InPost: Interview - Polish InPost wants to place 16,000 parcel terminals across Europe
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18-10-11 Interview - Polish InPost wants to place 16,000 parcel terminals across Europe InPost, the fast-growing Polish private postal group, aims to have 16,000 of its ‘easyPack’ self-service parcel terminals installed across Europe within the next five years as part of its ambitious growth plans, a senior executive told CEP-Research in an interview. The privately-owned and innovative company has grown fast in the last few years after diversifying from its original mail delivery business into parcel services and more recently international services. Last year, InPost generated strong growth with about €40 million in revenues compared to €33 million the year before, Marcin Bosacki, Head of International & Social Media, said in an interview at the recent Post- Expo in Stuttgart. "This year, we expect the growth to be even higher," he said. "The first half of 2011 was also very successful. We generated revenues amounting to €26 million." The company had a 10% profit margin in the first half of 2011. Bosacki confirmed that InPost was growing faster than the overall Polish market. “Mail is declining and Polish Post is not improving its volumes but losing them while we are growing.” Even though parcel terminals have become an important revenue source for InPost, its core business still remains addressed and unaddressed mail. It holds a 10% market share in addressed mail and 30% in unaddressed mail in Poland, only five years after its launch in 2006. “Over 90% of our turnover is still generated by our core business. But we see the declining mail volumes and we want to diversify. E- commerce and parcels business are areas which will boom and are booming already,” he said. The automated parcel terminals called easyPack (Polish: Paczkomaty) are an important growth driver for the company. Currently, InPost operates 420 terminals in over 100 cities across Poland. EasyPack machines, which the company manufactures itself at a factory near Cracow, are self-service parcel collection and drop- off points with a total of 80 boxes each available in three different sizes. One easyPack machine effectively replaces 10 couriers and reduces “last mile” costs by up to 80%, according to the company. Complete information on the service can be accessed online via a separate website www.easypack24.eu. The private postal operator has set itself an ambitious goal of installing 16,000 machines almost in every European country by 2016. “For example in Germany, it will be more difficult as the infrastructure is there, but in some other countries it is not. Our advantages are the favourable price, our professional knowledge and the advanced IT infrastructure,” Bosacki stressed. By the end of next year, InPost aims to have 800-1,000 machines in Poland alone. “In Poland, we are the only operator using the easyPack machines. Our competitors are courier, express, and postal companies but they don’t have the machines like we do. We offer good value for money and with our technology we are able to offer our partners a good return on investment.” In Estonia, InPost has already successfully installed 40 terminals. Around 800 machines are contracted to be deployed all over Europe by the end of this year in countries including Spain, Ukraine, Cyprus, Czech Republic, Lithuania, Latvia, Russia,Slovakia and Saudi Arabia. “In Poland and Estonia, the machines are already there. Currently, we are providing machines to Spain and to Russia. By the end of this year, we will have machines in the Czech Republic and Slovakia. We also won contracts with Cyprus and Saudi Arabia. In total, we have 12 contracts signed that are about to be finalised and will be shortly revealed,” Bosacki specified. In Saudi Arabia, the first easyPack terminals will be installed later this year. But he stressed InPost does not want to compete with other Posts in their home markets. “When installing a new terminal, we don’t want to compete with local partners who can be postal operators or courier companies. We provide the solution including hardware, software and our knowledge. All the transportation will be effected by the local partners.” “InPost is not only the producer but is also using the machines. Selling the hardware is not enough. You need to have the knowledge in e-commerce, understand the needs of shippers and consumers. Cooperation with e-retailers to generate traffic is just one example of important issues to look after in order to be successful.” Picture: Martin Bosacki Seite 1 von 2 www.cep-research.com Interview - Polish InPost wants to place 16,000 parcel termi... 19.10.2011 https://www.cep-research.com/cepresearch/repository/news/2011/october/1810116.ht...
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Interview with Marcin Bosacki (InPost) - Polish InPost wants to place 16,000 parcel terminals across Europe.
Transcript of InPost: Interview - Polish InPost wants to place 16,000 parcel terminals across Europe
18-10-11 Interview - Polish InPost wants to place 16,000 parcel terminals across Europe
InPost, the fast-growing Polish private postal group, aims to have 16,000 of its ‘easyPack’ self-service parcel terminals installed across Europe within the next five years as part of its ambitious growth plans, a senior executive told CEP-Research in an interview.
The privately-owned and innovative company has grown fast in the last few years after diversifying from its original mail delivery business into parcel services and more recently international services.
Last year, InPost generated strong growth with about €40 million in revenues compared to €33 million the year before, Marcin Bosacki, Head of International & Social Media, said in an interview at the recent Post-Expo in Stuttgart. "This year, we expect the growth to be even higher," he said. "The first half of 2011 was also very successful. We generated revenues amounting to €26 million." The company had a 10% profit margin in the first half of 2011.
Bosacki confirmed that InPost was growing faster than the overall Polish market. “Mail is declining and Polish Post is not improving its volumes but losing them while we are growing.”
Even though parcel terminals have become an important revenue source for InPost, its core business still remains addressed and unaddressed mail. It holds a 10% market share in addressed mail and 30% in unaddressed mail in Poland, only five years after its launch in 2006. “Over 90% of our turnover is still generated by our core business. But we see the declining mail volumes and we want to diversify. E-commerce and parcels business are areas which will boom and are booming already,” he said.
The automated parcel terminals called easyPack (Polish: Paczkomaty) are an important growth driver for the company. Currently, InPost operates 420 terminals in over 100 cities across Poland. EasyPack machines, which the company manufactures itself at a factory near Cracow, are self-service parcel collection and drop-off points with a total of 80 boxes each available in three different sizes. One easyPack machine effectively replaces 10 couriers and reduces “last mile” costs by up to 80%, according to the company. Complete information on the service can be accessed online via a separate website www.easypack24.eu.
The private postal operator has set itself an ambitious goal of installing 16,000 machines almost in every European country by 2016. “For example in Germany, it will be more difficult as the infrastructure is there, but in some other countries it is not. Our advantages are the favourable price, our professional knowledge and the advanced IT infrastructure,” Bosacki stressed.
By the end of next year, InPost aims to have 800-1,000 machines in Poland alone. “In Poland, we are the only operator using the easyPack machines. Our competitors are courier, express, and postal companies but they don’t have the machines like we do. We offer good value for money and with our technology we are able to offer our partners a good return on investment.”
In Estonia, InPost has already successfully installed 40 terminals. Around 800 machines are contracted to be deployed all over Europe by the end of this year in countries including Spain, Ukraine, Cyprus, Czech Republic, Lithuania, Latvia, Russia,Slovakia and Saudi Arabia.
“In Poland and Estonia, the machines are already there. Currently, we are providing machines to Spain and to Russia. By the end of this year, we will have machines in the Czech Republic and Slovakia. We also won contracts with Cyprus and Saudi Arabia. In total, we have 12 contracts signed that are about to be finalised and will be shortly revealed,” Bosacki specified. In Saudi Arabia, the first easyPack terminals will be installed later this year.
But he stressed InPost does not want to compete with other Posts in their home markets. “When installing a new terminal, we don’t want to compete with local partners who can be postal operators or courier companies. We provide the solution including hardware, software and our knowledge. All the transportation will be effected by the local partners.”
“InPost is not only the producer but is also using the machines. Selling the hardware is not enough. You need to have the knowledge in e-commerce, understand the needs of shippers and consumers. Cooperation with e-retailers to generate traffic is just one example of important issues to look after in order to be successful.”
Picture: Martin Bosacki
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InPost launched the easyPack machines 3 years ago and broke even already 18 months after the launch. There are 500 active e-retailers using them. The company is also gradually dipping into new segments such as multi-level marketing (MLM), return logistics and other businesses.
Meanwhile, InPost is also very active in e-commerce and social media in its home Polish market. Its Facebook page has more than 200,000 fans and actively promotes various products for sale. These are all delivered to easyPack machines for collection.
It also operates a Facebook social commerce application for E-shops called InFlavo allowing companies and individuals to buy and sell their products via Facebook. This is integrated with payments and delivery options and the easyPack system serves as a major delivery channel. InFlavo has about 9,000 active users a month.
Apart from postal and parcel services, InPost is also active in the telecommunications business through its mobile virtual network operator, the so called MNVO. InPost entered the market in autumn 2010 and now offers two services, Carrefour MOVA and FreeM. The first one is based on a loyalty programme where customers shopping at the supermarket chain Carrefour receive free minutes for money they spend shopping. FreeM is targeted at the younger generation offering free internet access. The only condition is that every half an hour the user has to see advertisements displayed on the device screen. That allows for successful geo-targeted marketing campaigns.
Other lines of business include financial and insurance services for businesses and individuals. “We are continuously diversifying our services and our strategic goal for the future is to generate 30% of our revenues from non-mail products including easyPack, InFlavo and others.”
InPost parent company Integer.pl Capital Group provides unaddressed mail delivery and is a market leader in distribution for supermarket chains. Integer.pl had been listed on the Warsaw Stock Exchange since 2007 and the return on investment achieved 565%. Source: CEP-Research, InPost
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