2.5 pc annual growth seen in global postal mail

DESPITE the proliferation of e-mail and other means of communication, global postal mail is estimated to grow at 2.5 per cent annually during the 10-year period ending 2005, up from a growth of 0.9 per cent per annum recorded during 1985-95, according to Mr S.B. Bhattacharya, Member, Department of Posts.

Speaking at a seminar on ‘Business mail: A challenge and opportunity for post’ here under the aegis of the Mail Users Association, Mr Bhattacharya quoted a study undertaken by Universal Postal Union (UPU) and said that, by 2005, there would be a significant growth in business-to-household mail even as the volume of household-to-household mail was expected to drop.

At present, 98 per cent of global mail is domestic mail while the balance is international mail. In the domestic mail segment, 86 per cent of the volumes were generated by the business segment.

With technological advancements and increased competition in the global marketplace, quality and costs would be major determinants of market share.

It would be necessary for postal administrations and others in the mailing business to forge strategic alliances for sharing resources and ensuring synergistic operations.

According to Mr Bhattacharya, the Department of Posts has introduced several value-added services – such as Speed Post, Media Post, Express Parcel Post, Greetings Post, Business Post, etc – with a view to augmenting revenues.

“The Internet has provided the department with a host of new business opportunities which we are keen to exploit”, he said, adding that the department would leverage on its widespread distribution network in this regard.

In the days ahead, the Indian postal system would commence non-traditional activities such as packaging and shipping of goods and supply chain management. Over time, it could well emerge as an accessible payment gateway for e-commerce.

“Our advantages in terms of speed, security and reliability will help us become a trusted third party interface between buyers and sellers of goods and commodities”.

Mr Bhattacharya said the monopoly of letters would remain worldwide.

“The core activity for which postal services were created will remain. However, it would be important to regulate the postal market with a view to ensuring fair competition”.

Mr Jeff Brennan, Director (Mailing Systems) of Pitney Bowes Inc., said the postal system was uniquely positioned to provide the last mile delivery services for e-commerce transactions concluded on the Internet.

“The postal system can leverage on its ubiquitious delivery network and emerge as a gateway to home shopping”.

Mr Brennan said the growth of postal mail volumes was proportional to growth in the economy.

It is estimated that, over the next five years, direct mailers would maintain a 19 per cent market share of the advertising mix in the US.