Post on 28-Sep-2020
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6. Post
Figure 6.1
UK postal services industry 2006 2007 2008 2009 2010 2011
Addressed mail volumes 22.0bn 21.6bn 20.6bn 18.6bn 17.5bn 16.6bn
Mail revenues £6.8bn £6.8bn £6.8bn £6.6bn £6.5bn £6.7bn
Proportion of access mail in total mail 9.6% 16.9% 24.6% 32.7% 39.9% 43.6%
Direct mail share of advertising spend 14.2% 12.7% 12.3% 11.6% 10.9% 10.7%
Value of UK e-retail market £30.2bn £35.2bn £43.8bn £49.8bn £58.8bn £68.0bn
Source: Royal Mail Regulatory Financial Statements, Royal Mail Wholesale, Royal Mail Group Annual Reports, AA/Warc. Revenue figures are nominal. Note: Addressed mail volumes and revenues include Royal Mail total mails (excluding Parcelforce and unaddressed), access revenues and end-to-end delivered addressed letter mail. This does not include courier or express volumes and revenues. Royal Mail calendar year volume and revenue figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and estimates of 2011-12 performance informed by Royal Mail’s Report and Accounts and are therefore not directly comparable with Royal Mail’s published accounts..
UK postal services industry key metrics
2
Collections Outward Processing
Trunk Network
Inward Processing
Local Distribution Delivery
Figure 6.2
Royal Mail’s pipeline
3
Collections Outward Processing
Trunk Network
Inward Processing
Local Distribution Delivery
Figure 6.3
Point of access
Access volumes
4
Source: Operators’ returns, based on former licensed area delivered volumes
Figure 6.4
Other operators’ end-to-end delivered volumes
11.8 11.3
8.5
0
3
6
9
12
2009 2010 2011
Volume (million items)
5
6,760 6,797 6,843 6,764 6,661 6,513 6,695
6,746 6,7836,755 6,653 6,522
6,371 6,5466,641 6,499 6,254 5,922 5,6015,281 5,302
104 284 501 731 921 1,090 1272
14 14 88 112 140 142 1500
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2005 2006 2007 2008 2009 2010 2011
Total mail
Royal Mail total mail
Royal Mail end-to-end
Royal Mail access
Other operator access
Source: Royal Mail Regulatory Financial Statements, operator returns to Ofcom, Ofcom estimatesNote: Royal Mail end-to-end refers to Royal Mail total mail revenues excepting access. Royal Mail calendar year revenue figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and estimates of 2011-12 performance informed by Royal Mail’s Report and Accounts and are therefore not directly comparable with Royal Mail’s published accounts.Addressed mail only. Figures are nominal.
Figure 6.5
Mail market revenue 2005 to 2011Revenue (£ mn)
6
22,280 21,976 21,58720,553
18,62017,515
16,599
21,494 19,85717,946
15,489
12,52810,519
9,361
7862,119
3,6415,064
6,092 6,996 7,238
00
5,000
10,000
15,000
20,000
25,000
2005 2006 2007 2008 2009 2010 2011
Total mail
Royal Mail end-to-end
Total access
Source: Royal Mail Wholesale, Royal Mail Regulatory Financial Statements, Ofcom estimatesNote: Royal Mail end-to-end refers to total mail volumes excepting access. Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and estimates of 2011-12 performance informed by Royal Mail’s Report and Accounts and are therefore not directly comparable with Royal Mail’s published accounts. Addressed mail only.
Figure 6.6
Royal Mail volume 2005 to 2011Volume (million items)
7
4% 10%17%
25%33%
40% 44%
0%
10%
20%
30%
40%
50%
2005 2006 2007 2008 2009 2010 2011
Source: Royal Mail Wholesale, Royal Mail Regulatory Financial Statements, Ofcom estimatesNote: Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and estimates of 2011-12 performance informed by Royal Mail’s Report and Accounts and are therefore not directly comparable with Royal Mail’s published accounts.
Figure 6.7
Proportion of access in total mail 2005 to 2011Year on year growth rate of access volumes
1817.1% 169.6% 71.8% 39.1% 20.3% 14.8% 3.5%
8
Source: Royal Mail Wholesale, 2011-12
Figure 6.8
Royal Mail access volumes and revenues by format 2011-12
88.2% 81.3%
11.3%16.3%
0.5% 2.4%
0%
20%
40%
60%
80%
100%
Volume Revenue
Packet/A3Large LetterLetters/Other
9
Source: Ofcom estimates
Figure 6.9
Applications of mail
Transactional59%
Advertising22%
Publishing8%
Fulfilment3%
Social8%
10
Source: Mediatel, Royal Mail Regulatory Statements, Ofcom estimates
Figure 6.10
Direct mail volume and proportion of total mail 2006-2011
5,028 4,655 4,3533,563 3,537 3,620
22.9%21.6% 21.2%
19.1% 20.2%21.8%
0%
5%
10%
15%
20%
25%
0
1,000
2,000
3,000
4,000
5,000
6,000
2006 2007 2008 2009 2010 2011
Direct mail volume Proportion of total volume
Volume (million items) Share of total volume
902.2 857.9 714.9 734.5 774.1
1269.13 1182.33971.08 977.04 977.12
2,171.42,040.2
1,685.9 1,711.5 1,751.3
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011
Expenditure on production
Expenditure on post
11
Source: Mediatel. Figures are nominal.
Revenue £m
Figure 6.11
Spend on direct mail post and production, 2007– 2011
12
25%26% 26% 25%
22%23%
20% 19%
15% 15% 16% 18%
13% 12% 12% 11%
0%
5%
10%
15%
20%
25%
30%
2008 2009 2010 2011
Mail Order / Home ShoppingOther
Charities
Finance - General InsuranceRetail
Travel and Transport
Telecoms - Fixed Line ServicesOther Finance
Finance - Plastic Cards
Source: Nielsen Addynamix
Share of direct mail expenditure by sector
Figure 6.12
13
Source: Interactive Media in Retail Group
Figure 6.13
E-retail sales value from 2000 to 2011
0.8 1.86.4
1114.5
19.2
30.235.2
43.849.8
58.8
68
0
10
20
30
40
50
60
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sales value (£bn)
14
Source: Interactive Media in Retail Group / Metapack Delivery Index, April 2012Note: Proportions rebased to exclude international
Figure 6.14
Packet and parcel service types used for UK delivery, April 2012
Economy54%
Specified day(including next
day)41%
Specified time slot
5%
15
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Q: Please now think about the parcels you send. How many parcels do you send in an average month? *Assuming those saying ‘don’t always send one each month’ send 1 parcel every 3 months; Q: ‘Approximately how many parcels do you receive on average in a month?’*assuming those saying ‘don’t always receive one each month’ receive 1 parcel every 3 months
Figure 6.15
Approximate number of parcels sent and received each month by residential consumers
50
14
5
41
24
40
0
20
40
60
Don't always send/receive parcels each month
1 or 2 3 or more
Parcels sent Parcels received% of consumers
16
Source: Mediatel/ABC, 6 monthly net average circulation subscription sales 2007-2011
Figure 6.16
Magazine subscription volumes 2007 - 2011
7,301 7,241 7,075 6,476 6,480
14.4% 13.3% 15.0%13.6% 14.2%
0
2
4
6
8
10
12
14
16
0
2,000
4,000
6,000
8,000
2007 2008 2009 2010 2011
Subscription circulation Share of total circulationSubscription circulation (thousands) Share of total circulation
17
27p 27p 27p 28p 28p 30p 32p 34p 36p 39p 41p46p
60p
19p 19p 19p 20p 21p 21p 23p 24p 27p 30p 32p36p
50p
0
10
20
30
40
50
60
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
First Class
Second Class
Source: Royal Mail. Figures are nominal.
Figure 6.17
First and Second Class Stamp prices from 2000-2012
Price (p)
18
1
1
1
2
5
10
10
67
0 20 40 60 80
Post
Social networking
Instant messaging
Text messaging
Voice calls via fixed landline phone
Voice calls on mobile phone
Meet face to face
% of adults who communicate with friends and family
Q5a: If you had to pick one method of communicating with friends and family which one would it be?Source: Use of communication services including post research, 2012Base: all who ever use at least one form of communication to communicate with: Friends and family, n= 2007. Note - other mentions by 1% or fewer included: Emails, social networking, VoiP calls,
Preferred method of communication with friends and familyFigure 6.18
19
10
11
17
18
34
41
47
55
67
70
86
0 10 20 30 40 50 60 70 80 90
Post (letters/cards/packages)
Micro blogging
VoIP (e.g Skype)
Comments on websites
Instant messaging
Social networking
Emails
Voice calls on fixed landline
Voice call on mobile phone
Text messages
Face to face
Q2a: Devices/ services used Source: Use of communication services including post research, 2012Base: UK adults aged 16+ who communicate, n = 1980
Methods used at least once a week to communicate with friends and family
% of adults
Figure 6.19
20
Communication methods ever used to send greetings (e.g. birthdays) by age of respondent
0
1
11
0
38
12
7
46
77
4
23
16
41
15
38
53
59
31
2
11
20
21
30
33
36
55
58
0 20 40 60 80 100
Any comments on website forums
Any instant messaging eg MSN
Any email
Any social networking eg Facebook
Voice calls via fixed landline phone
Voice calls on mobile phone
Text messaging
Meet face to face
Post ( letters/cards/packages)
All
16-24
65+
Q3a: Thinking about personal communications which of these methods do you ever use to – greetings such as birhthday/ get wellSource: Use of communication services including post research, 2012Base: UK adults aged 16+, n = 2012
Figure 6.20
1
8
23
29
19
14
5
1
0 20 40 60 80 100
Don't know
Don't send mail
Don't always send post each month
1 or 2 items
3 or 4 items
5 to 10 items
10 to 20 items
20 or more
% of consumers
21
Claimed volume of letters sent in an average month
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many letters and cards, do you personally send in an average month? This should exclude any items you send from home in connection with running a business, if you do this from home. We will ask about parcels separately.’
Average number of letters sent per month = 3.2
Figure 6.21
22
Claimed volume of letters received in an average week
1
8
14
18
30
20
7
2
0 20 40 60 80 100
Don't know
Don't always receive post each week
1 or 2 items
3 or 4 items
5 to 10 items
10 to 20 items
20 to 30 items
30 or more
% of consumersSource: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many letters or cards do you receive in an average week? Please don’t include parcels, we will ask you about these separately.’
Estimated average number of letters /cards received = 8.5 per week or 34 per month
Figure 6.22
23
Claimed volume of parcels sent in an average month
30
50
14
5
0 20 40 60 80 100
Don't send parcels
Don't always send post each month
1 or 2 items
3 or more items
% of consumersSource: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Please now think about the parcels you send. How many parcels do you send in an average month?’*assuming those saying ‘don’t always send one each month’ send 1 parcel every 3 months
Estimated average number of parcels sent = 0.52 parcels per month*
Figure 6.23
24
Claimed volume of parcels received in an average month
18
41
24
10
5
1
0 20 40 60 80 100
None/don't receive parcels
Don't always receive parcels in a month
1 or 2
3 or 4
5 to 10
10 or more
% of consumersSource: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many parcels do you receive on average in a month?’*assuming those saying ‘don’t always receive one each month’ receive 1 parcel every 3 months
Estimated average number of parcels received = 1.3 per month*
Figure 6.24
25
5239
30
AB C1C2 DE
% sending 3 or more letters a month
Volumes of post: by social grade
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011. Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many letters and cards, do you personally send in an average month? This should exclude any items you send from home in connection with running a business, if you do this from home. We will ask about parcels separately.’ ‘Approximately how many letters or cards do you receive in an average week? Please don’t include parcels, we will ask you about these separately.’ ‘Please now think about the parcels you send. How many parcels do you send in an average month?’ ‘Approximately how many parcels do you receive on average in a month?’
3928 24
AB C1C2 DE
% receiving 40 or more letters a month
2719 12
AB C1C2 DE
% sending 1 or more parcels a month
5242
28
AB C1C2 DE
% receiving 1 or more parcels a month
Sending Letters
Receiving Letters
Sending Parcels
Receiving Parcels
Figure 6.25
26
1829
3644 50 52
45
16-24 25-34 35-44 45-54 55-64 65-74 75+
% sending 3 or more letters a month
Volumes of post: by age
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011. Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many letters and cards, do you personally send in an average month? This should exclude any items you send from home in connection with running a business, if you do this from home. We will ask about parcels separately.’ ‘Approximately how many letters or cards do you receive in an average week? Please don’t include parcels, we will ask you about these separately.’ ‘Please now think about the parcels you send. How many parcels do you send in an average month?’ ‘Approximately how many parcels do you receive on average in a month?’
1424
32 33 37 3626
16-24 25-34 35-44 45-54 55-64 65-74 75+
% receiving 40 or more letters a month
19 20 26 22 17 14 9
16-24 25-34 35-44 45-54 55-64 65-74 75+
% sending 1 or more parcels a month
43 49 5043
3629
17
16-24 25-34 35-44 45-54 55-64 65-74 75+
% receiving 1 or more parcels a month
Sending Letters
Receiving Letters
Sending Parcels
Receiving Parcels
Figure 6.26
27
39 37 46
UK Urban Rural
% sending 3 or more letters a month
Volumes of post: by rural vs urban
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011. Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Approximately how many letters and cards, do you personally send in an average month? This should exclude any items you send from home in connection with running a business, if you do this from home. We will ask about parcels separately.’ ‘Approximately how many letters or cards do you receive in an average week? Please don’t include parcels, we will ask you about these separately.’ ‘Please now think about the parcels you send. How many parcels do you send in an average month?’ ‘Approximately how many parcels do you receive on average in a month?’
29 29 32
UK Urban Rural
% receiving 40 or more letters a month
19 19 23
UK Urban Rural
% sending 1 or more parcels a month
40 40 44
UK Urban Rural
% receiving 1 or more parcels a month
Sending Letters
Receiving Letters
Sending Parcels
Receiving Parcels
Figure 6.27
28
Class of letters and time critical posting
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘When sending letters/cards which do you use? (Answers on a showcard)
Proportion of letters sent that need to arrive next day
Use of first and second class for letters
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘And what proportion of these letters/cards have to be at their destination the next working day? (Answers on a showcard)
Figure 6.28
29
Claimed experience of problems in last 12 months
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘In the last 12 months have you experienced problems with Royal Mail’s service in terms of…(READ OUT ITEM)?’ ‘Did you make a complaint to Royal Mail about its services?’ (n=2029)
5
14
18
20
41
56
0 20 40 60 80 100
Other
Damaged mail
Lost mail
Delayed mail
Misdelivered mail
Any problem
% of consumers
Figure 6.29
30
Views on post and other means of communication
Source: Ofcom Post Omnibus 2011 - fieldwork 1st Dec – 13th Dec 2011Base: All consumers responsible for sending or receiving post (n= 3621)Question: ‘Which of these statements apply to you?‘ (answers on a showcard)
% of people saying that a statement applies to them. NB percentages add to more than 100% as more than one statement can apply to a respondent.
Reluctant post use
38% I prefer to send emails than letters whenever possible’
21% ‘I only use post when there is no alternative’
Some preference for written
27% ‘I prefer to send letters or emails to companies rather than make a telephone call so that I have a written record’
Some preference for post
34% ‘It’s worth sending a letter for important communications’
13% ‘I frequently use post when I can use other methods’
Emotional attachment to post
33% ‘I love to send and receive letters and cards’
21% ‘I would feel cut off from society if I can’t sent/don’t receive post’
Figure 6.30