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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