La Poste to raise letter prices 7% from January, parcel rates by 1%
La Poste is set to bring in an inflation-busting 7% increase to its postage rates in January, to sustain the universal service. But, protecting the important e-commerce market the French national postal service said this week that it will raise parcel prices by only 1% on average.
The company said the hike in letter prices come as the decline in mail volumes prompted by the digital revolution accelerates, with last year’s 6% drop being the largest decline in company history.
The starting price for the basic letter (Lettre verte/green letter) will rise by 7 cents to EUR 0.68, while the rate for a priority letter will rise by 10 cents to EUR 0.76.
The company said it was increasing the differential in prices between the green letter and the priority letter because the green letter is designed to be affordable while also reducing emissions, because within mainland France the two-day service does not make use of air travel. The move also helps the firm maintain its price cap under the multi-year framework approved by regulator ARCEP in July.
La Poste said this week it is also planning to bring in a two-cent discount for customers purchasing their postage online in 2015. Hybrid mail rates will remain unchanged for a third consecutive year, so for EUR 0.99 La Poste will print and mail a physical copy of a letter sent electronically.
Domestic parcel prices will rise by a “very moderate” 1.2% next year, while international shipping rates will actually fall by about 5%, the company said.
Commenting on its price increases, the French state-owned postal operator said the changes would have “little impact” on household budgets, less than EUR 4 per household per year based on average household spending on postal products.
Rates for business mail services aimed at small and micro enterprises will remain unchanged, La Poste said, in order to help small firms remain competitive, while other business mail services will see price increases ranging between 1.4% and 3%, with the company stating that advertising mail rates in a “sluggish” trading environment will not rise by more than 1.4%.
La Poste said that its price increases would be “moderate” compared to other postal operators in Europe. The company pointed to the 17% price increase in Italy, 25% in Finland, 28% in the Netherlands and 41% in Denmark since 2013, stating that while delivering six days per week across France, its rates remain on a level with European counterparts.
Publicity campaign
The new La Poste advertising campaign aims to highlight the company’s innovative new products and services
Meanwhile, La Poste is launching a brand new multi-media advertising campaign this weekend, to highlight the innovative new services and improved efficiency it can offer personal and business customers.
Under a slogan “A new idea of La Poste”, the campaign from Paris-based advertising agency BETC aims to promote the image of the Post Office and support the development of its commercial momentum by featuring modern and innovative products and services of which individuals and businessed may not be aware.
The campaign will be rolled out via television, online video, cinema, press, posters and direct mail, as well as through social media, apps and websites, and also on postal infrastructure including TV screens in post offices, on buildings and on 4,000 vehicles.
Nathalie Collin, deputy director-general and communications director of La Poste Group, said: “It’s time to put out a new idea of La Poste. The French have already seen progress in post offices throughout France as well as the significant developments of the service provided to the customer. With this campaign we want to boost the use of our new products, which are sometimes unknown to the general public.
“This is also our strategy for the future: campaign after campaign will continue to demonstrate our ability to innovate.”
