DHL 2004 Annual Report Download - page 48

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Please note:
As the competitors’ figures for the year under review had not been published in some cases by March 1, 2005
(editorial deadline), we have used figures from 2003 in the market analysis on pages 44 to 48.
German mail market stable
The national market for mail communication stabilized at about € 7.5 billion, the same
level as the previous year. Mail substitution by electronic communication media such as
e-mail and text messaging remained moderate overall. The continuing market liberaliza-
tion has led to a loss of sales volume to our competitors. Their market share is continuing
to increase at the regional level in particular, reaching 7.8% in the year under review. Our
market share decreased accordingly.
Market shares (volume) in mail communication in Germany
in %
2003 2004
Deutsche Post 93.7 92.2
Competition 6.3 7.8
Source: company estimates
In the advertising market, our relevant market sector – direct marketing in the narrower
sense – grew in the year under review from €19.7 billion to € 20.6 billion; it contains all
necessary expenditures along the value chain for advertising mailings, telephone and
e-mail marketing. In the segment for paper-based direct marketing, reinforced sales
activities led to an increase in volume, enabling us to maintain our market share of
13.7%.
In the market for press distribution, which continued its overall decline, we were
able to maintain our share of 11.0%. The total volume sank from the previous year’s
19.8 billion items to its present 19.3 billion, as circulation was reduced and magazines
discontinued in the areas of TV program guides and automotive customer publications
in particular.
The global market volume for cross-border mail amounted to around €10 billion in
the economically troubled 2003. With a market share of 11.8%, we occupy the number two
position. Only the United States Postal Service (USPS) has a larger share at 13.8%. How-
ever, as a purely national postal company, they have no plans for internationalization and
are competitors only in their home market. Other significant competitors who are globally
active have market shares of between 6% and 9%, as shown in the diagram below.
Global cross-border mail market in 2003
Market volume: € 10.3 billion
Source: UPU Statistics 2003, Deutsche Post World Net Annual Report, competitors’ annual reports and websites
13.8% USPS
5.7% Swiss Post International
5.8% Spring /TPG
9.4% Royal Mail11.8% Deutsche Post World Net
6.8% La Poste
46.7% Other postal companies
44