Post & Parcel Germany

As of 1 January 2019, the Post - eCommerce - Parcel division was separated into a German and an international division. The German business was renamed Post & Parcel Germany. A new DHL eCommerce Solutions division was created in order to optimally align the Group with the global e-commerce market.

The postal service for Germany

We deliver around 57 million letters every working day in Germany, making us Europe’s largest postal company. The products and services are targeted towards both private and business customers and range from physical, hybrid and electronic letters to special products for merchandise delivery, and include additional services such as cash on delivery, registered mail and insured items.

In 2018, the German market for business communications was around €4.3 billion (previous year: around €4.5 billion). Here we look at the business customer market in which we compete, including the companies that operate as service providers in this market – i.e., both competitors offering end-to-end services and consolidators providing partial services. Our market share increased to 63.4 % compared with the prior year (61.7 %).

Domestic mail communication market, business customers, 2018

Market volume: €4.3 billion           
Deutsche Post 63.4 %  
Competition 36.6 %  
Source: company estimates.

Cross-channel customer dialogue

On request, our dialogue marketing unit offers end-to-end solutions to advertisers – from address services and tools for design and creation all the way to printing, delivery and evaluation. This supports cross-channel, personalised and automated customer dialogue so that digital and physical items with inter-related content reach recipients according to a co-ordinated timetable and without any coverage waste.

The advertising market in Germany gained 0.6 % in 2018 to reach a volume of €27.3 billion. Our share of this highly fragmented market declined to 7.6 % (previous year: 8.2 %).

Domestic advertising market1, 2018

Market volume: €27.3 billion           
Competition 92.4 %  
Deutsche Post 7.6 %  
1
Includes all advertising media with external distribution costs; the placement costs are shown as ratios to each other. Source: company estimates.

Sending mail and merchandise internationally

We carry mail and lightweight merchandise shipments across borders and provide international dialogue marketing services. For business customers in key European mail markets, we offer international shipping services. For the growing e-commerce sector, we develop solutions for international shipments to consumers (B2C). Our portfolio also comprises consulting and services to meet all physical and digital dialogue marketing needs. Furthermore, we offer physical, hybrid and electronic written communications for international business customers.

The global market volume for outbound international mail amounted to around €7.9 billion in 2018 (previous year: around €7.5 billion). Our market share was 12.3 % (previous year: 12.8 %). Market size and share have changed compared with the previous year’s presentation as data from external sources have been adjusted.

International mail market (outbound), 2018

Market volume: €7.9 billion
          
Competition 87.7 %  
Deutsche Post 12.3 %  
Source: company estimates.

Worldwide portfolio of parcel and e-commerce services

We maintain a dense network of parcel acceptance and drop-off points in Germany. Our portfolio allows recipients to choose whether they wish to receive their parcels during a specific delivery window, on the same day or as quickly as possible. They can also decide at short notice whether their parcels should be delivered to an alternative address, a specific retail outlet or a Paketshop. We offer support to business customers to grow their online retail businesses. We are able to cover the entire logistics chain through to returns management on request.

The German parcel market had a volume of around €11.6 billion in 2018 (previous year: around €10.8 billion). We were able to maintain our 45.5 % market share in a highly competitive market (previous year: 45.4 %).

Domestic parcel market, 2018

Market volume: €11.6 billion
          
Competition 54.5 %  
Deutsche Post 45.5 %  
Source: company estimates.

We expanded our cross-border portfolio of e-commerce services during 2018. In Europe, the B2C network amounts to a total of 27 countries, including Germany. There are more than 65,000 acceptance and drop-off points available to our customers in Europe. In the United States, we offer especially fast delivery in five metropolitan areas. In India, our Blue Dart subsidiary delivers to almost all available postcodes and has opened an additional 970 points of sale. Our network in south-east Asia includes more than 2,000 locations where online merchants can post parcels.

Outside of Europe, we provide Domestic Delivery, Cross Border Delivery, and Fulfillment services in selected markets in the Americas, Asia Pacific and Middle East/Africa. Since 2016 domestic operations have been launched in Thailand, Malaysia, Vietnam and Chile in addition to the established domestic networks in the U.S. and India. Cross Border services are offered from the origin countries China, Hong Kong, Singapore, India, Australia, Thailand, Malaysia, Israel, the U.S. and Canada to more than 220 destination countries and territories worldwide. In cooperation with DHL Supply Chain we offer  a global network of e-commerce fulfillment centers.