![]() ![]() ![]() Source: eMarketer Accenture Client Value Services.Ģ. Computed parcels per household using population and household data from government publications. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied.ġ. All such third-party marks are the property of their respective owners. This document refers to marks owned by third parties. This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. And if you’d like to do a deeper dive around any of the trends discussed in these blogs, please contact us - and let’s discuss how we can reshape the postal industry. In my next blog, I’ll look at more of the trends reshaping the postal industry, zeroing in on the shortening of supply chains and rising importance of sustainability. The pandemic has changed the world - and the industry must change with it. Given the seismic shifts I’ve described, how should post and parcel operators respond? In my view, they need to seize the opportunities on offer by rethinking their networks to accommodate retailer and consumer needs and capture greater volumes. And in combination they’re completely reshaping the B2C segment, as inventory gets closer to consumers and more deliveries become local deliveries. It’s a complex and fast-evolving set of drivers. But today, same-day delivery-as pioneered by Amazon - has a high value and is something they’re willing to pay for (see Figure 4).įigure 4: Parcels delivered by marketplaces/integrators, posts and retailers, 2015 versus 2020 As recently as a couple of years ago, consumers were generally satisfied with two-day or next-day delivery at best. The surge in parcels has been accompanied by the rise of same-day delivery services. The biggest winners are those that had strong parcel businesses to begin with, those with flexible networks and those with limited exposure to from retail post office revenues. The relatively strong revenues of most postal and parcel players worldwide show they’ve been quick to adapt their networks to accommodate the unexpected spike in demand. In the meantime, they’ve generally responded well to the changes triggered by the pandemic. Organizations across the industry are thinking hard about how to mitigate these impacts. More parcel deliveries can mean more trucks, more congestion, more cardboard for households to dispose of and potentially - until electric vehicles take over - more carbon emissions. It’s a rebalancing that brings wider implications, including potential societal and sustainability impacts over the “last mile”. The effect is that volume changes are now having a material effect on profitability – meaning postal organizations need to really pivot to parcels as their main focus. The bottom line? While parcel volumes rose fast, revenues rose faster-reflecting increased pricing power for postal and parcel operators. And the financial impact for postal and parcel organizations globally? A US$46 billion rise in parcel revenues in a single year, not far below the aggregate US$61 billion increase recorded in the four years 2016-2019.įigure 2: Impact of the COVID-19 pandemic on mail and parcel profit margins 2 The upward impact on parcels per household was global - with the US and China exemplifying the trend, as Figure 1 shows. From food to toys to furniture, e-commerce sales rocketed, taking parcel deliveries with them. The key driver was changing customer behavior, as lockdowns and social distancing saw more people go online to buy more things across more categories. But in no year have the changes been as dramatic as in 2020, with COVID-19 creating unprecedented disruption - often coupled with major opportunities - for postal organizations worldwide. So, what have we found this year? As you can imagine, the industry has changed quite a lot since 2006. The result? An industry perspective that’s both global and historic - enabling us to pinpoint what’s happening today and how it’ll play out in the future. For the past fifteen years, we’ve conducted an in-depth annual analysis of post & parcels globally, examining industry trends, how different players are responding, and what strategies they should apply to ride out disruptions. So let’s take a look at how closely we’ve been watching. If those figures surprise you, you’re not watching the industry as closely as we are. And Accenture’s analysis of postal and parcel operators’ financial reporting globally shows their profit margins on parcels almost doubled - while margins on mail fell by more than a quarter. Walmart delivered as many as Canada Post. In 2020, Amazon delivered more parcels than FedEx. Think you know the postal industry well? Then take a look at these statistics. ![]()
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