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MARKET FLASHA fortnightly newsletter covering the latest news from the global postal sector

Issue 515

27 August 2015

2015M

ARKET INTELLIGENCE

IN THIS ISSUE

© 2015 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH | ISSUE 515 | TOP STORY | PAGE 2

TOP STORY• Parcel shops and locker networks ‘essential’ to

internet purchases, says study

AMERICAS• Canada Post segment reports CA$31m loss

before tax in the second quarter• E-Commerce growth allows USPS to limit net

loss• UPS delivers strong earnings per share growth• UPS acquires Coyote Logistics

ASIA PACIFIC• DHL Express Australia opens €14m Melbourne

Gateway facility• DHL rolls out interconnecting road freight

network between five Asian cities• DHL supports third runway for Hong Kong

airport• DHL Express opens new global Quality Control

Centre in Singapore• Digital signature service Secured Signing joins

RealMe• Chinese e-commerce groups Alibaba and

JD.com invest in retail stores and speed up deliveries

• SingPost achieves record revenue and net profits in Q1

• Australia’s Sendle partners with Toll for deliveries

• Toll Group builds AU$228m logistics hub in Singapore

• FedEx launches temperature-controlled services in China

• Freightways posts record revenue with growth across business divisions

EUROPE• GLS delivers parcels across Europe for Israel

Post• Austrian Post reports slight revenue increase in

first half 2015

• bpost second-quarter results show dip in revenues despite strong parcels volumes growth

• Estonia’s Omniva adds more parcel terminals as volumes rise

• La Poste half-year profits soar 44% on higher mail, parcels and banking results

• GLS Germany launches mobile parcel label• Digitalisation set to turbocharge logistics chains,

German SMEs Say• Hermes and DPD Germany launch Apple Watch

apps• DPD completes nationwide Saturday delivery

roll-out across Germany• Poste Italiane improves half-year profits as IPO

approaches• PostNL reaches agreement on management

buy-out of Whistl• PostNL posts solid Q2 results and reconfirms

full year outlook• TNT Q2 revenues and profits improve as

business picks up• TNT launches flights to Tunisia• Deutsche Post DHL reports slump in Q2 profits• PostNord reports H1 profits growth• Russian Post to invest nearly €1bn in

infrastructure between 2015 and 2017• DPD Russia expands parcel delivery services,

starts operations in Armenia• Hermes buys out DPD to take control of Russian

joint venture• Russian Post multiplies international parcel

volumes by 1.5 times in H1 2015• Austrian Post sells Slovakian mail subsidiary• Royal Mail Sameday launches online booking• Royal Mail’s Address Management Unit Gets

Investors in People Gold Award• GeoPost-owned freight group Tigers expands

through UK acquisition• UK Mail slashes profit forecast due to ‘wrong-

shaped parcels’

E-COMMERCE SPECIAL

> TOP STORYPARCEL SHOPS AND LOCKER NETWORKS ‘ESSENTIAL’ TO INTERNET PURCHASES, SAYS STUDYA new report by Apex Insight, called European Parcel Shop and Locker Networks Market Insight Report 2015, says European parcel shops and locker networks are ‘rapidly becoming an essential component of the logistics operations involved in getting internet purchases into the hands of consumers while also remaining a key element of spare parts logistics operations.’

As for the ‘competitive landscape,’ many of the leading European parcel carriers, in particular those with a focus on consumer deliveries, are now involved in building up their own networks.

In the Outlook section of the report, Apex Insight concludes that it expects growth in demand for parcel shops and lockers to continue to be driven primarily by the growth of internet retail. Key challenges in achieving further growth include: acceptance of the concept by the mass of consumers, not just current early-adopters; availability of sufficient sites for more lockers and, in particular, parcel shops and availability of sufficient capacity at the sites to cope with anticipated growth in demand.

Source: CEP-Research

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> AMERICASCANADA POST SEGMENT REPORTS CA$31M LOSS BEFORE TAX IN THE SECOND QUARTERThe Canada Post segment, covering mail and parcels, reported a loss before tax of CA$31m for the second quarter as Transaction Mail volumes fell sharply. The loss was also driven by higher employee benefit expenses and was partially offset by continued strong growth in the Parcels business.

The loss for the second quarter, ended 4 July 2015, stands in contrast to a profit before tax of CA$53m for the second quarter of 2014. For the first two quarters of 2015, the Canada Post segment reported a loss before tax of CA$7m compared to a profit before tax of CA$26m for the same period in 2014.

For the Canada Post segment, parcel volumes increased by more than 2m pieces or 6.5% in the second quarter, and by almost 7m pieces or 6.5% in the first two quarters, compared

to the same period in 2014. In the first half of 2015, Transaction Mail volumes fell by 102m pieces or 7.2% compared to the first half of 2014. That rate of decline

is higher than in the first six months of any year since mail volumes peaked in 2006. In the second quarter, volumes fell by 63m pieces or 6.5% compared to the same period a year ago.

Source: Canada Post; CEP-Research

E-COMMERCE GROWTH ALLOWS USPS TO LIMIT NET LOSSThe US Postal Service is outgrowing the country’s parcel market with a double-digit revenue increase driven by e-Commerce volumes and cut its overall net loss for the April–June 2015 third quarter substantially to US$586m. Operating revenue was US$16.5bn for the quarter, essentially unchanged from the same period last year.

Mail revenues dropped to just under US$11bn as price increases for some mail products on 31 May; however this was offset by declining mail volumes as First-Class Mail and Standard Mail volumes fell 2.6% and 2.1%, respectively, compared to the same period last year.

But shipping and package revenue increased by a strong 10.6% to US$3.6bn while volumes soared by 13.4% to 1.1bn pieces.

Total controllable operating expenses increased by US$256m from the same quarter last year. This is the result of higher compensation costs primarily attributable to contractually obligated salary escalations, increased benefits expenses and additional work hours associated with growth in the more labour-intensive shipping and package business.

Source: USPS; CEP-Research

UPS DELIVERS STRONG EARNINGS PER SHARE GROWTHUPS announced second-quarter 2015 diluted earnings per share of US$1.35, a 12% increase over adjusted results for the same period last year. All three segments improved operating profit and margin, led by International and Supply Chain and Freight performance.

Currency exchange rates and lower fuel surcharges reduced total reported revenue growth. Total revenue declined 1.2% from the same quarter last year to US$14.1bn. Pricing initiatives continue to drive base rates higher. On a reported basis, operating profit increased US$1.2bn, and diluted earnings per share

> AMERICAS

13.4%PACKAGE VOLUMES GROWTH IN Q3 2015

6.5%PARCEL VOLUMES GROWTH IN Q2 2015

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> AMERICASwas up US$0.86. In the second quarter of 2014, UPS reported diluted earnings per share of US$0.49, which included a US$665m after-tax charge for the transfer of certain post-retirement liabilities to defined contribution healthcare plans.

Total company shipments increased 2.1% over the second quarter last year to 1.1bn packages, led by US Deferred Air products and International Export shipments.

Source: UPS

UPS ACQUIRES COYOTE LOGISTICSUPS has acquired Coyote Logistics, a technology-driven, non-asset-based truckload freight brokerage company. The US$1.8bn acquisition adds large-scale full-truck-load (FTL) and other transportation management services to the UPS portfolio.

Coyote arranges customers’ freight shipments on available trucking capacity contracted to members of its large carrier network, numbering more than 35,000 trucking companies. Founded in 2006, Coyote reported annual revenue of US$2.1bn in 2014. Coyote will operate as a wholly owned subsidiary of UPS under the leadership of CEO Jeff Silver.

Source: UPS; UPS

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> ASIA PACIFICDHL EXPRESS AUSTRALIA OPENS €14M MELBOURNE GATEWAY FACILITYDHL has announced the opening of its new DHL Express Melbourne Gateway facility, representing a total investment of AU$20m (€14m), the largest infrastructural investment undertaken by the express unit in Australia to date.

It identifies ‘five key outbound trade lanes’ that will benefit from the new facility: China, Hong Kong, New Zealand, Singapore and USA.

Source: CEP-Research

DHL ROLLS OUT INTERCONNECTING ROAD FREIGHT NETWORK BETWEEN FIVE ASIAN CITIESProvided under DHL AsiaConnect’s Less-than-Truckload (LTL) service, the five-city road network offers a seamless interconnecting delivery service with improved time and cost efficiencies and a consistent service quality regardless of the destination. DHL AsiaConnect was launched in 2011 connecting Singapore, Malaysia and Thailand and now links to the existing Vietnam-China connection.

As a viable alternative to other transportation modes, road freight provides a more cost-effective option than air freight and fast shipping than sea freight. DHL’s road freight network features GPS-equipped trucks to ensure customer goods are monitored for safety and tracked every step of the way, providing complete supply chain visibility.

Source: CEP-Research

DHL SUPPORTS THIRD RUNWAY FOR HONG KONG AIRPORTDHL wants work to start as scheduled next year on a HK$140bn (€16bn) project for a third runway at Hong Kong International Airport to ensure the territory’s position in Greater China’s dynamic air cargo market, particularly boosted by the surging demand of e-Commerce and high-value perishables.

Hong Kong International Airport, home to the DHL’s Central Asia Hub, aims to start work in 2016 on the project, which will cover not only a new runway but also an expanded Terminal 2 and related operational facilities, with completion scheduled for 2023. It would increase the airport’s passenger capacity by 30m per year.

Source: CEP-Research

DHL EXPRESS OPENS NEW GLOBAL QUALITY CONTROL CENTRE IN SINGAPOREDHL Express has opened a new facility in Singapore that will combine a range of global operational activities, following the company’s €85m investment in a new South Asia hub at Singapore Changi Airport, announced earlier this year.

The global service quality team at DHL is responsible for setting and driving quality standards within the DHL global network, with the aim to enhance customer satisfaction through continuous improvement.

DHL has been deploying the Quality Control Centres since 2007 within the Asia-Pacific region. They provide real-time tracking capabilities for individual shipments, flights and truck movements.

Source: CEP-Research

DIGITAL SIGNATURE SERVICE SECURED SIGNING JOINS REALMERealMe, New Zealand’s foremost online ID backed by the Government and New Zealand Post, has signed a new agreement with Secured Signing.

> ASIA PACIFIC

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> ASIA PACIFICSecured Signing runs a cloud-based (Software as a Service) digital signature that enables its users to utilise smartphones, PCs and tablet devices to capture their signature, allowing them to fill in and verify documents anywhere, anytime.

Source: New Zealand Post

CHINESE E-COMMERCE GROUPS ALIBABA AND JD.COM INVEST IN RETAIL STORES AND SPEED UP DELIVERIES

China’s leading e-Commerce groups Alibaba and JD.com will speed up deliveries across the country through their latest large-scale investments in ‘offline’ retailers.

The groups will separately invest billions in minority stakes in two

large retail chains, boosting their ‘online-to-offline’ (O2O) business and creating new opportunities to improve their logistics capabilities and deliver faster to customers.

Alibaba announced the RMB 28.3bn (US$4.6bn) acquisition of a 20% stake in Suning, one of the largest consumer electronics retail chains in China with 1,600 physical retail stores in 289 cities. Alibaba said the strategic collaboration, covering commercial

activities and logistics, “marks a milestone that signals the further integration of digital and offline retail”, enabling the two groups to combine online and offline shopping and customer service. In the area of logistics, Suning will become a partner of Cainiao, Alibaba’s logistics affiliate, and link up its nationwide network with that of Cainiao.

Meanwhile, leading rival JD.com will invest RMB 4.3bn (US$700m) in a 10% stake in Yonghui Superstores, a leading hypermarket and supermarket operator in China. The two companies have formed a strategic partnership to strengthen their supply chain management capability primarily through joint procurement, and will continue to explore development opportunities in O2O initiatives and other areas of potential strategic cooperation.

Source: CEP-Research

SINGPOST ACHIEVES RECORD REVENUE AND NET PROFITS IN Q1Singapore Post generated record revenues and net profits in the April–June first quarter of its 2015/16 financial year thanks to strong growth in e-Commerce and logistics.

The group’s revenue increased 20.7% to SG$254.6m while operating profit was 14.5% higher

at SG$57.7m due to a combination of steady business operating performance overlaid with profit contribution from one-off gains from divestments. Net profit improved by 15.8% to SG$46.6m and the underlying net profit rose 8% to SG$40.3m.

Revenue from Logistics, which also includes SingPost’s eCommerce logistics business operations, grew strongly by 43.6% to SG$140.1m. This growth along with the corresponding 74.6% improvement in operating profit from Logistics reflect both the growing demand for eCommerce logistics as well as SingPost’s progress in expanding its share in this growing market. Retail & eCommerce was higher by 5.6% while mail revenue grew 1.6% to SG$125.1m.

Source: CEP-Research

AUSTRALIA’S SENDLE PARTNERS WITH TOLL FOR DELIVERIESAustralian start-up parcel operator Sendle is teaming up with freight and express company Toll Group to extend its range of delivery services.

20.7%REVENUE GROWTH

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> ASIA PACIFICSendle, which targets SMEs in competition to Australia Post, now offers delivery through Toll Consumer Delivery as well as courier firms Fastway and Singapore Post-owned Couriers Please, local media reported.

Source: CEP-Research

TOLL GROUP BUILDS AU$228M LOGISTICS HUB IN SINGAPORE

Australia’s Toll Group has started work on a AU$228m (€151m) logistics hub in Singapore to strengthen its Asia network in its first major international move since being acquired by Japan Post.

The five-storey 100,000 m² building, known as ‘Toll City’, will be an integrated warehouse near Tuas Port offering state-of-the-art automated supply chain management services upon completion in mid-2017. Some of the high-tech options being reviewed for the Toll City development include high-speed unit picking, voice picking and intelligent conveyor systems. The new hub is complemented by energy-efficient initiatives including rain water harvesting and energy monitoring.

Source: CEP-Research

FEDEX LAUNCHES TEMPERATURE-CONTROLLED SERVICES IN CHINAFedEx Express has launched ‘one-stop’ cold-chain solutions targeting especially healthcare customers in China with convenient and reliable temperature-controlled shipping services.

The outbound FedEx International Priority and domestic Priority Delivery services in China now offer two new packaging solutions: Gel-pack Temperature-Controlled Package and FedEx Cold Shipping Package. With three temperature ranges between -20–0°C, 2–8°C and 15–25°C, the services will benefit industries that require refrigeration for their shipments, particularly the healthcare industry.

According to China Customs statistics, the export of pharmaceutical products continues to rise, with a year-on-year increase of 3.1% during the first six months of this year. By some estimates, 25% of all healthcare products are temperature-sensitive while more than half of the top 50 best-selling drugs will require cold-chain transportation by 2016.

Source: CEP-Research

FREIGHTWAYS POSTS RECORD REVENUE WITH GROWTH ACROSS BUSINESS DIVISIONSNew Zealand express delivery group Freightways Limited has announced record revenue of NZ$479m for the financial year ended 30 June 2015, an improvement of 11% on the previous year, with growth across its business divisions. This yielded net profit after tax and before amortisation (NPATA) of NZ$51.3m, when excluding non-recurring items, up 17%.

The express package & business mail division, which operates a multi-brand strategy in the domestic market through New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express, Stuck, Pass The Parcel, DX Mail and Dataprint, reported operating revenue of NZ$360m for the year, 8% higher than a year earlier.

EBITDA of NZ$68m and EBITA of NZ$62m were both 13% higher than a year earlier. These earnings amounts exclude NZ$8m of non-recurring charges associated with the write-down in the carrying value of the existing Convair fleet of aircraft and related parts and the transition from that fleet.

Source: CEP-Research

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> EUROPEGLS DELIVERS PARCELS ACROSS EUROPE FOR ISRAEL POSTGLS now delivers parcels for Israel Postal Company Ltd. (Israel Post) throughout Europe under a new cooperation agreement.

The cooperation between Royal Mail’s European parcels subsidiary and the Israeli postal operator began in May, initially for Israeli B2B deliveries. Bilateral expansion of the collaboration is planned, GLS said.

The next level of cooperation between the two companies includes development of an inbound service to Israel through GLS and a pick-up solution from EU countries to Israel.

Source: CEP-Research

AUSTRIAN POST REPORTS SLIGHT REVENUE INCREASE IN FIRST HALF 2015Austrian Post improved operating profits in the first half of 2015 on flat revenues and higher mail profits, with good parcels growth in Austria and South-East Europe compensating for a downturn at subsidiary trans-o-flex.

Over the first six months of 2015, EBIT was down 2.3% year on year at €96.5m while revenues increased slightly by 0.6% to €1.18bn in the first half. Revenue growth of 2.4% in the parcel segment more than offset the slight decline of 0.4% in the mail business, which continues to be affected by the ongoing electronic substitution of traditional letter mail by electronic forms of communication. The volume of addressed direct mail items declined in contrast to the rise in addressed mail volumes.

The Austrian parcels business, accounting for 37% of H1 revenues, grew well with revenues up by 8.3% in the first six months. The trend towards increased e-Commerce is continuing in the parcel segment, leading to further growth of parcel volumes in Austria. At the same time, it is evident that competition is intensifying, a development Austrian Post is dealing with by making on-going investments at the customer interface.

Source: Austrian Post; CEP-Research

BPOST SECOND-QUARTER RESULTS SHOW DIP IN REVENUES DESPITE STRONG PARCELS VOLUMES GROWTHbpost’s operating income (revenues) for the second quarter of 2015 was €597.6m, down 2.6% year on year, due to elections in 2014, lower SGEI compensation, the management’s decision to curtail some International Mail activities and bad performance in Advertising Mail. However, the postal operator reported very strong parcels growth.

Underlying Domestic Mail volume declined -6.1% year on year due to weak performance in the Advertising Mail segment.

Domestic Parcels volumes were up 12.6%, driven by strong e-Commerce growth and a continued positive trend in the C2C segment. Revenues were impacted by a negative price/mix effect of -3% but to a lesser extent than in the first quarter of 2014. International Parcels up €9.3m.

Source: bpost; CEP-Research

> EUROPE

The trend towards increased e-Commerce is continuing in Austrian Post’s parcel segment.

”12.6%DOMESTIC PARCELS GROWTH

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> EUROPEESTONIA’S OMNIVA ADDS MORE PARCEL TERMINALS AS VOLUMES RISEEstonian postal group Omniva (formerly Eesti Post) increased its revenues by 19% to €34m in the first six months of 2015 and it made a small net profit of approximately €0.8m.

In the first six months of 2015, the volume of parcels sent by Omniva in the Baltic States increased by 10%. The largest increase occurred in the number of parcels sent by parcel machines,

approximately by 50%. As a result of these business developments, Omniva is investing in more self-service parcel terminals in the Baltic States as its parcels business continues to grow strongly driven by e-Commerce in the three countries.

At the same time, the number of domestic letters in Estonia decreased by 16%. Approximately 86% of letter volumes are invoices sent by companies and institutions which are more and more often sent through electronic channels. Within the past six months, the

volume of the universal domestic letter service has decreased by 18%, impacting on company profits. However, the volumes of advertising mail increased by 13% in the first half of this year, supported by the elections of the Estonian Parliament in March. In parallel, Omniva is processing rising numbers of e-invoices, with sales invoices doubling and purchase invoices up by 30%.

Source: CEP-Research

LA POSTE HALF-YEAR PROFITS SOAR 44% ON HIGHER MAIL, PARCELS AND BANKING RESULTSLe Groupe La Poste (La Poste) unveiled a major improvement in half-year profits driven by strong growth in international parcels, a turnaround in mail profits and continuing high banking profits as well as by cost savings, and announced plans for a 3.6% rise in mail prices next January.

The French group’s revenues grew by 4.5% to €11.46bn, which was 3% on a like-for-like basis, in the six months ending in June. Operating profits soared by 44% to €616m, pushing the group’s operating margin up by 1.5 percentage points to 5.4%. Net profits came in 32% higher at €424m.

Looking ahead, La Poste said in 2015, which it has termed its ‘rebound year’, it expects group revenues to grow about 3%, a higher operating profit and a substantial improvement in cash generation. The improvements will be driven by business growth, higher mail prices and cost controls.

Source: CEP-Research

GLS GERMANY LAUNCHES MOBILE PARCEL LABELGLS Germany has upgraded its mobile app enabling customers to create a digital parcel label with a special QR code from everywhere without having to print it out.

With the new upgrade, users of the GLS mobile app, available for iOS and Android devices, can generate the parcel label with a QR code on their smartphones and save it.

Once customers hand in their parcel at one of the GLS parcel shops in Germany, the parcel shop employee scans the QR code of the mobile parcel label and prints it. In case the address is not correct or another recipient is needed, the data on the label can still be changed before printing.

Source: CEP-Research

50%VOLUME GROWTH FOR PARCELS SENT BY PARCEL MACHINES

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> EUROPEDIGITALISATION SET TO TURBOCHARGE LOGISTICS CHAINS, GERMAN SMES SAY

Almost three-quarters of small and medium-sized enterprises in Germany use or are planning to incorporate digital technology within their logistics processes according to research commissioned by FedEx Express.

The study, which surveyed 501 SMEs across Germany, found that almost six out of ten view digital logistics processes – such as automatic product tracking or automatic route planning – as relevant in being able to keep pace with changing market requirements and the demands of their customers. Cloud technology is perceived to be the new technology that is most relevant in driving more efficient logistics chains and service improvements in the coming years, based on feedback received from customers by the SMEs surveyed.

Source: CEP-Research

HERMES AND DPD GERMANY LAUNCH APPLE WATCH APPSGerman parcel carriers Hermes and DPD are stepping up their innovations with new apps for Apple Watch devices. Hermes Germany has developed its own app for the Apple Watch providing the most-demanded services including the digital parcel label, while DPD Germany made its mobile label also available for the Apple Watch via the Passbook app.

The Apple watch app of Hermes Germany can now be downloaded from the Apple AppStore free of charge. It includes a ‘parcel shop finder’ with navigation function, latest company news about services and products, online shipment tracking and mobile parcel labels.

DPD Germany has also made its mobile parcel label available on the Apple Watch through a convenient interface with the Passbook app even though it has not launched a dedicated smartwatch app as Hermes did. Customers including small and private shippers who want to use the service need to pay for their parcels via DPD’s online platform ‘DPD Web Parcel’ dpdwebpaket.de per PayPal or debit note. They will then get a mobile 2D-code as an alternative to the physical parcel label which they previously had to print out.

Source: CEP-Research

DPD COMPLETES NATIONWIDE SATURDAY DELIVERY ROLL-OUT ACROSS GERMANYDPD has completed the roll-out of its Saturday delivery service across Germany turning Saturday into a ‘normal delivery day’ for 100% of private recipients in the country as it anticipates strong volume increase in B2C shipping in the future.

The company started rolling out Saturday deliveries in May last year after a successful trial phase. By September 2014, the service had been made available to around 30% of the country’s population and in the spring of this year its nationwide roll-out was poised for completion. By May 2015, more than 80% of all consignees in Germany were getting their parcels delivered by DPD on a six-day per week basis in both rural and urban areas. In the final stage of the roll-out, DPD has now established six-day deliveries in the country’s remaining cities and regions to ensure every single household in Germany can profit from the service.

DPD Germany explained that the six-day delivery service enables faster and more efficient deliveries to private consignees throughout Germany as they are much more likely to be reached at home on Saturdays than during the working days.

Source: CEP-Research

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> EUROPEPOSTE ITALIANE IMPROVES HALF-YEAR PROFITS AS IPO APPROACHESPoste Italiane improved operating profits by 26% in the first half of 2015 driven by growth in financial and insurance services as well as rising parcel volumes as it gears up for a planned IPO in the autumn.

In the first half of this year, Poste Italiane increased operating profits by 26% to €638m while net income nearly doubled to €435m from €222m, driven by higher

revenues and lower costs. Group revenues rose by 7% to €16bn as growth in high-margin financial and insurance services continued to outweigh the decline in traditional postal services.

The financial and insurance services units both improved their half-year results. The financial services division increased revenues to €2.9bn and improved operating profits significantly by 49% to €468m. The insurance services business increased premiums by 15% to €9.4bn and its operating profit rose by 7% to €236m. In contrast, the Postal Services division

reported a 6.5% drop in half-year revenues to €1.9bn, although this was a slower decline than the 9% seen in the first half of last year. In addition, the group generated moderate growth in parcels with revenues up by 4.4% to €280m and volumes up by 9% to 40m thanks to the growing e-Commerce market.

The Italian government aims to sell off a 40% stake in the state-owned postal group in late October or early November to raise up to €4bn to help reduce the country’s heavy public debts.

Source: CEP-Research; CEP-Research

POSTNL REACHES AGREEMENT ON MANAGEMENT BUY-OUT OF WHISTLPostNL and management of Whistl have reached an agreement on the main conditions of a management buy-out of Whistl following PostNL’s strategic review of its activities in the UK. The review concluded that a management buy-out is in the best interest of all stakeholders. This transaction will allow Whistl to develop its current profitable activities and strengthen its position in the UK.

The transaction is expected to close later this year. As part of the transaction PostNL will retain 17.5% of the shares in Whistl and will continue supporting the business as a shareholder. The transaction is expected

to negatively impact PostNL’s consolidated equity by between €20m and €25m.

Source: PostNL; Whistl

POSTNL POSTS SOLID Q2 RESULTS AND RECONFIRMS FULL YEAR OUTLOOKPostNL has turned in what it describes as solid second quarter results with stable revenue at €824m, while operating income fell 7% to €77m on the corresponding quarter last year. The company’s addressed mail volume declined by 11.2% but parcel volumes grew by 7.1% and international business was up 8%.

Commenting on the Q2 results, Herna Verhagen, CEO of PostNL, said: “Overall, the second quarter performance further solidified the base for delivering the full year outlook. We reconfirm that the second half year will be better than last year, helped by extra working days in the last quarter and the phasing in cost savings and volumes. We remain on track to achieve our outlook for 2015.”

Verhagen noted “the continued satisfactory progress” in PostNL’s financial positon. PostNL is expecting a

26%INCREASE IN OPERATING PROFITS IN H1 2015

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> EUROPEfull-year underlying cash operating income between €280m and €320m. As a result of the progress made on the strategic review of International, management classified the activities in the United Kingdom as ‘discontinued’ at half year-end, the Dutch group stated.

Source: CEP-Research; PostNL

TNT Q2 REVENUES AND PROFITS IMPROVE AS BUSINESS PICKS UPTNT reported improved revenues and profits for the second quarter of 2015 as trading conditions improved slightly in Europe and it generated higher sales from SMEs, offsetting lower China volumes.

The Dutch company reported second-quarter revenues of €1.76bn, up 6.2% year on year, and an operating profit of €19m, compared with €3m in the second quarter of 2014. Adjusted for positive currency effects, which increased revenues by 4.1%, the negative impact of lower fuel surcharges, which lowered revenues by 1.3% and disposals (-0.6%), TNT’s underlying revenue growth for the period was 4.1%, driven by the continued growth of revenues from SMEs.

Adjusted operating profit was €41m in the second quarter, €29m below last year. Profitability was affected by IT transition and Outlook project costs (€15m), costs to introduce new services and facilities, as well as pricing pressures. Operating profits for the second quarter of 2015 includes €22m of restructuring and other charges.

TNT is stepping up investments in its network and pressing ahead with its Outlook strategy as the planned €4.4bn acquisition by FedEx progresses, CEO Tex Gunning told journalists during the company’s Q2 results press call.

Source: CEP-Research; CEP-Research

TNT LAUNCHES FLIGHTS TO TUNISIATNT today launched five weekly flights between its main European air hub in Liege and Tunis, the capital city of Tunisia, in its latest new air service in the Mediterranean region.

The flight to Tunisia is the latest of a series of service improvements made by TNT under its Outlook strategy. In recent months, TNT also added Malta, Tel Aviv, Venice and Hannover to its air network.

Source: CEP-Research

DEUTSCHE POST DHL REPORTS SLUMP IN Q2 PROFITSDeutsche Post DHL’s second-quarter operating profits slumped by 18% and net profits by 29% due to €100m worth of lost profits caused by the recent postal strike as well as by freight forwarding restructuring costs, forcing the group to downscale its full-year 2015 financial guidance.

DP DHL’s group EBIT dropped by 18.1% to €537m in the April–June 2015 quarter and net profit was down 29.3% at €326m. Group revenue, including positive currency effects, grew by 7.3% to €14.7bn. Adjusted for these effects, organic revenue was only 0.6% higher, with growth held back by declines in the Post segment, mainly due to the strike action, as well as lower fuel surcharges in the DHL divisions.

To reflect the one-off earnings impact of €100m from the postal strike, Deutsche Post DHL Group has adjusted its 2015 guidance downwards, with

29%YEAR-ON-YEAR DECREASE IN NET PROFITS

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> EUROPEEBIT for the full year now expected to reach between €2.95bn and €3.1bn. The previous forecast had been for Group EBIT between €3.05bn and €3.2bn. PeP is now expected to generate operating earnings of at least €1.2bn in 2015, while the forecast of €2.1bn to €2.25bn in EBIT for the DHL divisions remains unchanged.

Source: CEP-Research; Deutsche Post DHL

POSTNORD REPORTS H1 PROFITS GROWTHPostNord reported a modest second-quarter revenue increase to a backdrop of e-Commerce growth and falling mail volumes, along with a return to profit thanks to a property sale. Over the first half-year, revenues were down by 1% to SEK 19,699m (-2% like-for-like) while operating profits increased to SEK 345m against the SEK 76m posted in the second quarter of 2014. The net profit reached SEK 593m compared to SEK 24m a year earlier.

The profit improvement incorporates a capital gain of SEK 500m from the sale of a property in central Copenhagen at the end of June.

Commenting on the Q2 results, PostNord’s President & Group CEO, Håkan Ericsson, noted that e-Commerce had displayed strong growth in contrast to mail volumes which continued to fall, especially in Denmark. Implemented restructuring programmes had

improved profit, he added. In the wake of continued digitisation, mail volumes continued to decline, especially in Denmark. In total, mail volumes declined by 9% in the quarter, of which 15% in Denmark and 7% in Sweden.

Source: CEP-Research; PostNord

RUSSIAN POST TO INVEST NEARLY €1BN IN INFRASTRUCTURE BETWEEN 2015 AND 2017Russian Post plans to invest RUB 68.6bn (€961m) by 2017 to improve its infrastructure as part of its on-going modernisation programme.

The Russian postal operator will spend over RUB 10bn (€140m) on infrastructure this year, nearly RUB 30bn (€420m) in 2016 and a further RUB 28bn (€392m) in 2017, after investment of RUB 8.44bn (€118m) in various areas last year.

In 2014, the company spent RUB 1.69bn (€23.67m) on the modernisation of postal services. In particular, RUB 736.6m (€10.32m) were spent on construction works, a 30% increase on 2013. Investments in the development of information and technological infrastructure amounted to RUB 2.4bn (€33.63m), which is 9% more than in 2013.

Source: CEP-Research

DPD RUSSIA EXPANDS PARCEL DELIVERY SERVICES, STARTS OPERATIONS IN ARMENIADPD Russia has launched various new parcel delivery services for customers, including the addition of China to its DPD MAX service and the distribution of parcels via Logibox terminals. It has also started operations in Armenia which joined the Eurasian Customs Union in January 2015.

As part of a strategy to further develop its international delivery services, the company has expanded the DPD MAX service which until now has been offering transportation of palletised goods from 15 European countries to Russia.

As an additional service, DPD Russia started distributing parcels via Logibox, a national network of automated postal terminals for receiving and handing in shipments, as it continues to expand its network of collecting and delivering parcels. Beyond receiving goods at home or via the DPD service points, customers can now also get their parcels from one of the 125 Logibox postal terminals called ‘pochtomats’ in Russian.

Source: CEP-Research

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> EUROPEHERMES BUYS OUT DPD TO TAKE CONTROL OF RUSSIAN JOINT VENTUREGermany’s Hermes is targeting faster growth on the booming Russian e-Commerce market by taking full control of its former joint venture with DPD. The Hamburg-based parcel and logistics group acquired DPD’s 49% stake in the Russian company. The acquisition price was not disclosed. Hermes first entered the Russian market in 2010 and set up the joint venture with DPD in 2012.

Explaining the move, Hermes said full ownership will “accelerate the integration of the company into Hermes’ Continental Parcel Network”, the European B2C parcels network set up last year.

Source: CEP-Research

RUSSIAN POST MULTIPLIES INTERNATIONAL PARCEL VOLUMES BY 1.5 TIMES IN H1 2015Russian Post has multiplied its international parcel volumes (including small packages) by 1.5 times, shipping 49m items in total during the first half-year of 2015, compared to the same period in 2014, mainly due to the increased number of orders from internet shops. This was even a threefold increase compared to the first half of 2013.

Thanks to optimising its logistics processes and developing the electronic data exchange, Russian Post was able to considerably reduce the delivery times of international shipments over the last two years. To continuously speed up the delivery times, Russian Post is developing services for the last mile.

Source: CEP-Research

AUSTRIAN POST SELLS SLOVAKIAN MAIL SUBSIDIARYAustrian Post has sold its fully owned subsidiary Kolos s.r.o. in Slovakia to Cromwell a.s., an alternative Slovakian postal services provider.

Kolos s.r.o. was founded in 1995 and was acquired by Austrian Post in 2006. In 2014 Kolos s.r.o. delivered more than 470m unaddressed direct mail items as well as 9.9m addressed direct mail items and letters.

Source: Austrian Post

ROYAL MAIL SAMEDAY LAUNCHES ONLINE BOOKINGRoyal Mail Sameday – the premium service for guaranteed delivery within the same day – has launched a new website, www.royalmailsameday.com, enabling businesses and consumers to quote and book online for courier services almost anywhere in the UK.

Sameday is now open to businesses and consumers as a pay-as-you-go service which can be booked online using a credit or debit card, without the need for an account. The new online system removes the need for users of the Sameday service to make their bookings over the telephone.

The Sameday on-demand service can be ordered anytime, day or night, seven-days-a-week, 365 days a year, to almost anywhere in the UK. Royal Mail extended access to its trusted Sameday collection and delivery services in response to demand from SMEs, marketplace sellers and consumers who wanted guaranteed delivery for urgent items. Research from MetaPack reveals that same-day delivery is the service that UK consumers are most likely to use in the future.

Source: Royal Mail Group

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> EUROPEROYAL MAIL’S ADDRESS MANAGEMENT UNIT GETS INVESTORS IN PEOPLE GOLD AWARDRoyal Mail’s Address Management Unit (AMU) has achieved the highly sought-after Investors in People Gold Award – the first business unit within the company to achieve such recognition. The AMU team manages Royal Mail’s address databases, including the Postcode Address File.

Fewer than 10% of organisations working with Investors in People in the country have been awarded the Gold standard, which recognises best practice in areas such as learning and development, leadership skills and staff recognition.

Source: Royal Mail Group

GEOPOST-OWNED FREIGHT GROUP TIGERS EXPANDS THROUGH UK ACQUISITIONHong Kong-based freight group Tigers, majority-owned by Le Groupe La Poste division GeoPost, is expanding in the UK following its recent takeover of Signet International. Tigers, which is expanding internationally as part of GeoPost’s worldwide growth strategy, paid €10m for the British company.

The Hong Kong-based company, which offers

worldwide air and ocean freight forwarding through a network of branches and partners, has already made other acquisitions in recent months, including WorldLink, a Western Australian logistics firm, Melbourne-based logistics firm Supply-LINQ, and South African freight forwarder LWW.

Tigers is a US$800m company headquartered in Hong Kong specialising in global supply chain solutions including B2C e-fulfilment services, perishable cargo and B2B freight management enabled by leading edge information technology. GeoPost bought a 63.75% majority stake in the firm in 2013.

Source: CEP-Research

UK MAIL SLASHES PROFIT FORECAST DUE TO ‘WRONG-SHAPED PARCELS’UK Mail has issued a profit warning for this year because a high proportion of its parcels cannot be automatically sorted at its new central hub, forcing them to be handled manually at additional cost. In the year ending March 2015, UK Mail increased revenues by just 0.8% to £485.1m while pre-tax profits slipped 3.8% to £21m.

The company opened its hub at Ryton, near Coventry in central England, several months ago and started to roll out new automatic sorting technology that was

supposed to reduce operational costs and increase service levels. It is investing a total of some £35m in the new hub, including £20m in sorting systems, to increase automated sorting to 80% of parcels from just 20% in the past.

In contrast, the company said its Mail business continues to perform well, with volumes up by some 6% during the first four months of the new financial year thanks to new customers, while the packets initiative also continues to make good progress, with a strong pipeline of opportunities in this market.

Source: CEP-Research

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IN THIS ISSUE

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> NEWSNEWS• Royal Mail targets m-commerce• DHL to establish parcel network in Austria by 2016• Alibaba and Unilever sign strategic partnership agreement• Royal Mail enhances its online tool for SME• PostNord expands its parcel delivery capabilities in Finland• Dutch e-retailer enters same-day delivery• MyMalls launches ‘24-hour’ delivery to Caribbean & Latin America with DHL• UPS Access Point network expands• Amazon records a 266% rise in number of orders on Prime Day• Amazon UK expands one-hour Prime Now delivery to Birmingham• Rakuten and Yamato team up to improve Japanese e-Commerce delivery

services

RESEARCH• The challenge of omni-channel in retail• B2C and international shipments drive growth for German CEP market• German e-Commerce continues double-digit growth in Q2 2015• Young German e-shoppers want rapid and free delivery, survey finds

CASE STUDIES• Flexible service with Royal Mail Collections

ROYAL MAIL TARGETS M-COMMERCEUK postal operator Royal Mail has bought a stake in Mallzee, a personal shopping app which offers customers a wide choice of over 100 fashion brands. The app works as an additional sales channel for clothing retailers, who represent one of fastest-growing and largest market sectors for parcel shipping.

Royal Mail said its investment in Mallzee reflects the increasingly technology-driven nature of the delivery market and helps align its business with the rapid growth in consumer purchases made from mobile devices and developments in shopping apps. This enables the company to generate new, high-growth revenue streams further up the value chain, complementing Royal Mail’s existing parcel services.

Mallzee brings together more than 2m fashion items from over 100 retailers enabling shoppers to browse, use the function ‘favourite’ to select preferred items and buy any of the clothes from a single app. Based on these preferences, the app delivers personalised style recommendations to the user. The postal operator confirmed the acquisition of Mallzee’s newly issued shares is part of a £2.5m fundraising by Mallzee to further develop the business. The financial terms of the transaction were not disclosed. Together with its acquisition of Storefeeder, a multi-channel e-Commerce software for retailing, in February 2015, the investment in Mallzee is part of Royal Mail’s continued focus on digital innovation, with the possibility for new retailers to join the platform.

> NEWS

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> NEWSAccording to Royal Mail’s Delivery Matters 2015 report, 37% of the UK online shoppers used a mobile device to make an online purchase in the last three months, up from 35% in 2014. A separate study from Forbes published in January 2015 showed that shopping apps are the fastest-growing app category. Sessions on shopping apps on iOS and Android devices increased by 174% year on year.

Source: Royal Mail

DHL TO ESTABLISH PARCEL NETWORK IN AUSTRIA BY 2016

To better exploit e-Commerce’s potential to drive growth in Europe, DHL Parcel plans to expand its service portfolio in Europe by

establishing its own parcel network in Austria by 2016. DHL stated it will

be the first service provider to precisely tailor both its infrastructure and its services to the requirements of e-Commerce. After the Benelux countries, Poland, the Czech Republic and Slovakia, Austria will be the latest market to be tapped by the European parcel division launched last year by Deutsche Post DHL Group.

DHL’s plans call for investments in infrastructure as well as in setting up recipient services such as parcel shops and Packstations. Additional delivery options are to follow, enabling Austrian consumers to satisfy their individual needs by making their own choices about how to receive their parcels.

Source: Deutsche Post DHL

ALIBABA AND UNILEVER SIGN STRATEGIC PARTNERSHIP AGREEMENTAlibaba Group and Unilever China signed a strategic partnership agreement due to be officially launched in July 2015. As part of this agreement, Alibaba Group and Unilever will jointly innovate in big data analytics application, cross-border e-Commerce, and supply chain management.

Alibaba and Unilever have already been working together since 2015. With the new strategic partnership, the two companies will undertake to strengthen cooperation to expand distribution channels, especially for consumers in rural areas to enjoy more convenient access to Unilever products. Moreover, the two partners will further develop cross-border e-Commerce cooperation and expand the Tmall Global Unilever store.

The two will also expand the application of big data to optimise Unilever’s digital advertising strategy through Alimama, Alibaba’s online marketing business, and reach more consumers through online-offline retail integration. Lastly, Alibaba and Unilever have committed to developing innovations in supply chain management and offline distribution models.

Source: Post & Parcel

ROYAL MAIL ENHANCES ITS ONLINE TOOL FOR SMEClick & Drop, Royal Mail’s online tool for SME and consumer shipping, is adding multi-label postage and printing as well as international delivery services to over 200 countries and territories worldwide.

The launch of multi-label postage and printing enables marketplace sellers to buy and print postage for up to five items at once, meeting the needs of SME e-retailers. According to a survey by Royal Mail, 24% of SME e-retailers plan to start using online marketplaces to increase sales in 2015. It also reflects the popularity of marketplaces among consumers, with 83% of online shoppers now buying from such e-Commerce sites, Royal Mail said.

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> NEWSWith its marketplace integration, Click & Drop imports sender information directly from the marketplace, removing the need for manual data entry and reducing the risk of mis-delivery. Click & Drop payment is accepted via PayPal, debit and credit card, making it even easier for online sellers to ship their products using Royal Mail.

Royal Mail’s international products can now also be purchased through Click & Drop. Senders can choose from a range of Royal Mail products including International Tracked & Signed, International, as well as International Standard for cost-effective overseas delivery.

With Click & Drop users can post their items directly in a Royal Mail postbox or drop them off a Post Office branches.

Source: Royal Mail

POSTNORD EXPANDS ITS PARCEL DELIVERY CAPABILITIES IN FINLANDIn June 2015, PostNord agreed to acquire Uudenmaan Pikakuljetus (UPK) from DSV Road. The acquisition significantly enhances PostNord’s position in Finland regarding domestic parcel deliveries, scheduled deliveries, healthcare and e-Commerce logistics, as well as temperature-controlled transport services.

The acquisition is also part of the PostNord’s strategy to strengthen its position in Finland, increasing PostNord’s Finnish operations by approximately a third. The acquisition requires the approval of the Finnish Competition and Consumer Authority which PostNord expects the acquisition to be fully concluded by the beginning of September.

UPK mainly specialises in nation-wide express parcel deliveries as well as scheduled and temperature-controlled transport services In 2014, the Finnish company had a turnover of approximately €24m.

Source: PostNord

DUTCH E-RETAILER ENTERS SAME-DAY DELIVERYMajor Dutch online retailer bol.com launched a new low-cost same-day delivery service offering shoppers the option of picking up their goods from one of 200 convenience stores across the Netherlands and Belgium within hours of ordering. The new service started in almost 200 selected Albert Heijn stores in the Netherlands, as well as seven pick-up points in Belgium; there are plans to expand in the future.

Orders placed before noon on weekdays can be delivered to the pick-up point no later than 5pm. Bol.com launched the service with an introductory

rate of €1.99 per order to encourage customers to try out the new service. For this service, Bol.com partnered with Dutch company Same Day Express; for other orders, the company works mostly with PostNL.

Source: bol.com, CEP-Research

MYMALLS LAUNCHES ‘24-HOUR’ DELIVERY TO CARIBBEAN & LATIN AMERICA WITH DHLMiami-based international e-Commerce retailer MyMalls launched a 24-hour delivery service to online buyers in the Caribbean and Latin America in cooperation with DHL Express.

The new service connects over 650 fashion and electronic web stores in the USA with international shoppers via a dedicated retail shipping website. Shoppers in the Caribbean and Latin America can register on Mymalls.com and get a free US shipping address in the form of a customer suite in the MyMalls warehouse at Miami. This helps customers buy even from e-Commerce stores that do not ship outside US and also reduces the shipping charges by a considerable margin. Once an item reaches the MyMalls warehouse, the customer receives

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> NEWSan alert and can then pay the overseas shipping charges online. Customers can consolidate up to three different parcels into one single shipment, thus reducing shipping costs.

DHL Express picks up the shipment from MyMalls warehouse and delivers it to the customer’s doorstep after collecting the import tax and VAT. The delivery is executed within 24 hours of receiving the item at the Miami warehouse, the retailer said.

Source: CEP-Research

UPS ACCESS POINT NETWORK EXPANDSUPS is expanding the UPS Access Point™ network, a local solution for consumers and small businesses who need convenient access to UPS. By the end of 2015, UPS expects to have more than 8,000 UPS Access Point locations in the US and 22,000 globally.

UPS Access Point locations offer convenient package pick-up and drop-off. UPS Access Point locations are local businesses, primarily neighbourhood convenience and grocery stores, dry cleaners and delicatessens with extended evening and weekend hours. The delivery solution helps consumers receive their e-Commerce orders following the first home delivery attempt. Consumers can also use UPS My Choice® to manage their home deliveries and reroute their deliveries for free to a UPS Access Point location

prior to the first home delivery or select to have all of their deliveries taken directly to the location as their preferred delivery address.

Source: UPS

AMAZON RECORDS A 266% RISE IN NUMBER OF ORDERS ON PRIME DAYOn 15 2015, Amazon introduced a new global shopping event called Prime Day. The new event broke sales global records with a spectacular 266% increase in orders compared to the same day in 2014 and 18% more orders than generated on the platform on Black Friday in 2014.

Customers ordered a total of 34.4m items during the 24-hour shopping event that started at midnight on 15 July in the USA, UK, Spain, Japan, Italy, Germany, France, Canada and

Austria, and which was open exclusively for Amazon Prime members. This broke all Black Friday records with 398 items ordered per second. In addition, more new members tried the Prime programme on that day than any other single day in the company’s history.

Sellers on Amazon who use Amazon’s shipping service also registered record-breaking unit sales with nearly 300% growth. These sellers included local retailers and businesses of all sizes.

Source: Amazon, Walmart, CEP-Research

AMAZON UK EXPANDS ONE-HOUR PRIME NOW DELIVERY TO BIRMINGHAMAmazon UK has expanded its Prime Now one-hour delivery service to Birmingham after launching it in London over a month ago, with the aim to add other British cities later this year.

Now available in Birmingham and selected postcodes in surrounding areas, the ultra-fast service offers members of the Prime scheme one-hour delivery on over 20,000 items through a mobile app. Prime Now is available for a variety of items on the Amazon website including daily essentials such as coffee, batteries and nappies, as well as other popular items like games consoles, toys and sports equipment.

Prime Now customers can choose delivery within one hour of ordering for £6.99, or free delivery within a choice of two-hour, same-day delivery slots between 8am and midnight, seven days a week.

Source: CEP-Research

34.4MITEMS ORDERED IN 24 HOURS

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> NEWSRAKUTEN AND YAMATO TEAM UP TO IMPROVE JAPANESE E-COMMERCE DELIVERY SERVICESJapanese e-Commerce group Rakuten is launching a new commercial cooperation with leading domestic parcel carrier Yamato using the latter’s new e-Commerce logistics solutions to improve its delivery services and enhance customer convenience.

The two companies said their collaboration will improve convenience for Japanese e-Commerce customers using Rakuten Ichiba, the country’s largest internet shopping mall, by offering more pick-up locations, improving operational efficiency for e-retailers and supporting new merchants.

Under the cooperation between Rakuten and Yamato, Japanese online shoppers will be able to pick up goods bought on the Rakuten Ichiba marketplace at the approximately 20,000 convenience stores that have agreements with Yamato Transport, as well as approximately 4,000 Yamato Transport sales offices.

Rakuten has already developed a variety of services to support Japanese e-Commerce, including its online shopping mall Rakuten Ichiba, 17 branch offices throughout the country and in-depth support for businesses that operate stores on its marketplace.

The parcels business Yamato Transport has about 46% of the Japanese domestic parcel market, ahead of Sagawa Express (34%), Japan Post (12%), Seino Transportation (4%) and Fukuyama Transporting (3.5%), according to Japanese government figures.

Source: Rakuten, Yamato Holdings, CEP-Research

The two companies said their collaboration will improve convenience for Japanese e-Commerce customers.

”

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> RESEARCHTHE CHALLENGE OF OMNI-CHANNEL IN RETAILOmni-channel has been a buzzword in retail in recent years, yet providing a seamless shopping experience across all different channels is becoming more and more challenging. One reason for this is the huge increase of touch-points or points of contact the modern consumer has before purchase. According to a Webloyalty & Conlumino research from 2015 , the average consumer typically used around two touch-points during the purchase process and only 7% of consumers regularly used over four in 2000. Today, an average retail shopper uses just under five different touch-points, including stores, websites, dedicated apps, telephone order lines, catalogues, social media, etc.

Seamless shopping experience means that whether a customer is visiting the website from home to research a product, using the mobile app to ‘click and collect’ or walking into a local high-street branch to pick something up, the customer journey has to run smoothly and in very similar steps. For instance, should a regular high-street shop visitor decide to go to their retailer’s website, they should be able to see similarities between the website’s structure and design and those of the physical store, enhancing the user experience.

The purchase path online should also be as similar to the physical store’s as possible so that a purchase

can be processed fast and without any issues or hidden costs (in many cases, the delivery costs are only mentioned at the latest stage of placing an order, reducing the sales conversion). The key, however, is to ensure channels are not completely replicating each other, they have a different focus and set of business objectives.

The technologies enabling the omni-channel landscape in retail are capable of turning every touch-point, including offline environments and printed materials into online shopping environments and accountable sales vehicles. Advertising mail has proven to be a powerful physical touch-point that enables online engagement for retail customers using technologies such as Near Field Communication (NFC), BLE (Bluetooth Low Energy), QR codes and others. View examples of effective direct mail campaigns here.

Access the full report here.

Source: webloyaltyuk.com

B2C AND INTERNATIONAL SHIPMENTS DRIVE GROWTH FOR GERMAN CEP MARKETThe German CEP market grew by 4.5% to a total of 2.8bn shipments while revenues increased by 3.6% to €16.6bn, the study by KE Consult for the country’s Parcels and Express Logistics Association (BIEK) found. The average shipment price dropped to €5.98, continuing a steady downward trend in recent years, according to the study, which is based on company figures, market data, reports and other sources.

The parcels market continued to outgrow the express and courier segments in 2014, and now represents nearly 83% of the market in volume terms and 53% by revenue. Parcel volumes increased by 5.1% to more than 2.3bn items while revenues increased to €8.8bn.

International shipments, which represent about 10% of total parcel volumes, were a key growth driver, increasing by more than 10%. There was no detailed breakdown between B2B and B2C shipments, although international B2C volumes are known to have grown faster than B2B.

Domestic parcel volumes increased by 4.6%. The number of domestic B2C parcels rose by 7%, which is in line with German e-Commerce growth last year, and the segment now represents 54% of the German parcel market.

Today, an average retail shopper uses just under five different touch-points.

”

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> RESEARCHFor 2015, the BIEK study predicts similar growth of 4-4.5% in volumes. Domestic parcel volumes are expected to rise about 3.5-4%, with B2C growing by up to 5% and B2B by up to 3% while Express and courier volumes are expected to grow by up to 2.5%.

Source: BIEK; CEP-Research

GERMAN E-COMMERCE CONTINUES DOUBLE-DIGIT GROWTH IN Q2 2015E-Commerce in Germany continued double-digit growth in the second quarter of 2015 with a strong 14% increase in sales of physical goods to €10.8bn, following 10% growth in the first quarter, according to the German e-Commerce and distance-selling association bevh.

In terms of different shipper types, multi-channel retailers remain the clear winners profiting from the industry growth generating €4.3bn in revenues in Q2 2015, which corresponds to 35% of the overall revenues. The internet pure players could also increase their market share to 13%, up from 10% in Q2 2014, with revenues reaching €1.5bn. Online market places continue to lose market share with revenues growing 3.9% less than the overall e-Commerce trend. However, they still keep their dominant position with revenues worth €6bn accounting for 49% of the industry

revenues, down from 53% last year with €5.8bn.

Source: CEP-Research

YOUNG GERMAN E-SHOPPERS WANT RAPID AND FREE DELIVERY, SURVEY FINDSOnline shoppers in Germany aged 18-24 have especially high expectations when it comes to delivery of their orders, according to the latest survey by MetaPack, a leading supplier of shipment management solutions for e-commerce.

Conducted by the market research institute Now on behalf of MetaPack, the study focusing on delivery options showed that 41% of the young German e-shoppers surveyed value free delivery the most, while 34% consider rapid delivery the most important criterion. The majority of the respondents (82%) plan to test same-day delivery this year and 56% would even like to try delivery via drone.

For the vast majority (92%) of German e-shoppers in the age group of 18-24, a positive delivery experience is a good reason to continue shopping with a particular retailer.

Source: CEP-Research

41%OF YOUNG GERMAN E-SHOPPERS VALUE FREE DELIVERY THE MOST

34%OF YOUNG GERMAN E-SHOPPERS VALUE RAPID DELIVERY THE MOST

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> CASE STUDIESFLEXIBLE SERVICE WITH ROYAL MAIL COLLECTIONSChallenge

Started online in 2007, the confection company Biscuiteers sells biscuits for all occasions, while also running icing classes and hosting parties. The growing company needed a reliable way to get its handmade gifts around the UK and the world and a quick response at busy periods was crucial to business success. With large seasonal jumps – turnover can increase up to four times on Valentine’s Day and Christmas – it is essential that Biscuiteers has a flexible delivery service with Royal Mail.

Solution

With so many packages leaving each week, Biscuiteers worked with Royal Mail to make delivery simple, which gives the company more time to concentrate on growing the business. Biscuiteers now have an account manager from Royal Mail and a dedicated sales person. One service recommended to Biscuiteers was Despatch Manager Online – a free and easy-to-use tool that generates postage labels as well as data on shipping, sales and reporting.

Royal Mail Collections and Despatch Manager online offers a service that scales up and down when needed and trust that items will arrive on time.

The majority of Biscuiteers’ customers are UK based, but the company is increasingly building a large overseas following. Customers have a choice of delivery options, but Royal Mail is by far the most popular option, with Tracked 48 favoured for its reliability.

Learn more at http://www.royalmail.com/business/insights/case-studies/biscuiteer.

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ABOUT THIS PUBLICATION ABOUT IPCInternational Post Corporation (IPC) is the leading service provider of the global postal industry that provides leadership by driving service quality, interoperability and business-critical intelligence to support posts in defending existing business and expanding into new growth areas. It is a cooperative association of 24 member postal operators in Asia Pacific, Europe and North America. IPC’s solutions and services are used by over 180 posts worldwide. Since 1989 IPC has set standards for upgrading quality and service performance and developed technological solutions that help members enhance service for international letters, packets and parcels. IPC engages in industry research, creates business-critical intelligence, provides a range of platforms and programmes for member post CEOs and senior management to exchange best practices and discuss strategy. IPC also manages the system for incentive-based payments between postal operators.

For more information please visit our website www.ipc.be or contact us at info@ipc.be.

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