On December 4th, in the UNIAN press center press-conference dedicated to results of an independent research of Ukrainian postal logistics market was held. The study was conducted by the Ukrainian Direct Marketing Association (UADM), together with the consulting company «NSBC» supported by “Ukrposhta” and “Nova Poshta”.

Main objectives of the research, conducted for the second time, were to determine the market size and its structure, key players and the market prospects for the nearest future. Talking about postal logistics complex of services on delivery of letters parcels and packages weighing up to 30 kg is meant.

Overview of Ukrainian postal logistics market

In Ukraine postal logistics market shows a stable growth. In 2011 it has increased by 12.3% in terms of money and amounted to $2,447 mill. In real terms in 2011 the segment of parcel deliveries has increased by 14.2% and the letters – by 12.1%. The market growth is much higher than the GDP growth rate of the country and this positive trend will be typical in the next two years.

Efficient logistics infrastructure formation is both a required condition and a consequence of the e-commerce market development, which is growing by 30% per year. At the same time there is a qualitative change in customers’ structure (senders of parcels and letters). The share of deliveries ordered by individuals is reducing (so-called “C2C-deliveries”) and the share of letters and parcels sent by companies is actively growing (B2B and B2C deliveries).

As well as all over the world services of letters and parcels delivery are gradually losing their social significance and becoming a key factor in development of “the new economy” – e-commerce, trading by catalogs, tvshopping.
Today, the postal logistics market is represented by national operator “Ukrposhta” and more than 120 private companies. Share of the national postal operator decreases, despite of increased volume of delivered letters and parcels in 2011. The market is growing rapidly and new customers require more flexible pricing policy and approach to services, which can’t be provided by the national operator due to bureaucratic government limitations. If this situation could be changed by a new team that came to the “Ukrposhta” at spring 2012 will be cleared in a year.

* Letters and parcels except С2С segment;

** In research delivery of utility charging bills performed by Office of Housing Operations’ employees wasn’t included

Market division: mailings structure depending on type of sender and recipient В2В/В2С

B2B segment of written correspondence increased by 13.08%, B2C segment – by 11.9%. But the most rapid growth of the market was in the segment of B2C parcel deliveries – about 27%. The main driver of parcel deliveries growth was e-commerce.

Ratings of Ukrainian postal logistics market operators

The companies’ rating includes “Ukrposhta” in general volume of services provided (letters and parcels except international deliveries)

*market volumes in money terms

Companies’ market positions in segments “door-to-door” and “warehouse-to-warehouse” deliveries, “Ukrposhta” services excl. 

Market share changes in “warehouse-to-warehouse” delivery segment

Market share changes in “door-to-door” delivery segment

Cash on delivery (COD) is widely used in the segment of B2C parcel deliveries. On average COD percentage is from 1.5% to 2%. Contribution to this segment is specified by catalog selling companies, online retailers and direct sales companies. Not more than 80% of parcels in the B2C segment are sent on COD terms. Thus, the COD service amount is on average 7-10 million hrn. per year.

Main trends of postal logistics market operators’ development in Ukraine

Tendencies which outlined in 2011 are going to be essential in 2012-2013. The main growth will be in the segment of B2C parcel deliveries. This segment will grow on average by 10-15%. Catalogue selling companies will provide an increase of about 10% per year, on-line sales – of 20%, direct sales – of 10-15% in volume terms. In the B2B segment the growth will not exceed 5% in natural units.

The main factors influencing the B2C segment in the next 5 years will be:

• broadband Internet penetration;
• household incomes;
• population size.

The main factors influencing the B2B segment will be:

• business activity growth;
• fuel prices dynamics;
• national currency stability.

Competition at the market will continue to grow, and in case of deterioration of economic indicators companies traditionally working in the B2B segment will reorient to B2C segment. However, COD service availability continues to be a major deterrent to B2C segment entering. A number of companies began to offer this service unofficially. There is some redistribution of customers and cargo flows in the market. Thus, in the segment of companies which deal with transportation and offer the service of “warehouse-to-warehouse” delivery, a clear distinction appeared.

In a press-conference took part:
Valentin Kalashnik, President of the Ukrainian Direct Marketing Association,
Andrey Prokopenko, Managing Partner at NSBC “Ukrainskiy proryv”
Jaroslav Pelykh, Expert at NSBC “Ukrainskiy proryv”
Pavel Bogdanov, Deputy Director “Ukrposhta”
Irina Holod, Marketing Director, “Nova Poshta”
Alexander Lisovets, Director of Development ” Nova Poshta”
Evgeny Glazov, Director of POSTMAN,
Anna Chumak, Director of Ukrkurer,
Dmitry Belyakov, Head of Sales and Customer Service for distance selling, Rosan / Meest Express.

Further details are available via contacting with the Ukrainian Direct Marketing Association by phone +38 044 90 90 88 or pavlenko@uadm.com.ua