1. Buyer generated e-shopping
attitudes towards distance selling
Dr. Levente Laszlo
PostEurop , Head of CRM WG
DM Days in Ukraine, 3-4 June 2010, Kiev
2. Agenda
PostEurop – at a glance
Buyer generated e-shopping – attitudes
towards distance selling
Magyar Posta – at a glance
Best Practice and Conclusions
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3. 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
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4. Vision
PostEurop represents the European Postal
Industry
It supports its Members throughout the
evolving market
and promotes the industry interest to all
stakeholders
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5. Main Activity Pillars
VISION
Joost Vantomme / Isabel Tavares
Communication
Operational environment
Regulatory environment
Ronny Kaufmann
Market environment
Social environment
Resources*
Philippe Hlavacek
Jurgen Lohmeyer
Murray Buchanan
Jan Sertons Intelligence
Ingimundur Sigurpalsson
*Lev Razovskiy is responsible for the IT aspects and
Joe Gafà for the financial resources aspects under the
Resources Transversal.
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6. Organisational Structure
KEY FIGURES
• 12 Persons at HQ in
Brussels
• 32 Working Groups
within the 5
Committees
• 400-500 Persons
involved in the work
of the Association
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7. Market Activities
Promoting the value of mail in
the media landscape
European Mail Industry Platform
(EMIP)
• Gathering the stakeholders of the
postal sector
Customer Relationships
Management
• Exchange of best practices on sales
& product management (e.g. e-
commerce)
Stamps & Philately
• ‘Europa Stamp’ award every year
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8. 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-commerce
linked international services between the WG
members;
build up of reliable mail/parcel database
(information platform);
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10. 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
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11. Distance purchase in the past 12 months via the Internet
TOP distance purchasers
73% UK 42% men and 33% women
70% Germany 55% aged 25-39 and 15% aged 55+
65% Sweden 90% higher level of education
Source: Eurobarometer, 2010 March FI 282
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12. 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
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13. Enterprises' turnover from e-commerce, 2008 (% of total turnover)
TOP countries : 25% Ireland; 21% Norway; 18% Sweden
Source: Eurostat, 1/2010
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14. 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
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15. European Parcel market 2016 volume of B2C
Total market: 3.1 b parcels, EUR 8–11b
Source: TNT, 2009
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16. Overview of e-shopping value chain segments
Home delivery value chain consist of seven main focus
segments
Source: BCG, 2009
And the most important one is…
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17. We need to approach OUR (end)CONSUMERS !
The 21st century
consumer is
changing its
purchase habits!
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18. Multi-taskers – change of the buyers’ attitude
TOP multi-taskers
77% Denmark and UK
Source: Media Meshing: Meet Europe’s media multi-taskers, 2010 73% Germany
Multi-taskers: all those who use / access the Internet whilst also
71% Belgium
watching TV .
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19. What are people / multi-taskers doing?
34% of Internet
users are
researching on the
Internet a product
with purchasing
purpose
19 / Media Meshing: Meet Europe’s media multi-taskers, 2010
Source: 28 2010 DM Days in Ukraine
20. 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
an on-line purchase
Source: Media Meshing: Meet Europe’s media multi-taskers, 2010
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21. 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, 2009
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23. Magyar Posta at a glance
Hungary Postal network
93.000 km2 Headcount: 35,000 employees
10 million inhab. Network: 2,744 fixed + 356
3 500 localities „mobile” post offices (serving
1000 settlements)
The Company Core business
Mail : 1,6 billion pieces / year
Corporatized in 1993 Parcel : 5,2 million pieces / year
100% state-owned Financial trans.: 335 million / year
Designated USP Revenue: 770 million EUR
Business Units Ildikó Szőts, CEO
Domestic Domestic
Corporate Private Financial International Logistic
Customers Customers Services Customers Systems
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24. International Customers (strategic overview)
Be the CEE Competence
Earning the right to play Center for our customers
Traditional on international market 2009 - 2012
international
mail business 2005 - 2008
- 2004
• strategic partnerships
• improving distribution
quality • new sales & distribution
channels
• outbound and inbound • joining REIMS-East
activity • tailor-made product portfolio
• joining IPC-IDM
• UPU products • low cost CEE logistic
• joining IPC-EPG network
• improvement of the • focusing extensively on the
product portfolio customers’ needs
• joining Pay-for-
Performance EMS
• bilateral agreements &
partnerships
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25. Best Practice – Conclusion
DE Warehousing, Home
HU delivery,COD, RO
CZ packaging
Returns
Process / procedure Country Operator / subcontractor involved
(WHAT?) (WHERE?) (WHO?)
Warehousing, commissioning, DE, CZ Customer – Sender (mail order company)
packaging, detailed info
International transport DE +CZ → HU → RO + Transport company (subcontractor)
back (returns)
Sorting, labeling, reporting + HU Magyar Posta
liability for the process
Home delivery (catalogues + RO Designated Operator (mailings, DM and
parcels) catalogues < 500g)
Alternative Operator (parcels, catalogues)
COD upon delivered parcels RO Alternative Operator
Return handling and reverse RO Alternative Operator (unsuccessful delivery)
logistics Designated Operator (buyers’ returns)
Detailed daily reports RO → HU → DE Magyar Posta
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27. 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 =>
developing cross border solutions => target: buyers
Last mile delivery staff can be first mile
sales force by identifying the buyers
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