Hermes launches simplified brand and builds up European B2C network

German consumer parcels firm Hermes has launched a simplified brand under its plans to develop a pan-European B2C network.

The company is dropping its German-language description “Logistik Gruppe” (“Logistics Group”) and will simply market itself as “Hermes” in future, using a modernised corporate logo. Hermes will retain its well-established claim “Weil’s gut ankommt” (literally “Because it gets there properly”) , translating this in its new European markets into appropriate local-language versions focusing on comfortable shipping and delivery services.

The move has been undertaken ready for the forthcoming international expansion of the company. “Hermes is increasingly positioning itself as an international service provider with innovative services for business and private customers,” said Martin Kreiter, head of marketing.

The revised corporate brand and logo was unveiled yesterday and is being introduced in Germany from October 1 onwards. Full introduction on vehicles and at the 13,000 retail outlets is scheduled for completion by end-2010.

Meanwhile, Regina Müller, Hermes’ head of strategic development, told the Courier and Parcel Logistics conference in London yesterday that there was a clear market opportunity to create the first European B2C network for domestic and cross-border parcels. No such operator existed yet and at present customers with cross-border parcels were forced to work with a number of local delivery companies or with the international B2B players, she said.

Hermes is currently working on establishing operational standards for cross-border parcels, and the challenge would be to ensure a consistent service offer in all markets, she commented. Other success factors for cross-border B2C delivery would be a reliable returns service, full tracking and tracing, attractive pricing and cost control.

The European B2C market was forecast to grow to EUR 10.5 billion by 2016, with the three major markets of the UK, Germany and France representing 71 pct of these revenues, Müller said. Italy, Austria, Spain and the Netherlands would be the next-largest markets. But it would not be sufficient to offer only these core markets, since customers would want deliveries in smaller markets as well, she noted.

The customer profile would change in the forthcoming years, Müller said. Traditional mail-order customers, who currently accounted for the bulk of volumes, would decline in relative importance, e-commerce would be the main business driver and SMEs would also become a more important customer group.

Outlining Hermes’ present network in Germany, Britain (Parcelnet), France (Mondial Relay), Austria and Italy (Porta a Porta), Müller said that Hermes’ stake in the Italian company would increase in January 2009 and a full B2C network would be built up in Italy. Hermes bought a 30 pct stake in Porta a Porta from Swiss Post in October 2007.