la poste perspectives daniel le goff deputy director...
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Worldbank Conference/New Dehli
La Poste perspectives
Daniel Le Goff
Deputy Director International Development
June 15, 2005
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La Poste, outlines
State Owned Enterprise since 1991
320,000 employees, 200 subsidiaries
17,000 branches all over the territory
A new regulatory framework
Universal Service provider
Customer oriented organisation
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3Transposition of UE Directives : the French Postal Law
In France, until now, the State has played the role of the regulatory authority
New regulation authority (ARCEP) : 6 months after the vote (November 2005).
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Content of the new law
Perimetre of universal service offer
La Poste, universal service provider
Financing of the universal service
Price-cap and Quality of Service
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The European environment
An ongoing process of liberalisation
An increasing pressure of competition
An increasing effect of substitution
A changing behaviour of customers
Permanent need of adaptation
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Among the largest postal operators
56.456.4
0
10
20
30
40
50
6043.243.2
18.718.713.213.2 12.612.6
Turnover € billion (2004)Turnover € billion (2004)
220220
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The European Mail Market
La Poste18,5% Royal Mail
16,5%
Deutsche Post19% Poste Italiane
7%
TPG7%
Autres32%
Total Value of the market : € 57.5 bn
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Breakdown of revenue 2004
0
10
20
30
40
50
60
% of turnover
LettersFinancial ServicesParcels/ExpressLP Grand Public
58.2 %
23 %18.7 %
0.2 %
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StreamliningStreamlining
RegulationRegulation
CompetitionCompetition
SubstitutionSubstitution
Economicsituation
Economicsituation
Factors having an impact on mail volume
Anticipation 2004-2007 : -10%
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Becoming global and offeringsolutions on our 3 markets
Our 3 markets
- Direct Marketing
- Document and Mail Management
- Written communication for individuals
Our choice
- Being leader on the 3 markets
- With a clear position on each market
- Offering solutions that help businesses growth
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For individuals, making mail easy andsimple
1. An accessible and personalized offer
2. A simplified posting
3. Diversified ways of acceptance
4. A reinforced secured offer
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Outsourcing of document management : the trend has been confirmed
In house document management represents a cost of 5 to 10% ofturnover
Outsourcing has seen an annual 30% growth during the past fewyears
67% of companies and 70% of French major accounts usedoutsourcing in 2002 compared with 60% in 1999
According to UPU studies, in 2005 hybrid PC/Web mail shouldrepresent 6,5% of the total volume of postal mail
Its annual growth is estimated at almost 30% in the next 4 years
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Increase our sales offer andmodernise production
MailMail
Become one of themajor bank in France
FinancialFinancial ServicesServices
Adapt our 17,000 post offices according to new way of life
Post offices NetworkPost offices Network
Secure our 3rd rank in Europe and improve our
competitive edge
ParcelsParcels
La Poste Perspective : 2007 a key milestone
HugeHuge investmentsinvestments
3.4 3.4 €€ billionbillion ModernisationModernisation of production facilities, transport and delivery networks
20072007
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- Re-defining the mail process (streamlining sortingfacilities, transport and delivery networks)
Focusing on quality of service improvement, provision of taylor-made services with a committment regarding delivery times for business customers and direct marketing offer
Launching new added value services matching withcustomers needs (Maileva, electronic registered mail, track and trace, etc…)
Increasing revenue, a permanent objective
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Focusing on costs reduction
Whatever the activity taken into consideration
- Mail services
- Parcels & Express
- Financial services
- Retail network
decision makers will concentrate their efforts on reduction of costs in order to achievesustainable profitability
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Taking advantage of new opportunities
Developing financial services in creating a Postal Bank by January 2006 (providing housing loans without preliminarysavings)
Developing Parcels & Express activity in order to gain a worldwide coverage (today pan-European)
Getting benefit from new technologies in developing hybridmail solutions and e-commerce (54% growth in France in 2003 with a 6 € bn revenue)
Improving profitability of our post offices network (adaptation and flexibility)
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Key issues of the post offices network
-Serving the three businesses
-Adapting permanently the structure
-Improving customer access
-Downstream access issue
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Key figures : 3.5 million visitors/day
€ 2.6 billion sales in 2004
(14 % of turnover)
17,000 outlets
€ 4.4 billion in net funds
collect
28 million clients for financial services
80,000employees
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Breakdown of revenue and operations
Revenue Operations
85 % Mail 47 % Mail
12 % Parcels 6 % Parcels
3 % Others 46 % Fin Services
1 % Others
The provision of financial services enables to maintain a wide P.O. network
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Objective: Increase Advise to Customers
- 6 000 financial advisors promoting banking and insurance products
- 500 mortgage advisors for savings-linked home loans
- 450 family wealth advisors
- A new function: customer advisor
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Customer appreciation
Strenghs WeaknessesDense localpresence (92 %)
Waiting time
Efficiency of postoffice clerks (87 %)
Opening hours
Friendly welcome Modernisation offacilities
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Easier access
Cities % of outlets % ofpopulation
< 10,000 82.8 % 51 %
> 10,000 17.2 % 49 %
The network doesn’t fit with population settlement
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Easier access
% of outlets Daily activity
19 % Less than 1 hour
14 % Between 1 hour and 2h30
19 % Between 2 h 30 and 5h00
Customers are not satisfied
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Principles of network evolution
La Poste intends to 1. Maintain its 17,000 branches2. Modernise and adapt its network to reflect
changing behaviour3. Support social cohesion on a nation-wide
scale4. Optimise network access in collaboration
with local authorities
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Diversification of postal presence
- In densely populated urbanareas
- 550 outlets in 2004
- Wide range of ready to mail products in stationarydepartments of hyper andsupermarkets-
Partnership with hyper and supermarket
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Diversification of postal presence
34,000 tobacconists sellstamps
> 3,000 propose a widerange of ready to mai products
Remuneration based on percentage of sales
Partnership with tobacconists
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Diversification of postal presence
« Points poste », postal agencies
-Mainly in semi-rural andrural areas
-Over 500 outlets in 2004
-Local retailers providingmain postal services
-Remuneration on a monthly basis withpercentage on sales
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Diversification of postal presence
Community postal agencies
-Mainly in rural areas
-More than 1,500 agreementssigned
-Postal activity located in town halls
-Logistic backup by a nearbyP.O.
-Remuneration based on levelof activity
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Diversification of postal presence
« Allo facteur »
- In rural areas, service used by elderly
- Phone call required the daybefore
- Main counter operations providedat home
- Insured 6 days a week by 1,500 postmen along their route
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Refurbished post offices
• 5 years plan for refurbishing andmaintance of 4,000 P.O.
•Renovating, repainting, improving lightning andsigns
•Priority given to lowcosts improvements
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Conclusion
Whatever the challenges are I am confident in our capacity of adaptation and I do believethat mail business still has a future but nowdays, taking into consideration thechanges hitting the postal environment I amconvinced that diversification remains one ofthe most important factor of everlastingness.
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World Bank Conference/New Delhi
Thank you for your attention