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MARKET FLASHA fortnightly newsletter covering the latest news from the global postal sector

Issue 533

26 May 2016

2016M

ARKET INTELLIGENCE

IN THIS ISSUE

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH | ISSUE 533 | TOP STORY | PAGE 2

TOP STORY• Online shoppers’ love of free shipping drives behaviour

AMERICAS• e-Commerce growth will continue to depend on major transportation

providers• UPS introduces new convenient pick-up and drop-off options in Austria

ASIA PACIFIC • Alibaba Group and SoftBank form joint venture• Alibaba Group opens Netherlands office and announces local senior

management appointment• Yamato and Neopost to launch Japanese parcel locker network in June• New Zealand’s corporates join forces to tackle textile waste• Escher signs with Vietnam Post

EUROPE• German CEP market posts solid volume and revenue growth above

average in 2015• Amazon France quits Colis Privé takeover and installs parcel lockers• France’s La Poste acquires artificial intelligence specialist• Credit24 and Posti to begin cooperation• Parcelforce Worldwide introduces ‘Quote and Book’ to improve

customers’ online experience• UK online retail continues double-digit growth in April but at lowest level

this year

> TOP STORYONLINE SHOPPERS’ LOVE OF FREE SHIPPING DRIVES BEHAVIOURCanada’s online shoppers have revealed that they will sacrifice fast shipping for free shipping, buy from a competitor who offers free shipping or even delay their purchase because they expect a merchant to offer free shipping soon as part of a promotion.

Online shoppers’ increasing expectations around free shipping are among the key insights Canada Post is sharing in a white paper, “Is the price right? Designing an effective shipping pricing strategy.” The country’s No. 1 parcels company commissioned research to understand which combination of shipping options Canadians prefer. More than 4,000 online shoppers shared their views.

Shipping strategies have the power to drive – or to deter – online sales. Nearly two-thirds of online shoppers have abandoned their carts in the past due to shipping costs being too high. Conversely, 70% of shoppers would shop more often with a merchant if they were offered free shipping with a minimum purchase. The paper’s key findings include:

Free shipping has become a table stake. Conversion rates drop by as much as 50% if free shipping is not offered, and 66% of online shoppers will sacrifice fast shipping for free shipping. Free shipping with a minimum purchase can tempt 40 to 60% of shoppers to top up their cart to qualify for free shipping.

Source: Canada Post

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AMERICASE-COMMERCE GROWTH WILL CONTINUE TO DEPEND ON MAJOR TRANSPORTATION PROVIDERSIn a keynote speech at the Global Retail Marketing Association’s Executive Leadership Forum, Raj Subramaniam, Executive Vice President of marketing and communication at FedEx Corp., described FedEx as an essential engine of e-Commerce, noting the company’s status as the “original disruptor” in the dynamic logistics industry.

Subramaniam went on to note that 95% of e-Commerce packages in the US are delivered by FedEx, UPS or the USPS, despite some media reports that emphasise competition from localised players.

Subramaniam wrapped his address by discussing the four trends that will define the future of e-Commerce will be global growth, increased mobile sales, free shipping and retail and logistics collaborating during peak seasons.

Source: FedEx

UPS INTRODUCES NEW CONVENIENT PICK UP AND DROP OFF OPTIONS IN AUSTRIAUPS has announced the opening of its first UPS Access Point location in Vienna. In some urban areas in Vienna, receiving packages can be difficult if the customer is not home or present to accept the delivery and UPS is unable to leave the package in a secure location. When unable to make a delivery to a recipient’s address, UPS drivers will leave a delivery note indicating when and where the package will be available for pickup.

Consumers can then go to a nearby UPS Access Point location and pick up the package as early as the same day. UPS expects to have more than 140 locations across the city by the end of 2016.

Source: UPS

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ASIA PACIFICALIBABA GROUP AND SOFTBANK FORM JOINT VENTUREAlibaba Group and SoftBank Corp., a Japan-based telecom subsidiary of SoftBank Group Corp. have jointly announced the establishment of SB Cloud Corporation to launch cloud computing services in Japan that utilise technologies and solutions from Alibaba Cloud, the cloud computing arm of Alibaba Group.

SB Cloud will open a new data center in Japan and provide competitive and enhanced public cloud computing services from Alibaba Cloud to meet the various needs of Japanese customers, ranging from startups to multi-national companies. The joint venture will enable Alibaba Cloud to further expand its cloud computing service platform with SoftBank’s extensive business customer base in Japan, which comprises numerous global organisations. SB Cloud will also play a key role in supporting Alibaba Cloud’s business presence in the Japanese market where the demand for public cloud computing services is growing rapidly. It will provide Japanese enterprises with Alibaba Cloud’s diverse offerings, including data storage and processing services, enterprise-level middleware as well as cloud security services.

Source: Alibaba Group

ALIBABA GROUP OPENS NETHERLANDS OFFICE AND ANNOUNCES LOCAL SENIOR MANAGEMENT APPOINTMENTAlibaba Group has announced the appointment of Roland Palmer as managing director of Alibaba Group Netherlands and member of the Alibaba Group EU leadership team.

This senior management appointment and establishment of an Amsterdam, Netherlands office rounds out Alibaba Group’s expansion in the European market and provides a local contact for customers and partners in the Benelux region. The company’s European presence is a critical part of the company’s globalisation strategy to serve as a “gateway to China” for international brands and businesses of all sizes. As a part of this international expansion and in order to better serve existing and future partners in Europe, the company has already opened country offices in Milan, Italy, Munich, Germany and Paris, France as well as expanding its presence in the UK.

Source: Alibaba Group

YAMATO AND NEOPOST TO LAUNCH JAPANESE PARCEL LOCKER NETWORK IN JUNEJapanese parcel company Yamato Transport and French supplier Neopost have officially formed a joint venture to set up an open parcel locker network in Japan. The companies and will start to roll out the self-service machines next month, targeting 5,000 lockers by 2022.

From June 2016, the open locker network will start to be implemented in Tokyo Metro stations in cooperation with East Japan Railway Company, with the intention to install 5,000 lockers by 2022 in easily accessible places with high footfall, such as underground or railway stations. The two companies said the pilot phase which started at the end of last year proved successful, with 1,000 customers using the installed lockers during this trial period, which resulted in a 2% decline in Yamato Transport missed home deliveries.

The joint venture is 51% owned by Neopost and 49% by Yamato Transport. Neopost will provide the JV with the lockers, associated software and IT infrastructure.

Source: CEP-Research

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ASIA PACIFICNEW ZEALAND’S CORPORATES JOIN FORCES TO TACKLE TEXTILE WASTEFive of New Zealand’s largest corporates are working together to find new ways to reuse employee uniforms and reduce textile waste.

Air New Zealand, Fonterra, New Zealand Post, SKYCITY Auckland and The Warehouse Group have set up a working group to look at what to do with old uniforms that have been replaced. Collectively, these organisations produce more than 60,000 uniforms every year, presenting an opportunity to establish an environmentally and commercially sustainable business solution.

The Formary, which is expert in textile fibre recovery and re-engineering, is working with the five organisations and leading the project. The Warehouse Group’s Executive General Manager Community and Environment Paul Walsh says The Warehouse Group has struggled to find good recycling for old uniforms and is looking forward to developing a sustainable recycling programme.

Source: New Zealand Post

ESCHER SIGNS WITH VIETNAM POSTIrish software company, Escher Group is to license its Riposte Platform to Vietnam Post for 11,500 points of service, with its partner FPT.

This contract, which is part of the Group’s 2016 plans, expands Escher’s foothold in South-East Asia and creates opportunities for further business with Vietnam Post.

Escher’s Riposte Platform will deliver a complete point of service solution for Vietnam Post that will operate on desktops, mobile and self-service kiosks. Vietnam Post will use Escher’s Riposte solution to deliver multiple new services throughout their network, exploiting the latest trends in the global postal market.

Source: Escher Group

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EUROPEGERMAN CEP MARKET POSTS SOLID VOLUME AND REVENUE GROWTH ABOVE AVERAGE IN 2015The German courier, express and parcel (CEP) market grew solidly last year exceeding expectations, with nearly 6% volume growth and a mid-single-digit revenue increase, driven by a strong growth in B2C shipments, according to a new study. Above average growth in volumes is also expected this year and annually until 2020.

The CEP market grew by 5.9% to a total of 2.9bn shipments in 2015 while revenues increased by 4.6% to €17.4bn, the study by KE Consult for the country’s Parcels and Express Logistics Association (BIEK) found. The parcels market continued to outgrow the express and courier segments last year, and now represents 83.1% of the whole CEP market in volume terms and 54% by revenue. Express and courier shipments account for 24% and 22% of the CEP market revenues respectively.

International shipments, which represent nearly 10% of total parcel volumes, were a key growth driver last year, increasing by 9%, with this growth trend expected to continue and the share of the B2C shipments expected to grow above average.

Domestic parcel volumes increased by 6.3% driven by the strong increase of 10.1% in B2C shipments last year, surpassing the previous annual growth of 7% in 2014, due to the strong e-Commerce growth in Germany. The B2C segment now represents 56% of the German parcel market.

B2B parcel volumes were 1.8% higher according to the study, and the segment’s market share continued to drop, totalling 37% in 2015. The small C2C segment, representing 7% of the total parcels market, has barely grown in recent years remaining at the same level, according to the study.

For 2016, the BIEK study predicts volume growth in the range of 5-5.5% in the German CEP market which would mean around 150m more shipments. Domestic parcel volumes are also expected to rise between 5 and 5.5%, with B2C to grow by 7-8% and B2B by 2-2.5%. The share of the B2C segment in the German parcel market would thus further increase to 58% and the shares of the B2B and C2C segments decrease by 36% and 6% respectively.

Source: CEP-Research

FRANCE’S LA POSTE ACQUIRES ARTIFICIAL INTELLIGENCE SPECIALISTThe French post office, La Poste, has announced the acquisition of data science services specialist, ProbaYes, strengthening its digital footprint through artificial intelligence.

The Grenoble-based firm was founded in 2003 by university staff working in robotics and artificial intelligence. La Poste’s subsidiary, DOCAPOST, has acquired APPLICAM, a specialist in the management of grants and subsidies and electronic transactions, from previous owner, Blackfin Capital Partners. DOCAPOST specialises in offering businesses and administrative agencies services related to their digital and mobile transformation.

Source: CEP-Research

EUROPE

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EUROPECREDIT24 AND POSTI TO BEGIN COOPERATIONOnline credit company Credit24 and Posti have entered into a unique cooperation agreement; customers can file credit applications at Posti outlets. The identification service that is based on personal IDs is available at over 600 service points. Credit24 handles the credit applications and grants the credit.

IPF Digital-the owner of Credit24-is the first company in Finland to use Posti’s identification service for private customers. In other countries, such as Australia, initial identification has become an established form of cooperation between postal services and local companies.

Source: Posti

PARCELFORCE WORLDWIDE INTRODUCES ‘QUOTE AND BOOK’ TO IMPROVE CUSTOMERS’ ONLINE EXPERIENCERoyal Mail Group’s express parcel business, Parcelforce Worldwide, has introduced a new ‘Quote and Book’ service. Quote and Book is one of a series of web enhancements made by Parcelforce Worldwide in recent months to make it easier for customers to use its online services.

Parcelforce has streamlined its online booking tool, making it easier to use for non-account customers and individuals, including those selling on marketplaces such as eBay and Amazon. Customers will now be able to get a quote; compare delivery options and prices at a glance; check the validity of the postcode entered; and book a collection - all in one place

Parcelforce Worldwide used feedback gathered from customer research to create the new function, which combines two separate online services into one.

Source: Royal Mail

UK ONLINE RETAIL CONTINUES DOUBLE-DIGIT GROWTH IN APRIL BUT AT LOWEST LEVEL THIS YEARUK e-retail posted double-digit growth year-on-year with 11% in April boosted by strong online sales, despite reports of sluggish sales growth on the high street, according to the British e-Commerce association IMRG.

While the result continues the trend of solid annual growth in online sales recorded until now in 2016, April’s figures showed the lowest year-on-year growth rate so far this year. Aprils growth was boosted by healthy sales in the clothing/apparel product category which recorded a 15% annual increase, building on a similar year-on-year performance in April 2015. The strong result was driven by the “continued consumer appetite” for accessories and footwear which reported respective year-on-year increases of 25% and 19%.

Other sectors showing solid growth in April included gifts and home & garden with year-on-year increases of 16% and 13% respectively. As for mobile commerce, sales via smartphones continued to surge at the expense of tablet sales in April with 83% and only 3% respectively, excluding the travel sector.

Source: CEP-Research

EUROPE

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SPECIALQuarterly newsletter on events, trends and news in the e-Commerce sector

26 May 2016

2016M

ARKET INTELLIGENCE

IN THIS ISSUE

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH – E-COMMERCE SPECIAL | ISSUE 533 | ASIA PACIFIC | PAGE 9

> FEATURE STORYFEATURE STORY• Amazon expands its delivery capabilities

NEWS• Where will consumer-influenced delivery time leave postal operators?• China removes parcel tax• Alibaba invests $1bn to support e-Commerce in Southeast Asia• Royal Mail further improves its parcel services• Deutsche Post DHL extends parcel network across the Nordics and Baltics• Zalando expands its delivery capabilities

AMAZON EXPANDS ITS DELIVERY CAPABILITIESAmazon’s operating profits soared to US$1.1bn in the first quarter, compared with US$255m in the first quarter of 2015, while it reported a net profit of US$513m compared with a net loss of US$57m one year ago. Worldwide revenues increased by 28% to US$29.1bn in Q1 2016, with North America revenues up 27% to US$17bn and International revenues 24% higher at US$9.6bn.

However, Amazon’s worldwide fulfilment costs also soared by 34% to €3.69bn during the quarter. As a result, the e-Commerce company decided to speed up its developments of delivery capabilities. Although originally, Amazon said it was not planning to replace delivery partners but merely supplement the capacity provided by them during peak periods for shipments, it seems likely that Amazon Logistics want a bigger piece of the delivery pie.

AMAZON LOGISTICSIn Europe, Amazon Logistics is planning to set up a German-wide network of local delivery centres and create its own operation for services such as same-day deliveries in major cities. This is similar to what the company already offers in the UK, and could be rolled out in other major European markets if it proves successful. Despite these developments, in March 2016, Deutsche Post DHL’s CEO, Frank Appel said they did not consider Amazon a direct threat in the delivery business. In the US, Amazon Logistics is currently operating in 12 urban locations and has plans to expand the programme to more cities in the future. Through its website, Amazon Logistics is currently looking for delivery partners who can provide delivery vehicles, driver and safety training programmes, and insurance coverage.

> FEATURE STORY

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH – E-COMMERCE SPECIAL | ISSUE 533 | ASIA PACIFIC | PAGE 10

>FEATURE STORY There is flexibility in choosing when the couriers want to deliver. The hours vary by location, but Amazon operates seven days a week, almost every day of the year. Delivery opportunities occur throughout the day, including both early in the morning and late in the evening. In the UK, Amazon Logistics is currently operating in 7 urban locations. It is difficult to say what percentage of Amazon orders is delivered by Amazon, however one article suggests that it may be up to 70% with some sellers.

TWO-HOUR DELIVERY SERVICE IN GERMANYAmazon has recently started its express delivery service “Prime Now” in Berlin, offering Prime members delivery of Amazon products within one or two hours after ordering.

Via the Prime Now service, Berlin-based Prime members who pay €49 per year can choose from thousands of different Amazon products, including packaged fresh and frozen foods, beverages, electronics, books and clothes.

Prime members can choose a two-hour delivery time slot between 8am and midnight and get their goods for free or pay €6.99 to get them delivered within an hour. The service is available from Monday to Saturday, and the minimal order value is €20. To use the super-fast delivery service, customers need

to download the Prime Now app available for Android and iOS devices free of charge. They can check if the service is available for their delivery address, choose from thousands of products in the Prime Now range and then track the delivery process in real time. Should the customer not be at home at the moment of delivery, he/she can choose an alternative delivery address via the app.

In addition to delivery vans, Amazon’s distribution partners in Berlin will also deploy electric cargo bikes for deliveries to end-customers. For packaging, either paper bags or isolated plastic bags for cooled and frozen products are used. After the delivery has been made, the driver takes back the bags so they can be used again. Many large and heavy items such as beverages are delivered to the customer without additional packaging.

BUILDING A US FREIGHTER FLEETIn the US, Amazon is investing in a dedicated fleet of 40 freighters flying the goods ordered online across the country to speed up deliveries. Within the next two years, the e-Commerce company will have 20 freighters operated by cargo airline Atlas Air, along with 20 operated by US cargo carrier ATSG, giving it substantial in-house air capacity and further potential to switch volumes away from other air cargo operators.

ATSG, the DHL Express partner for domestic US flights, is already operating five freighter for Amazon under five-year leases and will gradually expand these operations so that all 20 planes are in operation by 2017.

In May 2016, Atlas Air parent company Atlas Air Worldwide Holdings (AAWH) announced long-term commercial agreements with Amazon, including the operation of 20 converted freighters for Amazon on a CMI (crew, maintenance and insurance) basis by Atlas Air, as well as dry leasing by its Titan Aviation leasing unit. The dry leases will have a term of 10 years, while the CMI operations will be for seven years (with extension provisions for a total term of 10 years).

Operations under the agreements are expected to begin in the second half of 2016 and transition to full service through 2018. This means that both ATSG and Atlas will be flying for Amazon ready for the 2016 peak season, including the Black Friday/Cyber Monday period and the Christmas season.

Sources: Atlas Air Worldwide, Amazon Germany, DMNews

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NEWSWHERE WILL CONSUMER-INFLUENCED DELIVERY TIME LEAVE POSTAL OPERATORS?With most delivery companies nowadays, the alternative to a failed delivery would be to make a second delivery attempt or offer the recipient pick-up points such as parcel shops or parcel lockers. These options, however, mean extra costs on the delivery company’s side and are not too popular with the consumers either. In fact, 76% of consumers prefer to have their cross-border parcels delivered to their home address – according to the 2015 IPC Online Shopper Survey. While many delivery companies are still working to provide time slots to tell their customers when a parcel is likely to arrive, a few companies are making a step forward and allowing their customers to notify the courier what time they’d like to receive their delivery.

GERMANYDHL Parcel is leading the way in Germany to offer customers the opportunity to choose when exactly they would like their parcels delivered. As of May 2016, online shoppers can select a two-hour time window between 10:00 AM and 9:00 PM while they are finalising their order. The flexible time-slot delivery service is now available in Berlin, Munich, Cologne,

Hamburg and the Ruhr regions.

Customers can also select a two-hour delivery window between 10:00 AM and 9:00 PM for same-day deliveries. If an order is needed that very same day – such as a food product purchase that has to be there when the recipient arrives home from work - it can be delivered as a same-day package. For particularly urgent orders such as medication, DHL Parcel also offers direct delivery within 90 minutes of ordering in over 50 cities.

UNITED KINGDOMIn the UK, one of the leading operators in this area is DPD, which clearly saw an untapped opportunity in offering the parcel recipient more flexibility regarding the delivery time. To do this, the company is developing a service called DPD Precise. It builds upon DPD’s Predict offering which gives consumers expecting a parcel a one-hour window in which it will be delivered followed by a 15-minute window as the delivery time approaches.

The new service will enable the consumer to tell DPD when they’d like their delivery to take place. Asking “When do you want your parcel?”, rather than DPD giving the consumer a time slot. DPD Precise will come hand in hand with the DPD app, which enables consumers not only to track their DPD deliveries but

also to give instant feedback. Importantly there will be no change to the retailer at checkout. Consumers will be able to book their preferred delivery time slots through the app.

Moreover, should the receiver miss a delivery but have the DPD app installed, DPD would be able to see their location via the app and if they couldn’t deliver the parcel earlier in the day will be able to check their location later on in the day. If they see that the customer are back home, DPD will be able to make a second delivery attempt if the driver is still in the area.

The development of DPD Precise is currently underway and it is not expected to be rolled out to customers until summer 2016. Initially, the option for automatic redelivery with customers’ phone locations being used is expected to only be offered to top customers before expanding to the entire customer base.

Innovations such as these respond to customers’ expectations and can influence the choice of delivery partners by e-retailers.

Sources: Deutsche Post DHL; IPC; DPD

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NEWSCHINA REMOVES PARCEL TAXAs of April 08, 2016, the policy by the China General Administration of Customs (CGAC) cancelled parcel tax for cross-border e-Commerce orders. An adjusted parcel tax scheme now only applies to goods brought back into the country for personal-use by Chinese residents with a value exceeding RMB 5,000 (€676), and for non-residents’ personal-use goods with value exceeding RMB 2,000 (€270). Goods amounting to less than these amounts are tax exempt. The tax brackets have been reduced from four levels (10%, 20%, 30%, and 50%) to three (15%, 30% and 60%).

Before this policy took effect, imported goods that retailed online via cross-border e-Commerce sites were treated as personal postal articles and were subject to parcel tax with comparatively lower rates – around 10% if worth less than RMB 1,000 (€135). Furthermore, taxes amounting to under RMB 50 (€6.70) were waived as an incentive for exporters that sell general consumer goods to China.

With the implementation of the new tax scheme, these goods are now treated the same as ordinary imported goods, subject to import value-added tax (VAT) and consumption tax, which vary according to type of commodity. Although consumers can still enjoy a 70% discount on import taxes for single cross-border e-Commerce transactions under RMB2,000 (RMB 20,000/€2,705 for yearly transactions), the overall tax burden on exporters/retailers will increase and is estimated to exceed 10%.

Source: China Briefing

ALIBABA INVESTS $1BN TO SUPPORT E-COMMERCE IN SOUTH-EAST ASIAAlibaba Group has acquired a controlling stake in Lazada, a leading e-Commerce platform in South-East Asia. The transaction is expected to help brands and distributors around the world that already do business on Alibaba’s platform, as well as local merchants, to access the South-East Asian consumer market.

Lazada currently operates e-Commerce platforms in Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines. These six countries combined have a population of approximately 560m and an estimated internet user base of 200m. With only 3% of the region’s total retail sales conducted online and a median internet penetration of 44%, South-East Asia will offer significant growth potential to e-Commerce players in the coming years.

Source: Post and Parcel

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NEWSROYAL MAIL FURTHER IMPROVES ITS PARCEL SERVICESIn Q1 2015, Royal Mail acquired Intersoft Systems and Programming, a provider of delivery management software for international parcel shipments.

For Royal Mail, the acquisition complements the recent purchases of data management and labelling provider NetDespatch and delivery software developer Storefeeder – and underpins its objective to provide customers with flexible, integrated, technologically advanced solutions that make shipping parcels easier.

Intersoft’s Intelligent Shipper product allows customers to manage their delivery options through the entire delivery journey. This includes order management and carrier selection, through to delivery performance, invoice checking and payment authorisation among other services.

Source: Post and Parcel

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NEWSDEUTSCHE POST DHL EXTENDS PARCEL NETWORK ACROSS THE NORDICS AND BALTICSDeutsche Post DHL together with the Finnish postal operator Posti, and Bring a subsidiary of Posten Norge, the Norwegian postal operator, have joined forces and will jointly offer a dedicated B2C infrastructure for parcel deliveries across Scandinavia, Finland and the Baltic states. The non-exclusive cooperation that came into effect on 01 April, further extends DHL Parcel’s network for cross-border e-Commerce by seven countries. The expansion is in line with DHL’s strategy to develop the e-Commerce market in Europe and to offer its customers a well-developed infrastructure.

The delivery network in Scandinavia, Finland and the Baltics will include 6,500 parcel shops and parcel stations by the end of 2016. Unlike in other European markets, it is not common for parcels to be delivered to the customers’ doorstep in these countries. The dense network will thus increase convenience for consumers. Within the framework of the agreement DHL Parcel and the partners defined DHL Parcel Connect as the service standard for B2C cross-border shipments. This means that online retailers shipping to and from these countries can rely on the already high and now further improved quality they are used to from DHL Parcel. In addition to the new service standard and Saturday deliveries, the partners will establish a system that notifies recipients about the likely arrival time of their desired item. There will also be customer-friendly return solutions across all European markets DHL Parcel operates in, regardless of whether the parcel is sent from Poland, Belgium or Sweden, for example.

After adding the Benelux countries, DHL Parcel is present in 16 European countries including their home market Germany.

Source: Deutsche Post DHL

NORWAY€ 5,2892015 2020 34%

ESTONIA€ 3082015 2020 115%

SWEDEN€ 6,1882015 2020 40%

LATVIA€ 1832015 2020 97%

DENMARK€ 6,1452015 2020 35% LITHUANIA

€ 3802015 2020 71%

DHL PARCEL ENTERS NORDICS & BALTICS E-COMMERCE MARKETSignificant e-commerce growth expected until 2020

Source: Euromonitor

FINLAND€ 4,3822015 2020 19%

E-commerce sales 2015 in million €

Estimated growth from 2015 to 2020

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH | ISSUE 533 | ABOUT IPC | PAGE 15

ABOUT THIS PUBLICATION ABOUT IPCInternational Post Corporation is a cooperative association of 24 member postal operators in Asia Pacific, Europe and North America. Over the past two decades IPC has provided industry leadership by driving service quality and interoperabil-ity, supporting its members to ensure the high performance of international mail services and developing the IT infrastructure required to achieve this. IPC engages in industry research, creates business-critical intelligence, provides a range of plat-forms for member post CEOs and senior management to exchange best practices and discuss strategy, and gives its members an authoritative, independent and col-lective voice. IPC also manages the system for incentive-based payments between postal operators. With members delivering some 80% of global postal mail, IPC represents the majority of the world’s mail volume.

For more information please visit our website www.ipc.be or contact us at info@ipc.be.

© IPC

Avenue du Bourget, 441130 Brussels - BelgiumTel.: +32 (0)2 724 72 71www.ipc.be

IPC MARKET FLASH is a fortnightly newsletter providing a comprehensive look at new developments emerging in the international postal marketplace. It is published by the Markets and Communications department of the International Post Corporation.

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