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
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
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.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.