lukasz nowinski: easypack 24/7: case study from poland on last-mile delivery options
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Lukasz Nowinski: easyPack 24/7: case study from Poland on last-mile delivery options.TRANSCRIPT
easyPack 24/7: case study from Poland
on last-mile delivery options
Łukasz Nowiński
Managing Director
InPost
Company overview
How did we start?
Developing the service in Poland
Expansion to other countries
Agenda
Listening to customers’ needs and
observing market trends
Distribution of
unaddressed mail market leader in
distribution for supermarket
chains
Postal services
largest alternative postal
operator in Poland
Financial and insurance
services
Offer for businesses and
individuals
Distribution of UDM in
Ukraine Services in over 300cities
Automated parcel
terminals
Sending and collecting
parcels 24/ 7
Logistics services
logistics support to Group’s
subsidiaries
MVNO operator
Services for Carrefour Mova
and new service Freem
launched in Autumn 2010
InFlavo
Internet shops on
Listed on the Warsaw Stock Exchange
The largest private postal group
in Poland
World Mail Awards winner
Growth (2010),
Innovation (2011)
e-comerce (2011)
Business culture and Performance
reflected in earnings and recognised by
investors
InPost – wavemaker from Poland
2011
Integer.pl – financial results
Results (in
thousand EUR) 2005 2006 2007 2008 2009 2010 H1 2011
Net sales 7252 10307 14299 21854 32194 46625 26599
Operating costs 6725 9904 13557 20956 29887 42950 24308
EBIT 530 420 813 1958 3040 4836 3241
Net profit 442 365 633 1492 2355 3802 2663
Source: own data. Currency exchange from 13.09.11 – 1 PLN = 0,230175 EUR
Growth potential for e-commerce in
poland
Year 2009
48 152 328980
1300
2000
3470
4530
60 180 410921
1800
3000
4600
6480
2001 2002 2003 2004 2005 2006 2007 2008
Wartość polskiego rynku e-commerce (w mln zł)
Sklepy internetowe Platformy aukcyjne
36.4% growth of e-commerce
between 2008 / 2007
7,000 active e-retailers
6.9 mln Poles did online shopping
Bright future for e-commerce
globally
19% growth of e-commerce per year
Source: Invesp
Year 2011
Parcel terminal answering needs
of customers
Important factors for customers:
Speed of delivery
Low price
Easy ways for parcel collection
No focus on B2C customers
Bad quality postal services vs expensive
couriers
A few APT providers – all very expensive
Decision to do it on
our own
Year 2009
420 machines in Poland
Self-service pick-up points for
collecting and sending parcels
SMS / email notification about the
parcel in the machine
User and producer of the machines
Machines already contracted to 9
countries: Estonia, Cyprus, Czech
Republic Lithuania, Latvia, Russia,
Slovakia, Spain, Ukraine
Size Number
of boxes
Max dimensions
(in cm)
Size A 32 8 x 38 x 64 cm
Size B 32 19 x 38 x 64 cm
Size C 12 41 x 38 x 64 cm
Year 2011
How it works
Additional functions of easyPack by InPost:
Credit card/cash acceptors
Returns based on barcodes
Sending of parcels directly from terminal
What we achieved in 2 years
420 machines in over 100 cities in Poland
8 countries contracted in 2011 … more to
come
Over 500 active e-retailers
New segments – MLM, return logistcs etc
Customer database:
>200.000 fans on Facebook
>300.000 customers used the service
(registered and non-registered users)
61% clients used easyPack 24/7 again
easyPack operating markets usage data
74% prefer easyPack vs
courier delivery
51% parcels collected
within 6 hours
17 sec average time
needed to pick up a
parcel
97% of parcels
delivered next day
Source: CATI research 1Q 2011 Polish market, research sample 600 buyers, & own data
37.45% - collection between 18:00 – 8:00
77% of customers have easyPack
within 10km
Source: Own data collected from registered users
„Last mile” costs cut by 80%
Where to locate easyPack machines?
How to convince shops and business partners to offer the service?
How to attract customers?
How to track customers behaviour and stimulate frequency?
What may go wrong and how to avoid pitfals?
… We know how to make it work
What needs are satisfied?
Cheap and convenient delivery (Cheapest service – saving money)
But the most important are COMFORT and CONFIDENCE
Fastest option - 97% delivering day after posting
Availability - 24h access
Innovative service + modern solutions = unique experience
Comfort - „just when I want it and how I need it”
Security - Parcels are fully safe
No queues - saving time – average time of collecting a parcel is 17
seconds
16
Customers talk 17
56% growth of easyPack deliveries
Paatal.pl customers soft roll out
56% growth of easyPack delivery after the
promotion (lack of materials for analysis before
the promotion- new shop)
During action percentage easyPack relative to
other delivery option is 18% and after action 23%.
Communication channels:
On-line activities: banners + subpage
E-mailings
Posts and graphics on facebook.com/paczkomaty
E-mailing statistics:
Database 97 463
Unique opens 18 499 – 18%
Unique click 274 – 0,2 %
Results:
over 127 participants received a special gift-
product
Groupon sales up to 97% products via easyPack!
Communication channels
Standard daily e-mailings of Groupon
On-line activities: banners + subpage
Groupon application for iPhone
Delivery options:
UPS
easyPack by InPost
Results:
Depending on the product that is offered
delivery option via easyPack goes from
37% up to 97%
Average share of deliveries to easyPack
75%
We do have clients and we ……………
make profit on it
The world’s most chosen vendor in 2010
26-month Return on
Investment
4-month Time to market
Second largest
network globally
18 000 easyPack by 2016
„If I had to guess, social commerce is the next to
blow up” – Marc Zuckerberg, CEO of Facebook
E-commerce Facebook
commerce
Mobile
commerce
MVNO – free access
to internet via phone easyPack 24/7 E-shops on
Thank you for your attention
visit our stand no 4073
Łukasz Nowiński
Managing Director