Global Postal Services Industry

• Publication date: January 2012

The global outlook series on Postal Services provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the industry, highlights latest trends in the postal services market, and demand drivers, in addition to providing statistical insights. Regional markets elaborated upon include United States, Canada, Japan, France, Germany, UK, Bulgaria, Finland, Banglades...

The global outlook series on Postal Services provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the industry, highlights latest trends in the postal services market, and demand drivers, in addition to providing statistical insights. Regional markets elaborated upon include United States, Canada, Japan, France, Germany, UK, Bulgaria, Finland, Bangladesh and India. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 164 companies worldwide.

Global Logistics And Freight Industry

1. OVERVIEW 1
Introduction 1
Postal Services Definition Varies for Each Country 1
Differences in Regulatory Purposes 1
Same Words Have Different Meanings in Different Countries 2
Organization of Global Postal System 2
Structure and Service 2
Table 1: Global Postal Market (2010): Percentage Breakdown
of Value Shares by Product/Service - Letter Post, Postal
Parcels and Logistic Services, Postal Financial Services,
and Other Products 3
Alternatives to Postal Mail 3
Emergence of Electronic Alternatives 3
Evolving Landscape of Postal Industry 4
Liberalization 4
Technology 4
Alternative Media 4
New Players 4
New Generation Customers 5
Future of Postal Services 5
Select Factors Likely to Affect Future Postal Services Demand 5
Key Global Statistics 6
Table 2: Global Recent Past, Current and Future Analysis of
Postal Services Market by Geographic Region - US, Canada,
Europe, Asia-Pacific (Including Japan) and Rest of World
Markets Independently Analyzed with Annual Revenues in US$
Million for the Years 2010-2015 6

Table 3: Global 5-Year Perspective for Postal Services by
Geographic Region - Percentage Breakdown of Dollar Revenues
for US, Canada, Europe, Asia-Pacific (Including Japan) and
Rest of World Markets for Years 2011 & 2015 7

2. GLOBAL TRENDS & ISSUES 8
The Recent Slow Down Takes its Toll on the Global Postal Industry 8
Impact of the Recession on Various Postal Services 8
All Major Consumer Segments Embrace Alternatives 9
Volume Declines Becomes a Sustained Feature of the Industry 9
Table 4: Mail Volume Declines across Countries (2009) 9
Reducing Costs and Increasing Productivity - Vital for Survival 10
Industry Volume Trends - Highlights 10
Mail Volumes Remain Sluggish 11
Mail Revenue Sustained by Price Hikes 11
The Challenge of Rising Costs 11
Declining Profitability of Mail Business 11
Postal Companies Digitalize and Diversify 11
Shortcomings of Digitalization 12
Growth in Business to Household Mail 12
B2C e-Commerce Fuels Parcels Distribution Market 12
Electronic Payment Contributes to Declining Check Related Mail
Volumes 13
Traditional Approach Unviable During Economic Volatility 13
Lack of Customer-Facing Potential Cripples the Industry 13
Significance of Consumer Experience 14
Consumer Centricity is the Key 14
Innovation - Key to Industry Growth 14
Scope for Innovation in Postal Sector 14
Hybrid Solutions 14
Complementary Services 15
Increasing Service Quality to Mail Recipients 15
Green Solutions 15
Select Facts about Carbon Footprint of Mailing Industry 15
Deregulation of Postal Services 15
Postal Banks Mobilize Poor People’s Savings 16

3. COMPETITION 17
Competition Between Public and Private Players 17

4. PRODUCT OVERVIEW 18
Postal Services - Definition 18
Definitions Based on Conveyance of Objects 18
Based on Operators’ Network and Objects Conveyed 18
Based on a Country’s Regulatory Framework 18
Under ‘Postal Market’ Context 18
Definitions Based on Subjects 19
Definition Based on Activity Performed 19
Historical Development 19
Parcel Post Service 20
Table 5: Global Small Parcel Market (2010): Percentage
Breakdown of Market Share by Companies - UPS, FedEX, DHL, TNT
and Others 20
Historical Development 21
Postal Market Elements 21
Large Letters, Packets and Addressed Letters 21
Standard Parcels 21
Unaddressed Items 21
Courier and Express Items 21
Classification of Mail by Application 21
Advertising Mail 21
Fulfilment 21
Transactional Mail 21
Social Mail 22
Publications 22
Universal Postal Union 22
Background & Development 22

5. MERGERS & ACQUISITIONS 24

6. STRATEGIC CORPORATE DEVELOPMENTS 31

7. PRODUCT/SERVICE INNOVATIONS/ LAUNCHES 44


A REGIONAL MARKET PERSPECTIVE 52

1. THE UNITED STATES 52
United States Postal Service (USPS) 52
Introduction 52
Historical Development 52
Governance 53
Monopoly of USPS 53
Competition 54
Industry Leaders in the US - In and Out of Recession 54
Automation and Use of Technology 54
Recent Developments 55
USPS Ends the Year 2010 with a Loss of US$8.5 Billion 55
USPS Pleads for a 4% Exigent Rate Increase for Various Mail
Classes 56
Legislation Introduced for Implementing Structural Reforms of
the USPS 56
USPS Under Severe Financial Pressure 56
Trends 57
Direct Mail Volumes Hit by Turmoil in Credit Markets 57
Smaller Rural Post Offices in US at the Risk of Closing Down 57
First Class Postage in the US Might Soon Become Obsolete with
Zumbox 57
Mail Growth Accelerates After Every Economic Downturn 57
Products & Services Offered by USPS 58
First-Class Mail 58
First Class Mails - Pricing Dynamics 58
Cards 58
Letters 59
Large Envelopes 59
Package 60
Periodicals 61
Standard Mail 61
Media Mail 61
Parcel Post 61
Bound Printed Matter 61
Bulk Mail 61
Library Mail 61
Registered Mail 62
Express Mail 62
Postal Money Order 62
Add-On Services 62
Certified Mail 62
Collect On Delivery (COD) 62
Postage Stamp 62
Postage Meters 63
PC Postage 63
Customized Postage 63
Online Postage Providers 63
The US Mail Market 63
Table 6: US Mail Market (2010): Percentage Breakdown of
Volume Sales by Segment - Direct Mail transactional Mail and
Correspondence Mail 63

Table 7: US Direct Mail Market (2010): Percentage Breakdown
of Volume Sales by Segment - Standard Class Direct Mail and
1st Class Direct Mail 63

Table 8: US Transactional Mail Market (2010): Percentage
Breakdown of Volume Sales by Segment - Bills/Statements,
Business Reply, Invoices and Greeting Cards 64

Table 9: US Correspondence Mail Market (2010): Percentage
Breakdown of Volume Sales by Segment - Letters, Greeting
Cards and Invitations 64

Table 10: US Domestic Mail Market (2010): Percentage
Breakdown of Pieces Delivered by Category - Standard Mail,
First- Class Mail and Others 64
US Parcel Market 65
Table 11: Leading Players in the US Parcel Market (2010):
Percentage Breakdown of Value Sales for UPS, FedEx, DHL
Americas, USPS and Others 65

2. CANADA 66
Canadian Postal Services to be Privatized 66
Federal Government Starts “Strategic Review” on Canada Post 66
Automation in Canadian Postal System 66

3. JAPAN 67
Japan Post Holdings 67

4. EUROPE 68
European B2C Parcels Market Witnessing Rapid Growth 68
Table 12: European Recent Past, Current and Future Analysis
of Postal Services Market by Geographic Region - France,
Germany, Italy, UK and Rest of Europe Markets Independently
Analyzed with Annual Revenues in US$ Million for the Years
2010-2015 69

Table 13: European 5-Year Perspective for Postal Services by
Geographic Region - Percentage Breakdown of Dollar Revenues
for France, Germany, Italy, UK and Rest of Europe Markets for
Years 2011 & 2015 70
Growth Inhibitors 70
Market Opens up for Competition Enhancing Efficiency 71
Universal Service Contracts Enjoyed by ncumbents Undermine the
Legislation 71
Evolving Functions of National Postal Operators 71
Table 14: European Postal Services Market (2009): Percentage
Share of Mail in Total Revenues by Select National Postal
Operator - Post Danmark, Royal Mail, De Post/La Poste,
Osterreichische, Posten, La Poste, Posti, Posten Norge, TNT,
Die Post, Poste Italiane and DPWN 72
Modernization of a National Postal Operator 73
Transformation 73
Expansion and Diversification 73
Table 15: Postal Market in Europe (2009): Percentage Share
of Ordinary Letters and Postcards in Total Letter Post
Services by Select Country - Latvia, Malta, Cyprus, Ireland
and Sweden 73
European Express/Parcel Market 74
Table 16: Leading Players in the European Express/Parcel
Market (2010): Percentage Breakdown of Value Sales by Company
for DHL, CEVA, Kuehne + Nagel, CAT Logistics, Wincanton,
Penske Logistics, UPS CS and Others for Intra Europe Services 74

Table 17: Leading Players in the European Express/ Parcel
Market (2010): Percentage Breakdown of value Sales by Company
for DHL, UPS, TNT, FedEx, La Poste, Royal Mail and Others for
International Services 74

4a. FRANCE 75
Market Overview 75
Leading Players in the French Postal Market by Category (2009) 75

4b. THE UNITED KINGDOM 76
Market Overview 76
Express and Courier Services Market 76
Historical Development 76
Post Office Ltd. 77
Parcelforce Worldwide - A Major Carrier for Time-Critical
Packages 77
Market Issues 77
Deregulation of Postal Services 77
Affect of Deregulation on Royal Mail 78
Digital Revolution Presents New Challenges and Opportunities 78
Table 18: UK Postal Market (2010): Percentage Breakdown of
Value Sales by Application - Fulfilment, Transactional,
Advertising, Publications and Social 79
Challenges 79
Social Mail 79
Table 19: UK Social Mail Market (2010): Percentage
Breakdown of Value Sales by Segment - Letters, Express and
Courier, and Standard Parcels 79
Transactional Mail 79
Table 20: UK Transactional Mail Market (2010): Percentage
Breakdown of Value Sales by Segment - Letters and Express
& Courier 80
Opportunities 80
Advertising Mail 80
Table 21: UK Advertising Mail Market (2010): Percentage
Breakdown of Value Sales by Segment - Letters and
Unaddressed Mail 80
Fulfilment 81
Table 22: UK Fulfilment Mail Market (2010): Percentage
Breakdown of Value Sales by Segment - Express and Courier,
Standard Parcels and Letters 81
Publications 81
Table 23: UK Publications Mail Market (2010): Percentage
Breakdown of Value Sales by Segment - Letters, Express and
Courier, Standard Parcels and Unaddressed Mail 81
Letters Market 82
Table 24: UK Letters Market (2010): Percentage Breakdown of
Volume Sales by Segment - Business to Residential Consumer,
Business to Business, Residential Consumer to Residential
Consumer and Residential Consumer to Business 82

4c. BULGARIA 82
Rising Bulgarian Postal Services Market 82

4d. FINLAND 83
Market Overview 83
Table 25: Finnish Postal Market (2010): Percentage Share
Breakdown by Postal Activities - Letter Delivery, Magazine
and Newspaper Delivery, Parcel Delivery and Unaddressed Mail
Delivery 83
Finnish Postal Companies Ranked on the Basis of Turnover for
the Year 2009 83
Table 26: Finnish Postal Market (2007-2009): Domestic
Turnover in € Million 84

Table 27: Finnish Postal Services Market (2008 & 2009):
Number of Establishments by Category - Entrepreneur-driven
Sales Outlets and Post Office Establishments 84

5. ASIA-PACIFIC 85
Market Overview 85
Table 28: Asia-Pacific Postal Market (2010): Percentage Share
Breakdown of Revenues by Product/Service - Postal Financial
Services, Letter Post, Postal Parcels and Logistic Services,
and Other Products 85

Table 29: Asia-Pacific International Parcel Market (2010):
Percentage Share Breakdown of Market Share by Companies -
DHL, FedEX, UPS, TNT and Others 85

5a. BANGLADESH 86
Government Postal Services Losing Market Share 86

5b. CHINA 86
China’s Postal Industry Booming 86

5c. INDIA 87
Introduction 87
Key Challenges 87
Structure of Indian Postal Service 87
The Eight Zone Codes and Regions of Jurisdiction 87
Governing Body 88
Services 88
Mail Service 88
Post Card 88
Envelope 89
Inland Letter Card 89
Book Post 89
Parcel Post 89
Special Service 89
Registered Post 89
Certificate of Posting 89
Speed Post 90
Insured Post 90
Post Restante 90
Banking Service 90
Post Office Monthly Income Scheme 90
Post Office Savings Bank Account 90
Post Office Time Deposit Account 91
Kissan Vikas Patra Scheme 91
Five-Year Post Office Recurring Deposit Scheme 91
Six-Year National Savings Certificates (VIII Issue) Scheme 91
Fifteen-Year Public Provident Fund Account (PPF Account) 91
Insurance Service 92
Rural Postal Life Insurance 92
Postal Life Insurance 92
Remittance Service 92
Postal Order 92
Money Order 92
Other Service 93
Gramin Sanchar Sewak Scheme 93
Philately 93
Post Shoppes 93
Sale of Forms 93
Sale of Other Types of Stamps 93
Bill Payment 93
Business Services 93
Post-box and Postbag 93
Corporate Money Order 94
Business Post 94
Express Post 94
Media Post 94
Business Reply Post (BRP) 94
Value Payable Post (VPP) 94
Postage 94
Franked Postage 95
Payment Without Stamp 95
Computerized Slip 95
Transmission of Mail 95

6. LATIN AMERICA 96
Market Overview 96
Table 30: Latin American Postal Market (2010): Percentage
Share Breakdown of Revenues by Category - Letter Post, Postal
Parcels and Logistic Services, Postal Financial Services, and
Other Products 96

7. MIDDLE EAST 97
Postal Companies in the Middle East Poised for Growth 97


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