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Winterberry Group's White Paper – Vertical Market Trends in Direct Mail 2006

The direct mail marketing industry enjoyed another year of robust growth in 2006 as total spending on U.S. direct mail services reached USD 60.6 billion, an increase of 7.5 percent from 2005 estimates. A number of factors—including the relative ease with which mailers absorbed a 5.4 percent postal rate hike and the lack of high-performing alternative channels—helped maintain this solid pace of growth, despite the emergence of several significant marketplace constraints, including increases in raw material and logistics costs.

Winterberry Group (WG) projects that direct mail investment growth will continue to outpace growth in traditional “above-the-line” advertising, but will slow slightly in 2007 and beyond. We project overall spending on direct mail services will reach USD 73.6 billion by 2009, reflecting a compound annual growth of 6.8 percent per year for the 2005 to 2009 period.

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China separates business, regulatory functions of state post service

The establishment of China Post Group (CPG) here Thursday [30 November] marks the separation of the regulatory functions of the former State Post Bureau (SPB) from its business activities.

CPG sources said the group is restructuring its businesses including mail delivery services and the publication and issuance of stamps.

China separates business, regulatory functions of state post service

The new CPG group has registered capital of 80bn yuan (10bn US dollars).

Liu Andong, former director of SPB, has been appointed general manager of CPG, and Ma Junsheng, former deputy director of SPB, has been named to head the State Post Management Bureau (SPMB).

CPG will own the China Postal Air Freight Corporation and the China Postal Savings Bank. The source said the merger of the China Postal Logistics Corporation with EMS is almost complete. The new entity will be controlled by CPG.

Traditionally both supervisor and a player in the market, SPB was placed in a difficult position when more and more companies, including overseas delivery firms, began to compete in the country’s lucrative postal market.

Sources with the Shanghai Securities News said the State Post Management Bureau also began operations on Thursday.

A number of provincial Post Management Bureau agencies have been set up since September.

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Neopost wins Award

Mailroom equipment supplier Neopost has won Triangle’s UK Mail Technology Award for its i-Weigh scale developed in response to Pricing in Proportion (PiP). The firm has also been named the Parcelforce Vendor of the Year 2006 by Royal Mail Group.

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Postwatch welcomes Royal Mail's strong half-year results

Postwatch today welcomed Royal Mail’s results for the first six months of the financial year, which show the company is on course to meet all 12 of its performance targets.

Across the UK, Royal Mail achieved 94.5 percent of 1st class post delivered the
next working day. Royal Mail met this minimum target of 93 percent of 1st class
post delivered the next working day in 111 of the 118 UK postcode areas.

Commenting on the results, Millie Banerjee, Chair of Postwatch, said:
“Royal Mail’s results represent excellent progress and show the company is on
course, for the first time, to meet all its targets over the course of a financial year.

“These figures are evidence not just of the hard work put in by Royal Mail staff,
but also of the positive motivating effect competition in the mail market is having
on Royal Mail to up its game.

“Congratulations in particular to Royal Mail staff in Swindon, who recorded the
best performance in the UK. Postwatch hopes that Royal Mail throughout the UK
can keep up the good work and continue to provide the standard of service
customers expect over the coming months, and beyond.”

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