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Austrian Post plans budget mail brand

Feibra distributes advertising mail

Austrian Post is planning to use its unaddressed mail subsidiary Feibra as a ‘budget brand’ foraddressed mail under a new two-brand strategy, according to CEO Georg Pölzl. The company is also

developing new e-commerce services.

At present, addressed letter mail services are offered through the core ‘Austrian Post’ brandwhile distribution of unaddressed advertising mail is provided through both ‘Austrian Post’ andFeibra.

In future, however, the postal group wanted Feibra to offer addressed mail delivery “to pricecompetitors out of the market”, Pölzl told last week’s European Postal Services conference inLondon. The new business “will have a price-aggressive strategy”, he said. “It worked well inunaddressed (mail) and I think it will work well in the addressed area,” he commented.

Austrian Post bought 75% of the unaddressed mail specialist in 2002 and acquired the remaining25% in 2005. In 2010, the group’s major competitor, Redmail, was sold by TNT to publisher StyriaMedia Group.

Presenting Austrian Post’s strategy against the background of the declining mail market, Pölzltold fellow European postal executives that the company aimed to defend its national mail marketleadership with good service and efficient operations.

In the e-commerce sector, the company was developing an ‘online platform’ offering electronicpost, e-services and e-shops, the CEO said. This included offering electronic versions oftraditional postal products and new services.

A postal brand has “special qualities” for online business and is trusted by people, Pölzlpointed out in response to a question. “We do not have to stretch the brand, we can build on itscore values.”

However, he warned: “This business will never the size of the business we lose. But I believe wehave to go there. At least we will be part of the e-substitution.”

In the parcels sector, Austrian Post is expanding services both at home and in neighbouringcountries.

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