DHL 2000 Annual Report Download - page 25

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Group Management Report
17
it. Many internet transactions generate additional mail volumes.Potential
substitution of the traditional letter by electronic communication is thus
evened out. Especially the advertising industry continues to focus strongly
on paper-based mailing as a promising means of addressing customers.In
the year covered by this report 4.25% more letters were sent than in the pre-
vious year.
The international mail market also continues to grow. Liberalization and
ongoing efforts toward internationalization on the part of multi-national
companies have generated volume increases of up to 5% and a rise in
revenues to 11.7 billion over the reporting period.
Competitive pressure in parcel business
According to a recent CEPT market study (CEPT - European Conference of
Postal and Telecommunications Administrations), parcel volumes rose by
a total of 6% in Germany. The sound state of the economy and the steady
growth in internet-based commerce contributed to growing revenues. But
this resulted at the same time in considerable pricing pressures.Many com-
petitors are trying to expand their share of the German parcel distribution
market by means of price discounts.Similar developments can be observed in
the European parcel market: growing volumes on the one hand and tougher
competition among increasingly international providers on the other hand.
In addition, rising transportation costs as a result of higher fuel prices in-
creased pressure on the margins.
Heterogeneous developments in logistics market
The market for logistics service providers continues to be heavily fragmented.
In an environment experiencing dynamic growth,service providers want
to expand their position through acquisitions and partnerships.At the same
time, the demand for comprehensive services goes beyond the classic trans-
portation business.The market for customer-specific products and services