European ''emerging markets'' come into focus
Against the background of moderate growth and increasing consolidation in mature Western European markets such as Germany, Britain and France, “emerging markets” such as Spain, Poland, Russia and Turkey are increasingly coming into focus for international express and parcel operators. In contrast to the moderate single-digit growth rates in core European markets, the continent’s smaller markets are growing at high single-digit or double-digit rates and offer attractive areas for expansion. More acquisitions can be expected in these markets during 2007.
Germany, France and Britain jointly account for over half of the total European express and parcel market, according to CEP-Research data. The “Big Three” are the home markets or major regions for carriers such as DHL, TNT, GeoPost/DPD, GLS and UPS. But the market growth rates have slowed significantly in recent years, mostly due to low economic growth, and operational costs are rising. The inevitable result is tougher competition between the market leaders and a clear trend towards market consolidation.
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