DHL 2015 Annual Report Download - page 106

Deutsche Post  Group —  Annual Report
World trade grows moderately
For  we expect the global trade ows relevant to us – air and ocean freight shipped
in containers, excluding liquids and bulky goods – to increase slightly in all regions. All
in all, we expect to see growth of . .
Parcel market expected to see sustained growth
e market for paper-based mail communication continues to decline in Germany,
although more moderately than in other European countries. Physical mail volumes are
decreasing, primarily because people are communicating digitally to an increasing
extent. With -, we have developed a portfolio of digital products that are gaining
traction in the German market. At the beginning of , we raised the price of a do-
mestic standard letter to .. Compared with the letter postage prices in other coun-
tries, our price is almost at an average level.
e German advertising market is likely to continue to see moderate revenue growth
in . Advertising budgets will continue to shi towards online media. e trend
towards automated dialogue marketing campaigns will remain unchanged. In the mar-
ket for paper-based advertising, we intend to consolidate our position by expanding our
portfolio and ensuring the digital connectivity of our products.
e parcel market will continue to grow in Germany, the rest of Europe and the
world, as will cross-border services. We shall drive this development with our solutions
for parcel shipping and receipt as well as the associated infrastructure for selected new
markets. We plan to strengthen our market position by adding new e-commerce seg-
ments, such as food logistics, and by continually expanding our infrastructure. is will
also have a positive impact on the international mail business – a market that is likely
to see slight growth, particularly due to increasing merchandise shipping.
International express business to remain stable
Experience shows that growth in the international express market is highly dependent
upon the economy. Due to the fact that the volume trend in our international express
business was signicantly more positive than that of our competitors, we expect that the
express market will remain stable in .
By implementing initiatives to increase protability and quality, we intend to con-
tinue improving our earnings. We are condent that we shall remain on course for
growth and defend our leading market position. Our global  brand campaign and logistics
partnerships will also contribute to this.
Market trends in freight forwarding business likely to continue
In , we anticipate developments in the air freight market to follow a similar trend
to that of the reporting year. In light of the fact that fuel prices remain low, freight
carriers are likely to expand capacities with new wide-body passenger planes and add-
itional cargo aircra, especially to smaller destinations. e most important drivers of
demand will be growth in the Chinese consumer market and transports of perishable
food products.
We anticipate moderate growth in the ocean freight market, in which market players
will continue to face surplus capacities and low but stable demand on the most import-
ant trade lanes.
Aided by low oil prices, the European road transport market is also likely to see
moderate development in  similar to that of the reporting year.
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