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6 - Post
Figure 6.1
UK postal services industry 2008 2009 2010 2011 2012 2013
Addressed mail volumes 20.6bn 18.7bn 17.5bn 16.7bn 15.5bn 14.8bn
Addressed mail revenues £7.0bn £6.8bn £6.7bn £6.9bn £7.3bn £7.5bn
Proportion of access mail in total mail 25% 33% 40% 43% 46% 49%
Letter volumes delivered by operators other than Royal Mail
n/a 11.8m 11.3m 8.5m 18.0m 56.1m
Direct mail share of total advertising spend n/a 17.8% 15.9% 14.9% 14.5% 14.1%
Source: Royal Mail Regulatory Financial Statements, Royal Mail Wholesale, Royal Mail Group Annual Reports, AA/Warc, Nielsen. Revenue figures are nominal. Note: Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom, and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. Other operators’ end-to-end included in ‘Total mail’ since 2009. Prior data are not comparable. Figures are nominal.
UK postal services industry key metrics
Figure 6.2
3
0
5
10
15
20
2012-13 2013-14
Total items of post sent per month: June 2012 to February 2014 Items sent
Month in which items were sent through the post
Source: Ofcom research, Q2 2013-Q1 2014 QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the past month?
Figure 6.3
4
048
1216
2012-13 letters and cards 2013-14 letters and cards2012-13 parcels 2013-14 parcels
Source: Ofcom research, Q2 2013-Q1 2014 QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the past month? QC2. And how many of these items sent in the past month were parcels rather than letters or cards?
Letters, cards and parcels sent per month: June 2012 to February 2014 Number of letters and cards sent
Month in which items were sent through the post
Figure 6.4
5
88 88 93 88
27 25 24 12
45 44 39 32
0
20
40
60
80
100
Q1 Q2 Q3 Q4
Royal Mail Parcelforce Any company other than Royal Mail
Source: Ofcom research, 2013 Q:Which, if any, of these companies have you used to send a packet, parcel or letter? Please think about your personal use rather than any use as part of a business. Base: all respondents
Companies used by residential consumers to send post Proportion of consumers (%)
Figure 6.5
6
13 13
11
13
11
6
9
6
9
7 6 6
8
6 5
6 7 7
5 4
8
6 6
4
6 7
5
3
0
5
10
15
Q1 Q2 Q3 Q4
DHL FedEx City Link Hermes TNT UPS Yodel
Source: Ofcom research, 2013 Q:Which, if any, of these companies have you used to send a packet, parcel or letter? Please think about your personal use rather than any use as part of a business. Base: all respondents
Companies other than Royal Mail used by residential consumers to send post Proportion of consumers (%)
Figure 6.6
7
0
4
8
12
16
2012-13 2013-14
Source: Ofcom research, Q2 2013-Q1 2014 QD1. Approximately how many items of post – including letters, cards and parcels – have you personally received in the past week? QD2. And how many of these items received in the past week were parcels?
Letters and cards received per week: July 2012 to March 2014 Number of letters and cards received in past week
Month of interviewing
Figure 6.7
8
6,953 6,837 6,653 6,899 7,303 7,514
6,841 6,697 6,505
6,744 7,141 7,339
6,120 5,772 5,425 5,475 5,696 5,844
721 924 1,080 1,270 1,445 1,495
112 140 142 150 157 163 0
2,000
4,000
6,000
8,000
2008 2009 2010 2011 2012 2013
Total market
Royal Mailtotal
Royal Mailend-to-end
Royal Mailaccess
Accessoperators
Source: Royal Mail Regulatory Financial Statements, Royal Mail Wholesale, operator returns to Ofcom, Ofcom estimates. Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom, and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. Royal Mail end-to-end refers to Royal Mail total mail volumes excepting access. Other operators’ end-to-end included in ‘Total mail’ since 2009. Prior data are not comparable. Figures are nominal.
Mail revenue: 2008-2013 Revenue (£m)
Figure 6.8
9
20,577 18,651
17,546 16,676 15,545 14,764 15,574
12,534 10,629
9,502 8,299 7,523 5,003
6,105 6,906 7,166 7,228 7,185
12 11 9 18 56 0
6,000
12,000
18,000
24,000
2008 2009 2010 2011 2012 2013
Total mail
Royal Mail end-to-end
Royal Mailaccess
Other operatorsend-to-endletters
Source: Royal Mail Regulatory Financial Statements, Royal Mail Wholesale, operator returns to Ofcom, Ofcom estimates. Royal Mail calendar year volume figures are derived from Ofcom calculations based on financial year figures in Royal Mail’s Regulatory Statements and unaudited submissions to Ofcom, and are therefore not directly comparable with Royal Mail’s published accounts. Royal Mail figures relate to the "Reported Business”. Royal Mail end-to-end refers to Royal Mail total mail volumes, excepting access. Other operators’ end-to-end letters included in ‘Total mail’ since 2009. Prior data are not comparable.
Mail volumes: 2008 to 2013 Volume (million items)
25% 33%
40% 43% 46% 49%
0%
10%
20%
30%
40%
50%
2008 2009 2010 2011 2012 2013
10
Figure 6.9
Proportion of access in total mail: 2008-2013
Proportion of access in total mail volume
Source: Royal Mail Wholesale, Royal Mail Regulatory Financial Statements, Operators’ returns, Ofcom estimates
Year on year growth rate of access volumes
39.1% 20.3% 14.8% 2.2% 0.8% -0.6%
Figure 6.10
11
11.8 11.3 8.5 18.0
56.1
0
10
20
30
40
50
60
2009 2010 2011 2012 2013
Source: Ofcom analysis of operators’ returns
Other operators’ end-to-end letter volumes: 2009-2013 Volume (million items)
Figure 6.11
12
51 52 51 50 50 49
29 28 29 29 29 28
8 8 9 10 11 12 6 6 6 6 5 5 5 6 6 6 5 5
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013(estimate)
Social mailPublishingParcelsDirect mailTransactional
Source: PricewaterhouseCoopers, The Outlook for UK Mail Volumes to 2023, July 2013 Note: 2013 is PwC estimate.
Mail volumes by type: 2008 – 2013 Proportion of type of mail in total volume (%)
Figure 6.12
13
1,798 1,720 1,648 1,570 1,490
17.8% 15.9% 14.9% 14.5% 14.1%
0%
6%
12%
18%
0
500
1000
1500
2000
2009 2010 2011 2012 2013
Spend on direct mail Direct mail share of advertising spend
Source: AA/Warc Advertising Expenditure report / Nielsen. Figures are nominal.
UK direct mail advertising spend and share of total advertising: 2009 - 2013 Spend (£m) Share of total advertising spend (%)
Figure 6.13
14
Source: AA/Warc Expenditure report / Nielsen
Share of direct mail expenditure, by sector: 2009-2013 Share of spend (%)
31.6% 31.8% 31.3% 29.3% 28.7%
20.5% 21.2% 20.2% 19.2% 20.1%
16.2% 16.8% 18.4% 17.4% 17.6%
0%
10%
20%
30%
40%
2009 2010 2011 2012 2013
RetailFinancialGovernmentServicesIndustrialDurablesConsumables
Figure 6.14
15
43.8 49.8
58.8 68.0
78.2 91.0
0
30
60
90
2008 2009 2010 2011 2012 2013
Source: Interactive Media in Retail Group, January 2014
Value of UK e-commerce sales, 2008-2013 Value (£ billion)
Figure 6.15
16
3% 3%
40% 30%
57% 67%
0%
20%
40%
60%
80%
100%
2012 2013
Economy
Specified day (including nextday)Specified time
Source: Ofcom analysis of IMRG / Metapack Delivery Index, January 2012-December 2013. Note: Specified time includes: AM, PM, before 10am, evening and school run. Specified day includes same day and next day. Proportions rebased to exclude international.
Service types used for the fulfilment of e-retail: 2012 and 2013 Proportion of parcels (%)
Figure 6.16
17
6,112 6,046 6,148 6,229 6,110 5,462
14.7% 14.9% 14.7% 15.1% 15.4% 14.9%
0
5
10
15
0
2,500
5,000
7,500
2008 2009 2010 2011 2012 2013
Subscription circulation Share of total circulation
Source: Mediatel/ABC, 6-monthly net average circulation and subscription sales
Magazine subscription circulation: 2008-2012 Average subscription circulation (thousands) Share of total circulation (%)
Figure 6.17
18
48 52 61
66 75
90 90 93
40 42 47 51
58 69 69 73
34 36 39 41
46
60 60 62
24 27 30 32 36
50 50 53
0
20
40
60
80
100
2007 2008 2009 2010 2011 2012 2013 2014
First ClassLarge Letter
Second ClassLarge Letter
First Class
Second Class
Source: Royal Mail. Figures are nominal. Prices refer to Royal Mail First and Second Class Standard and Large Letter list prices for letters up to 100g,
First and Second Class stamp prices Price (p)
Figure 6.18
19
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QC1. Approximately how many items of post – including letters, cards and parcels – have you personally sent in the last month?
Number of items sent per month
Items of post sent per month (% of respondents)
20 29 17 16
21 25
19 17
19
19
19 18
26 20
27 30
8 4 9 11
6 3 7 7 1
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know21+ items11-20 items5-10 items3 or 4 items1 or 2 itemsNone
6.7
Mean number of items sent per month
4.3 7.4 8.4
Figure 6.19
20
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QC2. And how many of these items sent in the last month were parcels rather than letters or cards?
Number of parcels sent per month
Parcels sent per month (% of respondents)
70 71 65 73
19 19 20
17 6 6 8 5 4 3 5 4 1 1 1 1 1 1
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know
21+ parcels
11-20 parcels
5-10 parcels
3 or 4 parcels
1 or 2 parcels
None
0.9
Mean number of parcels sent per month
0.8 1.0 0.9
Figure 6.20
21
33
56
79
43
63
70
42
54
63
39
58
71
0 10 20 30 40 50 60 70 80 90
Parcels
Formal mail
Personal mail
16+16-3435-5455+
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All who have personally sent any items of post in the last month (n = 3817 adults 16+, 899 16-34, 1357 35-54, 1561 55+) QC5. Which of these types of mail would you say you have personally sent in the last month by post? (MULTICODE)
Types of mail sent in the past month Proportion of consumers (%)
Figure 6.21
22
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All who have personally sent any items of post in the last month (n = 3817 adults 16+, 899 16-34, 1357 35-54, 1561 55+) QC5. Which of these types of mail would you say you have personally sent in the last month by post? (MULTICODE)
Types of mail sent in the past month Proportion of consumers (%)
42 30 34
54
37
22
40
25 31
45 40
22
46 34 31
55
41
24
38 31
39
62
32
19
0
20
40
60
80
Formal letters Payments forbills
Personal letters Invitations/greetings cards/
postcards
Larger parcels Smaller parcels
Adults 16+ 16-34 35-54 55+
Figure 6.22
23
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QC10. Compared with two years ago, would you say that the number of items you send through the post has... increased greatly, increased slightly, stayed the same, decreased slightly, decreased greatly?
Percentage of respondents reporting an increasing or decreasing amount of post sent in the past two years
15
22
12 12
21
14
23 25
05
1015202530
Adults 16+ 16-34 35-54 55+
Increase Decrease
Proportion of consumers (%)
6pp -8pp -11pp -13pp Net increase:
Figure 6.23
24
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All who say that the number of items sent by post has decreased, compared to two years ago (n = 1030 adults 16+, 180 16-34, 368 35-54, 482 55+) QC13. As your use of post has decreased compared with two years ago, which, if any, of these other forms of communication are you using more instead of post? (MULTICODE)
Methods of communication being used instead of post Proportion of consumers (%)
65
27 26 19 16
9 6 14
80
38 36
12
32
10 12 7
76
29 29 16 19
8 7 9
47
20 17 25
4 9 3
22
0
20
40
60
80
100
Email Textmessaging/
SMS
Mobilephone calls
Landlinephone calls
Socialnetworkingsites/ apps
In-person/face-to-face
InstantMessaging
None inparticular
Adults 16+ 16-34 35-54 55+
Figure 6.24
25
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QD1. Approximately how many items of post – including letters, cards and parcels – have you personally received in the last week?
Number of items received per week
20 29 17 16
21 25
19 17
19 19
19 18
26 20
27 30
8 4 9 11
6 3 7 7
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know21+ items11-20 items5-10 items3 or 4 items1 or 2 itemsNone
Items of post received per week (% of respondents) 8.7
Mean number of items received per week
7.3 9.7 9.1
Figure 6.25
26
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QD2. And how many of these items received in the last week were parcels rather than letters or cards?
Number of parcels received per week
Number of parcels received per week (% of respondents)
67 64 64 74
22 25 22 19
6 6 9 5 3 3 4 2
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know
21+ parcels
11-20 parcels
5-10 parcels
3 or 4 parcels
1 or 2 parcels
None
0.8
Mean number of parcels received per week
0.9 0.9 0.5
Figure 6.26
27
Source: Ofcom Residential Postal Tracker, Q4 2013-Q1 2014 Base: All who have received a parcel in the last week (n = 796 adults 16+) QD17. Thinking of the parcels that you have received in the last week, which of these companies delivered the parcels? (MULTICODE) Chart shows companies mentioned by more than 1% of those receiving any parcels in the past week
Proportion of consumers reporting delivery of parcels, by company Company parcels delivered by (% of all who have received a parcel in the past week)
50%
21%
19%
10%
Only RoyalMail
Royal Mailand anyother/sOnly other/s
Don't know
71
9 8 7 6 6 4 4 4 0 %
20 %
40 %
60 %
80 %
Figure 6.27
28
45
67
82
39 44 39
56
76
42 38 45
72
87
44 48 51
72 82
31
46
0
20
40
60
80
100
Personal mail Direct mail Transactionalmail
Parcels Publications
16+16-3435-5455+
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QD4. Please think about items that are addressed to you personally rather than leaflets or charity collection envelopes or bags that may come through your letterbox. Which of these types of items would you say you have personally received through the post in the last month? (MULTICODE)
Categories of mail received in the past week Proportion of consumers receiving each type of mail (%)
Figure 6.28
29
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QD4. Please think about items that are addressed to you personally rather than leaflets or charity collection envelopes or bags that may come through your letterbox. Which of these types of items would you say you have personally received through the post in the last month? (MULTICODE)
Types of mail received in the past week Proportion of respondents who have received each type of mail (%)
17 24 24
32 32
38 46 48
53 82
0 20 40 60 80 100
Subscription magazinesPersonal lettersSmaller parcels
Invitations/ greetings cardsLarger parcels
Catalogues/ brochuresAddressed direct mail
Letters from organisations you knowStandard circulars
Bills/ invoices/ statements
Figure 6.29
30
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QF1. As far as you know, how much does it currently cost to send a standard letter by first class using a stamp? (SINGLE CODE)
Awareness of the price of a First Class stamp Proportion of respondents (%)
18 19 20 16
35 28 38 39
13 15
10 14
34 39 31 32
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know
Incorrect price- over 60p
Correct price -60p
Incorrect price- under 60p
Figure 6.30
31
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QF1. As far as you know, how much does it currently cost to send a standard letter by second class using a stamp? (SINGLE CODE)
Awareness of the price of a Second Class stamp Proportion of respondents (%)
24 24 24 23
22 15 22 29 5
5 4
6
49 56 49 42
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know
Incorrect price- over 50p
Correct price -50p
Incorrect price- under 50p
Figure 6.31
32
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+) QF3/4. It currently costs 60p/50p to send a standard letter First/ Second Class within the UK. How would you rate the Royal Mail's First/ Second Class service in terms of value for money? (SINGLE CODE)
Perception of value for money of First and Second Class stamps
Proportion of respondents (%)
18 14
36 32
17 17
19 22
10 12
0%
20%
40%
60%
80%
100%
First Class Stamp Second Class Stamp
Don't know
Very poor
Fairly poor
Neither goodnor poorFairly good
Very good
54%
Total who agree First or Second Class stamps are good value for money
46%
Figure 6.32
33
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QH2A-H. Agreement with statements about sending/ receiving post
Attitudes to post: proportion of consumers agreeing with each statement Adults
16+ 16-34 35-54 55+
I love to send and receive letters and cards 60 53 59 69
I prefer to send letters or emails to companies rather than make a phone call, so that I have a written record
61 63 65 56
I prefer to send emails rather than letters whenever possible 55 71 61 33
I only use post if there is no alternative 40 49 41 31
I send fewer letters by post now due to the cost 27 24 28 29
I would feel cut off from society if I can't send or don't receive post 53 45 51 64
I only send my mail First Class if it needs to get there the next day 48 44 44 56
I trust Second Class post to get there in a reasonable timeframe 62 61 58 69
Figure 6.33
34
Source: Ofcom Residential Postal Tracker, Q2 2013-Q1 2014 Base: All respondents (n = 4823 adults 16+, 1294 16-34, 1617 35-54, 1912 55+) QE1. How reliant would you say you are on post as a way of communicating? (SINGLE CODE)
Reliance on post as a way of communicating Proportion of respondents (%)
25 19 23 32
41 43 42
38
11 11 13 9
17 19 16 16 6 7 6 5
0%
20%
40%
60%
80%
100%
Adults 16+ 16-34 35-54 55+
Don't know
Not at all reliant
Not very reliant
Neither
Fairly reliant
Very reliant
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