Welcome!

News Feed Item

UK Express Parcels: Market insight report

LONDON, Jan. 8, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

UK Express Parcels: Market insight report

Having fallen in the aftermath of the 2009 economic downturn, growth is now speeding up in the £8bn UK parcels market as traditional carriers and new entrants develop better models to meet home shopping and consumer demand.

This new report by Apex Insight looks at each of the three main segments of the parcels market: business-to-business, business-to-consumer and consumer/small business-consigned parcels. These segments were traditionally seen as separate markets, served by different providers. However, there has been convergence as home shopping growth has made consumers increasingly attractive to serve, drawing business carriers such as UPS, City Link and UK Mail to increase their focus on the area where they believe they can serve it profitably. At the same time, consumer-focused carriers like Yodel have invested in systems and sought business customers. New services have been developed by both carriers and third parties, such as internet brokers and parcel shop networks, to give consumers and small businesses access to a much wider range of services.

Home shopping has fuelled growth in the business-to-consumer segment throughout the last decade as penetration of broadband, smartphones and tablet computers have risen. The challenge for operators has been to develop a model to serve home deliveries profitably, so they can obtain exposure to this growth segment – which now represents almost a quarter of the market – without damaging their overall economics and impacting service levels for premium business-to-business customers. Latest data confirms that the economy has now started to recover, although later and more slowly than previously forecast, suggesting stronger performance can be expected in business-to-business parcels than in the recent past.

The UK market remains relatively fragmented with consolidation occurring at a slow pace. The only significant merger in the last year has been the incorporation of Nightfreight into DX Group. City Link was divested by Rentokil Initial into private equity ownership (Better Capital) while UPS's attempt to acquire TNT was disallowed by EU competition authorities.

While overall industry profitability remains low, several operators earn healthy margins and the overall picture is distorted by on-going turnarounds at City Link and the old DHL Domestic business, now owned by Yodel.

Factors such as quality of operations and fit with segment focus have proven to be far more important than the effects of scale in determining profitability.
In this report we review the UK parcels market encompassing the business-to-business, business-to-consumer and consumer / small business consigned segments.

We quantify the market size, historical growth rates, segmentation patterns and levels of industry profitability while reviewing key factors behind these figures.
Our market size estimate is derived from our bottom-up model of the revenues of all of the operators in the market with adjustments made to take into account a range of factors. This model has been regularly updated and refined since it was first developed in 2004 .
We also carry out an in-depth analysis of the relevant drivers of industry growth – in particular the macroeconomic environment and home shopping – setting out historical trends and available forecasts.
Our forecast for industry growth by segment is based on this analysis of historical trends and our understanding of growth drivers.
This report is intended for parcels carriers themselves, users of their services, partners, investors, banks, analysts, consultants and other parties with interests in the sector.

It is based on

– Financial analysis of the accounts of companies in the industry
– Interviews with senior-level contacts in the market
– In-depth analysis of the macroeconomic environment and relevant market drivers
– Our own experience of advising both companies and investors in the express parcels industry

Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions
• Introduction 2
– About this report
– Executive summary
– About Apex Insight

• Contents 5
– List of charts and tables

• Parcels market 7
– Background
– Market size and growth
– Segmentation
– Volume and value trends

• Market drivers 19
– Discussion of market drivers
– GDP
– Inflation
– Household disposable income and retail sales
– Measures of business-to-consumer parcel volumes
– Internet shopping value
– Household penetration
– Internet shopping: international comparisons
– Internet shopping and mail order
– Transaction size
– Returns rate

• Competitive landscape 32
– Types of parcels carriers
– Carrier size and growth
– Operating models and segment focus
– Carrier profitability
– Employment and productivity
– Industry cost inflation
– Share price performance

• Forecasts 55
– GDP
– Household disposable income
– Household disposable income and retail sales
– Parcels market forecast
– Forecast assumptions

• Appendix 62

List of figures

1. UK express parcels market size and growth
2. Market segmentation
3. FedEX UK: revenue and parcel volume
4. FedEX UK: revenue per parcel
5. Revenue per parcel benchmarks
6. UK GDP
7. UK Inflation
8. UK household disposable income and retail sales / % annual change
9. B2C parcel channels
10. Internet sales: value and as % of all retailing
11. Household penetration of PC ownership, broadband access and internet shopping
12. Internet shopping penetration for selected EU countries
13. Internet sales and mail order
14. UK home shopping transactions per year
15. Internet shopping returns rate by category of item
16. UK home shopping movements per year
17. Leading UK carriers – revenue
18. Carrier size and growth
19. Revenue growth by carrier
20. Operating models and segment focus
21. Revenue per employee
22. Revenue per depot
23. EBIT margins – overall sector and by carrier
24. EBIT margin by carrier
25. RoS vs RMS for UK carriers
26. Industry employment and productivity
27. UK inflation by category – Transport sector wages vs whole economy and CPI / 2002=100
28. UK inflation by category – fuel and motor vehicles vs CPI / 2002=100
29. Parcels carrier share prices vs FTAS: end of calendar year values / December 2005=100
30. UK GDP: historical and forecast
31. UK household disposable income and retail sales / % annual change : historical and forecast
32. UK express parcels market size and growth: historical and forecast
33. UK express parcels market forecast assumptions

Companies mentioned in the report

Amazon
APC
ByBox
City Link,
Collect Plus
DHL
DPD,
DX
eBay
FedEx,
Hermes,
Interlink
Interparcel
Nightfreight
Parcel Monkey,
Parcel2Go,
Parcelforce Worldwide
Royal Mail
TNT Express
Tuffnells
UK Mail
UPS
Yodel

Read the full report:
UK Express Parcels: Market insight report
http://www.reportbuyer.com/transport_travel/logistics_shipping/express_delivery/uk_express_parcels_market_insight_report.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=e-Commerce

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]  
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

SOURCE ReportBuyer

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...