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2014CORPORATE

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

Issue 487

05 June 2014

in this issue

© 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 487 | EDiTORiAL | pAGE 2

TOP sTORy• Consumersurgebrandstousemailand

email

AmERiCAs• CanadaPostsegmentreportsloss

beforetaxinfirstquarter• Dimensionalpricingchangeexpectedto

boostyields,FedExconfirms

AsiA PACifiC• Diversificationande-Commerce

deliverystrategybearfinancialfruitforSingPost

• Alibabainvestsin‘landmarkcollaboration’withSingPost

• AlibabalaunchesAustraliaPostpartnershipontheheelsofSingPostdeal

• BlueDartachievesdouble-digitrevenuegrowthinJanuary-Marchperiod

• UPSopenscontractlogisticsdistributionfacilityinChina

• UPSopensnewairhubinTaipei

EuROPE• DHLextendsEurapidservicenetwork

acrossEurope• DPDlaunchescross-borderparcelshop

services• GLSDenmarkstartsconstructionof

new€6mdepot

• Frenche-Commercesalescontinuedouble-digitgrowthinQ12014

• LeGroupeLaPostelaunchesStart’inPostservice

• Studyone-Commerceandlogisticsreleased

• DeutschePostDHLconfirmsshortandmid-rangetargets

• trans-o-flexlaunchesGermany-widenetworkforactivetemperaturecontrol

• PosteItalianesettofloatasTNTPostItaliare-brands

• POSTLuxembourgGroupreportsonstableturnoverin2013

• PostNLdevelopshomedeliveryserviceforfreshfoodboughtonline

• TNTExpresscompletessaleofTNTFashion

• SwissPostannouncesquarterlyresults• Fullrangeofservicesforonlineretailers

withYellowCube• RoyalMailpublishesfull-yearresults• RoyalMailGroupannouncesnew

Sundayservices• HermesopensUKhubtospeedup

growth• UKMailinvestsingrowthasprofitsrise• ZalandousesHermesUKparcelshops

fordeliveriesandreturns• CitySprint’srevenuesandprofitsrise

strongly

COnsumERs uRgE bRAnds TO usE mAil And EmAilRoyalMailGroupreleasedtheresultsofresearchonconsumerpreferencesregarding the use of different communication channels. According to theresearch, consumers are urging brands to use both mail and email tocommunicatewith them.Research found thatconsumersareveryclear thatmailandemailhavedifferentqualitieswhichmakethemsuitedtodifferenttypesofcommunication.Halfofpeople(51%)surveyedsaidtheyprefercompaniestouseacombinationofbothmailandemailtocommunicatewiththem.

Thefindingsshowthatmailcreatesstrongeremotionalengagementbetweensenderandrecipientwiththemajorityofpeoplesurveyedsayingthatmailgrabstheirattention,givesabetterimpressionofthecompanyandmakesthemfeelmorevalued.Meanwhileemailsareconsideredgoodforfollow-upandeasytofile.

InfurtheranalysisoftheInstituteofPractitionersinAdvertising(IPA)databankcommissioned byRoyalMail, independentmarketing consultantPeter Fieldrevealedthatcomplementingmarketingcampaignswithmailpays.Hisstudyfound that 27% more campaigns that delivered high sales performanceincludedmailthanthosethatdidnotincludemailinthemix.Inaddition,40%morecampaignsthatdrovehighacquisitionlevelscontainedmailthanthosewithoutmail.

Source:RoyalMailGroup

> TOP sTORy

http://www.royalmailgroup.com/consumers-urge-brands-use-mail-and-email%23sthash.QOuB2pxu.dpu

© 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 487 | AMERicAS | pAGE 3

• CanadaPostsegmentreportslossbeforetaxinfirstquarter

• Dimensionalpricingchangeexpectedtoboostyields,FedExconfirms

AmERiCAs CAnAdA POsT sEgmEnT REPORTs lOss bEfORE TAx in fiRsT quARTERThe Canada Post segment reported a loss before tax ofCA$27mforthefirstquarterof2014asTransactionMailvolumesdeclinedby6.9%andasDomesticParcelvolumesgrewby4.9%.Together,thedeclineinbillsandstatementsbeingmailedandthegrowthdrivenbyonlineshoppingreflectCanadians’continuingshiftintheuseofpostalservices.

Inthefirstquarterof2014,parcelrevenuefortheCanadaPostsegmentincreasedbyCA$23mor7.1%.CanadaPostis the market leader in providing business-to-consumerdelivery of packages, and the first-quarter results reflectsthecontinuingstrengthofitskeyroleinenablingthesuccessof the fast-growingonline retail sector.DomesticParcels,the largest product category, continued to show positiveresultsasrevenueincreasedbyCA$14mandvolumesgrewbymorethan1.2mpieces,or4.9%,comparedtothesameperiod the prior year. Transaction Mail is mostly letters,bills and statements. TransactionMail revenue decreasedbyCA$50m,or6%,inthefirstquarterasvolumesfellby79mpieces, or6.9%.A new tiered pricing structure forLettermail that better reflects the cost of serving variouscustomersegments tookeffect31March,after theendofthefirstquarter.It isexpectedtohaveapositiveeffectonTransactionMailrevenuegoingforward.DigitalalternativesarealsoaffectingCanadaPost’sDirectMarketingbusiness;revenue in the first quarter of 2014 fell by 4.9% whilevolumesfellby3.2%.

TheCanadaPostGroupofCompaniesreportedalossbeforetaxofCA$37minthefirstquarter,comparedto a profit before tax of CA$51m in the sameperiodof2013.TheGroupofCompanieswouldhavereportedalossbeforetaxofCA$58minthefirstquarterof2013haditnotbeenfortheCA$109m gain from the sale of the downtownVancouverMailProcessingPlant.

Source:CanadaPost

dimEnsiOnAl PRiCing ChAngE ExPECTEd TO bOOsT yiElds, fEdEx COnfiRmsPlans to extend dimensional weight pricing to all FedExGroundshipmentsareexpectedtoimproveyields,revenuesandprofits.

Analysts believe introducing a volumetric element inshipmentpricingcouldaffectupto30%ofFedExGround’ssmallershipmentsandleadtopriceincreasesofonethirdonshipmentsoflow-densitycommodities.

Currently, FedEx Ground applies ‘dimensional weightpricing’ only to packagesmeasuring three cubic feet (85litres)orgreater,butfrom1Januaryitwillapplyavolumetriccomponenttoallshipments.ItsaidthechangewouldalignFedExGrounddimensionalweightpricingwiththepricingmethodologiesusedbyFedExExpress.

Source:CEP-Research

http://www.canadapost.ca/cpo/mc/aboutus/news/pr/2014/2014_q1_report.jsf

https://www.cep-research.com/cepresearch/repository/news/2014/may/2205147.html%3Furi%3D/cepresearch/pages/news/index.html


ASIA PACIFIC• Diversificationande-Commerce







divERsifiCATiOn And E-COmmERCE dElivERy sTRATEgy bEAR finAnCiAl fRuiT fOR singPOsTE-commerce-related delivery and logistics contributedsignificantlytosolidfull-yearrevenueandprofitgrowthforSingapore Post (SingPost) in the face of the continuingdecline in its traditional postal business. SingPost’se-Commercedeliveryandlogisticsactivitieshavegrowntomorethan25%ofthegroup’sbusinessasaresultoffurtherprogress in its diversification plan to become a regionalend-to-ende-retail serviceshub, thecompany revealed initsfourthquarterand2013-14financialyearreport.

Reported group revenue grew 5.9% toSGD193.3minthefourthquarter,“boostedbythefullconsolidationofnewsubsidiariesand the growth in e-Commerce relatedbusinesses”.Excludingcontributionsfromnew subsidiaries, the group recordedorganic revenue growth of 3.0%.Full-year revenues were up 24.6% at

SGD821.1m.Netprofit increased 17.7% toSGD30.7m inthefourthquarter,andforthefullyear,increased4.8%toSGD143.1m.Excludingone-off items,underlyingnetprofitdeclined1.3%toSGD31.4minthefourthquarter,whileforthefullyearitincreased2.9%toSGD145m.

SingPost’s domesticmail volumes continued to decline inthefourthquarter,withthefullyearregisteringareductionof1.3%.However,overallrevenueforthegroup’sMailbusiness

grew6.6%toSGD123.4minthequarter,attributedto“theincrease in regional e-commerce transhipment businessand inorganic improvement in direct mail revenue fromSamplestore”,whichSingPostacquired inOctober2013.Forthefullyear,Mailrevenuerose11.5%toSGD491.0m.Logisticsrevenuegrewby9.9%toSGD79minthefourthquarter and by 52.8% toSGD368.5m for the year as awhole,mostlyduetoseveralacquisitions.

Source:CEP-Research

AlibAbA invEsTs in ‘lAndmARk COllAbORATiOn’ wiTh singPOsTE-Commerce giant Alibaba Group has agreed to buy a10%stakeinSingaporePostinwhatitcalleda“landmarkcollaboration between two leading organisations”, as thegroupsalsoenterednegotiationstoestablishaninternationale-Commercelogisticsjointventure.

Under the strategic agreement, Alibaba Investment Limitedwill investSGD312.5m (€183m) to purchase30mexistingordinarysharesheldbySingPostalongwith190mnewordinaryshares,takinga10.35%stakeinSingPostuponcompletion.

Both companies have also signed a memorandum ofunderstandingthatwillallowthemtodiscussandnegotiate,overthenext12months,ajointventureforthebusinessofinternationale-Commercelogistics.

Source:CEP-Research

AsiA PACifiC











AlibAbA lAunChEs AusTRAliA POsT PARTnERshiP On ThE hEEls Of singPOsT dEAlChinesee-CommercegiantAlibabaGrouphasunveiledapartnership with Australia Post in what is the company’ssecond collaboration revealed recently with internationalpostaloperators.

The partnership with Australia Post complements anagreement to buy a 10% stake in Singapore Post,announcedearlierthisweek,inwhichAlibabaandSingPosthavealsoenterednegotiationstoestablishaninternationale-Commercelogisticsjointventure.

Although the details of the Australia Post partnership arelimited to date, it is understood that it will create a newavenue for Australian small andmedium-sized companiesto access Alibaba’s Tmall.com shopping platform, one ofChina’slargestB2Conlinemarketplaces.ItwasunclearatthetimeofwritingwhetherthepartnershipcovereddeliveryandlogisticsorwhetheritwasmerelyusingAustraliaPostasacommunication,administrativeandmarketingchannel.

Source:CEP-Research

bluE dART AChiEvEs dOublE-digiT REvEnuE gROwTh in JAnuARy-mARCh PERiOdDeutsche Post DHL’s subsidiary in India, Blue Dart,achieveddouble-digitrevenuegrowthintheJanuary-March2014quarterdespitethesloweconomy,butsawdivergingprofit trends. Blue Dart increased revenues by 12.9%to INR5,029m (€63.1m) in the January-March quarter

of 2014, but operating profits weakened to INR493m(€6.2m)andnetprofitsweredowntoINR306m(€3.8m).

The company’s sales for the April 2013 to March 2014business year totalled INR19.3bn (€242.5m). OperatingprofitscametoINR1.9bn(€23.5m)andthecompanyposteda net profit of INR1.2bn (€15.6m). These figures are notdirectlycomparabletothepreviousyearwhenBlueDarthada15-monthfiscalyearcoveringJanuary2012toMarch2013.

Thecompany,whichis75%ownedbyDHL,handledover126.4mdomesticshipments,0.91minternationalshipmentsandover513,474tonnesofdocumentsandparcelsintheyearending31March2014.

Source:CEP-Research

uPs OPEns COnTRACT lOgisTiCs disTRibuTiOn fACiliTy in ChinAUPS today announced the opening of its new contractlogisticsdistributionfacilityinBeijing.The6,500m²ofnon-bondedwarehousespacelocated19kmfromBeijingCapitalInternationalAirportservesgrowingdemand inChinaandiscapableofservicingcontract logisticsorderswith four-hourdeliverywithinthemetropolitanBeijingareaandnext-business-dayordersformajorcitiesthroughoutChina.

Theopeningof theBeijing facility followsclosely after theopening of similar UPS distribution centres in Chengduand Shanghai in 2013. Together, the centres supportgrowing industries in China, including high-tech, industrialmanufacturing, aerospace and retail. Capabilities of thesefacilities include order fulfilment, inventory management,











kitting,packagingandotherspecializedvalue-addedservices.

Additionally,UPShasexpandeditspost-salesservicesinChina.Thisnetworknow provides same-day critical parts delivery within the metro area in 87citiesthroughoutChina.Inadditiontoopeningthenewfacilities,UPShasalsodeveloped its gateways in central andwesternChinawith flights connectingChengduandZhengzhoutotheextensiveUPSglobalnetwork.WithdedicatedhealthcarefacilitiesinHangzhouandShanghai,UPShasfurtherenhanceditscapabilitiesinservingtheneedsofhealthcarecustomers.

Source:UPS

uPs OPEns nEw AiR hub in TAiPEiUPS today announced the official opening of its newly relocated TransPacific Hub at Taiwan Taoyuan International Airport. Situated at theairport’sAirCargoTerminalLogisticsWarehouse,thehuboccupiescloseto82,000squarefeet,a40%increaseinsizefromitspreviouslocation.ThehubisequippedwiththelatestsortingcapabilitiestosupporttheneedsofTaiwanesebusinesseslookingtotradeglobally.

TheopeningofthehubisUPS’slatestinitiativeinbuildingastrong,integratedairnetworkacrossAsia,connectingTaiwantokeymarketsinAsia,EuropeandtheUnitedStates.Thehuboperates28weeklycargoflightsconnectingTaiwantokeyglobalmarkets.Leveragingthisextensivenetwork,customerscanexpectaone-totwo-daydeliverycommitmenttomajorcitiesintheUSandEurope.

Source:UPS

http://www.pressroom.ups.com/Press%2BReleases/Current%2BPress%2BReleases/UPS%2BContinues%2Bto%2BExpand%2BContract%2BLogistics%2BReach%2Bin%2BChina%2Bto%2BServe%2BGrowing%2BDemand

http://www.pressroom.ups.com/Press%2BReleases/Current%2BPress%2BReleases/UPS%2BOpens%2BNew%2BAir%2BHub%2Bin%2BTaipei


EUROPE dhl ExTEnds EuRAPid sERviCE nETwORk ACROss EuROPEDHLFreighthasexpandeditsEurapidserviceacrossEuropewith11newterminalsjoiningthenetworkatthebeginningofMay.Theday-definiteserviceforless-than-truckload(LTL)shipmentsupto2.5tonnesisnowavailableat41terminalsandcovers75%ofallbusinessaddresses inEurope.Thecompanyislookingtoenroltheremainingterminalsbytheendof2015,basedonmarketanddemand.

Thehigh-qualityroadfreightnetworkofDHLisexpandedbyonestationeachinAustria,CzechRepublic,Denmark,GreatBritain, Italy,Netherlands,Poland,SpainandSwitzerland.Additionally,twostationsinGermanyhavebeenintegratedintothenetwork.Goingforward,DHLFreightplanstofurtherextend thecoverageofEurapid.Thecompanyannouncedthatninemorestationsaregoingtojointhenetworkbytheendoftheyear.

Source:DeutschePostDHL

dPd lAunChEs CROss-bORdER PARCEl shOP sERviCEsDPDhas launched integratedparcelshopservicesacrossEurope starting initially with cross-border B2C shippingbetweenGermany,AustriaandtheBeneluxandplanstoaddotherEuropeancountriesinthesecondstage.

The new service enables private recipients to get theirparcels deliveredor return themat anyDPDparcel shoplocated within the three countries mentioned above. This

cost-efficientoptionisbeingrequestedbymoreandmoreconsignees who are usually not at home during the day,DPDexplained.

Intermsofalternativestohomedelivery,directdeliverytoa parcel shop specified by the consignee is also possibleincross-bordershippingbetweenGermany,AustriaandtheBeneluxcountries.Assoonastheparcelhasbeendeliveredto the shop, the recipient is automatically informed viaSMSand/ore-mail.Inafewweeks,thisoptionwillalsobeavailableinFranceandSwitzerland.

Source:CEP-Research

gls dEnmARk sTARTs COnsTRuCTiOn Of nEw €6m dEPOTGLShasstartedtheconstructionofanewdepotinAalborg,anindustrialanduniversitycityinnorthernDenmark,whichisexpectedtosortupto5,000parcelsperhourdoublingthecapacityofthecurrentfacility.

The company said it is preparing for a further volumeincreasewithcapacityexpansioninDenmark.Itisinvestinga total of €6m in the Aalborg facility including premises,constructionandequipment.

GLSplanstobuilda2,600m²hallwithatotalof63gatesfor loadingandunloadingat thenewdepotwhichcanbefurtherexpanded,ifnecessary.ThefacilityisduetobecomeoperationalinJanuary2015.

Source:CEP-Research

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http://www.dpdhl.com/en/media_relations/press_releases/2014/dhl_extends_eurapid_service_network.html


https://www.cep-research.com/cepresearch/repository/news/2014/june/0206149.html%3Furi%3D/cepresearch/pages/news/index.html


EUROPE fREnCh E-COmmERCE sAlEs COnTinuE dOublE-digiT gROwTh in q1 2014E-Commerce sales in France soared by 11% to €13.4bnduringthefirstquarterof2014,withthenumberofonlinetransactions rising by 15%, according to figures from thecountry’se-CommerceassociationFevad.

While the purchasing frequencyof French online shoppers furtherincreased by 10% to six purchasesduring the first threemonths of thisyear,theaveragespendperpurchasecontinuedtodropby4%to€81.50.However, the average amount thateach online shopper spent during

the first quarter overall increased by 5% to €491. Theincreasedpurchasing frequency thuscompensated for theloweraveragespendperpurchase,Fevadexplained.

France’s leading e-retailers saw3%growth year on yearduring the first quarter, according to the ‘iCE sitesFevadpanel40’,whichmeasuresthesalesofthe40topwebsites,accountingforabout30%oftheoverallmarket.Thisgrowthcanbeparticularlyattributedtoe-retailerssellingconsumerproducts(includingmarketplaces)whoshowed8%growthyearonyearduringthequarter.Atthesametime,e-retailsites selling to professionals (B2B) also saw their salesincrease9%overthesameperiod.

Source:CEP-Research

lE gROuPE lA POsTE lAunChEs sTART’inPOsT sERviCELeGroupeLaPostehaslaunchedStart’inPost,aninnovativeprogrammeaimedatsupportingtechnologystart-ups.Thenewserviceispartofitsnewcorporatestrategy,‘LaPoste2020:conqueringthefuture’.

Theprogrammewilllastforoneyearandwillberolledoutin two phases. The first phasewill be a three-month testphase, set up to commercial and technological viabilityandstrengthoftheproject.ThesecondphasewilllastninemonthsandwillseeLeGroupeLaPosteprovidingmaterial,methodologicalandcommercialsupporttocandidatestart-ups.Theaimistosupportupto24start-upsayear.

Start’inPostwillcompleteLeGroupeLaPoste’sinnovationanddevelopmentportfolio,whichalradyincludesLabPostalandXAngePrivateEquity.

Source:LeGroupeLaPoste

sTudy On E-COmmERCE And lOgisTiCs RElEAsEdThemonthofMaysawthereleaseoftheresultsofthe‘GlobalE-Tailing2025’study,initiatedbyDeutschePostDHLwithparticipationofthetrendresearchinstitutionsZ_punktandSeeMore aswell as numerous international experts fromretail, logistics and academia. One of the main findingswasthatoverthenexttenyears,onlineretailwillgainevenmore importance than expected so far. Logisticswill playa key role: it provides companies important competitive

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http://legroupe.laposte.fr/Actualite/Le-Groupe-La-Poste-lance-Start-inPost-accelerateur-industriel-au-service-du-developpement-des-start-up


EUROPEadvantages, such as deliveries within a few hours on thedayofordering,flexiblereceivingandreturntimesaswellasresilientlogisticsandvalue-addedconceptsinemergingcountries.

Infourscenariosthestudyshowswhattheelectronicworldofshoppingaroundtheglobecouldlooklikeforconsumersand businesses in the near future. The different futureprojections are based on a detailed analysis of the mostinfluential factors – from energy and rawmaterial pricesto technological, political and social factors to retail andconsumptionpatterns.Thescenariosalsooutlinepossibleeffects of changes to society’s value system by 2025.All scenarios and contributions have in common that thecompetitioninelectronicretail,whetheronglobal,nationalorregionallevel,willbecomemoreintense.

Today e-Commerce makes up 8% of the overall tradingvolumeinEuropealready.Dependingonthescenario,thissharecouldriseupto40%indevelopedcountriesandupto30%intoday’semergingmarkets.

Source:DeutschePostDHL

dEuTsChE POsT dhl COnfiRms shORT And mid-RAngE TARgETsDuring the company’s AnnualGeneralMeeting, DeutschePost DHL CEO Frank Appel underscored the mid-rangegrowth targets contained in the “Strategy 2020” thecompanyannouncedinApril.DeutschePostDHLislookingback on a successful year 2013 and a good start to thecurrent financial year 2014. For the rest of the year, theGroupexpectstocontinueitspositiveperformancedespite

the persistently challenging economic conditions and toonceagaingenerateearningsgrowth.

During the first quarter of 2014, the group performedwellandcontinued togrow.Thegroup’s revenues totallednearly€13.6bninthequarter,anincreaseofmorethan1%comparedto the sameperiod theprevious year.Adjusted for negativeexchange-rateeffectsandotherinorganicfactors,therevenueincrease was more than 5%. The group also continued toimprove its operating earnings: during the first quarter of2014,consolidatedEBITrosebymorethan2%to€726m.ThisincreasereflectsthestrongpositionthattheGroupanditsdivisionsmaintainintheworld’sgrowthmarkets.

In light of the Group’s good performance during this pastfinancialyearanditsconfidenceaboutthecompany’sfuturegrowth, the Board of Management and the SupervisoryBoardporposedadividendof€0.80persharefortheyear2013,whichwasapprovedbyshareholderswithamajorityof99.84%ofthecompany’ssharecapitalpresentatthe.Thisreflectsanincreaseof€0.10overthepreviousyear’slevel.

Source:DeutschePostDHL;DeutschePostDHL

TRAns-O-flEx lAunChEs gERmAny-widE nETwORk fOR ACTivE TEmPERATuRE COnTROlGermany-based trans-o-flex Logistics Group is planninganationwidenetwork foractive temperaturecontrol tobelaunchedinOctober,thusstronglyexpandingitscapacityinGDP-complianttransportationofpharmaceuticals.

The basis of the new network consists of a centraltranshipment centrewhichwill be fully air-conditioned as

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http://www.dpdhl.com/en/media_relations/press_releases/2014/global_e-tailing_2025.html

http://www.dpdhl.com/en/media_relations/press_releases/2014/deutsche_post_dhl_annual_general_meeting_2014.html

http://www.dpdhl.com/en/media_relations/press_releases/2014/dividend_increase_approved_by_deutsche_post_ag_annual_general_meeting.html


EUROPEwellasacombinationofvarioustransporttechnologiesforthe last mile. Transports in the temperature range of 15-25°Cwill partially be conducted via special temperature-controlled vehicles as well as via conventional vehiclesequippedwithactivelytemperature-controlledboxes.

Tighter EU regulations for the transportation ofpharmaceuticals have pushed the reorganisation of trans-o-flex, supported and promoted by its parent companyAustrian Post. The aim is to help trans-o-flex stand outfromitscompetitorsmorestronglythanbeforeandensuresufficientcapacityfordirectdeliveriesofparcelsandpalletsinitscoreindustriespharmaandhealthcare,inviewofthegrowingdemandfortemperature-controlledtransportation.

Source:CEP-Research

POsTE iTAliAnE sET TO flOAT As TnT POsT iTAliA RE-bRAndsPoste Italianewillbecome thenextmajor listedEuropeanpostal operator later this year following the new Italiangovernment’sofficialapprovalofplanstosella40%stakeinthecompanytoraiseupto€4.8bntoreducepublicdebts.

The cabinet of Prime Minister Matteo Renzi on Fridayformally approved partial privatisation of the state-ownedpostaloperatorthroughasharesalethatmight takeplaceinseveralsteps.Thegovernmentsaiditmightofferpostalemployeesincentivestobuyshares.Notimingwassetforthesell-offbutitisgenerallyexpectedinthesecondhalfoftheyearfromSeptemberonwards.

Meanwhile,thecompany’smainchallengerinthedomestic

mailbusiness,TNTPostItalia,asubsidiaryofDutchgroupPostNL, has re-named itself Nexive. The company, withrevenues of €223m in 2013, said the change of name“expressesthevisionofbecomingaplatformforexcellencein delivery of mail and e-Commerce”. Nexive, with morethan5,500employeesandmorethan600branchesandretail outlets, has some30,000business customers andclaimstoreach74%ofItalianhouseholds.

Source:CEP-Research

POsT luxEmbOuRg gROuP REPORTs On sTAblE TuRnOvER in 2013In2013,thePOSTLuxembourgGroupmaintainedastableturnoverat€677.4minaverycompetitiveenvironmentandachievedsolidfinancialresults.POSTLuxembourgGroup’soperating result reached €56.46m – down by 9.4% –whilstthenetresultaftertaxeswas€60.1m,adecreaseof2.07%comparedto2012.

Withregardtotheoperatingcosts,thePOSTLuxembourgGroupregisteredan increase in itswagebill,aswellasaconsiderableincreaseindepreciationfollowinglarge-scaleinvestment projects in terms of high-speed landline andmobile infrastructures, as well as the infrastructures ofotherinformationandcommunicationtechnologies,andtheextensionandmodernisationofitsrealestate.

Inanowcompletelyopenmarket,POSTCourrierhashadamitigatedyearintermsofsalesresultswithaslightdownturninthetotalturnoverfrompostalproductsandservices.Thisreduction is predominantly due to the structural decreaseinvolumeof thepostal items,whichshouldpickup in the

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EUROPEyears tocome.Theparcelsmarket,however,continuestogrow steadily, a 17.7% volume increase in 2013. POSTFinance has witnessed a decrease in revenue between2012and2013,mainlyduetotheveryweakinterestratesin the financialmarkets.ThePOSTTechnologies turnoverhasremainedrelativelystable.AsforPOSTTelecomS.A.’scommercialactivity,theearningsrecordedin2013fortheentiretelecomentityaresimilartothosefrom2012withastableturnover.

Source:POSTLuxembourg

POsTnl dEvElOPs hOmE dElivERy sERviCE fOR fREsh fOOd bOughT OnlinEPostNL is developing a home delivery service thatsupermarketsandfreshfoodcompaniescanusetotransportproducts ordered online to the customers using quick,refrigeratedandcost-efficientmethods.The initial pilot intheVenloareawasasuccess.Starting22May,PostNLisnowpartneringwithonlinefreshsupermarketVershuys.comthroughout theDutch province of Limburg to offer a newhome delivery service for foodstuffs. In this second pilot,eveningdeliverywillalsobeavailableuponrequest.

In the first stage of the pilot (March 2014), PostNLexperimented with home delivery of groceries that wereorderedonline.Intheend,aspecialcoldstoragepackagingwas selected, developed in cooperationwithWageningenUniversityandResearchCentre.Thismethodallowsfreshfoodproductstobedeliveredattherighttemperaturewhentheyreachthecustomer’sdoor.Thecollaborativeprocessincluded universities, but also packaging companies,

consultancyorganisationsandcustomers.

Various surveys by Statistics Netherlands (CBS), INGEconomic Bureau and Thuiswinkel.org have shown hugegrowth potential in the online retail of fresh foodstuffs.Youngfamilies,companiesandinstitutionshaveexpressedaparticularpreferenceforonlineshoppingtocutdownonheavy lifting and save time. Respondents do have doubtsaboutthefreshnessandshelflifeoftheproducts.Theyalsostatethattheywanttodecidewhenproductsaredelivered,manyexpressingapreferenceforeveningdelivery.

Source:PostNL

TnT ExPREss COmPlETEs sAlE Of TnT fAshiOnTNTExpresshascompletedthesaleofitsspecialistfashionsupply chain business in the Netherlands, TNT FashionGroupB.V.,toaconsortiumofBelspeedandNetlogGroup.This follows receipt of regulatory approval and positiveadvicefromtheworkscouncilofTNTFashion.

TNTExpressannouncedon11March2014itsintentiontosellTNTFashionaspartofitsstrategytofocusoncoreexpressdeliveryservices.Thetransaction,thetermsofwhichremainconfidential,willcontributealimitedbookgain.

HeadquarteredinOldenzaal,theNetherlands,TNTFashionoffers specialist supply chain services for the fashionandlifestyleindustry.TNTFashionemploysabout660peopleandhasannualrevenuesofapproximately€120m.TheUKoperationsofTNTFashionarebeing integratedwithTNTExpressUKandIreland.

Source:TNTExpress

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http://www.postgroup.lu/en/actualites/news-et-communiques/-/asset_publisher/OH6oMcVms00q/blog/post-luxembourg-group-2013-financial-results%3Fredirect%3Dhttp%253A%252F%252Fwww.postgroup.lu%252Fen%252Factualites%252Fnews-et-communiques%253Fp_p_id%253D101_INSTANCE_OH6oMcVms00q%2526p_p_lifecycle%253D0%2526p_p_state%253Dnormal%2526p_p_mode%253Dview%2526p_p_col_id%253Dcolumn-3%2526p_p_col_count%253D1

http://www.postnl.com/press/688836/PostNL_develops_new_delivery_service_for_online_shopping.aspx

http://www.tnt.com/corporate/en/data/press/2014/05/tnt-express-completes-sale-of-tnt-fashion-group.html%0D


EUROPE swiss POsT AnnOunCEs quARTERly REsulTsInthefirstquarterof2014,SwissPostachievedaGroupprofit of CHF199m, compared to CHF222m during thesame period the previous year. The decline of CHF23misprimarilydue to reduced interest incomeresulting frompersistentlylowinterestratesonthefinancialmarketsandhigher impairmentcharges.Operatingprofit (EBIT)stoodat CHF253m, down from CHF272m the previous year.In the first three months of 2014, Swiss Post generatedoperating incomeofCHF2.1bn.This represents a dropofalmost1%yearonyear,whichcouldnotbefullyoffsetbyreductions in expenses. Operating profit (EBIT) totalledCHF253m,whichwasCHF19mbelowthepreviousyear’slevel,andGroupprofitstoodatCHF199m.Allfourmarketscontributedtothepositiveoverallresult.Prior-yearfigureshavebeennormalisedtotakeone-offitemsintoaccount.

In the communication market, Swiss Post recorded anoperating profit of CHF88m. The decline in income atPostMailandPostOffices&SalescausedbylowervolumeswasoffsetbycostsavingsintheseareasandbygrowthinincomefromSwissPostSolutions.Inthelogisticsmarket,Swiss Post recorded an operating profit of CHF31m.Thisdecrease isdue tohighcompetitivepressure.Parcelvolumes were up 1.1% in Switzerland. In the passengertransportmarket,PostBus recordedanoperatingprofitofCHF13m.PostFinance,whichoperatesintheretailfinancialmarket,recordedanoperatingprofit(EBIT)ofCHF127minthesegmentresults.

Source:SwissPost

full RAngE Of sERviCEs fOR OnlinE RETAilERs wiTh yEllOwCubESwiss Post is rounding off the services it offers businesscustomers in the booming e-Commerce market. Onlineretailers can now outsource all of their distance-sellingactivities to Swiss Post, following the launch of theYellowCube logistics solution, which allows Swiss Postto handle everything from order processing, marketing,payment,end-to-endlogisticsandcustomerservice.SwissPost delivers parcels in the evenings and on Saturdaysor toparcel terminals for collection around the clock andcustomers can specify online where Swiss Post shouldsendtheirmissedparcels.Returnsarecollectedbythemailcarrierdirectlyfromthecustomer’sdoorstep.

Thee-Commercemarketisgrowingyearlyby5to10%inSwitzerland.Shippingvolumesaregrowing,onlineshoppersexpect rapid delivery times and the number of returns isrising. Such trends create major logistical challenges foronline retailers,which iswhy thedemand for outsourcingsolutionsonthemarkethasgrown.

After a two-year development phase, YellowCube, SwissPost’sall-ine-Commercelogisticssolution,beganoperatingin April 2014. The solution handles product storage andpicking,parcelpackingandtheentirereturnsmanagementsystem. Together with the logistics services that areupstreamanddownstreamofYellowCubeprocesses,(goodscollection at the suppliers, aswell as shipping and returnshipping),SwissPostistheonlyproviderinSwitzerlandtoofferaone-stope-Commercelogisticssolution.

Source:SwissPost

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http://www.post.ch/en/post-startseite/post-konzern/post-medien/post-archive/2014/post-mm14-quartalsabschluss-1-2014/post-medienmitteilungen.htm%0D

http://www.post.ch/en/post-startseite/post-konzern/post-medien/post-archive/2014/post-mm14-e-commerce-yellowcube/post-medienmitteilungen.htm%0D


EUROPE ROyAl mAil PublishEs full-yEAR REsulTs RoyalMailplcannounced its full-year results for theyearended30March2014.Grouprevenueincreasedby2%,due to parcel revenue growth in both UKPIL and GLS.Parcels are the largest contributor to Group revenue,accountingfor51%.

Groupoperatingprofitbeforetransformationcostsgrewto£671m. Group operating profit after transformation costsincreasedto£430m.Theoperatingprofitmarginreducedfrom4.4% to 4.2%, as a result of the provision for themanagement reorganisation programme. Profit beforetaxation (excluding specific items) of £363m reflects thetrading performance of the Group. Accounting standardsrequire us to include a one-time, non-cash benefit of£1,350m as a result of the Pensions Reform in reportedprofit before taxation and reported notional earnings pershare.EBITDAbeforetransformationcostsgrewto£942m,duetoimprovedtradingperformance.

UKPILrevenuewas£7,787m,up2%.UKPILparcelrevenueincreased by 7%. As expected, parcel volumes (1,068mitems) were flat compared with 2012-13. UKPIL letterrevenue(includingmarketingmail)declinedto£4,625m,a2%reduction.The4%declineinaddressedlettervolumesforthefullyearwasatthebetterendofourforecastrangeoffourto6%perannum.Marketingmailrevenue,partofletterrevenue,was£1,111m.UKPILgeneratedoperatingprofitaftertransformationcostsof£309m.Theoperatingprofitmargindecreased from 3.9% to 3.5%, again as a result of theprovision for the management reorganisation programme.

GLSrevenuewas£1,651m,up7%.Volumesincreased6%,with growth in both domestic and international volumes.GLSoperatingprofitwas£108million.


ROyAl mAil gROuP AnnOunCEs nEw sundAy sERviCEsRoyalMail is topilotSundayafternoonopeningataround100ofitsdeliveryofficeslaterthissummer.Theinitiativeisdesignedtomakeiteasierforshoppersnotathomeduringthe day to get their parcels. Delivery officeswith highestparcels volumes across England, Scotland Wales andNorthernIrelandwillbetakingpartintheinitiative.

InanothermovetoassessSundayservices,RoyalMailwilltrialSundayparceldeliverieslaterthissummertoaddresseswithin the M25 motorway. Royal Mail Group’s expressparcels business, ParcelforceWorldwide, has announceditwill launchaSundaydelivery service inJune foronlineshoppers through participating e-retailers. ParcelforceWorldwide will make the service available to contractcustomersacrosstheUK.

RoyalMailhasalsoannouncedtheopeningofitsdistributionnetworklateronaSaturdayandonSundays.ThisnewservicebecameoperationalinMayandenableslargere-retailerstohand itemsorderedby shoppersonaSaturdayafternoonandSundaytoRoyalMailfordeliveryonaMonday.


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http://www.royalmailgroup.com/royal-mail-plc-full-year-results-2013-14

http://www.royalmailgroup.com/royal-mail-group-announces-new-sunday-services%23sthash.mdEipkYt.dpuf


EUROPE hERmEs OPEns uk hub TO sPEEd uP gROwThHermesUKhasofficiallyopeneditsnew£14mcentralhubinWarrington,closetoManchester,toincreasecapacity,speedupdeliveriesandenablethefirmtocontinueitsrapidgrowth.

Hermes said the new facility is its largest-ever singleinvestmentintheUKandsignifiesits“commitmenttogrowthand service”.A second expansion stage is plannedwhichwouldtaketheinvestmenttoatotalof£25m(€30m).The15,000m² facility, able to sort up to550,000parcels aday,isnowalmostthreetimeslargerincapacitytermsthantheprevioussiteinWarrington.

HermesUKsaidthenewhubwillhelpwiththedevelopingrequirementfornextdaydeliveriesandwillplayakeyrolein plans for international expansion. It will also provide aplatform for further innovation, as the company looks tointroduceahostofnewandexcitingproductstothemarket.Perhapsmost importantly itwill helpHermes ensure thatitscustomerscancontinuetohavefullconfidenceinfutureyears’peakperiodsintermsofcapacityandservice.

Source:CEP-Research

uk mAil invEsTs in gROwTh As PROfiTs RisEBritish parcels and letters delivery company UK Mail isinvesting in new services and expanded capacity afterimproving profits by 28% thanks to double-digit parcelsgrowth.Thegroupincreasedrevenuesby7%to£508.5mintheyearendingMarch2014andimprovedpre-taxprofitsby28%to£22.8m.Theunderlyingincreases,adjustedforfourextraworkingdays,were5.3%and17%respectively.

UKMail’s parcel revenuesgrew rapidlyby 16% tonearly£220mwhile operating profit improved strongly by37%to£22.4m.Thecompanysaidthattheparcelbusinesshad“high volumes throughout the year”, which resulted in ahighermarketshareandadouble-digitoperatingmarginof10.2%,comparedto8.6%thepreviousyear.Thevolumegrowthwas“partly”drivenbyanincreaseinhomedeliveriesrelated to online shopping,with a continuation of themixchangetowardsB2C,itadded.

Mailrevenuesgrewbyjust1.5%to£245mwithvolumesupby2%andoperatingprofitroseby18%to£12.7m,pushingthemarginto5.2%from4.4%lastyear.Thenewpacketsservice,offering low-costdeliveryofsmall itemsintwotothreedays, “enablesus toprovideaprofitableproduct tocustomerswhich can competewith the ‘lifestyle couriers’who provide a basic service at low cost” in the £1.2bnpackets market, the company commented. The courierbusinesssawrevenuesdrop1.9%to£16mbutcostcontrolshelpedincreaseprofitsby7%to£2.7m.Similarly,palletsrevenues dropped 3.2% to £27m but profits increasednearly19%to£0.9m.

Source:CEP-Research

zAlAndO usEs hERmEs uk PARCEl shOPs fOR dElivERiEs And RETuRnsGermanfootwearandfashione-retailerZalandohasteamedupwithHermesUKtousethedeliveryfirm’snetworkofover3,500pick-uppointsacrosstheUKtoenablecustomerstoreceiveandreturntheirpackagesatatimeandplacemostconvenientforthem.

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EUROPEThe Hermes pick-up points are located at newsagents, petrol stations andsupermarkets.ManyoftheshopsareopenonSaturdayand/orSunday,aswellasafterregularbusinesshours.

HermesUKplanstoextenditsparcelshopnetworkoverthenextfewmonths,withtheaimtoreacharound5,000pick-uppointsbythebeginningof2015.

Source:CEP-Research

CiTysPRinT’s REvEnuEs And PROfiTs RisE sTROnglyBritishsame-dayproviderCitySprinthasannouncedrecordrevenuesof£112.7mfor the financial year 2013, which represents an 11.4% increase, and a strong15.4%increaseinitsoperatingprofitto£12.3m,asaresultoforganicgrowthandacquisitionsaswellastechnologicalinvestment.

CitySprint Logistics profited from increased investment with growing volumes.CitySprint Retail saw an increase inDirect-to-Consumer deliveries even thoughtherearestillsomechallengesintheareassuchastechnologycompatibilityandprice,CitySprintexplained.CitySprintHealthcarehasbenefittedfromcooperatingwith‘someverystrong’partnersandcustomersinthisspecialistareaoflogisticsservices. An important growth factor has become the homemedication deliverymarket,whereCitySprintdeliversmedicinesfrompharmaciesonthehighstreet,andwithinhospitals,topatientsathome.

Intermsofacquisitions,CitySprintcompletedsixdealsin2013includingsuccessfulintegrationofthecompaniesintoitsbusinesslinewiththeaimtoleverageitsexistingbusinessinfrastructureanddevelopnewverticalsectoropportunities.

Source:CEP-Research

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© 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 487 | ABOUT ipc | pAGE 16

ABOUT THIS PUBLICATION ABOUT IPCInternationalPostCorporation is a cooperative associationof24memberpostaloperators inAsiaPacific,EuropeandNorthAmerica.Overthepast twodecadesIPChasprovidedindustryleadershipbydrivingservicequalityandinteroperability,supportingitsmemberstoensurethehighperformanceofinternationalmailservicesanddevelopingtheITinfrastructurerequiredtoachievethis.IPCengagesinindustryresearch, creates business-critical intelligence, provides a range of platformsformember postCEOs and seniormanagement to exchange best practices anddiscussstrategy,andgivesitsmembersanauthoritative,independentandcollectivevoice.IPCalsomanagesthesystemforincentive-basedpaymentsbetweenpostaloperators.Withmembersdeliveringsome80%ofglobalpostalmail,IPCrepresentsthemajorityoftheworld’smailvolume.

Formoreinformationpleasevisitourwebsitewww.ipc.beorcontactusatinfo@ipc.be.

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IPCMARKETFLASH isa fortnightlynewsletterprovidingacomprehensive lookatnewdevelopmentsemergingintheinternationalpostalmarketplace.ItispublishedbytheMarketingdepartmentofInternationalPostCorporation.

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