best practices from the view of the service provider · marxistskaya str., 3, bld. 4, 109147,...

Marxistskaya Str., 3, bld. 4, 109147, Moscow, RussiaTel./fax: +7 (495) 974 02 71 • [email protected] • www.accordpost.ru

Natalia Kozlova

Managing DirectorAccord Post Agency

BEST PRACTICES FROM THE VIEW OF THE SERVICE PROVIDER


ESTIMATES OF DIRECT-MARKETING MARKET GROWTH IN RUSSIAACCORDING TO ACAR, ROMIR-MONITORING, RUSSIAN POST

Estimates of DM-market growth, Mio. USD

470 573 642 700 763

470 564677

812975

0

200

400

600

800

1000

1200

2006 2007 2008 2009 2010

Пессимистический прогноз Оптимистический прогноз

RUSSIAN POST

ACAR

Pessimistic forecast Optimistic forecast


DIRECT MAIL GROWTH RATE PER MAN PER ANNUMACCORDING TO FEDMA, DMA, DIMAR, McKinsey

Direct mailings growth rate per man per annum since 2000 till 2006, %

52 55

21

31

19

0

10

20

30

40

50

60

Литва Россия Польша Латвия ЧехияLithuania Russia Poland Latvia Czechia


MAILINGS GROWTH POTENTIAL IN RUSSIAACCORDING TO TNS OBOP, OPEN PUBLISHERS

Number of mailings in 2006 per capita, pieces/person

67

14 12

0

10

20

30

40

50

60

70

80

Европа Польша Россия

21% 55%

Europe Poland Russia


ESTIMATES OF MAILINGS GROWTHPER MAN PER ANNUMACCORDING TO FEDMA, DMA, DIMAR, McKinsey

2006 2007 20082009

2010

ПольшаРоссияЕвропа

0

10

20

30

40

50

60

70

80

90шт. на чел. IN AMOUNT OF

MAILINGSPER MAN

RUSSIA

WILL PASS

POLAND

As early as this year!

21%

55%

Europe

PolandRussia

pieces per man


RESUME:

•DM market in Russia is one of the mostdynamic one in Europe

•In terms of volume Russian DM marketis already in advance of some European countries, where direct-marketing boom has already passed

•Russia has immense potential for further growth


PRECONDITIONS FOR DM MARKET GROWTH IN RUSSIA

• Stable financial and political situation in Russia

• Big country, underpopulation

• Growing purchase potential

• Product shortage in regions (little towns,rural area)

• Improvement in quality level of services rendered by the Russian Post


STABLE FINANCIAL AND POLITICAL SITUATION IN RUSSIAACCORDING TO RUSSIAN STATE STATISTICS COMMITTEE

Dynamics of Gross Domestic Product, bln. USD

9751120 1180 1250 1300

0

200

400

600

800

1000

1200

1400

2006 2007 2008 2009 2010


BIG COUNTRY, UNDERPOPULATION IN RUSSIAACCORDING TO RUSSIAN STATE STATISTICSCOMMITTEE

6 69338 000

31 155

13 972

12 374

20 063

thousand people

23 000


BIG COUNTRY, UNDERPOPULATION IN RUSSIAACCORDING TO RUSSIAN STATE STATISTICS COMMITTEE


BIG COUNTRY, UNDERPOPULATION IN RUSSIAACCORDING TO RUSSIAN STATE STATISTICS COMMITTEE

Сельская местность

38 738

Города до 100 тыс.чел36 355

Города от 100тыс. до 250 тыс. чел.

13 941

Города от 250тыс. до 500 тыс.чел.

14 572

Города от 500 тыс. до 1 млн.чел.

12 405

Города более 1млн.чел.

26 089

10%

10%

9%

18%27%

26%

Rural area

Cities with population size of more than 1

Mio. people

Towns with population size

under 100 thousand people

Cities with population size from 500 thousand

to 1 Mio. people

Cities with population size from 250 to 500

thousand people

Towns with population size from 100 to 250

thousand people

Population concentration in Russia, thousand people


GROWING PURCHASE POTENTIAL AMONG THE RUSSIAN POPULATIONACCORDING TO RUSSIAN STATE STATISTICS COMMITTEE

2007 2008 2009 2010

0100200300

400

500

600

Monthly per capita income in Russia, USD

Пессимистическийпрогноз

Оптимистический прогноз

average 17%

Pessimistic forecast

Optimistic forecast


PRODUCT SHORTAGE IN REGIONSMINISTRY OF ECONOMIC DEVELOPMENT & TRADE RF

Retail growth in Russia 2002-2010, Bln. USD

63 13555

115

161

275

0

100

200

300

400

500

2002 2005 2010

Non-food retail Food retail

15%

7%250

423average 7%


PRODUCT SHORTAGE IN REGIONSACCORDING TO THE NATIONAL ASSOCIATION OF MAIL ORDER AND DISTANCE SELLING (NAMO)

• 62 % of catalogue buyers in Russia live in localities with the number of inhabitants less than 50 thousand people

• 40% of catalogue buyers in Russiaare rural dwellers


IMPROVEMENT IN QUALITY LEVEL OF SERVICES RENDERED BY THE RUSSIAN POSTACCORDING TO THE RUSSIAN POST

1. In 2007 90% of letters and wrappers are being delivered in time. In comparison with the previous year this figure was 85%.

2. In 2007 89% of parcels are being delivered in time, which is 25% more than 2006

3. At the end of 2007 the Russian Post sets up a new automated sorting centre: - 3 Mio. mails per day, - mail dispatch within 2-3 days, - to 8 regions of the central district


RESUME: THERE ARE IMPORTANT NEEDS IN MAIL-ORDER TRADEMINISTRY OF ECONOMIC DEVELOPMENT & TRADE RF


26 089Города от 500 тыс.

до 1 млн.чел.12 405


14 572


13 941



38 738

10%

10%

9%

18%27%

26%

Rural area


Mio. people




to 1 Mio. people


thousand people


thousand people





38 738



13 941


14 572


12 405


26 089

10%

10%

9%

18%weak demand

26%


Rural area


Mio. people




to 1 Mio. people


thousand people


thousand people







14 572


13 941



38 738

10%

9%

18%weak demand

mail-order trade


Rural area


Mio. people




to 1 Mio. people


thousand people


thousand people




38 738



13 941


14 572


12 405


26 089

10%

9%

retail chainsweak

demand

mail-order trade


Rural area


Mio. people




to 1 Mio. people


thousand people


thousand people







14 572


13 941



38 738

?

retail chainsweak

demand

mail-order trade


Rural area


Mio. people




to 1 Mio. people


thousand people


thousand people


THESE MAIL-ORDER COMPANIES ARE ALREADY PRESENTED ON THE RUSSIAN MARKET!


EXPERIENCE OF ACCORD POST DEVELOPMENT AS A FULFILLMENT AGENCY


ABOUT ACCORD POST AGENCY

• The first-rate provider of direct-marketing services in Russia

• DM market leader in Russia for more than 7 years

• Long-term partnership with the Russian Postand consolidated standardization of technology

• Own up-to-date production and storage facilities: space – 15 000 square meters, number of employees – more than 800


2007 new large-scale production and storage facilities in Klimovsk town


INTEGRATION OF AGENCY INPROFESSIONAL COMMUNITY

A member of Association

The National Association of Mail Order and Distance Selling (NAMO)

Association of Regional Banks of Russia

The Direct Selling Association

Associate member A member of Association


THE REASONS FOR FULFILMENT DEVELOPMENT IN ACCORD POST

Marketing: • Increase in the number of mail-order clients

• Majority of clients require both receipt and dispatch of mailings as well as processing of inbound and outbound calls

• Most of the projects are long-lasting

• The Agency has its own experience in mail-order business


THE REASONS FOR FULFILMENT DEVELOPMENT IN ACCORD POST

Logistics: • Call-centre to enter orders and process incoming mail

• The Agency is able to produce more than 1 Mio. non-registered and registered mails per day

• Warehouse on-site the production facilities for 10 000 pallets

• All services are conducted in the same area of 15 000 square meters

• Prime location – 3 km. from a prospective automated centre of the Russian Post


ACCORD POST: COMPETENCE AND RESPONSIBILITIES

WAREHOUSE MANAGEMENT

LETTERSHOPDISPATCH

FINANCIAL FLOWS

SERVICE AND REPORTING

ORDER INTAKE/

DATA BASEMANAGEMENT

PICK&PACKPROCESSING OF RETURNS

provides fulfillment

Own production facilities


ORDER INTAKE AND DB MANAGEMENT

Full-range Call-centre with40 attendant workstationsPossibility to process inbound and outbound calls

Order intake and mail processing Department as a part of Call-centre to processlarge volume of incoming data



Warehouse on-site the production facilities for10 000 pallets

Safe storage at the company’s own territory

Independentloading/unloading –9 parallel gates


LETTERSHOP

Multifunctional inserters (3 lines): each up to 160 000 envelopes per day

High-speedequipment for personalized printing: 2 500 000 А4sheets per day

High-performance inserters (3 lines): each up to 420 000 letters per day


LETTERSHOP

Fast-speed film-wrapping machine:up to 240 000 wrappers per day

Manual packing workshop:up to 200 000 mailings per shift. Packing of mailings of any complexity


PICK&PACK

Registered mail workshop – the key part of fulfillment process


ACCORD POST: COMPETENCE AND RESPONSIBILITIES


LETTERSHOPDISPATCH

FINANCIAL FLOWS

SERVICE AND REPORTING

ORDER INTAKE/ DATA BASE

MANAGEMENT PICK&PACK

PROCESSING OF RETURNS

provides fulfillmentIn collaboration with

the Russian Post


GENERAL SCHEME OF INTERACTION

Suppliers

Clients

Accord Post

After-sale service• Returns• Reporting• Financial services

Orders management• Warehouse• Pick-and-pack and

dispatch• Additional services• Transport

COMPANY

payment for services

reports andstatistics, control

authorizationand processing

of returns

payments

warehouse management

delivery

dispatch

documents

payments

returns

IT system

orders


RESUME

• Russian DM-market development trend – steady long-term growth

• Mail order in Russia – prospective business with fundamental grounds

• Fulfilment in Russia – a European level service, allowing to realize a full scope of operations on-site and considerably reducing logistical costs


WELCOME TO RUSSIA!

best practices from the view of the service provider · marxistskaya str., 3, bld. 4, 109147,...

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