CROSSING BORDERS __________________________________

e-Commerce driven Innovation in the Postal Operation

Levente Laszlo, Magyar Posta Budapest, June 12, 2012

� 21st century and the future trends

� eCommerce is THE OPPORTUNITY for postal operators

� We need a COMON PLATFORM� We need a COMON PLATFORM

� Briefly about Magyar Posta International Business Unit

� World is changing … very fast … too fast …

� Then and Now

� Then and Now

� Global Postal Trends we all know

� B2C Market is Postal Operators’ market

� e-commerce is growing double digit globally

� What are we Postal Operators doing ?

� The Postal Platform of the 21st century

� The Postal Platform of the 21st century is changin g very fast !

� Communication = driven by the Sender � Delivery of goods = driven by the Recipient/Receiver

� This is the biggest opportunity for postal operators ever !

� e-commerce stakeholders

� European eCommerce market – facts

� EU commission aims to double eCommerce sales in Europe by 2015

13,4 %

� European eCommercemarket annual growth

6,8 %

3,4 %

6,8 %

� There are several possibilities for integration

� eCommerce–Platform = the Opportunity

� 22,8 million of SMEs in EU� Unique sector where unemployment can be reduced� Postal Operators are the „ most important link ”

eCommerce SME Platform

� Platform = standardization for the members

Beside of different pricing, labels, delivery procedures we should procedures we should using comun technology instead of „bilateral agreements”.

Let’s start with the labels !

� Hungary - on the EU online landscape

� Online shopping (goods and services) in the last 12 month

� Online shopping delivered by postal operators in the last 12 month � Online shopping delivered by postal operators in the last 12 month

� Hungary – expectation for 2012 online spend

� On-line spend has reached by the end of 2012, EUR 550 million

Aprox.1,5 million transactions in 2010

Source: GKIeNET

Increase of 25% during the downturn

� No. 1. strategic program = eCommerce Program

� Magyar Posta International on the way of its eComme rce Program

2008 2010 2011 2012 2013

Signing EPG Entering on Romania

E-label

Web-based e-shipper solution

Mail order fulfillment

EPG - ERS

Magyar Posta FTP

Databasemanagement

Multiple delivery

� Magyar Posta „all inclusive e-commerce” business mode l

1 Distribution of unaddressed items

2

4

5Distribution of addressed items

COD

Reverse Logistics Management (ERS)

.

3

Management (ERS)

Distribution of parcel items

6 Reports

� International strategy - milestones 2005 - 2015

Traditional internationalservice

- 2004

Regional postal operator„CROSSING BORDERS”

2010 - 2015

2005 - 2009

„ Earning the right to play on international market ”

• improving distribution

• Multilevel 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 standard postal products

• UPU-conform product-portfolio

• new sales & distribution channels in CEE-region

• tailor-made „commercial”product portfolio

• low cost CEE logistic network

• focusing extensively on the customers’ needs (IT-support, GIS, web 2.0 support)

� Budapest HUB – the regional access point

The regional HUB offers:

� „point of entry” for all the customers outside of EU and from oversea (CN, US, etc.)

� Regional distribution service� Customs clearance

� The International HUB located on Budapest airport