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E-COMMERCE: THE OPPORTUNITY FOR THE POSTAL SECTOR Public Workshop on EC Roadmap on parcel delivery

Herbert Goetz 12

10-04 -2014 Director, Marketing

International Post Corporation

© 2014 – ipc.be

A CHANGING LANDSCAPE

2

Meeting new customers expectations

EC Public Workshop 10 April 2014

New media

Economic downturn

E-substitution Financial services

Logistics & Freight

e-Commerce

Optimisation

Outsourcing

Reduced USO

Mail volume decline by 50% (2000-2013)

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A CHANGING LANDSCAPE

3

E-Commerce market growth potential

EC Public Workshop 10 April 2014

Source: BCG

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A CHANGING LANDSCAPE

4

Postal operators are not “Mail companies” anymore

EC Public Workshop 10 April 2014

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IPC E-COMMERCE INTERCONNECT

5

The e-Commerce opportunity

EC Public Workshop 10 April 2014

US$400

US$300

US$200

US$100

US$500

US$600

+17%

+12%

+10%

+20%

Asia Pacific North America Europe Latin America

2016 2011 CAGR

Source: Forrester

Year on year growth

AliExpress 500% Alibaba Tmall 100% John Lewis 40% Amazon 31% eBay 19%

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A CHANGING LANDSCAPE

6

E-Commerce: evolving trade flows

EC Public Workshop 10 April 2014

Source: BCG

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A CHANGING LANDSCAPE

7

Asia to become first e-Commerce market

EC Public Workshop 10 April 2014

Source: BCG

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IPC E-COMMERCE INTERCONNECT

8

Seizing the cross-border market potential

0,7 1,5

1,4

2,8

0,1

0,1

1,7

2,4

2010 2020

BtoC Packets BtoC Parcels

BtoB Packets BtoB Parcels

+ 75 %

3.9

6.8 Global Cross-border

market €15bn.

Other e-Commerce Generated

E-Commerce Influenced

€bn.

EC Public Workshop 10 April 2014

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IPC E-COMMERCE INTERCONNECT

9

A highly competitive market

Source: IPC & eCIP Market Insight group analysis Sept 2013

Service providers Intermediaries Last mile

Parcel integrators

Fulfilment houses Parcel shops networks

Distance sellers and co-location

Comparison sites

Parcel lockers networks

Freight forwarders

Orchestrators

Alternative delivery models

EC Public Workshop 10 April 2014

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IPC E-COMMERCE INTERCONNECT

10

Customers needs by priority

EC Public Workshop 10 April 2014

Priority Customer need

1 (Consistent) visibility through track & trace

2 Simple and reliable return process

3 Reliable delivery time from provider

4 Ability to choose delivery location (i.e. home/retail outlet/drop box) at time of order

5 Offer consistent (i.e. same features) delivery services to key markets

6 Predictable (i.e. between day x and day y) transit times for cross-border deliveries including customs processes

7 Offer simple international shipping options (integrated into site)

8 Choice of transit times / price levels for shipment

9 Pre-paid (free) return solutions

10 Offer rapid response customer service: track & trace enquiries/claims handling

11 Offer information on final cost (after VAT / import duties) of purchase

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IPC E-COMMERCE INTERCONNECT

Building on existing IPC operational cross-border solutions

Opportunity for posts to meet the needs of e-retailers for the delivery of their goods

Possibility for SMEs and local online retailers to access one integrated delivery network and expand business outside of domestic markets

Responsibility for the entire end-to-end process including customs

End-to-end tracking information with high reliability

11

Seizing the e-Commerce opportunity

EC Public Workshop 10 April 2014

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FULL TRACK AND TRACE PLATFORM Underpinning cross-border delivery

EC Public Workshop 10 April 2014 12

Presented by

© 2014 – ipc.be www.ipc.be

pages

E-COMMERCE: THE OPPORTUNITY FOR THE POSTAL SECTOR Public Workshop on EC Roadmap on parcel delivery

Herbert Goetz 12

10-04 -2014 Director, Marketing

International Post Corporation