WE KNOW THE REGION INSIDE OUT_____________

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Changing customers’ habits and changing postal operations

Levente Laszlo, Magyar PostaDubrovnik, April 13, 2011

� Changing communications habits

� Changing purchase habits

� Changing postal operations

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� Changing postal operations

� Future: „to be ahead of the game”

� Communication trends are changing!

World – mobile phone users 5,2 billion (2010) Hungary – mobile phone users 12 million (2010)

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� Mobile users / subscriptions

There are 76,3 mobile subscriptions / 100 inhabitan ts

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� Internet users in Europe, 2010

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� CEE - Internet penetration 2010 vs. 2009 (%)

� TOP European internet penetration 2010 - Estonia

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� CEE - Internet users growth 2009 – 2010 (%)

� TOP European internet growth 2010 – Ukraine

7777

� World internet users are increasing …

8888

� „PostEurop … we have a problem ...”

� 1,966,514,816 internet connections� 255 million homepages � 2,9 billion email-addresses� 294 trillion email / day

� 600 million Facebook-members

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Will the physical letter survive ?

� e-commerce spend on the 13th April 2011

April 13, 2011E-commerce spending: 154,1 b EURBroadband users: 310 million Internet access increase yoy : 29,7%

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Internet access increase yoy : 29,7%M-commerce users: Japan 58%

E-commerce spending in 2010591 billion EUR

� eBay spending on m-commerce, 2010

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� Mobile is revolutionizing e-commerce => m-commerce

� Constant product developments

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� And there is the f-commerce …

REMEMBER : there are 600 million facebook-members !

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� World is changing … very fast … too fast …

ARE WE FOLLOWING THE CHANGING

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CHANGING COMMUNICATION AND SHOPPING HABBITS OF OUR CUSTOMERS ?

� E-commerce in Hungary

� By the end of 2010 e-commerce spending was 480 million EUR (+35% increase yoy)

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� Magyar Posta „all inclusive e-commerce” business mode l

1 Distribution of unaddressed items

2

4

5Distribution of addressed items

COD

Reverse Logistics Management

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.

3

Management

Distribution of parcel items

6 Reports

� Briefly about the complex business model

Case Study� Distant Seller (DS) located in Germany is selling v ia catalogues

and internet goods on the Romanian market � Magyar Posta offers all inclusive e-commerce servic e

(operations and liability)

The business model = full controll on the processes� Local distribution of unaddressed items (flyers)

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� Local distribution of unaddressed items (flyers)� Local distribution of addressed items (catalogues and DM)� Local distribution of parcels with / without COD� Cash collection and transfer � Return of undelivered items � Return logistics management (RLM) � Other linked services (GIS, reports, etc.)

� New business model: geomarketing

New ways for building customers /buyers databases:

Offering GIS modells

Kerület NépességHáztartások

számaÖsszes

vásárlóerı

Egy háztartásra jutó

vásárlóerı

fı db millió €€ /

háztartás

index / háztartá

sMo.=10

0

Családi házas

címhelyek

száma

Budapest I. kerület 24 665 13 770 184,8 13 421 113,7 6

Budapest II. kerület 88 187 42 114 668,6 15 875 134,5 8 327

Budapest III. kerület123 737 54 464 842,8 15 474 131,1 11 751

Budapest IV. kerület 98 381 42 328 648,8 15 329 129,9 5 086

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Budapest V. kerület 27 023 14 309 194,1 13 568 115,0 0

Budapest VI. kerület 41 784 22 534 250,7 11 127 94,3 0

Budapest VII. kerület 62 034 34 263 350,1 10 218 86,6 0

Budapest VIII. kerület 81 447 40 351 415,5 10 297 87,2 263

Budapest IX. kerület 60 892 31 671 350,3 11 060 93,7 490

Budapest X. kerület 78 484 34 961 446,3 12 765 108,2 3 670

Budapest XI. kerület137 426 65 691 921,5 14 028 118,9 7 198

� The operational process (parcels)

Distance Seller

ReceivingPost

Deliveringoperator

End Customer

xml file

Parcels are delivered from Germany for distribution (last mile) intoRomania. All items are tracked and with COD.

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xml fileTransferreport

Comment:->24-48 h preadvice / database-xml file->Magyar Posta processing the xml-file->Magyar Posta sends the output-file to

the subcontractor with 24 h before shipment

� XML, Extensible Markup Language

<sorszam> 1<azonosito> CU1005NI0033508152510008990<alapszolg> A_173_EKP<iranyitoszam> 525100 | Covasna<suly> 370<tobb_kuld> 1<kulonszolgok> K_UVT,K_ORZ<uv_osszeg> 89.90<eny_osszeg> 0<kezelesi_mod> 2<alapdij> 9.45<tobbletdij> 0.50<címzett> MARIA-GYOPARKA BENKO<cimzett_hely> Baraolt<cimzett_ertcsat> 0745163465

<cimzett_ertcim> bgyoparka@yahoo.com

20202020

<orz_ido> 5<díj> 9.95<kozelebbi_cim> KOSSUTH LAJOS | 249 | BL / ANL AP / 2<megjegyzes><ugyfadat1> 56201419<ugyfadat2> 2187754

XML is considered a world-wide standard for the exchange of data between two systems. It is flexible and extensible – block can be added and removed without breaking the fullxml document

� „mandatory” services linked to e-commerce activity

�All items are tracked !!!�Including reverse logistics (only Hungary)

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� COD collection and reports

� The COD amounts are collected at distribution (last mile) and are transferred on the distant seller’s (DS) bank accou nt

� All inclusive monitoring system

� All inclusive reporting -system

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� Magyar Posta – Office of Exchange, operations

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� New business model is about partneship and alliance s

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� Customers Need vs. Customer Value

� I want simple and clear processes� I want a good price� I want the best quality � I want to be considered as important� I want business models adapted to my needs

What does the customers need from POST ?

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� I want business models adapted to my needs� I WANT IT NOW !

Value of a customer is not what they have spent with you, but what they will spend with you over the relationship…

� What we have to do ?

TODAYIn real-terms we are used to things being "planned then executed„

- but our world today is “constant change”!

TOMORROW 1. We are required to improve our agility, speed, a ssurance and

openness to manage this constant change.

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openness to manage this constant change. 2. We must be integrated in our approach and our th inking.

We have to be constantly inventing new models „to be ahead of the game”!

�Thank you for your kind attention !

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