Globalisations double-edged sword
The German parcels market is showing slower growth this year due to the countrys weak economy, according to leading operators.
DPD, number 2 behing Deutsche Post, expects moderate market growth of 3%, with prices rising about 2% along with a road toll – MAUT – surcharge. But the French-owned parcels group is confident of winning market share this year with new products such as its new time-definite Guarantee product. “Weve made a good start this year. For the full year we expect 8% turnover growth and 6% volume increase,” says recently appointed Germany CEO, Hans Fluri. “We see stronger demand for deferred products. Due to the difficult economic situation in Germany, value-for-money shipments are in higher demand than ever.”
DPD, which increased its German volumes 9% to 237m parcels last year, will invest about EUR50m in German depots and network in 2005.
Rival GLS sees similar market trends and has moderate targets for this year. “GLS Germany expects parcels growth below the market growth. The reason is mostly aggressive pricing by our main competitor, Deutsche Post, which will not be matched by GLS,” says CEO Rico Back.
