Executive summary of 1997 France delivery services report

EXECUTIVE SUMMARY

MSI believe that the French market for express delivery services increased by 6% during 1996 to a value of FF11.39 billion (ECU1.78 billion). In addition to the growing internationalisation of economies and the removal of barriers within the European Union there has been a growing trend towards contracting out distribution services within end user sectors

Internal deliveries account for some 75% of the market and are estimated to have risen by just 4% in value terms during 1996. Indeed, the increased competition within the industry has impacted on the market for internal delivery services forcing consignment rates down. The demand for next day delivery represented the largest sector of the market accounting for 75% in value terms during 1996.

The proportional importance of international deliveries increased between 1992 and 1996 to account for more than 25% of the total market in value terms in 1996. This reflected the increased level of international trade and less competition within the sector, enabling major international operators to charge higher prices.

The French express delivery services market is affected by a number of factors including:

– end user performance
– French and international economic factors
– the trend towards globalisation
– trends in distribution and production
The French market for express delivery services is expected to increase at a slower rate between 1997 and 2001 as the marketapproaches the phase of maturity for internal deliveries. The major impetus behind the demand for express delivery services is expected to be the increased need for improved services and time guarantee as well as the speed of delivery in order to meet “just in time” requirements.

The French express delivery services industry is highly concentrated where the 3 leaders of the internal delivery sector including the companies which are part of the Geodis group accounted for 58% of the market in value terms during 1996. The market for international deliveries is believed to be even further concentrated where the 2 leading companies shared some 50% of the total market in value terms during the same year.