chances and challenges in cross-border parcel distribution ... · chances and challenges in...

Chances and challenges in cross-border parcel distribution.

Hermes’ perspective on the European X2C market

November, 4th

Carsten Siebe, Head of European Network, Hermes Europe GmbH

Content

Who we are

The European e-commerce market

Trends in European X-to-C distribution

Chances in cross-border parcel distribution

Challenges in cross-border parcel distribution

Who we are Hermes in the Otto Group

Multichannel-Retail Service Financial Services

Hermes Europe

Employees:* 54,037

Revenue:* 12,572 Mio. €

*Otto Group fiscal year 15/16

Rev. 680 Mio.€ Rev. 10,149 Mio.€ Rev. 1,743 Mio.€

page 4

Who we are A full range portfolio of services along the retail supply chain.

page 5

Sourcing &

Product

Hermes-OTTO International

Hansecontrol Group

Transport

Logistics Hermes Germany

Full-Service

E-Commerce BorderGuru

Zitra

Hermes Nex Tec

Hermes Fulfilment

Distribution

Hermes Einrichtungs-Service

Hermes Germany

Regional subsidiaries (UK, IT, AT, RUS, FR)

Sourcing &

Product

Hermes-OTTO International

Hansecontrol Group

Transport

Logistics Hermes Germany

Full-Service

E-Commerce BorderGuru

Zitra

Hermes Nex Tec

Hermes Fulfilment

Distribution

Hermes Einrichtungs Service

Hermes Germany

Regional subsidiaries (UK, IT, AT, RUS, FR)

Who we are Hermes has increased its operations on relevant world markets in the course of its development as a supply

chain provider

Headquarters

Regional offices

Purchasing offices

page 6

Who we are Facts and figures about Hermes Group services

12,215

people around the globe are

employed by the Hermes

Group.

150,000

audits were conducted by

Hermes Hansecontrol in

2015.

2,460 Million Euros in revenue was earned by the Hermes Group in

fiscal year 15/16

The VDI Innovation Award was presented to Hermes Fulfilment in

March 2013 for the world’s largest

automatic returns facility in

Haldensleben.

580 Million

shipments are delivered by

Hermes every year in

European markets.

2,000 suppliers operate

in the Hermes-OTTO

International network,

and it’s still growing.

page 7

Who we are Hermes Parcel Logistics coverage in Europe

• Hermes Ltd. UK

• 4.200 ParcelShops

• 240 Mio parcels p.a.

• Hermes Logistik Gruppe


• 319 Mio parcels p.a.

• OOO B2C (Joint Venture)

• 0,8 Mio parcels p.a.

• Hermes Italia S.p.a.

• 2,1 Mio parcels p.a.

• Hermes Logistik GmbH


• 12,6 Mio parcels p.a. • Mondial Relay FR, BE, ES

• 5.200 ParcelShops FR

• 1.200 ParcelShops ES

• 600 ParcelShops BeLux

Hermes Group companies build the

European network backbone.

Strong parcel shop and home delivery

capabilities in major European to-C

markets.

page 8

Content

Who we are





The European e-commerce market Some general views

In 2015, 16% of the European individuals bought

goods/services outside their own country – a growth

of 33% compared to 2013

B-to-B stagnating/ slightly decreasing

C-to-X increasing both out of ParcelShop

networks as well as consumer returns

Continuous strong growth in B-to-C

The European e-commerce market Some general views

Only a few non-postal providers with European relevance in the parcel industry

Domestic markets still mainly dominated by local postal providers

National postal operators with domestic to-C infrastructures join forces and establish competitive solutions (IPC Interconnect)

Postal providers own market relevant European parcel networks who are moving into the X-to-C segment (1st consolidation wave)

2nd to-C consolidation wave driven by European networks owned by postal providers

DHL starts transferring the German to-C strategy and infrastructure to neighbouring markets

Build up of a border-crossing distribution seems the logical 2nd step after building up of own domestic distribution networks in core

European markets

page 12

The European e-commerce market Competitive landscape

DHL starts transferring the German to-C strategy and infrastructure to neighbouring markets

Build up of a border-crossing distribution seems the logical 2nd step after building up of own domestic distribution networks

in core European market

Strong competition considerably driven by postal providers with similar business strategies and by a new powerful vertical

entering logistics and distribution

page 13

The European e-commerce market Competitive landscape

Amazon creating own logistics structures & services „Global Supply Chain by amazon

Content

Who we are






„Battle on services“

• Consumer convenience and delivery flexibility

• Accessibility for individual private shippers and SME increases

• Domestic service standards becoming International standards

• Shortend International lead times

Digitalization & Technology

• Predictive analytics – where can I reach the consumer for delivery ?

• Technology support for the last mile: robots, drones, autonomous driving lockers etc.

Stock moving back into cities

• Enabler for sameday and instand delivery services

Brokerage models trying to move in between clients and owners of logistics infrastructure

Direct intercontinental distribution of small and cheap items on the back of postal networks

Content

Who we are






Participation in disproportional high growth in International e-commerce !

Content

Who we are






Market consolidation driven by postal providers and their networks narrows partner options for private

networks

Increasing demand for delivery options and additional service features requires flexible cooperation and

well structured IT solutions

Simplyfied customs clearance procedures amongst postal providers (UPU) lead to competitive

disadvantages of privat networks in intercontinental e-commerce

Competitive disadvantage compared to postal providers in the segment of mailbox deliveries of goods

(mass market intercontinental, mainly inbound EU)

Thank you!

Hermes Europe GmbH

Essener Strasse 89

22419 Hamburg

Carsten Siebe Head of European Network

Email: [email protected]

www.hermesworld.com

Phone: +49 40 537 55 802

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