Deutsche Post is planning to reduce parcel prices in Germany after losing market share inconsumer segments, according to German media. It also plans to streamline DHL Germany
operations.“We want to offer private customers more attractive products at lower prices,” DPWN chairmanKlaus Zumwinkel told financial daily Handelsblatt. In response to the low prices of competitors,DHL Germany would streamline its organisation and improve service and quality, he said in aninterview.
Under the reorganisation plans, Zumwinkel told Handelsblatt, the number of administrative areasfor production and sales will be more than halved to 13 each, and management functions will bereduced. This would save a double-digit million euro figure.
The plan follows the rapid growth of Hermes Logistik, DHL’s main competitor in the German B2Cand C2C market segments. The parcel delivery firm recently announced a 28% rise in revenues lastyear. It claimed its B2C market share had risen to 35% from 33% in 2004, while its C2C share hadquadrupled to 22% within the last 12 months.
