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International crossborder mail markets in Europe are usually more competitive than domestic markets For instance, in the UK, Swiss Post, La Poste, Belgian Post and Direct Link (Sweden Post) will not contend with Royal Mail domestically but have done so for 12 years internationally. Swiss Post alone incorporates a EUR40m international mail turnover in great britan. The main exception is TNT, that is not only a leading downstream access domestic competitor to Royal Mail, but can also be many partner in Spring Global Mail (where Royal Mail has a 24.5% minority shareholding). All the players recognise that traditional cross border traffic is at best static in any other case reducing. Gary Simpson, Managing Director International, Royal Mail, states clearly “Traditional cross-border mail was in decline” Mark Eldridge, Director Strategy & Marketing, Spring, agrees – “Transactional mail is definitely an steeply declining market; there are the volumes for invoices and statements moving forward to line and in certain countries it is plummeting.” Closing the loop In spite of this, new forms of crossborder international shippers are seeking new and good ways to sell to their (e-commerce)customers. Operators for example Spring see to be able to present you with a much broader variety of added value services. “You can combine returns with forward fulfillment distribution plus a uncatalogued, invoices and statements solution; and then you probably begin to bring everything together and it’s really a complete solution for the customer – we call that the ‘closed loop solution’” comments Eldridge. Frederic Petton, Managing Director La Poste UK, agrees “The biggest customers want some type of project management software … BTB (recently acquired in britain) adds consolidated mail, alternative delivery / direct entry; fulfillment and storage.” This idea of adding value also extends to fulfillment as outlined by Simpson – “From a major international perspective, the fulfilment section of the customers are the genuine challenge for many people as we progress.” Direct Mail stimulated by e-commerce Each of the mail operators interviewed see e-commerce driving up volumes of cross-border B2B and B2C traffic, but it is how you can stimulate related interest on direct mail that creates a further opportunity. Eldridge – “I think the postal industry should get up to this and understand the role direct mail and catalogues have in complementing the web environment, they must work hand-in-hand. It’s taking the 4PL concept that we’ve developed from the distribution environment, a stride further.” B2B: Viking Direct/ Office Depot Eldridge cites two of Spring’s major European cross-border clients “We manage all the catalogue volumes for Viking Direct across 10 countries, plus revenue terms, that’s around EUR65m annually. With Vodafone, we’ve just signed a binding agreement with regards to transactional mail, Direct Mail and Marketing POS material that can see us represent their 4PL supplier above the next 5yrs – therefore the management all the way to 440m items 12 months across a potential 17 countries.” Rene Crins, Director of European Projects for Viking / Office Depot, which mails 170m items annually, finds an ordinary invoicing structure across Europe, at a single postal operator, an attractive concept. In consequence, Office Depot has consolidated its printing facilities from 80 to two. Crins positions catalogues alongside direct mail and sees them as complementary channels, with the catalogue operating to be a search engine optimization and also the web because ordering tool. “Our model is currently web-centric supported by catalogues. Previously, it absolutely was catalogue-centric sustained by the internet. The catalogue includes a more static and longer lifetime; whereas the world wide web enables us to create faster product changes; sustained by conventional direct mail / promotions to prompt individuals to view the most up-to-date model change or offer.” Far from bemoaning the fall in transactional volumes, Spring is actively partnering with Office Depot to produce e-mail options instead of transactional mail, recognising that it trend is inevitable. B2C: J D Williams J D Williams has recently launched a brand new German website due to the flagship mail order brand Simply Be. With 34% of the company’s EUR663m global turnover transacted online, it clearly is able to make e-commerce model work. Trapped on tape 400,000 catalogues were printed in Germany, dispatched by Deutsche Post. Paul Kendrick, Group Development Director of J D Williams, is apparent in regards to the impact of just one activity upon the opposite – “Our view would be the paper mail is driving as much of our online traffic and transactions since the online mail activity.” Kendrick confirms the post is a valuable part of its web marketing strategy both now as well as in the long run – “As the online is constantly on the build, the mail activity will a lot more directionally drive people online.” Another area is sale activity, with direct mail used to drive customers online – “We’re now traversing to a much bigger of our sale activity browsing on the internet, but usually the simplest way to let people know you will find there’s sale would be to mail all of them with something.” Conclusions There is growing evidence from research and customer behaviour, that e-commerce could be the friend not the enemy of direct mail. Also there is also the chance for direct selling, whereby US retailers, in lieu of opening new branches in Europe with the attendant overheads, can instead adopt a principal selling internet strategy, working with posts stimulate business through catalogues and direct mail. Major customers desire a additional integrated marketing approach and the ones postal operators which move closest to understanding the requirements is definitely the extended winners within the new order of international mail.
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