Innovation and Collaboration Key to Developing Europe's Growing B2C Parcel Delivery Market

Drivers

Drivers

Increasing penetration of internet usage

An aging population

Better online offerings eg. assortment, online shopping centres etc.

Improving shopping experience eg. web technologies, payment solutions, delivery solutions

Lower costs

Reduced national barriers and regulations (relevant to regional players)

Improving receiving options: new parcel pick-up point solutions

Restraints

Security issue related to online payments

Higher costs, in cases such as food retail

Online retailing is limited to purchases where touch and product trial is less important

Competition from retailers who offer more brick and mortar options such as discount outlets, big shopping centres etc.

Limited delivery options

Reduced national barriers and regulations (relevant to local national postal services where foreign competitors enter market)

High costs of building delivery networks and relationships with key online retailers

Looking further ahead, market development will depend on the overall supply chain; such as how much retail companies will invest in online sales; how web site technologies and payment methods will develop; how efficient the logistics is and how conveniently consumers can pick up their parcels etc. Two developments are worth special mention.

The first is the development of new innovative delivery modes and technologies. Self-service parcel terminals, where consumers can pick-up their own deliveries, are altering the market. Several European national postal service companies have already set up small networks of the terminals or have at least a pilot project. Deutsche Post DHL operates the biggest network of Packstations' in Germany (approximately 2,500 terminals). Other examples include Post Danmark A/S (120 terminals) and Norway Post (40 terminals).

The second is the collaboration amongst industry players to ensure a smooth shopping experience for consumers. Significant business opportunities are available for companies that are able to offer total "360" solutions. For this reason, large companies such as TNT aim to offer a full range of services along the supply chain, from online marketing, managing web stores and online payments to e-fulfillment, physical delivery and after-sales customer service.

Further development of innovative delivery modes and technologies and collaboration amongst key players will be key to developing Europe's fast growing B2C parcel delivery market.

This article and others from GIA's Logistics & Transportation practice can be found at Global Intelligence Alliance Insights and Analysis.

Innovation and Collaboration Key to Developing Europe's Growing B2C Parcel Delivery Market

By: Global Intelligence Alliance

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