DHL 2002 Annual Report Download - page 29

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Declining advertising spending impacts mail market
The strained economic environment in the MAIL Corporate Division persisted in the
year under review. Overall, business volume on the mail communication market
remained at the prior-year level of €7.8 billion in 2002. We managed to maintain our
strong position with a revenue-based market share of 94.3% (previous year: 95.0%).
The overall advertising market also continued to feel the pinch. However,
revenue in the narrower definition of the direct marketing segment (which includes
advertising mail, telemarketing and e-marketing) remained at the prior-year level of
€13.3 billion. In turn, we achieved a market share of 15.7% in this segment.
The downturn on the market for press product distribution continued as a
result of the weak economy. The forecast market volume fell to 20.1 billion items after
around 21 billion in the previous year. At 11.0%, our volume market share remained
approximately at the prior-year level.
CEP markets remain highly competitive
On the whole, the markets of the EXPRESS Corporate Division have been highly
competitive in the past few years. In the wake of this development, consolidation
continued on the European courier, express and parcel services (CEP) markets in
the year under review. We maintained our strong position in these markets in 2002;
this followed on our success in 2001, when we were the leader on the European
market (volume: €34 billion) with a share of around 16%. The most important CEP
market is Germany; we remained the largest single provider on this market in 2001
with a share of 23%. Compared with previous years, both Europe and Germany saw
a slowing of the forecast market growth in 2002.
We expanded our position as one of the leading global providers on the market
for cross-border mail services with a share of 14% in 2001. In the year under review,
this market suffered from the ongoing stagnation of the global economy and high
transport costs. The rise in costs was due to increased fuel prices and higher security
premiums as a result of the terrorist attacks on September 11, 2001.
The market for air-based global courier and express business recorded below-
average growth in the US and Europe in the year under review. By contrast, the Asian
market experienced above-average growth, as did the European-Asian and American-
Asian routes. Overall market growth in the year under review was in the single-digit
range.
Logistics markets offer additional potential
Opposing trends were apparent within the relevant segments of the logistics markets:
for example, while the market for European contract logistics suffered from the weak
demand in the consumer goods sector, it profited from the trend towards the out-
sourcing of logistics services.
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