E-commerce is fuelling parcel growth around the world as letter post and express items take a hitduring the economic crisis, according to figures presented at the World Postal Business Forum at
Post-Expo this week.While the parcel business weathers the storm and even seems to thrive in it, letter-postvolumes and revenues are experiencing sharp declines in the wake of the worldwide economic crisis,according to a survey by the Universal Postal Union presented at the conference. The UPU collectedits data from 15 of the world’s largest Posts and private courier companies.
In a year-over-year comparison of similar quarters, surveyed Posts reported that theirdomestic letter-post volumes and revenues were down between 6% and 14% in the second quarter of2009, compared to the same period last year. Such a decline has not been seen since the GreatDepression of the 1930s.
According to UPU economist José Anson, less direct mail being sent out is significantlycontributing to important drops in letter-post volumes and revenues, as weaker consumer spending,added to progressive electronic substitution, aggravates volume drops. He added that mail volumesdo not seem to be benefiting much from stimulus-led growth and monetary easing policies.
“People’s ability to reduce their debts will take some time. As they spend less, there isless need for companies to do direct mail campaigns, which normally contribute much to letter-postvolumes,” said Anson. “Direct mailers and Posts could boost this segment again by focusing on valueinstead of volumes, and enabling the right business sender to target the right customers at theright time with the right message.”
Posts, on the other hand, are experiencing growth in the parcel business and postal financialservices during the crisis. The growth in parcel volumes is being attributed to the impressivedevelopment of e-commerce during the crisis period, driven by the expansion of broadband internetin industrialised countries.
In France, for example, La Poste reported having delivered 22% more parcels linked to onlinesales in the first half of 2009 compared to the same period in 2008. According to the federation ofdistance-selling businesses (Fédération des entreprises de vente à distance), French e-commercesales have increased 28% over the past year.
Express volumes have also declined in a year-over-year comparison of the first three quartersof 2009 against the same periods in 2008. Revenues were down significantly – by 20% in the secondquarter – due to fuel surcharges adjustments. But there are signs that things are looking up, againbecause of e-commerce growth and signs of international trade recovery.
Posts offering financial services continue to thrive. The financial branch of Swiss Post sawthe number of new accounts grow at a rate of 71% in 2008; deposits achieved an annual growth ofclose to 13%. The trend continues in 2009. Similarly, the French Postal Bank saw deposits grow by7% in 2008.
