buyer generated e-shopping, kiev 2009, posteurop

Buyer generated e-shopping

attitudes towards distance selling

Dr. Levente LaszloDr. Levente LaszloPostEurop , Head of CRM WG

DM Days in Ukraine, 3-4 June 2010, Kiev

Agenda

� PostEurop – at a glance

� Buyer generated e-shopping – attitudes

towards distance selling towards distance selling

� Magyar Posta – at a glance

� Best Practice and Conclusions

2 / 28 2010 DM Days in Ukraine

Introducing PostEurop

� 48 European Public Postal Operators

� Linking 800 million people daily

� Employing 2.1 million people

� Retail services – 175,000 counters

� Representing 30-40% of world mail

volumes


Vision

� PostEurop represents the European Postal

Industry

� It supports its Members throughout the

evolving marketevolving market

� and promotes the industry interest to all

stakeholders


Main Activity Pillars

VISION

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Reg

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Joos

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Ronny Kaufmann

Resources*Murray Buchanan

IntelligenceIngimundur Sigurpalsson

*Lev Razovskiy is responsible for the IT aspects and Joe Gafà for the financial resources aspects under the Resources Transversal.


Organisational Structure

KEY FIGURES

• 12 Persons at HQ in

Brussels

• 32 Working Groups

within the 5 within the 5

Committees

• 400-500 Persons

involved in the work

of the Association


Market Activities

� Promoting the value of mail in the media landscape

� European Mail Industry Platform (EMIP)• Gathering the stakeholders of the

postal sectorpostal sector

� Customer Relationships Management • Exchange of best practices on sales

& product management (e.g. e-commerce)

� Stamps & Philately • ‘Europa Stamp’ award every year


Customer Relationship Management Working Group

MAIN ACTIONS:

� benchmarking activities regarding “value of mail” among WG members, with special regard to the development and improvement of the DM activities – both domestic and cross-border

� starting a project for identifying the barriers to the development of cross-border e-commercelinked international services between the WG members;

� build up of reliable mail/parcel database (information platform);


Buyer generated e-shopping –Buyer generated e-shopping –attitudes towards distance selling


Distance shopping and cross-border purchases (past 12 month)

�38% of all EU consumer made a distance purchase on the Internet

�23% used post (catalogues, mail order, etc)

�14% made a distance purchase by phone

Source: Eurobarometer, 2010 March FI 282


Distance purchase in the past 12 months via the Internet

TOP distance purchasers

� 73% UK

� 70% Germany

� 65% Sweden

� 42% men and 33% women

� 55% aged 25-39 and 15% aged 55+

� 90% higher level of education

Source: Eurobarometer, 2010 March FI 282


Reasons for online shopping

�Convenience is the main reason for online shopping

� Lower price is not the dominant criteria for inline shopping

�35% see home delivery as important reason to shop online

Source: Websurvey France, 2008


Enterprises' turnover from e-commerce, 2008 (% of total turnover)

TOP countries : 25% Ireland; 21% Norway; 18% Sweden

Source: Eurostat, 1/2010


Enterprises regularly sending e-commerce order, 2008 (%)

� Fewer enterprises located in large countries regularly send e-commerce orders to suppliers in other EU country

Source: Eurostat, 1/2010


European Parcel market 2016 volume of B2C

�Total market: 3.1 b parcels, EUR 8–11b

Source: TNT, 2009


Overview of e-shopping value chain segments

�Home delivery value chain consist of seven main focus segments

�And the most important one is…

Source: BCG, 2009


We need to approach OUR (end)CONSUMERS !

The 21st century

consumer is

changing its


changing its

purchase habits!

Multi-taskers – change of the buyers’ attitude

Source: Media Meshing: Meet Europe’s media multi-taskers, 2010

TOP multi-taskers

� 77% Denmark and UK

� 73% Germany

� 71% BelgiumMulti-taskers: all those who use / access the Internet whilst also watching TV .


What are people / multi-taskers doing?

� 34% of Internet users are researching on the Internet a product with purchasing purposepurpose

Source: Media Meshing: Meet Europe’s media multi-taskers, 201019 / 28 2010 DM Days in Ukraine

Where are purchases being made?

Purchase-driving effect of a

TV and internet Ads.

�Two in three say that Internet ads have driven them to make driven them to make an on-line purchase

Source: Media Meshing: Meet Europe’s media multi-taskers, 2010


Growth Opportunities for Postal Operators

�Parcels could be the leading postal product in the long term as mail continues its decline

Source: Forrester, UPU, BCG, 200921 / 28 2010 DM Days in Ukraine

Magyar Posta at a glance


Magyar Posta at a glance

� Mail : 1,6 billion pieces / year

� 93.000 km2 � 10 million inhab.� 3 500 localities

Hungary

The Company

� Headcount: 35,000 employees� Network: 2,744 fixed + 356

„mobile” post offices (serving 1000 settlements)

Postal network

Core business� Mail : 1,6 billion pieces / year� Parcel : 5,2 million pieces / year� Financial trans.: 335 million / year� Revenue: 770 million EUR

� Corporatized in 1993

� 100% state-owned

� Designated USP

Business Units Ildikó Sz őts, CEO

DomesticCorporate Customers

DomesticPrivate

CustomersInternationalCustomers

LogisticSystems

FinancialServices


International Customers (strategic overview)

Traditional international mail business

- 2004

Be the CEE Competence Center for our customers

2009 - 2012

2005 - 2008

Earning the right to play on international market

• improving distribution • strategic partnerships

• improving distribution quality

• joining REIMS-East

• joining IPC-IDM

• joining IPC-EPG

• improvement of the product portfolio

• joining Pay-for-Performance EMS

• bilateral agreements & partnerships

• outbound and inbound activity

• UPU products

• new sales & distribution channels

• tailor-made product portfolio

• low cost CEE logistic network

• focusing extensively on the customers’ needs


Best Practice – Conclusion

Process / procedure

(WHAT?)

Country

(WHERE?)

Operator / subcontractor involved

(WHO?)

Warehousing, commissioning, packaging, detailed info

DE, CZ Customer – Sender (mail order company)

Warehousing, packaging

Home delivery,COD, HU RODE

CZ

Returns

packaging, detailed info

International transport DE +CZ → HU → RO + back (returns)

Transport company (subcontractor)

Sorting, labeling, reporting + liability for the process

HU Magyar Posta

Home delivery (catalogues + parcels)

RO Designated Operator (mailings, DM and catalogues < 500g)

Alternative Operator (parcels, catalogues)

COD upon delivered parcels RO Alternative Operator

Return handling and reverse logistics

RO Alternative Operator (unsuccessful delivery)

Designated Operator (buyers’ returns)

Detailed daily reports RO → HU → DE Magyar Posta


CEE Competence Center -> „Cloud Distribution”


Conclusions

�Parcels may be a bigger market than mail in the future for postal operators

� International cooperation within the „e-shopping cluster” among the interested stakeholder => cluster” among the interested stakeholder => developing cross border solutions => target: buyers

� Last mile delivery staff can be first mile

sales force by identifying the buyers


Levente LaszloPostEurop , Head of CRM WG

E-mail: [email protected]

www.posteurop.org