronggrowthofonlineshoppinginChina.B2CmercesalesinEuropegrewby17.1%whileNorthAmericaincreasedby10.1%thatyear,ordingtotheglobalreport.LatinAmericane-Commercesalesgrewby21.5%whiletheMiddleEastandNorthAfricaregiongrewevenmorestronglyby32.7%. WithtotalB2Ce-CommercesalesofUS$419bnin2013,theUSwasstillthebiggestindividualmarket,buttheemergenceofChinaissignificant.Partlyduetotheessofe-CommercegiantAlibaba,ChineseB2Ce-Commercegrewby78.5%toUS$328.4bn.For2014,ChinawasevenforecasttosurpasstheUSandetheworld’snewleaderintermsofe-Commerce,merceEuropesaid.Theassociationpointedoutthatthecountrywiththesecondlargeste-Commerceturnoverandgrowthrate,Chinaisnotrankedintenofcountriesintermsofaveragespendingpere-shopper. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|TOPSTORY|PAGE2 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE AMERICAS DHLOPENSUS$35MFREIGHTFACILITYATCHICAGOAIRPORT DHLGlobalForwardinghasopenedanewUS$35mfacilityinChicagotohandlefreightmovementstoandfromtheUS,includingtemperature-sensitivehealthcareshipments. ThebuildingisabondedContainerFreightStation(CFS),designatedbycarrierstoreceivecargotobeloadedintocontainers.ApartofthebuildinghasbeendesignatedaForeignTradeZone(FTZ),asecureareaunderthesupervisionofUSCustomsandBorderProtectionconsideredoutsidetheCustomsterritoryoftheUSforthepurposeofdutypayment. Thenewfacilitycontainstwotemperature-controlledchambers(15-25°Cand2-8°C)thattogethermeasurecloseto929m²anda93m²ambientreceivingarea,builtwithvariabletemperaturecapabilitiestoprocessanypharmaceutical,biotechormedicaldevicesthatrequireatemperature-controlledenvironmentandtwodedicatedtruckdocks. Source:CEP-Research UPSANNOUNCESEXPECTED4QRESULTS UPSannouncedthatitanticipatesfourth-quarter2014adjusteddilutedearningspershareofapproximatelyUS$1.25.Full-year2014adjusteddilutedearningspershareisexpectedtobeUS$4.75,up3.9%over2013adjusteddilutedearningspershareofUS$4.57.OnaGAAPbasis,fullyear2014dilutedearningsareexpectedtobeapproximatelyUS$3.28pershare,paredtoUS$4.61in2013. Companyearningsfor2014werelowerthanpreviousguidance,primarilyduetotheunderperformanceoftheUSDomesticsegment.Less-than-expecteddemandonnonpeakdaysresultedinaworkduringpeakseason;panyseemstohavemiscalculatedandoverinvestedasvolumesfailedtogrowasstronglyasforecast.Adeclineinproductivity,increasedcontractcarrierrates,aswellascostsassociatedwithovertimeandtraininghourscontributedtotheexcesscost.Internationaladjustedoperatingprofitwasalsobelowexpectations,primarilyduetonon-recurringchargesandnegativeparisons. UPSexpectssolidbusinessgrowthacrossallsegmentsin2015.IncreasedpensionexpenseofapproximatelyUS$180mduetolowerdiscountrates,andcurrencyheadwindsofmorethanUS$50mwillnegativelyimpactresults.panyanticipates2015dilutedearningspersharegrowthtobeslightlylessthanitslong-termtargetof9%to13%. Duetolowerearnings,UPSsharesslumpedmorethan10%duringtradingonFridayaftertheannouncement,andclosedthedaydown9.91%.NervousinvestorsalsomovedoutofFedExshares,sendingthepricedownby2.97%. Source:UPS;CEP-Research;CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE3 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE ASIAPACIFIC DHLEXPRESSINVESTS€10MINFLIGHTSFROMISTANBUL’SSABIHAGÖKÇENAIRPORT DHLExpresshaslaunchedflightsfromIstanbul’sSabihaGökçenAirportwithaninvestmentof€10m,aspartofpany’soverallinvestmentworth€100moverthenextfiveyearstoexpanditspresenceinTurkey. ADHLExpressspokesmanconfirmedtoCEP-ResearchthatthenewairconnectionfromthesecondairportinIstanbul,locatedontheAsiansideofthecity,hasbeenlaunched,inadditiontotheexistingservicetoandfromthelargerAtaturkairportontheEuropeanside. Aspartofitsrecentlyannounced‘Strategy2020Focus.Connect.Grow.’,DeutschePostDHLhasdefinedemergingmarketsasakeypillarforthegroup’sfuturegrowth,withTurkeybeingoneofthemostpromising11countriesthegroupwantstofocuson.Thegroupaimstogenerate30%ofitsrevenuesfromemergingmarketsbyparedto22%atpresent. Source:CEP-Research UBERTRIALSHONGKONGDELIVERYSERVICE panyUber,whichisseenashavingdisruptedtaxibusinessesaroundtheworld,isnoweyeingthedeliverysectorwithanew‘sharing’serviceinHongKong. Thenewservice,brandedas‘UberCargo’,launchedintheAsianmetropolislastweek,usingprivatepersonsasdriversinthesamewayaswithitsexistingtaxiservices.Thenewserviceappearstomostlytargetprivateindividuals fordeliverieswithintheterritorybutisalsoavailabletobusinesses,promptingobserverstopredictthatthedeliveryindustrycouldbethefirm’snexttarget. CustomerscanusetheUberCargoapptorequestacollectionandcantrackthevan’sprogresstothepick-uppoint.Thedrivershelpcustomerstoloadandunloadgoods,andcustomerscaneitherridewiththeirgoodsortrackthedeliverytripviatheapp.UberCargopricesarebasedonbinationoftimeanddistance. Source:CEP-Research UPSADDSTRADECONSULTINGSERVICESTOITSCUSTOMSBROKERAGERANGEINASIA UPShasexpandeditscustomsbrokerageportfolioinAsiawiththeadditionoftheso-called‘TradeManagementServices’(TMS)focusingonconsultingtosimplifyexpansionopportunitiesforcustomersintheregion.ThenewTMSprisetradeconsulting,import/exporttechnologiesandmanagedservices. Withtradeconsulting,UPSaimstoenhancecustomers’petitivetradeadvantageandmitigatetheriskofinternationaltradebypanieswithcustomisedassessmentsofpliance,securityandadministrativeissuesimpactingtheirbusiness.“Theabilitytoadapttonewgovernmentrequirementsmeanslessexposuretopenalties,areductionincargoclearancedelaysandthemaximisationofduty/taxsavings”,panyexplained. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE4 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE ASIAPACIFIC SINGPOSTADDSNEWE-COMMERCESERVICESTOSIMPLIFYPARCELSHIPPING SingaporePosthasexpandeditsrangeofintegratede-CommercesolutionsforblogshopsandSMEswithnewservicesenablingthemtodropoffparcelsfasterandeasieratadedicatedcounter,afterpayingandprintingthepostagefortheirparcelsfromhomeoroffice. Torespondtoagrowingnumberoflocalonlineretailers,SingPosthaslaunchedSmartPacLite,anenvelopeversionoftheexistingSmartPac,fore-Commerceitemsweighingupto1kg.Measuring240mmx330mm,theSmartPacLiteisavailableforSG$3.80andoffersmorechoicetoblogshopsandSMEswhenestodelivery.Asconsumer-basedretailbusinessesusingbloggingplatformssuchasBlogger,WordPressorLivejournal,blogshopsarequitepopularinSingapore.ToprovideevenmoreconvenienceforblogshopownersandSMEs,theSingaporeanpostaloperatoralsolaunchedanewBulkPackageCounterinOctoberlastyearinathree-monthtrial.Theinitiativewasdesignedtomakeparcelshippingquickerandeasier. Withthisserviceexpansion,SingPostisrespondingtosignificantgrowthofe-CommerceinSingaporeoverthelastfewyears,withvolumesfrom‘online’parcelshavingincreasedbyalmost100%inSingaporesince2006.Fromthearound4mparcelsthatSingPosthandlesonadailybasis,30%aree-Commerceitems. Source:CEP-Research SINGPOSTBUYSMAJORITYSTAKEINNEWZEALANDFREIGHT SingaporePosthasannouncedthatitacquireda90%stakeinNewZealand-basedfreightpanyFamousPacificShippingLimited(FPSNZ)throughitssubsidiaryFamousHoldingsPteLtdtostrengthenitsregionallogisticsbusiness. FamousHoldingsPteLtdhaspaidaninitialconsiderationofNZD3.6m(€2.4m)forthestake(subjecttoworkingcapitaladjustments)andcertaindebtsowingbyFPSNZtothevendors.Establishedin1996,FPSNZmainlyfocusesonseaandairfreightforwardingtogetherwithcustomsclearanceforinboundandoutboundshipmentsfromNewZealand. Overthepast18months,SingPosthasbeenrampingupitsregionallogisticscapabilitieswithneworexpandedfacilitiesincludingthedevelopmentofanSG$182mfullyintegratedregionale-CommercelogisticshubinSingaporewhichisexpectedtostartoperatinginmid-2016.Aspartofitstransformation,SingPosthasbeensteadilyexpandingbeyondSingapore,leveragingitsregionalplatformQuantiumSolutionsandothersubsidiariesandpartners. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE5 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE ASIAPACIFIC E-RETAILERRAKUTENANDJAPANPOSTLAUNCHDELIVERYSERVICETOLOCKERS JapanesepanyRakutenhaslaunchedadeliveryservicetolockersinTokyoincooperationwithJapanPost,enablingcustomerspurchasingproductsfromtheflagshipRakutenIchibaportaltopickuptheiritemsfromthelockersattheirconvenience. Comingintoeffectthisspring,thenewservicewillbeofferedataround30locationsacrosstheJapanesecapital,includingpostoffices.Tousetheservice,shoppersorderingproductsonRakutenIchibasimplyneedtoselecttheshipping(delivery)methodandtheJapanPostlockeroftheirchoice.Theywillthenhavetoconfirmthelockerpasswordwhichcanbefoundintheemailthatissentwhenthedeliverypleted.TheywillreceivethedeliveredproductsbyenteringthepasswordintothedesignatedJapanPostlocker. Source:CEP-Research RUSSIANANDCHINESEPOSTSLAUNCHRAILDELIVERIESOFSHIPMENTSFROMCHINATORUSSIA RussianPostandChinaPosthavestartedrailtransportationofinternationalpostalshipmentsfromChinatoRussiatosimplifycross-borderflowsbetweenthetwocountries. Untilnow,internationalshipmentshavebeendeliveredtoRussiaonlybyairandbyroad.Incontrast,railtransportationnotonlymakesitpossibletoreducetransportationcostsbutalsotoexcludeadditionalcargooperationsandintermediariesfromthesupplychain. TheplanispartofthecooperationagreementbetweentherailwayoperatorsofthetwocountriessignedinMay2014.Priortothisagreement,thetwopostaloperatorsalreadysignedaMemorandumofUnderstandinginOctober2013duringtheofficialvisitofRussianPrimeMinisterDmitryMedvedevtoChina.TheMemorandumaimsatextendingdeliveryroutesforshipmentflowsfromChinatoRussia. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE6 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM EMERGINGMARKETSDRIVEINTERNATIONALEXPRESSMARKETGROWTH,REPORTFINDS Theinternationalexpressmarket 7%YEAR- OVER-YEAR hasshakenofftheglobalfinancialcrisiswithsolidaverageannualvolumegrowthof7%ayearoverthelastfiveyears,drivenbyemergingmarkets,ordingtoanewmissionedbythe GROWTHIN GlobalExpressAssociation. INTERNATIONALTheinternationalexpressdelivery EXPRESSMARKET hasthusshownsolidgrowthfollowingtheglobalfinancialcrisisandhasgrownfasterthanworld tradeoverthe2009–2013period, thestudybyFrontierEconomicsfound. ordingtothereport,Europeisthelargestregionalmarketwithabout47%ofvolumes,basedonthesumofoutboundandinboundcross-bordervolumes.AsiaPacificfollowswith25%,aheadofNorthAmerica(21%),MiddleEast&Africa(4%)andCentral&SouthAmerica(3%).GrowthhasbeenstrongestinregionsoutsideofEuropeandNorthAmericainrecentyears,thereportfound.TheMiddleEast&AfricaandCentral&SouthAmericawerethefast-growingregionsbetween2011and2013,althoughfromlowbasefigures. Source:CEP-Research LOGISTICS’COOPERATIONNEGOTIATIONSFINALISEDINSCANDINAVIA PostiannouncedinOctober2014thatitwillrenewitslogisticsservicesinScandinavia.Thefocuswillbeonroadtransportbetweencountriesofoperation.TheaimisalsotodevelopofferinginroadtransportinselectedmarketareasinEurope.Atthesametime,Postigaveupitsairandseafreightbusiness,servicewarehousesinDenmark,aswellasScandinavia’sinternaldistributionlogistics.ServicewarehousesinSwedenandNorwaywillbegivenupin2015. ThereasonbehindthechangesisthattheprofitabilityofoperationsinScandinaviahasnotbeenatanadequatelevel. Source:Posti FRENCHE-COMMERCEGROWS11%IN2014 E-CommerceinFrancegrewby11%tospendingof€57bnlastyearandispredictedtobreakthroughthe€60bnbarrierthisyear,ordingtonewfiguresfromthecountry’se-CommerceassociationFevad. Theresultswereslightlyhigherthanexpectedthankstoastrongpeakseasonwhichshoweda13%year-on-yearriseinrevenuesto€11.4bn,theassociation’sannualmarketstudyreleasedyesterdayshowed.Outliningsomeofthemaintrendsin2014,theassociationsaidthenumberofonlinetransactionswentupby15%,despitetheweakeconomicclimateinFranceandoveralldropinconsumerspending.Theaverage‘basket’pertransactiondeclinedby4%to€81,the ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE7 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM fourthannualfallinarow.Butthispensatedbyanincreaseinthenumberoftransactionsperonlineshopper,whichroseto20lastyearfrom18in2013. AseparatesurveyonChristmassalestrendsbyresearchersCSAforFevadfoundthatsevenoutofeverytenFrenchshoppersboughtpresentsonline,withoneinthreepurchasingfromaforeign-basedwebsite.About15%boughtgoodsaspartofBlackFridayorCyberMondaysales.Frenchconsumerscontinuedtofavourhomedeliveriesaheadofallotheroptionsintherun-uptoChristmasbut‘clickandcollect’optionsgrewfastinpopularitywhileparcelshopswerelesspopular,theCSAsurveyfound. Source:CEP-Research TNTANNOUNCESMAJORUPGRADEOFINTERNATIONALSERVICETOGERMANY TNTannouncedamajorupgradeofitsinternationaldeliveryservicetoGermany.TNTnowprovidesguaranteednextdaydeliverytoallpostalcodesinthecountryaswellasanoptionaldeliverybefore12:00nationwide.Bothservicesareavailableforparcelsandheavierfreightshipments. TNTisrespondingtodemandforfastandreliabledeliveryservices,withgreatercontroloverthedeliverytime.TheupgradebuildsonseveraloperationalimprovementsmadebyTNTinrecentmonths,includinginvestmentsinitsEuropeanRoadNetworkandairhubinLiege. Source:TNT GERMANONLINESALESPOSTSTRONG15%GROWTHFORCHRISTMAS Germanonlinesalesgrewbyastrong15%year-on-yeartorevenuesof€9.8bnduringthe2014Christmasseason,whichwasslightlyaheadofexpectations,ordingtofiguresreleasedtodaybytheGermane-retailassociation,bevh. Totalinteractivesales,includingthedecliningmailordermarket,postedsolidgrowthofnearly7%to€11bnduringthefestiveperiod,whichisslightlybelowthe€11.2bnforecastedinDecember.E-Commercesalesthusrepresented89%oftotalinteractivesales. Source:CEP-Research ICELANDPOSTLAUNCHESAUTOMATEDPARCELMACHINES IcelandPost,theIcelandicnationalpostaloperator,issettolaunchaworkofautomatedparcelmachines(APMs)underthe‘Póstbox’brandusingterminalssuppliedandinstalledbyInPostpany,theInteger.plGroup. TheterminalsforreceivingandsendingparcelswillbeavailableinIceland’slargestcitiesbutalsoatpetrolstations,offeringIcelandersfromsmallertownsthesame24/7deliveryconvenience.Integer.pl,whichwonthetender,didnotsayhowmanyterminalswouldbeinstalled. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE8 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM DHLSUCCESSFULLYTESTSAUGMENTEDREALITYAPPLICATIONINWAREHOUSE DHLhasessfullycarriedoutapilotprojecttestingsmartglassesandaugmentedrealityinawarehouseintheNetherlands.IncooperationwithDHLcustomerRicohandputingsolutionsexpertUbimax,thetechnologywasusedtoimplement‘visionpicking’inwarehousingoperations.Staffwasguidedthroughthewarehousebygraphicsdisplayedonthesmartglasstospeedupthepickingprocessandreduceerrors.Thepilotprovedthataugmentedrealityoffersaddedvaluetologisticsandresultedina25%efficiencyincreaseduringthepickingprocess. Thepilot’sobjectivewastogaininsightsonthetechnology’sbenefitsandlimitations.Forthreeweeks,warehousestaffinBergenopZoomwasequippedwithheadmounteddisplayssuchasGoogleGlassandVuzixM100.Thedisplaysshowedtherespectivetaskinformationduringthepickingprocess,includingaisle,productlocationandquantity.Overall,tenorderpickersusedtheequipmentandpickedmorethan20,000items,fulfilling9,000orderswithinthegiventimeframe.Asaresult,staffwasabletooperatemuchfasteranderrorfree.CurrentlyDHLandRicoharejointlyevaluatingtheroll-outofthesolution. Source:DeutschePostDHL RUSSIANPOSTPOSTSNEWRECORDININTERNATIONALSHIPMENTSFORNEWYEAR RussianPosthaspostedaessfulpre-holidaypeakperiodfrom1Novemberto31December2014,doublingthenumberofinternationalshipments(withproductenclosures)paredtothesameperiodlastyear,afterinvestingincapacityexpansion. Duringthelasttwomonthsof2014,RussianPostprocessed19mshipments.Thisistwiceasmuchasin2013and4.5timesasmuchasin2012.InDecemberlastyearalone,panyhandled10mitems. Source:CEP-Research RUSSIANPOSTLAUNCHESHOMEDELIVERYOFSMALLPARCELSACROSSRUSSIA RussianPosthaslaunchedahomedeliveryserviceforsmallparcelsweighingupto2kgacrossthecountryatacostofRUB100(€1.30)andisalsotestingcourierdeliverieswithoutanyweightlimitacrossMoscow.Untilnow,lettersweredeliveredtohomesbutRussiansalwayshadtogototheirlocalpostofficetocollectparcels. ViathemobileappavailableforAndroidandiOSdevices,customerscurrentlycanonlytrackshipments,scantheirbarcodes,searchforthenearestpostofficeandpickthemup. In2014,RussianPostdeliveredaround70minternationalshipmentsweighingupto2kg,theso-calledsmallparcels, ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE9 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM andexpectsthisfiguretorisebyafurther30%thisyear.Potentialrevenuesfromthenewhomedeliveryservicewillprimarilydependonthedemandforit,Malyshevstressed. Source:CEP-Research PARCELFORCEUPGRADESDELIVERIESWITHINTERACTIVECUSTOMERSERVICES RoyalMail’sexpressparcelbusinessParcelforceWorldwidehaslaunchedanewcustomerservicerangeofferingcustomersgreaterchoiceandcontrolovertheirdelivery. Thenew‘ParcelforceSelect’providesanimprovedrangeofinteractiveservicestoenableonlineretailersprovidetheircustomerswithgreatercontroloverthedeliveryoftheirparcelsiftheyknowtheywillnotbeathometoreceivethem. Consumerscannowselectexactlywheretheywanttheirparceltogoiftheyknowtheywillbeoutwhenadeliveryisattempted.Inaddition,ParcelforceWorldwideisexpandingthenumberofnotificationsparcelrecipientsreceiveabouttheprogressoftheirparcel,includingaonehourdeliverytimewindow.Inadditiontoitsexistingnotifications,theexpressparcel’sbusinesswillalsobeabletonotifycustomersofanessfulattempteddelivery,‘neighbourdelivery’,advisingwhichneighbourhaseptedtheparcel,andPostOfficehandover,advisingcustomersofthePostOfficewheretheparcelhasbeenleft.Forcustomersreturningitems,ParcelforceSelectoffersdayofbookingnotification,confirmingthedateofcollection,dayofcollectionnotificationandcollectionconfirmation,orwhetherthereturncollectionwasnotpossible. Source:CEP-Research DPDSTEPSUPB2CEXPANSIONWITHUKPARCELSHOPNETWORK DPDwilllaunchaUKparcelworkwithupto2,500locationsunderthePickUpbrandinJunetostepupitsexpansioninthefast-growingB2Cmarket. ThelaunchmarksthenextmajorEuropeanexpansionmoveforthegroup’sgrowingpick-upanddrop-off(PUDO)work,whichalreadyincludessome7,000outletsinFrance,5,000inGermanyandnearly2,000inothercountries.ParentgroupGeoPostaimstocreateanintegratedpan-EuropeanparcelworkunderthePickupbrandwithmorethan20,000locationsaspartofitsB2Cgrowthstrategy. IntheUK,thenewDPDPickUplocationspeteinanincreasinglycrowdedparcelshop‘marketplace’withworksincluding5,500CollectPlusstores(aYodeljointventure),Hermes’3,500locations,some2,600UPSessPoints,thestart-upworkaswellas11,500postofficesusedbyRoyalMail.InPost’workofsome1,000parcellockersisanother‘clickandcollect’optionforBritishonlineshoppers. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE10 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM AMAZONEXPANDSUKSUNDAYDELIVERIESWITHREGIONALCOURIERS AmazonhasexpandedSundaydeliveriesintheUKto15citiesusingalogisticstechnologyplatformincooperationwithregionalandlocalcouriers. ThepanylauncheddeliveriesonSundaysformembersofitsPrimeschemeinJanuary2014servingsevenBritishcities.AmazonUKlaterannouncedthatSundaydeliveriesarenowofferedin15cities,withoutnamingthem,andvolumeshavegrownbymorethanfourtimesinthelastyear.Sunday21DecemberwasthebusiestSundayof2014fordeliveries,whenChristmasshoppersenjoyedthebenefitsoftheOne-DayDeliveryservice,itsaid. Inparallel,panyhasexpandedworkofPickupLocationstomorethan16,000locationsacrosstheUK.Theseincludemorethan10,500PostOfficebranchesaswellasalargenumberofCollectstores,thenew‘PassMyParcel’stores,andAmazonLockers. Source:CEP-Research UKE-RETAILDELIVERYVOLUMESPOSTDOUBLEDIGITANNUALANDCHRISTMASGROWTHIN2014 E-retaildeliveryvolumesintheUKpostedyear-on-yeargrowthof16%in2014and11.6%growthinDecember,inlinewithforecasts,withanewrecordintotalparcelvolumesdispatchedthroughUKcarrierslastyear,ordingtotheBritishe-CommerceassociationIMRG. TheIMRGMetaPackUKDeliveryIndex,whichmeasuresparcelvolumesgeneratedbye-Commerce,estimatedtheoveralle-retailparcelvolumesat920mforthewholeyear2014,whichevenbeatsthe900mordersforecast.Boostedbythepre-Christmasperiod,parcelvolumesinDecember2014showedspectacular28%paredtothepreviousmonth. Asforparcelcarriers,someofthempostedvolumesinlinewiththemarketgrowthof11.6%inDecember2014whileothersfailedtoreachthatlevel.HermesandYodel,forexample,increasedtheirpeakseasonvolumesby15%and11%respectivelywhileUKMailhasreported“recordvolumes”.RoyalMail,howeverpostedparcelvolumegrowthof‘only’4%intheUKlastmonth. Source:CEP-Research ROYALMAILLAUNCHESNEWPOSTAGESOLUTIONFOREBAYSELLERS RoyalMailhaslaunchedClick&Drop,anewonlinepostageandlabelsolutiontomakeiteasierforeBaysellerstoshipparcelsusingRoyalMail. ThenewsolutionallowseBaysellerstointegratetheirounts,enablingthemtoeasilybuyandprintpostagelabelsattheclickofabutton,withouttheneedformanuallyinputtingtheaddressofeachindividualbuyer.Theonlineservicewillalsoautomaticallycheckthedeliverypostcodetolimittheriskofamis-delivery. RoyalMailhasalsoextendedthepaymentoptionsforthoseusingthenewsolution.Customersnowhavetheflexibilityof ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE11 ” OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM payingusingtheirPayPalountaswellasdebitorcreditcards.Byextendingpaymentoptions,marketplacesellershavetheoptionofcoveringthecostoftheirpostageusingtheproceedsgeneratedfromtheirmarketplacesales,ifthesameountisused. Source:RoyalMailGroup DHLBEATSTRAFFICWITHLONDON’SFIRSTEXPRESSHELICOPTERSERVICE DHLExpresslaunchedLondon’sfirst-everscheduledhelicopterdeliveryservice.DHL’snewhelicopterservicewillsignificantlyenhancetheconnectionbetweenkeyfinancialcentresintheUSAandtheUK,inparticular.Itwillguaranteenext-daydeliveryofurgentdocumentsfromNewYork,BostonandChicagotoLondon’sfinancialdistrict. WithadailyflightconnectionfromDHL’sHeathrowHubtothecentreofLondon,thehelicopterwillbypasstrafficandcutthejourneytimeintoCanaryWharfandtheCityofLondonbyuptoonehour. Source:DeutschePostDHL ROYALMAILRELEASESTRADINGUPDATEFORFIRSTTHREEQUARTERSOF2014 RoyalMailissuedatradingupdatecoveringtheninemonthsended28December2014inwhichitstatedthattradingintheninemonthswasinlinewithRoyalMail’sexpectations. Theseasonalincreaseinparcelvolumescamethroughasanticipated.Givenpany’sperformanceoverthe Christmasperiod,andthatitcontinues toexpecttoholdunderlyingUKPIL operatingcostsbeforetransformation costsflatforthefullyear,RoyalMailisconfidentthattheeforthefull Royal Mail is yearwillbeinlinewithourexpectations.Ouroutlookforletterandparceltrends confident that andotherguidanceremainunchangedfromthatsetoutinourFinancialReport the e for forthehalfyearended28September2014issuedon19November2014. the full year will beinlinewithMoyaGreene,CEOofRoyalMail stated:“Wehandledaround120m expectations.parcelsinthemonthofDecember alone,4%morethanlastyear.Letters performedinlinewithourexpectations,withaddressed lettervolumesdown3%inthefirstninemonths.GLS,our ground-basedEuropeanparcelsbusiness,continuedto performwell.” Investorsedthefigures,containedinatradingupdate,andpany’ssharepricerosemorethan4%aftertheannouncement. Source:RoyalMailGroup;CEP-Research PARCELFORCESELECTISLAUNCHEDTOPROVIDEGREATERDELIVERYCHOICEANDCONTROL ParcelforceWorldwidelauncheditsnewParcelforceSelectservicerangetosupportthegrowthofonlineretailingbyrespondingtotheneedsofe-retailersandtheircustomers. ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE12 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM ParcelforceSelectprovidesanimprovedrangeofinteractiveservicestoenableonlineretailersprovidetheircustomerswithgreatercontroloverthedeliveryoftheirparcelsiftheyknowtheywillnotbeathometoreceivethem. AspartoftheParcelforceSelectservice,onlineretailersandotherbusinesseswillbeabletohelptheircustomerstobettermanagetheirparcelsafterplacinganorder,enablingtheircustomerstoevenchangetheirmindonthedayofdelivery.Customerswillbeabletoselectexactlywheretheywanttheirparceltogo,iftheyknowtheywillbeoutwhendeliveryisattempted.Thiscouldbeaspecificneighbour,convenientPostOfficebranchorasafeplaceontheirproperty.Customerscanalsocontinuetochooseanalternativedayofdeliveryifthatismoreconvenientforthem. Source:RoyalMailGroup MARKETINGLEADERSJOINROYALMAIL’SMARKETREACHCAMPAIGN RoyalMailMarketReachlauncheditsnew“MAILMEN”campaignon27January.Aspartofthecampaign,marketingindustryleadershavejoinedforceswithRoyalMailMarketReachforacampaigntodemonstratethevitalcontributionmailmakestoadvertisingess. Thecampaign,targetingclients,mediaplanningandbuyingagencies,creativeagenciesandmarketingdecision-makersat3,000advertisers,binesdigital,pressandOOH,anddirectmarketingincludingstageddirectmailandemails,andpromotesRoyalMailMarketReach’sin-depthresearchprogramme,ThePrivateLifeofMail. Source:RoyalMailGroup DPDUKLAUNCHES‘LASTMILELABS’FORSTARTUPSWITHINNOVATIVEDELIVERYSOLUTIONS DPDUKandLMarks,aBritishinvestmentfundfocusingoninnovativestart-ups,haveannouncedaninitiativecalled‘LastMileLabs’lookingtosupportpanieswithoriginaldeliveryideasforthelastmile. Theeight-weekprogrammewillseetenselectedteamsreceivementoringfromtheDPDteams,esstoDPDproprietarytechnology(platforms,APIsetc.)and£12,500ininitialfundingtoallowthemeleratetheirtechnologyinthelabs.WorkingatthededicatedofficespaceinLondon,theywillbeabletoattendworkshopsandtalkshostedbyDPDandLMarkspartners.Thebestcandidateswillhavetheopportunitytoget£100,000infollow-upfoundingandthechancetosecureacontracttosupplyDPD. Source:CEP-Research TNTINVESTS£15.5MINREGIONALBRITISHSUPERDEPOT TNTUKhasannounceditistoopenanew£15.5msuperdepotinSwindonenablingfasterdeliveriesforcustomersinsouth-westEngland. TheSouth-WestDepotandRegionalSortationCentreisbeingbuiltbyindustrialwarehousedeveloperIDIGazeleyonanewten-acresiteontheSouthMarstonIndustrialEstate.Itwillhaveanewstate-of-the-artsortmachineandmorethan100loadingbays. ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE13 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE EUROPE FINLANDFRANCEGERMANYITALYPOLANDRUSSIASWITZERLANDUNITEDKINGDOM KeepinglocalparceltrafficintheSouthWestwillalsomeanfewervehiclesandfewermilesonalreadycongestedroadsandmotorways.TNT,whichisalsosignificantlyinvestinginupgradingitsentirefleet,estimatesitslong-haullorrieswillreducemileagebynearly1.1mkm,which,inturn,willreduceCO2emissionsbyupto815,000kgeachyear,therebyreducingtheimpactontheenvironment. Source:CEP-Research UKSMEE-RETAILERSTARGETGROWTHTHROUGHONLINEMARKETPLACES,ROYALMAILSAYS Britishsmallandmedium-sized(SME)onlineretailersarelookingoptimisticallyat2015andplantoincreasetheiruseofonlinemarketplaces,suchaseBayandAmazon,toboosttheirgrowth,ordingtoRoyalMail’sannualtrackerstudyintotheexpectationsandchallengesfacinge-retailers. Thesurveyresultsrevealedthatthesectorisinapositivemoodforthisyearassevenintenbusinessesexpecttheirsalestoincrease.Eventhough76%oftheSMEonlineretailershighlightpetitionthanayearago,theyaremoreoptimisticintermsoftheirgrowthexpectationsthisyear,withayear-on-yearincreaseof9%.Abouttwothirdsoftherespondentsnamedtheincreasingnumberofwebsitesasthemainreasonforpetition,aheadofpricesensitivity(42%),whichrankedfirstlastyear. On-timedeliveryemergedasthemostimportantfactorfordrivingcustomersatisfactionquotedby62%oftherespondents,followedbyproductpricerankedsecond(52%)andproductqualityrankedthirdwith44%,downfrom66%lastyear,asthesurveyshowed.WhatisalsoingincreasinglyimportanttoUKSMEonlineretailersisprovidingagoodreturnsprocessforonlineshoppers,thestudyfound.Athirdoftheretailerssurveyedsaidasimplereturnsprocesswasakeyfactortocustomersatisfactionlastyear,upfrom23%in2013.Threeinten(27%)ofUKSMEonlineretailerswillbesimplifyingthereturnsprocessin2015toincreasecustomersatisfaction,upfrom11%lastyear. Source:CEP-Research ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ASIAPACIFIC|PAGE14 OVERVIEWTOPSTORYAMERICASASIAPACIFICEUROPE ABOUTTHISPUBLICATION IPCMARKETFLASHisafortnightlynewsletterprovidingprehensivelookatnewdevelopmentsemergingintheinternationalpostalmarketplace.ItispublishedbytheMarketsandCommunicationsdepartmentoftheInternationalPostCorporation.Ifyouwouldliketocontributetothispublicationorrequirefurtherinformation,pleasecontact:publications@ipc.be. ABOUTIPC InternationalPostCorporationisacooperativeassociationof24memberpostaloperatorsinAsiaPacific,EuropeandNorthAmerica.OverthepasttwodecadesIPChasprovidedindustryleadershipbydrivingservicequalityandinteroperability,supportingitsmemberstoensurethehighperformanceofinternationalmailservicesanddevelopingtheITinfrastructurerequiredtoachievethis.IPCengagesinindustryresearch,createsbusiness-criticalintelligence,providesarangeofplatformsformemberpostCEOsandseniormanagementtoexchangebestpracticesanddiscussstrategy,andgivesitsmembersanauthoritative,independentandcollectivevoice.IPCalsomanagesthesystemforincentive-basedpaymentsbetweenpostaloperators.Withmembersdeliveringsome80%ofglobalpostalmail,IPCrepresentsthemajorityoftheworld’smailvolume. Formoreinformationpleasevisitourwebsitewww.ipc.beorcontactusatinfo@ipc.be. ©IPC AvenueduBourget,441130Brussels-BelgiumTel.:+32(0)27247271www.ipc.be ©2015-IPC.be THENATURALPARTNERFORTHEPOSTALINDUSTRY MARKETFLASH|ISSUE502|ABOUTIPC|PAGE15