Swiss Post aims to grow in the future with new, innovative services while restructuring itsoperations, Claude Béglé, chairman of the board of directors, told European postal executives.
Speaking at last week’s PostEurop annual conference at Bled, Slovenia, Béglé outlined how theSwiss national postal operator is responding to the decline in mail volumes and profits with arange of measures.
Swiss Post expects its return on sales in mail to drop to 3.8% this year from 8.5% in 2008,but the decline has been partly compensated by higher profits from financial services. However, hepointed out: “I think the downturn in mail will continue while the upturn in financial services isnot guaranteed. I believe mail volumes will go down by 30% by 2015.”
Explaining that as a public postal operator Swiss Post had to maintain “a very difficultbalance” between a diverse range of legal, moral and financial obligations, Béglé said theorganisation faced a number of strategic questions and needed to decide which business areas tofocus on in future.
At the same time, a new postal law is under discussion that would change the operator into alimited company with staff as employees and no longer as civil servants. In future, it would bepossible to open up Swiss Post’s capital to outside investors up to 49%, either though a flotationor strategic partnership, Béglé pointed out.
“I believe the future of Swiss Post is to grow a lot more than to reduce costs. We shouldcombine tradition with innovation,” he declared. The organisation could build on the strengths ofthe “Swiss” and “Post” brands. For example, innovative electronic products and services includedthe Swiss Post Box, an electronic mail service, the Swiss Stick, a USB stick “with all the SwissPost products in your pocket”, and digital ID and signature services.
In the traditional mail business, Swiss Post needed to make costs more flexible and movetowards a ‘three-tier’ delivery system with early-morning newspaper deliveries, morning deliveriesto business customers and afternoon deliveries to private customers. The post office network couldbe used much more for growth areas such as parcel collection and financial services, although thiswould require significant staff training. “I see the future of the network in delivering parcelsand financial services.”
In terms of international business, Béglé emphasised the potential of partnerships andalliances to help a postal operator expand its business activities rather than geographically. Healso said that with the growth of electronic communications the need to protect private consumersin traditional postal services would diminish in future.
