E-commerce is now the key growth driver for the German CEP (courier, express, parcel) market,according to an in-depth market survey commissioned by the country’s e-commerce association
bvh.B2C shipments overtook B2B as the largest market segment last year with some 990 millionparcels, which represented 48% of total market volumes. B2B deliveries with around 800 millionshipments accounted for 39% of the volumes.
With some 144 million shipments, C2B items (return parcels) accounted for a further 7% ofvolumes while the 123 million private parcels (C2C) represented the remaining 6%, the “CEP Marketand E-Commerce” study for the bvh by market researchers MRU found.
Market revenues set a new record, increasing 2.4% to €18.2 billion in 2012. Parcel operators,with revenues of €8.2 billion, increased their market share to 45%, followed by express firms (34%)with €6.23 billion and courier companies (21%) with €3.83 billion.
With 2.05 billion shipments, parcel operators transported 81% of all shipments (2.55 billion) inthe German CEP market last year, while express firms delivered 258 million items (10%) and couriersaccounted for 236 million shipments (9%).
The development of shipping volumes during the last year clearly shows how the general economicsituation and the booming e-commerce have impacted the business of the operators as distance tradehas become the key growth driver for the German parcel market, the study said.
bvh executive director Christoph Wenk-Fischer said: “More and more people shop viadistance-selling. In addition, the frequency of purchases is increasing and the shopping carts arefuller than a few years ago. Especially with regard to customer satisfaction, parcel operators havea key function. For it is in their hands to complete the purchasing process for the consumer bydelivering the parcel reliably and punctually.”
Not surprisingly, clothing makes up the biggest share of the parcel volumes with 18% while alsogenerating the highest revenues by far. Other strong product categories include consumerelectronics (11%), books (10%), computers and accessories, hobbies and leisure, household goodsappliances (6% each).
Considering the relatively low rate of return shipments, it needs to be noted that only a fewproduct groups generate a high number of returns such as clothes or shoes. Other product groupssuch as electronic devices account for considerably fewer returns.
In line with market trends, B2C operators have grown faster than B2B firms in recent years, thestudy pointed out. DHL Parcel Germany, for example, generated fast growth in 2012. B2B operatorssuch as DPD and UPS are now focusing more on B2C than in the past by developing parcel shops.
In the express segment, two opposing trends are currently being observed. On the one hand, thedomestic business of the express operators in Germany is being rivalled by the improved servicelevel of the parcel operators. The express shipments are therefore at risk of being substituted byparcel delivery which is becoming faster and more reliable. Companies are likely to make thisswitch in order to reduce shipping costs.
On the other hand, express operators profit from the increasing internationalisation of businessrelations and the growing demand for time-definite transport services. Due to the export boom inthe countries beyond the euro zone, the segment continued to grow despite the continuous slowdownof the EU countries. In many cases, however, express operators had to pay the growth with pricereductions, the study noted.
