Express Delivery under Pressure to Add More Value as Parcel Service Closes the Gap
Europe’s parcel and express delivery business is expected to continue to grow at a higher rate than in previous years due to an increase in business-to-consumer (B2C) traffic and strong international demand, according to new research by market analyst Datamonitor.
However, the research, “European Express Market Map 2008,” which covers 12 major European markets, says that although currently exhibiting a higher growth rate than parcel services, express services are going to have to demonstrate extra value as customer demand is shifting to using cheaper yet reliable parcel services in key growth areas of international and business-to-consumer (B2C) delivery services.
“Over the next five years, the B2C and C2C (consumer-to-consumer) sectors will experience faster growth than B2B (business-to-business), due to increased e-commerce activity, especially in less mature home delivery markets such as Italy and Spain,” said Erik van Baaren, Datamonitor express analyst and author of the study.
International services are also growing at a higher rate primarily due to the enlargement of the European Union and the trend to centralize operations to fewer countries and outsource manufacturing to low-cost countries, according to van Baaren.
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