1. CROSSING BORDERS __________________________________
The changing state of retail in Eastern
European countries
Levente Laszlo, Magyar Posta
Vienna, 25 January, 2012
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2. Briefly about Magyar Posta and International
Division
Briefly about our business models
Proposals for cooperation
Next steps …. ?
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3. Hungary and CEE market size
COUNTRY POPULATION
An average of 60-75% of the
population is living in urban Bulgaria 7’700’000
areas. Czech Republic 10’200’000
Hungary 10’000’000
Poland 38’200’000
Romania 23’700’000
Slovakia 5’400’000
Slovenia 1’990’000
TOTAL 95’190’000
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4. Strategic location of Hungary on the EU Corridor-Net
Corridor 4 Corridor 5
To Germany: To Ukraine
• Dresden • Lviv
• Nuremberg • Kiev
To Northern Sea ports Towards Russia and Asia
Corridor 7
River Danube:
Corridor 7
From Southern
Germany...
... to the Black Sea
Corridor 5
To Adrian ports
• Koper Corridor 4
• Rijeka
• Ploce To Black Sea ports
• Istanbul
• Constanta
Corridor 10
To Aegean Sea Ports
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5. Strength of Magyar Posta
Nationwide access : every door,
every day
Reliable logistic network in letter
mail and parcel business
Country-wide branch network for
retail customers
Good value for money: high quality
at acceptable price level
Customer knowledge and customer
loyalty
Recognized international presence
and activity
Clear strategy
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6. International strategy - milestones 2005 - 2015
Regional postal operator
„Earning the right to play „CROSSING BORDERS”
Traditional
on international market”
international
service 2010 - 2015
2005 - 2009
- 2004 • Multilevel strategic
partnerships
• improving distribution
quality • new sales & distribution
channels in CEE-region
• outbound and inbound • joining REIMS-East
standard postal products • tailor-made „commercial”
• joining IPC-IDM product portfolio
• UPU-conform product-
portfolio • joining IPC-EPG • low cost CEE logistic
• improvement of the network
product portfolio • focusing extensively on the
• joining Pay-for- customers’ needs (IT-
Performance EMS support, GIS, web 2.0
support)
• bilateral agreements &
partnerships
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7. There are aprox. 1,4 billion people online daily
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8. World is changing … very fast … too fast …
ARE WE
FOLLOWING THE
CHANGING
COMMUNICATION
AND SHOPPING
HABBITS OF OUR
CUSTOMERS ?
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9. Top 10 goods for physical delivery
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10. Return services – methods for returned goods
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11. Drivers and barriers of cross-border e-shopping
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12. Magyar Posta „all inclusive e-commerce” business model
Distribution of unaddressed
1 items
4 COD
2 Distribution of addressed items
Reverse Logistics
5 Management
3 Distribution of parcel items
6 Reports
.
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13. Briefly about the complex business model
Case Study
Distant Seller (DS) located in ex. Germany is selling via
catalogues and internet goods on the ex. Romanian market
Magyar Posta offers all inclusive e-commerce service
(operations and liability)
The business model = full control on the processes
Local distribution of unaddressed items (flyers)
Local distribution of addressed items (catalogues and DM)
Local distribution of parcels with / without COD
Cash collection and transfer
Return of undelivered items
Return logistics management (RLM)
Other linked services (GIS, reports, etc.)
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14. New business model: geomarketing
Egy
háztartá
Háztartások Összes
Kerület Népesség sra jutó
száma vásárlóerı
index / Családi
vásárlóe
rı New ways for building customers /
€ / háztartá házas
fı db millió € háztartá s címhely buyers databases:
s Mo.=10 ek
0 száma
Budapest I. kerület 24 665 13 770 184,8 13 421 113,7 6
Offering GIS modells
Budapest II. kerület 88 187 42 114 668,6 15 875 134,5 8 327
123
Budapest III. kerület 737 54 464 842,8 15 474 131,1 11 751
Budapest IV. kerület 98 381 42 328 648,8 15 329 129,9 5 086
Budapest V. kerület 27 023 14 309 194,1 13 568 115,0 0
Budapest VI. kerület 41 784 22 534 250,7 11 127 94,3 0
Budapest VII.
kerület 62 034 34 263 350,1 10 218 86,6 0
Budapest VIII.
kerület 81 447 40 351 415,5 10 297 87,2 263
Budapest IX. kerület 60 892 31 671 350,3 11 060 93,7 490
Budapest X. kerület 78 484 34 961 446,3 12 765 108,2 3 670
137
Budapest XI. kerület 426 65 691 921,5 14 028 118,9 7 198
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15. Value-added solution : InsertPack
Wrapping publications into
plastic or paper
Enclosing inserts or product
samples
Addressing of the items (by
using leporello address or ink-
jet printing)
Sorting of mail (based on the
addresses)
Dimensions
Max. 400x300x70
Min. 110x105x8
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16. Outsourced solutions (labeling at customer’s warehouse)
New (outsourced) Next step – building
Customer
solution for offering platform using the
direct labeling + existing digital
shipment, but keeping technology
the full control
Receiver
Home delivery
Magyar
Posta FTP
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17. Delivery from Budapest to Romania
Budapest to Sibiu-
HUB
daily 17:00 – 7:00
Delivery in Iasi
next day 11:00
Delivery in Timisoara
next day 11:00
Delivery to Constanta
next day 13:00
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18. Reverse Logistics Solution - Romania
Posta Romana >
7,000 outlets
Pick up and
delivery to Magyar
Posta HUB in Cluj
Collection and
transport to
Budapest -HUB
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19. Hungary – expectation for 2012 on-line spend
On-line spend has reached by the end of 2011, EUR 550 million
Aprox.1,5 million transactions in 2011
Forecast is 160-
165 mrd HUF for
2011
Increase of
25% despite
the downturn
Source: GKIeNET
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20. Romania – expectation for 2012
6% from the Romanian
population is expected to buy
online in 2012
1,2 million transactions
1,2 million parcels (incl.
International as well)
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21. Trend of B2C e-commerce originated from Asia
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22. Budapest HUB – the regional access point
The regional HUB offers:
„point of entry” for all the
customers outside of EU and
from oversea (CN, US, etc.)
Regional distribution service
Customs clearance
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23. The International HUB located on Budapest airport
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24. Areas of cooperation
Comprehensive distribution B2C parcel :
Single operator – common operations for cross-border
delivery into Hungary, Romania and other CEE countries
Attractive delivery times
COD possibilities
Track and Trace
Insurance up to EUR 400 / parcel or value of COD
Returns management
Personal service from competent sales personal
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25. What is e-commerce about ?
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26. Thank you for your attention !
email: sales.international@posta.hu
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