Summary of French parcel delivery market 1998
MSI estimate that the French market for express delivery services was valued at FF12.81 billion (ECU1.93 billion) during 1998, representing a 6% increase compared with 1997. The demand has been particularly stimulated by the internationalisation of business activities and trends in distribution and production.
Internal express deliveries in the French express delivery market recorded a 4% increase in value terms between 1997 and 1998, reaching FF9.25 billion (ECU1.40 billion) during 1998. It is believed that the demand for next-day services increased during 1998 to represent 77% of the total French market for internal express delivery services in value terms.
The French market for international express delivery services increased significantly throughout the review period as a result of the growing globalisation of trade. International deliveries as part of the French market are estimated to have reached FF3.56 billion (ECU0.54 billion) during 1998, representing a 12% increase on the previous year.
MSI believe that demand for express delivery services is affected by various factors, including:
– end user performance
– French and international economic factors
– business confidence
– political changes
– distribution and production trends
MSI forecast that the French market for express delivery services will grow in value terms between 1999 and 2003, especially in the international delivery sector. Indeed, it is expected that the introduction of the euro will reinforce the demand for international express delivery services. Furthermore, the demand for internal express delivery services is expected to grow, although at a slower rate, partly as a result of the JIT production methods being implemented by companies.
MSI have identified a number of factors which are considered to be critical for the success of express delivery companies. These include:
– service quality
– quality certification
– reputation and brand name
The structure of the French express delivery services industry shows a high level of concentration at both national and international level. The leading three companies (including the companies belonging to the Geodis and La Poste) accounted for 71% of the French internal express delivery services market during 1998. Furthermore, the two leading companies represented 55% of the total French market for international express delivery services in the same year.