DPD targets express, B2C and international growth
Hans Fluri DPD is aiming to grow faster than the overall German CEP market with new express, international and B2C services, joint CEO Hans Fluri said today. The intercontinental network will be developed in stages.
DPD wanted to expand into new parcel segments using the strengths of its German domestic parcel business but without risking this core business, he told journalists at the Transport Logistic trade fair in Munich. “We have a clear growth strategy,” he said. DPD is the domestic B2B deferred parcel market leader.
The new domestic Express service, offering next-day delivery by 08:30, 10:00, 12:00 or 18:00, had increased the German operator’s express volumes by 40% compared to last year since its launch in April, Fluri said. The company is initially actively targeting 1,000 of its 70,000 German customers for express shipments, he noted.
“We want 10% of the German domestic express market by 2010,” Fluri declared. Domestic express parcels are being handled through its existing network to generate economies of scale. Internationally, DPD plans to create a road-based European express service connecting major economic centres, and offer international express from Germany by early 2008.
DPD, currently number two in the German international deferred parcel segment, wants to grow its overall international business, which increased by about 18% in 2006, by about 10% a year over the next 4-5 years, Fluri told the press briefing. The EU would be the “top priority”.
The Intercontinental service would focus on reliable deferred delivery through the growing DPD network of subsidiaries, ventures and franchisees in 38 countries and other delivery partners.
“Intercontinental is a great opportunity for DPD Classic rather than express. In future DPD will offer what integrators offer but 50% cheaper and 2-3 days slower,” he stated. There was substantial potential demand for lower-cost intercontinental distribution, he noted.
DPD also wants to target the fast-growing German B2C market by building up a network of about 2,000 Parcel Shops to be used as delivery points. But there are no short-terms plans for any final-mile delivery service or use of automated parcel collection points, he pointed out.
The parcel delivery company will also launch an online shop for small businesses in July, targeting ad-hoc shipments, Fluri said.
