Tag: Hermes Logistik

Hermes works on European B2C network

Posted by | Jun 18, 2007 | |

German B2C parcel delivery company Hermes Logistik is working on creating a European network to grow its international business, a senior manager told CEP-Research. It will enter the Austrian market on July 1.

Hermes, with turnover of EUR 1,016 million in 2006, is a subsidiary of Europe’s largest mail-order firm Otto Group, which also owns the parent firms of UK home delivery company Parcelnet and France’s Mondial Relay. Parcelnet recently bought the Redcats courier network while Mondial has announced plans to start operations in Belgium, Luxembourg, Spain and Portugal.

The company, which claims a German B2C market share of about 37%, is again developing well this year, with Parcel Shop volumes up by 25% year-on-year as of the end of May, Martin Kreiter, vice president marketing, said in an interview at the Transport Logistic fair in Munich. “We are growing well this year, and are winning new third-party customers,” he commented.

On plans for Austria, he added: “We are ready to start. We have the 1,200 Parcel Shops.” Hermes will initially have about 20% of the Austrian B2C market by delivering Otto Group parcels in the country.

Asked about Hermes’ European expansion plans, Kreiter noted that the Otto Group subsidiaries combined are already Europe’s largest home delivery organisation with 22,000 Parcel Shops. The creation of a European B2C network is “one of the challenges for the next few months,” he said. Although it was not yet clear how this would be structured, “we will need one face to the customer in future”, he stressed.

Kreiter confirmed that Hermes Logistik planned to enter the German mail market once the small letters segment was liberalised as of January 2008. “We know we are losing business because customers take letters and parcels to the post office. If we offer both, then we will win more business.”

Hermes would offer letter services through its network of 13,000 Parcel Shops. Consumers would be able to post letters in blue letterboxes outside the parcel shops. Hermes would definitely not have any delivery staff itself but would provide delivery through partners, he said. TNT Post Germany, in which it has a minority holding, was one possible delivery partner.

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France's Mondial Relay joins Hermes' European parcel network

Posted by | Jun 8, 2007 | |

German parcels company, Hermes Logistik, has further strengthened its growing European network by forming a partnership with France’s Mondial Relay for deliveries and collections in France, Germany and Austria.

Home delivery specialist Mondial, like Hermes a subsidiary of Europe’s largest mail-order business, the Otto Group, says it will also be expanding its consumer service through Relai pick-up points in four new countries – Belgium, Luxembourg, Portugal and Spain – and hopes to have opened over 20,000 such points in the seven countries (including France) by the end of this year.

The expansion will see Mondial’s parcels volumes grow by about 20% in two years from the 34 million handled in 2006, the company said in a release.

According to an article in the Handelsblatt newspaper this week, Otto is working towards a single brand European B2C parcels network led by Hermes, with the aim of boosting the German subsidiary’s turnover to between EUR 1.5 billion and 1.8 billion from the current EUR 1 billion.

The network is designed to cash in on the Internet home delivery boom in major markets such as Germany, France and the UK. Parcelnet, the UK home delivery company owned by the Otto Group, announced two months ago that it also was expanding by buying the Redcats courier network in the UK.

Hermes, which grew by 11.5% in 2006, is moving into the Austrian market this summer. It now has 13,500 distribution points in Germany and a further 1,200 lined up for Austria.

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Hermes Logistik – Mondial Relay partnership

Posted by | Jun 8, 2007 | |

German parcels company, Hermes Logistik, has further strengthened its growing European network by forming a partnership with France’s Mondial Relay for deliveries and collections in France, Germany and Austria.

Home delivery specialist Mondial says it will also be expanding its consumer service through Relai pick-up points in four new countries – Belgium, Luxembourg, Portugal and Spain – and hopes to have opened over 20,000 such points in the seven countries (including France) by the end of this year.

The expansion will see Mondial’s parcels volumes grow by about 20% in two years from the 34 million handled in 2006, the company said in a release.

The network is designed to cash in on the Internet home delivery boom in major markets such as Germany, France and the UK. Parcelnet, the UK home delivery company owned by the Otto Group, announced two months ago that it also was expanding by buying the Redcats courier network in the UK.

Hermes, which grew by 11.5% in 2006, is moving into the Austrian market this summer. It now has 13,500 distribution points in Germany and a further 1,200 lined up for Austria.

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Hermes wins German market share and targets Austria

Posted by | Mar 14, 2007 | |

Hermes Logistik, the German consumer parcels company, today announced double-digit growth, a surge in the number of parcels sent by consumers, and its entry into the Austrian market this summer.

The operator, a subsidiary of Europe’s largest mail-order company, Otto Group, increased gross sales in the business year ending February 28, 2007, by 11.5% to EUR 1,016 million, with net sales up to EUR 872 million. It does not disclose profit figures.

Volumes in the business-to-consume (B2C) segment grew by 10.3% to 235 million shipments, increasing its German B2C market share to 37% from 35%, it said in a statement. The ProfiPaketService for medium-sized firms launched in February 2006 generated 3,000 new customers its first year.

The fastest-growing business, however, was the consumer-to-consumer (C2C) parcel business. “ We are particularly proud of massive growth in private parcels,” said managing director Hanjo Schneider “With an increase of 79% to 23.6 million items we have substantially reduced the gap on the current market leader.”

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Hermes plans B2C service in Austria

Posted by | Mar 5, 2007 | |

Hermes Logistik, the German B2C parcel delivery subsidiary of German retailer Otto Group, is reportedly planning to set up its own service in Austria in competition to Austrian Post.

The Otto Group has cancelled its contract with Austrian Post for domestic delivery of parcels from its subsidiaries Otto Austria and Universal, German newspaper Die Welt reported, citing Austrian Post sources. These two companies alone could account for 10 million parcels a year, or about 25% of the country’s total B2C parcel market, it wrote.

Instead, Hermes Logistik would set up its own network to distribute parcels of the Otto Group companies, which focus on fashion and electronic, from this spring, Die Welt reported. Hermes could set up a network of ParcelShops like in Germany as alternative drop-off and collection points. The company was also in talks to take over parcel delivery for mail-order group Quelle in Austria, it added.

Hermes declined to comment on its plans for Austria, Die Welt said. However, the company already said last year that it aims to create a European B2C distribution business, and was considering entering markets such as Italy, Spain or Austria.

In Germany, Hermes Logistik has grown rapidly in recent years and now has a share of about 24% of the B2C/C2C market, according to CEP-Research information. It expanded beyond domestic distribution last autumn with the launch of deliveries to European destinations through a partner network.

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