HOW EXPRESS DELIVERY MARKET IS POSITIONED IN POLAND?
With the growing industrialization and busy lifestyles of people, the requirement for a faster delivery system was felt. International companies started to penetrate the polish courier service industry and with them they brought a highly efficient and streamlined express delivery system. Express delivery can be used for a number of goods including documents, cheque books, electronics, and official documentation among several others. The growing e-commerce industry has made express delivery more relevant in the country, leading to growing opportunities in the sector.
The express logistics market increased from USD ~ million in 2012 to USD ~ million in 2017 at a CAGR of ~% from 2012 to 2017
The substantial rise in the number of courier consignments and postal parcel coupled with around 10-15% rise in fee of express delivery service in Warsaw, Poznan etc. has accelerated the overall revenue of the market. In addition to corporate using the express delivery services
For sending important documents, people are also using the express service for delivery of personal documents. The population opting for express delivery instead of normal delivery has increased over the years and so has the number of players operating in the market. All these reason have made a positive impact on the express market in Poland.
Despite the high cost of express logistics than normal, the express delivery service has witnessed significant growth in the Polish market. This is primarily due to the highly efficient secure and modern delivery process.
Increase in international cross border trade has also fueled the size of the express delivery market in the country. The international express services are much costlier than domestic express services. The companies such as Raben, FedEx, DSV Group, and DHL are the leading companies in the industry offering express delivery services in the country.
POLAND EXPRESS DELIVERY MARKET SEGMENTATION
By Air and Ground Express
The express logistics implies same day delivery or delivery within 48 hours. To make deliveries in a short span of time it is imperative to make use of airways.
Poland express logistic market is dominated by air express logistics which contributed around ~% to the total revenue of the express logistics market in 2017, owing to the major international shipments falling in this category.
Some e-commerce companies use Poland as a base for making deliveries to neighboring Eastern Europe and Baltic countries. Use of air cargo to these countries reduces the time and makes the entire process more efficient
By International and Domestic
International courier has majorly contributed to the revenues of express logistics in the country. With the development of well-planned road infrastructure and air transport network in the country and good connectivity with European, North American and Asian countries through road and air routes has resulted in an increase in the demand for express delivery for international shipment in the country
Domestic courier logistics have contributed ~% to the overall express logistics market in 2017. The low cost of express services within the boundary of the country has attributed to the low share of domestic express delivery service.
SNAPSHOT OF POLAND E-COMMERCE MARKET
Overview: The increase in number of smart phone users, internet penetration, social media usage and spending power of the middle class has contributed to the growth of the E-commerce market in the country. The E-commerce industry uses a substantial share of the warehousing space in the country. The country is becoming a hub for operations of several E-commerce companies including Amazon and Zalando.
Market Size: Currently, there are about ~ online stores operating on the Polish market, the vast majority of which are medium-sized or small, which send up to fifteen parcels a day. About ~ new online stores are opened in Poland every year. The Poland’s E-commerce market was USD ~ billion in 2014 and reached USD ~ billion in 2016 with a CAGR of ~%. With double digit growth it is one of the fastest growing E-commerce markets in Europe. The number of online stores in the country is also expected to grow by ~%.
Segmentation by Mode of Payment: The access to the internet is easy and affordable and there is a general familiarity with the internet technologies. More than 70% of the country’s population has access to internet. Mobile subscription per capita is 1.47. Bank transfer has been the most prominent payment method for online shoppers with around ~% share of the total market. Debit cards are the second most used method of payment with ~% share and only around ~% of the total online shoppers prefer to pay cash on delivery for the product.
Logistical Challenges: Seasonality of sale presents a challenge for the E-commerce companies. Companies need to have flexibility in increasing their warehouse space and also increase the number of people employed during the peak season. The extreme variation in delivery points (private homes, parcel lockers or collection points in stores) extends time and increases the cost delivery as well.
Future: The Polish E-commerce market is expected to continue its double digit growth in the coming years as well. The number of clients and stores are likely to continue their upward trajectory with a similar rate. The E-commerce market in the country is expected to reach 10% of the total value of retail sales in the country by 2020; the country’s logistics market has to grow parallel to this growth rate to be able to support the requirement.
Snapshot Of Poland Cep (Courier, Express And Parcel) Market
Market Size: The CEP market in Poland has grown from USD ~ billion in 2012 to USD ~ billion in 2017 with a CAGR of ~% during this period. The total volume of couriers, express and parcel deliveries made in Poland increased from ~ million in 2012 to ~ million in 2014. Majority of the business is generated from local deliveries. The expansion of CEP services by the global companies in the country and expansion of local companies internationally into the EU has brought down the prices for international CEP deliveries.
Segmentation by International and Local Companies: In 2014, around ~% of the market share is contributed by the international companies while the rest ~% was contributed by the local players. The major international players operating in the country are DHL, UPS, FedEx and the major local companies include Poczta Polska and DPD Poland.
Competition Scenario: In 2016, there were around ~ players operating in the CEP (courier, express and parcel) market. The players with majority of the market share are DPD, Poland, Poczta Polska, DHL Parcel, UPS, FedEx, GLS, Inpost and Geis.
Future: The market share of express services is likely to grow owing to the growth of the e-commerce industry. The number of couriers and parcel deliveries made is also likely to grow gradually in the future. The prices for CEP deliveries are likely to increase with the rise of operational costs.
Poland Express Delivery Market Future Outlook
Express Delivery market in Poland is expected to witness a CAGR of ~% during 2017-2022. High growth rate can be advocated to the elevation expected in the e-commerce industry, rise in the demand of perishable goods and the increased use of express delivery by people for personal and corporate documents delivery. Growth in e-commerce industry will drive the express delivery market owing to the rising demand of this service for B2C business segment. E-commerce sales are expected to be USD ~ billion by 2020, at a CAGR of 15.3% from 2017 to 2020. Middle class and young population in Poland is expected to drive the demand of animal protein and dairy products. These products being perishable require express delivery and hence will have a positive impact on the express delivery market. The price for courier services are expected to decline which will be the result of a change in the structure of export packages for the increase in the share of economic packages characterized by a lower price for the parcel.
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