Prices in the German postal market are falling as competition grows and new entrants gear up forfull liberalisation in January 2008, according to a new, in-depth study from CEP-Research, “The
German postal market before liberalisation”.Although the Deutsche Post exclusive licence still restricts the activities of competitorssuch as express and parcel firms, specialist mail companies and publishing groups, competition isclearly increasing, leading to lower average prices.
“A clear sign for a price war in the German mail market is shown by the development of marketrevenues and mail volumes since 1998,” commented Björn Sasse, project manager for the study.Projected figures for 2005, for example, show that total mail volumes are expected to show a riseof 6.5% to 18.1 billion, while overall mail revenues rose just 2% to €10.2 billion. The averagemail price dropped by 6% last year.
The 117-page, German-language study also highlights future market potential and likely trendssuch as increasing outsourcing of in-house postal departments to service providers. “Lower prices,new products, improved services and better service quality for corporate customers can be expectedfrom liberalisation in 2008,” added Björn Sasse.
In addition, the study provides a comprehensive overview of the market structure. Itdocuments the legal framework governing the country’s mail market, including on the UniversalService Obligation, mail licensing and postal regulation. There are detailed tables on postalvolumes and market shares.
The current positioning and strategy of Deutsche Post prior to the abolition of its lettermonopoly on December 31, 2007, is examined. There are also profiles of existing and potential mailcompetitors, including PIN AG / PIN Group, TNT Post, Hermes Logistics, UPS and Royal Mail / GLS.
* “The German postal market before liberalisation” can be ordered online fromwww.cep-research.com for €800. The 117-page study is only available in German.
