German postal rates fall as competition grows
Prices in the German postal market are falling as competition grows and new entrants gear up for full liberalisation in January 2008, according to a new, in-depth study from CEP-Research, “The German postal market before liberalisation”.
Although the Deutsche Post exclusive licence still restricts the activities of competitors such as express and parcel firms, specialist mail companies and publishing groups, competition is clearly increasing, leading to lower average prices.
“A clear sign for a price war in the German mail market is shown by the development of market revenues and mail volumes since 1998,” commented Björn Sasse, project manager for the study. Projected figures for 2005, for example, show that total mail volumes are expected to show a rise of 6.5% to 18.1 billion, while overall mail revenues rose just 2% to €10.2 billion. The average mail price dropped by 6% last year.
The 117-page, German-language study also highlights future market potential and likely trends such as increasing outsourcing of in-house postal departments to service providers. “Lower prices, new products, improved services and better service quality for corporate customers can be expected from liberalisation in 2008,” added Björn Sasse.
In addition, the study provides a comprehensive overview of the market structure. It documents the legal framework governing the country’s mail market, including on the Universal Service Obligation, mail licensing and postal regulation. There are detailed tables on postal volumes and market shares.
The current positioning and strategy of Deutsche Post prior to the abolition of its letter monopoly on December 31, 2007, is examined. There are also profiles of existing and potential mail competitors, including PIN AG / PIN Group, TNT Post, Hermes Logistics, UPS and Royal Mail / GLS.
* “The German postal market before liberalisation” can be ordered online from www.cep-research.com for €800. The 117-page study is only available in German.
