2 0 1 4 C O R MARKET P O R A T E FLASH Fortnightly newsletter covering the latest news from the global postal sector Issue 488 19 June 2014 www.ipc.be in this issue > TOP sTORy TOP sTORy • Pickup launches a new parcelshop service • Poste Italiane targets parcels market as • Deutsche Post DHL management ap- IPO takes shape pointments in May POsTE iTAliAnE TARgETs PARCEls mARkET As iPO TAkEs AmERiCAs • Augmented Reality transforms logistics processes, says DHL study shAPE • The UPS Foundation supports diversity • Hermes to invest €300m in expanding and economic empowerment German capacity Poste Italiane needs to catch up on competitors in the parcels market and • UPS Board appoints new CEO • POST Luxembourg Group 2013 Finan- modernise the mail business as it heads towards privatisation by the end of this • deadline approaches for 2014 Canada cial Results year, new CEO Francesco Caio stated. Post E-commerce Innovation Awards • Chronopost and FixeAds provide spe- • Consumers demand more flexibility cialised delivery service The Italian postal group will present a new strategy in the next few weeks, when shopping online, says UPS study • DHL Express opens service points at sees logistics synergies from its stake in Alitalia and is committed to meeting AsiA PACifiC Russian press retail stores the government’s timetable for an IPO this year, he said after a meeting of the • International parcel volumes to Russia board of directors. • Australia Post restructures soar in 2013 as e-trade booms • Australia Post and Westpac sign strate- • M-commerce sales reach 34% of UK Caio, who replaced long-serving Massimo Sarmi in May, described the gic partnership online revenues in Q1 2014 privatisation timetable as “a major challenge” but stressed the postal operator • Alibaba and China Post plan joint logis- • UK Post Office launches mobile post had already started to prepare for the IPO by appointing advisors and fixing a tics network offices for rural areas ‘roadmap’ for the coming months. The former telecommunications executive • Aramex acquires Australian delivery firm • TNT Express tests rail-road combination and digital economy expert announced that a new ‘strategic plan’ will be to target global e-Commerce markets for inner London deliveries presented in the coming weeks. EuROPE • TNT Post UK upgrades parcels service Source: CEP-Research for e-retailers • Marc Huybrechts joins Board of Direc- DiRECT mARkETing sPECiAl tors at bpost • DHL Express makes investment of CZK120m in Czech Republic • Eesti Post to re-brand under interna- tional name Omniva • Sanoma and Itella working in coopera- tion to boost domestic e-Commerce • La Poste bundles e-Commerce logistics services under Viapost brand © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | TOp STORY | pAGE 2 AmERiCAs ThE uPs fOunDATiOn suPPORTs DivERsiTy AnD DEADlinE APPROAChEs fOR 2014 CAnADA ECOnOmiC EmPOwERmEnT POsT E-COmmERCE innOvATiOn AwARDs • The UPS Foundation supports diversity The UPS Foundation, on behalf of UPS, announced Online retailers in Canada have less than two weeks and economic empowerment today it will donate more than US$7.9m to 42 non- to enter the 2014 Canada Post E-commerce • UPS Board appoints new CEO profit organizations supporting economic empowerment, Innovation Awards, in which finalists will • deadline approaches for 2014 Canada education, inclusion, and mentorship initiatives. The compete for a chance to share CA$1m in Post E-commerce Innovation Awards donations include a US$1m commitment of support over prizing. This year features new categories that • Consumers demand more flexibility two years to the World Association of Girl Guides and Girl reflect the latest e-Commerce trends, such as when shopping online, says UPS study Scouts (WAGGGS) to provide leadership development mobile strategies, community outreach and omni- opportunities to girls and young women around the world channel integration. The deadline to enter is 13 June. with a special emphasis on Latin America, Africa and the Finalists will be chosen by a blue-ribbon panel of judges. The Arab world. Since 2004, UPS has supported WAGGGS award categories include: Best Mobile Experience (Large in its mission to build global programs around leadership, and Small); Best E-commerce Shopping Experience; Best advocacy, volunteerism, environmental sustainability and Customer/Community Outreach, and Best Omni-Channel economic development. Integration. Source: UPS The 2014 Canada Post E-commerce Innovation Awards will uPs BOARD APPOinTs nEw CEO be held in Toronto on September 23 in a gala event hosted by TSN broadcaster James Duthie. Companies can apply at canadapost.ca/ecommerceawards. There is no fee to enter. The UPS Board of Directors today announced that it has named David Abney, currently the company’s Chief Source: Canada Post Operating Officer, as its new Chief Executive Officer and COnsumERs DEmAnD mORE flExiBiliTy whEn appointed him to the Board of Directors. Scott Davis who has served as the company’s Chairman of the Board and shOPPing OnlinE, sAys uPs sTuDy CEO since 2008, will retire from UPS and will assume the role of non-executive Chairman. Both moves are effective 1 comScore, Inc. and UPS released the findings in the third September. annual UPS Pulse of the Online Shopper Study. According Source: UPS to the study, online shoppers want retailers to make it easier to purchase their goods and services. Consumers also want websites and stores to work better together. For now, © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | AMERicAS | pAGE 3 AsiA PACifiC they also prefer to evaluate and purchase products from their desktops rather than their mobile devices, and when it comes to shipping and returns, ‘free’ is a driving factor to complete the sale. Furthermore, respondents said they want more options in searching for items, checking out, enhanced security and alternate delivery • Australia Post restructures locations. • Australia Post and Westpac sign The study also found that, while retailers have had a hard time connecting social 58% strategic partnership media to sales, social media do have an impact as one-third of all shoppers and • Alibaba and China Post plan joint one-half of ‘millennials’ said purchase decisions are influenced by social media. logistics network Moreover, the demand for cross-channel convenience is becoming more prevalent • Aramex acquires Australian delivery for the savvy shopper. firm to target global e-Commerce markets Free shipping continues to drive purchasing decisions – 58% of online shoppers Of E-shOPPERs have added items to their shopping carts to qualify for free shipping and 83% are willing to wait an additional two days for delivery if shipping is free. More than one- ADDED iTEms TO half of online shoppers said they want to see the total purchase cost early in the quAlify fOR fREE checkout process, and the majority prefer seeing the expected arrival date rather than the number of days it will take for the product to arrive. shiPPing While consumers prefer most of their packages delivered to their home (74%), there is a growing trend for alternate delivery options. Only about 43% of shoppers in the survey were satisfied with the flexibility of changing delivery days or rerouting packages. Consumers also expect free returns with 82% respondents saying they would complete the purchase if they could return the item to a store or have free return shipping, and 66% said they view a retailer’s returns policy before making a purchase. The majority of shoppers want retailers to make it easy for them to return a purchase by including a label in the box. Source: UPS © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | ASiA pAciFic | pAGE 4 ASIA PACIFIC AusTRAliA POsT REsTRuCTuREs AusTRAliA POsT AnD wEsTPAC sign sTRATEgiC PARTnERshiP Australia Post today confirmed plans to reduce the size of its headquarters and administration and direct valuable resources • Australia Post restructures Australia Post and Westpac Banking to support frontline customer services and initiatives. • Australia Post and Westpac sign Corporation announced a new strategic strategic partnership Under an announced restructure, the Australia Post partnership which will see one of the • Alibaba and China Post plan joint Group will reorganise around its two key brands. One country’s largest financial institutions logistics network will be the Australia Post brand, combining the existing become a participant in the MyPost • Aramex acquires Australian delivery retail and communication management services units, to Digital Mailbox and Australia Post using firm to target global e-Commerce provide trusted services and solutions for consumers and Westpac’s industry leading card acquiring markets small businesses both online and through our post office services. network. Such services will be on behalf of corporations Westpac customers will be able to securely receive and and government. The other will be the StarTrack brand, privately store important communications such as statements which will bring the parcels and express services business via the MyPost Digital Mailbox. The MyPost Digital Mailbox under the StarTrack banner to provide e-Commerce-driven is a free service that allows users to securely connect with logistics, supply chain and parcels delivery solutions for service, receive statements and bills, make payments online, local and international businesses and online marketplaces. and use the digital mailbox as a personal digital storage. For The two business units will be supported by a leaner businesses the system offers a range of integration options administration. Practically, this will mean a net reduction of to allow businesses to connect securely to their customers approximately 900 managerial, administrative and support through the digital mailbox and a secure digital delivery roles over the next 12 months, with the majority of the losses service to consumers as part of an integrated physical and to come from the head office in Melbourne. digital marketing and communication platform. Source: Australia Post Source: Australia Post © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | ASiA pAciFic | pAGE 5 ” ASIA PACIFIC AliBABA AnD ChinA POsT PlAn jOinT lOgisTiCs nETwORk Fast-expanding Chinese e-Commerce giant Alibaba Group has signed a wide-ranging logistics and delivery cooperation deal with China Post to improve distribution in its • Australia Post restructures home market and enhance its export capabilities. The deal is designed • Australia Post and Westpac sign The move comes amid a range of multi-million dollar technology acquisitions ahead strategic partnership of the group’s forthcoming IPO in New York. It follows the group’s acquisition of a to enable Alibaba to • Alibaba and China Post plan joint 10% stake in Singapore Post and plans for an international eCcommerce logistics logistics network joint venture, as well as a cooperation deal with Australia Post. deliver online purchases • Aramex acquires Australian delivery firm to target global e-Commerce Alibaba founder and chairman Jack Ma and China Post general manager Li Guohua anywhere in China within markets signed an agreement to jointly develop a ‘smart’ logistics network in the country. This would cover joint logistics and delivery activities and involve sharing warehouses, 24 hours. processing centres and delivery resources. The deal is designed to enable Alibaba to deliver online purchases anywhere in China within 24 hours and, in particular, to improve its coverage of small cities and rural areas through China Post’s massive nationwide network, which includes 52,000 post offices and 150,000 delivery staff. Source: CEP-Research ARAmEx ACquiREs AusTRAliAn DElivERy fiRm TO TARgET glOBAl E-COmmERCE mARkETs Middle East express operator Aramex has acquired Australian same-day courier company Mail Call Couriers, which is specialised in domestic express deliveries for the e-Commerce sector, and will apply its solutions and technology in other e-Commerce markets worldwide. Aramex explained that the acquisition opens up further opportunities for developing and growing its global e-Commerce solutions across the Asia-Pacific region adding that Australia is now the fourth largest e-Commerce market in the region. As a leading express operator serving metropolitan areas in Australia, Mail Call Couriers, founded in 1982, is reputed for developing innovative customer-focused technology and providing fast and efficient services for the e-Commerce sector. Its ‘WantItNow’ delivery solution features unique count-down technology and a three-hour delivery time window as well as evening deliveries. Source: CEP-Research © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | EUROpE | pAGE 6 EEUuRROOPPEE mARC huyBREChTs jOins BOARD Of DiRECTORs and security systems as well as a modern high-capacity sorting system. AT BPOsT Source: CEP-Research Marc Huybrechts will join the bpost Board of Directors and EEsTi POsT TO RE-BRAnD unDER inTERnATiOnAl BElgium will replace Koen Van Gerven as Director Mail and Retail Solutions, who recently became bpost CEO. As Director nAmE OmnivA of Mail and Retail Solutions, he will be responsible for CZECh REPuBliC commercial relations of all letter products in Belgium, as Eesti Post (Estonian Post) has unveiled its well as the retail network. new international name Omniva, which it will EsTOniA Huybrechts has worked at McKinsey & Co, Fortis Bank, use in the Baltics while retaining its original name for domestic mail operations in Estonia. the Dexia Group and Distriplus. He will move into his new The company said that it will gradually position at the start of September. finlAnD introduce the Omniva trademark in Estonia, Source: bpost Latvia and Lithuania this summer, illustrating its international character. Dhl ExPREss mAkEs invEsTmEnT Of CZk120m fRAnCE The re-brand is similar to the approach of Finnish postal in CZECh REPuBliC operator Itella, which has retained the Posti name for the gERmAny domestic mail business but uses Itella for all other activities, DHL Express Czech Republic has made its largest ever as well as PostNord’s expansion of its group brand while investment worth CZK120m (€4.4m) in a new sorting keeping the established Swedish and Danish postal names. terminal near Prague in response to growing volumes and to luxEmBOuRg Explaining the new brand, Eesti Post said that its improve services for existing and potential customers. internationalisation and enlargement of its domestic market DHL has invested CZK70m in the new building located from Estonia to Latvia and Lithuania have driven the need for PORTugAl just north of Prague. The terminal, which opened in April, the new trademark. All subsidiaries in Estonia and abroad replaces three former separate sites. The new facility, with will be drawn together under the unifying new brand name. 120 employees, covers a total of 20,000m² and has the Omniva will provide the logistics services and e-services RussiA capacity to sort 4,000 parcels per hour. The hourly capacity that have until now been under different brands, like the can be expanded to reach up to 6,000 parcels. The facility Post24 automatic parcel machines, ELS courier service, uniTED kingDOm will receive and sort almost 1.5m import and export cargo Kirjakeskus mail centre and eArvekeskus e-invoicing centre. shipments per year. Source: CEP-Research A further CZK50m have been invested into technology, IT © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | EUROpE | pAGE 7 EUROPE sAnOmA AnD iTEllA wORking in COOPERATiOn Viapost already provides services for more than 30 brands such as Rue du Commerce, TO BOOsT DOmEsTiC E-COmmERCE Sephora, Smart Box, Eden Park and Made. com. Its services range from warehousing- Sanoma’s online shopping platform Mitäsaisiolla.fi (MSO.fi) based logistics to distribution and delivery. BElgium and Itella have agreed on a new e-Commerce collaboration. In 2013, Viapost (including Orium and Morin) The cooperation offers online merchants the opportunity to had turnover of €100m within the group’s get MSO.fi’s online platform and Itella’s logistics services as CZECh REPuBliC overall logistics turnover of €500m. The a single solution. business, with some 1,000 employees and 20 MSO.fi was launched in fall 2013 and currently has almost logistics centres, handled some 14m orders and some 28m EsTOniA 200 online merchants with over 35,000 products in total. goods in total. MSO.fi reaches 3.5 million potential customers every week Source: CEP-Research via Sanoma’s various online services. finlAnD This year, Itella launched an extensive warehousing and PiCkuP lAunChEs A nEw PARCElshOP sERviCE delivery system investment project that automates a significant fRAnCE part of e-Commerce processes. For online merchants, this Le Groupe La Poste parcelshop subsidiary Pickup launched change signifies more efficient and broader service, while for a new service, called ‘La navette pickup’, which is a solution to consumers it translates to faster delivery times. send small objects from one parcelshop to another between gERmAny individuals. It is intended to better meet the specific needs Source: Itella of collaborative consumption like buying, selling, leasing or lA POsTE BunDlEs E-COmmERCE lOgisTiCs bartering between individual consumers. luxEmBOuRg sERviCEs unDER viAPOsT BRAnD A flexible pouch is used as a ‘shuttle’ (navette) and can accommodate most items sold or traded on collaborative PORTugAl consumption websites. This service is also eco-friendly as France’s Le Groupe La Poste unveiled Viapost as its single the pouch can be reused. brand for e-Commerce logistics activities under plans to grow its end-to-end business-to-consumer (B2C) and The service is already available in more than 4,000 RussiA business-to-retail (B2R) services. The brand will incorporate parcelshops in France and should be extended to the 7,000 Orium and Morin Logistic, two small e-Commerce logistics pickup parcelshops across the country. companies that the French postal group acquired in 2012. uniTED kingDOm Source: GeoPost © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | EUROpE | pAGE 8 EUROPE DEuTsChE POsT Dhl mAnAgEmEnT report illustrates how operations in warehouses, during transportation and last-mile delivery as well as value-added APPOinTmEnTs in mAy services could be enhanced by computer-generated sensory input such as videos or graphics. Deutsche Post DHL has announced several senior BElgium The trend report has been developed by managerial changes. DHL Customer Solutions & Innovation’s Anita Gupta will become Senior Vice President Media Trend Research team as part of an on- CZECh REPuBliC Relations as of 1 September 2014 with global responsibility for going research project into Augmented DP DHL’s media work, including digital channels and customer Reality in logistics. DHL is planning to communications. She will take over from Silje Skogstad who test some of the derived use cases in EsTOniA moved to the Corporate Strategy department as Senior Vice proof of concept studies. President as of 1 June. Gupta will be replaced as head of The trend report explains briefly the emerging trend and regional communications for Asia, Middle East & Africa by finlAnD innovation in Augmented Reality technology and hardware Belinda Tan, who was previously head of PR in the region . and how it can be implemented in logistics. It also provides DHL Express has united the management of two of its fastest an overview on best practices from various industries. fRAnCE growing regions with the appointment of Yasmin Aladad Khan “Augmented Reality in Logistics” presents 11 different as Senior Vice President for DHL Express South East Asia and possible applications for the industry, among them improved South Asia. Khan, who joined DHL in 2001 and had headed for picking in warehouses for example, by equipping staff with gERmAny South East Asia (excluding Singapore) since 2007, has gained head mounted displays, they could find the right route and responsibility for the South Asia region, including Pakistan, the right item more efficiently. The surplus in information Bangladesh, Sri Lanka and Nepal. These countries previously would also reduce picking errors. luxEmBOuRg reported to Malcolm Monteiro, who has been appointed the Source: Deutsche Post DHL new CEO of DHL Global Mail Asia Pacific. PORTugAl Source: CEP-Research hERmEs TO invEsT €300m in ExPAnDing gERmAn CAPACiTy AugmEnTED REAliTy TRAnsfORms lOgisTiCs RussiA PROCEssEs, sAys Dhl sTuDy Hermes Germany announced an investment of around €300m to modernise and expand the logistics capacity uniTED kingDOm DHL has issued a new study on Augmented Reality in of its parcel business with new regional sites to profit from logistics, focusing on possible applications of this emerging the ongoing e-Commerce boom and move closer to smaller trend in the different stages of the supply chain. The trend online retailers. © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | EUROpE | pAGE 9 EUROPE This is the company’s biggest investment so far and will mitigated year in terms of sales results with a slight downturn be implemented by 2018, with Hermes aiming to establish in the total turnover from postal products and services. This itself increasingly as a partner for smaller and medium-sized reduction is predominantly due to the structural decrease shippers. Until now, its logistics system has been tailored in volume of the postal items, which should pick up in the especially to the needs of large companies. The company years to come. The parcels market has, however, continued BElgium plans to restructure its logistics network with 35 high- to grow steadily. performance, regional logistics centres that are optimally POST Luxembourg Group’s operating result reached CZECh REPuBliC positioned in terms of shipment flows and with capacity €56.46m, while the net result after taxes was €60.1m, a to handle over 400m shipments annually. This will enable decrease of 2.07% compared to 2012. Hermes to get closer to potential customers, especially EsTOniA regionally based SMEs. Source: POST Luxembourg In addition to the new investment, Hermes is planning ChROnOPOsT AnD fixEADs PROviDE a stronger coordination of its transportation operations finlAnD sPECiAlisED DElivERy sERviCE and is therefore bringing the German parcel business and the Transport Logistics division, which provides freight fRAnCE transportation, under common management. The aim is to Chronopost has invested in the development of solutions to coordinate the market presence and strengthen customer respond to the growing needs of the e-Commerce market. contacts as the two businesses partly address the same The online platforms developed by FixeAds, a Portuguese gERmAny target groups. Common sales solutions are also supposed company specialising in the development of platforms to reduce structural costs. for free online adverts and electronic commerce, chose Source: CEP-Research Chronopost’s delivery solutions. The new collaboration will luxEmBOuRg give online buyers the opportunity to manage their order POsT luxEmBOuRg gROuP 2013 finAnCiAl interactively, giving customers all the information on their parcel and providing them with all delivery options available PORTugAl REsulTs to them. In 2013, POST Luxembourg and all subsidiaries in the Founded in 2004, FixeAds’s brands include Standvirtual, RussiA POST Luxembourg Group maintained a stable turnover at Imovirtual, Coisas and OLX. FixeAds has recently launched €677.4m in a very competitive environment, and achieved Faturavirtual which is a free online invoicing programme, solid financial results. approved by the Portuguese Tax Authority. uniTED kingDOm In a now completely open market, POST Courrier has had a Source: GeoPost © 2014 - ipc.be THE NATURAL pARTNER FOR THE pOSTAL iNDUSTRY MARkET FLASH | iSSUE 488 | FEATURE STORY | pAGE 10