DHL 2005 Annual Report Download - page 41

Regions and products
Europe Americas Asia Pacific Emerging Markets
• LCL
• Part-loads
• Full-load services
• Same Day
• Time Definite
• Day Definite
• Value-added services
EXPRESS Corporate Division
Under the DHL brand, we oer companies and private customers courier, express and
parcel services (CEP) in three product lines. ese are essentially dierentiated between
national and cross-border deliveries. We operate the world’s most extensive network for
intercontinental transport and cross-border transport within continents. Our business is
structured according to the regions in which we are active.
Our model of the market for CEP services covers the three dimensions of speed, reach and
weight. In accordance with standard international weight limits, the CEP market com-
prises all express and economy shipments weighing less than 70 kg, with the exception of
letters.
Leading market position in Europe
In Europe, we have access to ecient national express networks. e business-to-business
(B2B) segment accounts for a large proportion of our activities. We are able to oer spe-
cic nationwide shipping solutions to companies in a variety of sectors. We carry parcels
and documents predominantly using our own vehicles. We also provide LCL, part-load
and full-load transportation by road or rail or using combined transport.
In Germany, our traditional strength is in the business-to-consumer (B2C) segment. is
means that we transport goods that consumers have ordered from companies, for example
from traditional mail-order services. Sales made via Internet platforms are also gaining
in popularity, and since 2004 we have been involved in a strategic partnership with the
Internet marketplace eBay.
Figures for the six core countries of Germany, the United Kingdom, Italy, France, the
Netherlands and Spain reveal that the European CEP market grew by 5-6% in recent years,
and foreign business alone by 7-8%. e key growth driver was trade with Asia and the
new EU member states. We were able to maintain our leading market position, as can be
seen from the diagram opposite.
Domestic products dominate in the Americas region
In the United States, we serve domestic and international customers via our air and
ground-based transport network. Domestic CEP products account for around 90% of the
total market. Revenue from such products increased in the year under review, particularly
in the Domestic Economy segment. is is an area in which we were able to outperform
the market.
1) Comprises Germany, the United Kingdom, France,
the Netherlands, Italy and Spain. The diagram refers
to these six core countries. For these six countries
plus S, B, L, P, FIN, DK, A, GR, PL, CZ, N and CH the
market volume amounts to €33.7 billion.
2) The market volume for 2003 was restated to €26.1
billion due to refined methods of analysis.
Source: Market Research Service Center in association
with GfK 2005
European CEP market 2004
Market volume1): €27.5 billion2)
20% DHL
8% UPS
2% FedEx
8% Royal Mail
11% TNT
12% La Poste
39% Other
CEP market segmentation model
Products by speed:
National
International
< 70 kg
> 70 kg
Same Day
1)
Time Definite
Day Definite
Deferred
1) Includes all shipments that are collected and
delivered on the same day, not counting cycle
couriers and transport providers who are only
active locally.
–
CEP market
] Express
] Economy
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