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1、LAST MILE EXPERTS UKRAINIAN CEP REPORT 2023Partners:June 2023 Executive summary Introduction and glossary Authors,Partners and Contributiors Ukrainian CEP market background Ukrainian CEP market trends Market share by carrier,volume and value Conclusions Contact03080CONTENTSGLS GLS deliver
2、y vansSource:GLS3UKRAINIAN CEP MARKET BACKGROUNDExecutiveSummaryPartners:EXECUTIVE SUMMARY4Ukraine,despite being a part of Europe,had not been top of mind of other Europeans until the tragic war initiated and escalated last year by Russia.Recognising the anticipated significance of this market and t
3、he positive experiences we have had while collaborating with our clients,Last Mile Experts and Effigy Consulting have made the decision to develop the first comprehensive CEP report focused on Ukraine.The report is intended for all key stakeholders and interested parties in and around the last mile
4、in Ukraine.The Ukrainian CEP market has experienced a 17.4%decline in volume and an 8.0%decline in revenue in 2022 when compared to 2021.The CEP sector,like most of Ukraines economy,suffered significant losses and operational disruptions as a result of the hostilities instigated by Russia.This has h
5、ada significant impact on both the number of operators providing services in the country and the way they operate.The long-term reconstruction of Ukraines postal system is projected to cost approximately 260 million USD between 2023 and 2033.The majority of this amount,95.3%,will be allocated for sh
6、ort-term needs between 2023 and 2026.The restoration of postal service delivery requirements is estimated to be around 1.89 billion USD over the same ten-year periodUkraines pre-war commitment to the digital transformation of its postal sector could help alleviate some of the pressures caused by the
7、 war.External donors could also assist in this digitisation.In 2021,this process was already underway.One should note some market specifics.Express parcels overlap with other segments such as mail,pallet distribution,groupage,freight forwarding,same day courier and contract logistics so some of the
8、boundaries are blurred here.Also,it is important to note that for historic reasons,CEP and postal services are often named interchangeably in Ukraine.As a result of the hostilities,most small companies have suspended operations or disappeared from the market altogether.At the end of 2022,Nova Post,U
9、krposhta and Meest remained active.After the outbreak of war,most companies from the CEP sector joined humanitarian or military transport operations.We anticipate that as soon as the war ends,building on an already robust trend,C2C will also become a significant factor in terms of volume growth.Whil
10、e E-commerce was a booming market in pre-war Ukraine,cross-border E-commerce flows present future expected opportunities for service providers in the post-war world.In 2027 average revenue per online shopper is predicted to amount to 186.2 USD,5.6 USD less than in 2021.R.ua was the leading online st
11、ore in the country in 2022,with online net sales revenue over twice those recorded by Apple which ranked second in the country.EXECUTIVE SUMMARY EXECUTIVE SUMMARY5In 2022 major CEP networks such as Ukrposhta,Meest,Delivery,and CAT have experienced significant declines in their networks.Only Nova Pos
12、t has managed to restore its network to pre-war levels,with approximately 24,000 service points across the country and an incredible 14,000 parcel lockers,putting them ahead of Deutsche post in Germany and making them the second national APM player in Europe.However,approximately 1,175 service point
13、s still remain in the occupied territories,and their current status is uncertain.Nova Post,for example,has responded to these challenges by introducing innovative solutions such as postal lockers powered by special batteries.These lockers allow customers to receive shipments 24/7,independent of powe
14、r outages,internet connectivity,or mobile network availability.Nova Posts branches have also been equipped with generators and“STARLINKs”,internet connections via satellite,to ensure uninterrupted delivery,providing a reliable service to customers.The migration crisis resulting from the war,which le
15、d to the largest wave of the 21st century and compelled over 5 million refugees to seek refuge in EU countries and had a significant influence on the development of the E-commerce market in Ukraine.The C2X segment,encompassing both C2C and C2B transactions,exhibited remarkable volume growth(+53.6%)a
16、nd constitutes 36.6%of the total Ukrainian CEP.Currently,a growing trend of mobile shopping has been observed,with more consumers making purchases using their smartphones and tablets.Demand for delivery from online stores based in the EU,the US,and China is growing,arguably as a result of easier cro
17、ss border access and restricted domestic production.Military restrictions on real-time tracking of parcel routes on the map or mobile apps are evident.However,innovations such as the implementation of mobile branches or battery backup for lockers or operational facilities are alleviating the issues
18、faced.It is estimated that approximately 80%of carriers branches in the liberated territories have been destroyed or severely damaged so the post war re-build is expected to be huge.The speed of delivering medical equipment and supplies became critically important for patients and medical facilities
19、.Accordingly,same-day delivery and premium delivery services play a significant role in ensuring that these essential healthcare items reach their destinations quickly and efficiently.Nova Post,is the leading Ukrainian CEP company,with an over 85%parcel volume market share.It has been adapting to th
20、e changing situation and demonstrating resilience despite the challenges posed by the war.With 22 years of experience,Nova Post has established itself as a trusted provider of global document,parcel,and cargo delivery services.EXECUTIVE SUMMARY EXECUTIVE SUMMARY6EXECUTIVE SUMMARY 2022 UKRAINIAN CEP
21、MARKET in volume,split by Carrier brand view.In war torn 2022,Nova Post achieved impressive milestones,delivering 261 million parcels.Despite the wars impact,the company remained committed to expansion,opening 1,000 new branches and 1,330 new parcel lockers,resulting in a total of approximately 24,0
22、00 service points service points.The estimated volume of the Ukrainian CEP market in 2022 is 305 million parcels.The top five players in terms of volume are Nova Post,Ukrposhta,Meest,CAT,and DHL Express,collectively holding 98.5%of the market share.In 2022,the B2B and B2C segments suffered from seve
23、re drops due to Russias invasion of Ukraine.The B2B segment dropped by-49.4%in revenue,and its share of the total CEP market revenue stood at 11.5%(vs.20.9%in 2021).The C2X segment(C2C and C2B combined)experienced strong growth in 2022(+91.4%revenue growth)due to the high growth in the C2C segment a
24、s parcels between individuals were the main parcels that were sent during the year.C2X now represents a larger share than B2B on the Ukrainian CEP market,at 36,9%in terms of revenue.EXECUTIVE SUMMARY7EXECUTIVE SUMMARY In terms of volume,the Domestic market is the largest segment in Ukraine,comprisin
25、g 77.8%of the total.However,the Domestic market experienced a lower growth rate compared to the International market,with a decrease of 21.4%in 2022,while the International market saw a slight increase of 0.2%.Exports represent a smaller share of international parcels than Imports in the Ukrainian C
26、EP market.Exports decreased by-15.2%in 2022 vs.a+19.8%growth in 2021,whereas Imports grew by 10.2%in 2022 and by 37.5%in 2021.The Ukrainian CEP market is predominantly a Deferred market,with the revenue of Deferred parcels representing 67.8%of the total markets revenue.The Ukrainian International CE
27、P market for 2022 is estimated to have generated 67 million parcels which represents a small growth of 0.2%compared to 2021.The market leaders of the Ukrainian International market in terms of volume in 2022 are Nova Post with 59 million parcels,a market share of 87.0%,and a growth of 4.9%,Meest wit
28、h 3 million parcels,a market share of 4.9%,and a decrease of-41.4%,and Ukrposhta with 3 million parcels,a market share of 3.9%,and a growth of 101.2%.Ukrposhta benefitted from strong growth in the international market in 2022 and probably had most non-commercial international aid delivered via its n
29、etwork.However,when the war finally ends this is clearly a market that should be observed as it is very likely to be one of the most innovative and fastest growing markets in Europe.8UKRAINIAN CEP MARKET BACKGROUNDIntroductionand glossaryPartners:INTRODUCTION AND GLOSSARY9ABOUT THIS REPORTUkraine,de
30、spite being part of Europe has not been top of mind until the tragic war initiated by Russia.In particular,little was known about Ukraines last mile and the key players in this space.Because of the expected future relevance of this market and due to the many positive surprises we encountered when wo
31、rking with our clients here,Last Mile Experts and Effigy Consulting have decided to prepare the first and only holistic Ukrainian CEP report.The Ukrainian CEP market,much like every other sector,was profoundly affected by the full-scale Russian invasion of Ukraine in February 2022.The war disrupted
32、various aspects of business and daily life in Ukraine,resulting in significant losses in operational potential,infrastructure,and the overall economy.This has had a significant impact on both the number of operators providing services in the country and the way they operate.Amidst this crisis,the CE
33、P market assumed a critical role for Ukrainians,serving as a vital lifeline for accessing essential goods.This report delves into the impact of the war on the Ukrainian CEP industry,highlighting the challenges faced,adaptations made,and the markets crucial significance during these trying times.Base
34、d on data from Effigy Consulting,the Ukrainian CEP market has experienced a 17.4%decline in volume and an 8.0%decline in revenue in 2022 when compared to 2021.The rapid growth of the CEP industry,driven by the increased e-commerce activities during the Covid-19 pandemic,has come to a sudden halt due
35、 to the Russian aggression on Ukraine.Moreover,in recent years,significant changes have taken place in market shares,particularly concerning parcel types B2C versus B2B and first-or last-mile channels P2P versus D2D.Our first Ukrainian CEP report covers the market structure,players,development and k
36、ey trends.What can you find in this report?The report covers all key players in the Ukrainian CEP market.Statistas Ukrainian E-commerce market overview.Ukrainian CEP market trends.Effigy Consulting analysis about Ukrainian CEP market by carrier,volume and revenue.Who will benefit from our report?The
37、 report is intended for:Owners and operators of OOH networks.CEP companies.Online retailers.Investors in these businesses.Market regulators and policymakers.Journalists and editors of newspapers and magazines.Analysts,consultants and other stakeholders.Background to the reportINTRODUCTION AND GLOSSA
38、RY10ABOUT THIS REPORTWhat are the sources?The main sources for the report are:Extensive desk research on the Ukrainian CEP market and its operators covering company press releases,websites and other sources.Market size estimates are based on a methodology that utilises a number of data inputs and as
39、sumptions.The first and most important input is the company revenues,which serve as the best indicator of market size.The authors have reviewed the company accounts results,including revenues and profits where available.Effigy Consulting internal research and data.Statista internal research and anal
40、ysis.Published information on key market drivers such as economic data and estimates of home shopping levels and practices.Interviews with CEOs,senior-level CEP and E-commerce executives,experts,retailers)to develop our core,database.LMEs own in depth knowledge and unique access to first hand data f
41、rom key players in the market.Despite our best efforts,even first hand data is sometimes erratic,due to ongoing war in Ukraine.However,we have taken the utmost care to provide as accurate a picture of the market in 2022 as possible,based on confirmed historical data(pre-2022)and data obtained from o
42、ur partners.It is not possible to identify exact 2022 revenues for all companies CEP activities.Some of the companies involved in CEP also have other logistics activities,as humanitarian or military support and do not clearly delineate data.Wherever required,LME has estimated parcel revenues or volu
43、mes.We can produce tailor-made,more detailed country reports if needed.If this is of interest,please contact to get more information.LME,Effigy Consulting and the partners involved in preparing this report possess extensive knowledge of this market and have conducted various studies on OOH delivery
44、in Europe and elsewhere.The LME team has a strong entrepreneurial background including the creation of DPD Polska(formerly Masterlink Express)a leading player in the Polish CEP market and the integration of companies as was the case with UPS Poland(formerly Stolica).Our consulting work includes advi
45、sing a variety of companies and industries,with emphasis on E-commerce and carriers.Our expertise lies in the setup or improvement of nationwide CEP networks,PUDO/locker models and supporting IDM(interactive delivery management)tools.INTRODUCTION AND GLOSSARY11ABOUT THIS REPORT Data has been obtaine
46、d from publicly and commercially available sources.The data published represents the latest information available from these sources at the time we carried out our research.Nova Post in Ukraine-Kyiv Innovation Terminal(KIT)Source:Nova PostINTRODUCTION AND GLOSSARY12Definitions and abbreviations used
47、 in the report.GLOSSARY AGV Automated Guided Vehicle AI Artificial Intelligence API Application Programming Interface APM Automated Parcel Machine(parcel locker)B2C Business to Consumer B2B Business to Business CEE Central Eastern European Countries CEP Courier&Express Parcels CO2 Carbon Dioxide C2B
48、 Customer to Business C2C Consumer to Consumer C2X Consumer to Anybody DIY Do It Yourself D2D Door to Door(pickup or delivery)D2P Delivery to Point EBRD European Bank for Reconstruction and Development EN European Norm FEM European Materials Handling Federation GDP Gross Domestic Product HUB Central
49、 Sorting Facility IDM Interactive Delivery Management LAST MILE Leg of a journey comprising the movement of goods from a distribution centre to a final destination LME Last Mile Experts NPS Net Promoter Score OOH Out of Home POSTAL SERVICE Often used interchangeably between traditional post and CEP
50、services PUDO Pick Up and Drop Off(point)P2P Point to Point RPP Revenue per Piece SLA Service Level Agreement SP Small Packets TCO Total Cost of Ownership ToF Time of Flight UAV Unmanned Aerial Vehicle UNHCR United Nations High Commissioner for Refugees UPU Universal Postal UnionINTRODUCTION AND GLO
51、SSARY13Since February 24,2022,we have been witnessing events that we perceive as the greatest crisis in the history of Europe of the 21st century.The war in Ukraine is primarily a drama and a tragedy for millions of Ukrainians.The invasion has also triggered extraordinary economic phenomena that hav
52、e a far-reaching impact on supply chains and E-commerce.It is also worth mentioning the enormous burden on Ukraines logistics industry:seaports are closed,railways are overloaded,there is no air connection,bridges and roads are destroyed,etc.However,even despite the daily challenges,Ukrainian postal
53、 and logistics companies are showing great adaptability and resilience:they continue to work under fire,create new routes to replace the destroyed ones,enter new European markets,and support each other,e.g.logistics companies helped to restore the E-commerce industry in the country.Of course,the gov
54、ernment of the country helps in every possible way to solve the existing problems of the industry.Currently,the Verkhovna Rada of Ukraine is focusing its efforts on removing bottlenecks with the European Union by increasing the number of checkpoints along the western borders:this includes expanding
55、existing checkpoints,building new ones,and modernising border crossing procedures.Nova Post is an example of a successful private business case.The company managed to maintain its leading position during the war by providing delivery services to any part of the country and even to the front line.Nov
56、a Post continues to deliver the essentials both to the de-occupied areas of Ukraine and abroad,where more than 6 million Ukrainians are currently living.The company has entered the Polish,Lithuanian and Czech markets and plans to open departments in Germany and Romania this year.Nova Post cooperates
57、 with many marketplaces,and every month 35 million parcels from online stores are delivered to Nova Post departments and post lockers where customers pick them up.Kateryna Glazkova,Executive Director of the Union of Ukrainian EntrepreneursCOMMENT14UKRAINIAN CEP MARKET BACKGROUNDAuthors,Partners andC
58、ontributorsPartners:15AUTHORS,PARTNERS AND CONTRIBUTORSLAST MILE EXPERTSOur focus drives Your SUCCESS!Last Mile Experts is a specialist CEP and E-commerce last mile consultancy.Our team have joint experience of several hundred years and are supported by partnered specialists throughout the globe,who
59、 help us deliver industry best practice in even the most focused areas.In addition to the above,we have relationships with many key suppliers of hardware and software for route optimisation,sortation or tracking and control.Very few consultancies are so specialised and hence our motto16AUTHORS,PARTN
60、ERS AND CONTRIBUTORSWHAT WE DO AT LAST MILE EXPERTSAt Last Mile Experts,we support our clients to develop,deliver and sustain competitive advantage across a number of critical business areas but focusing on Courier Express Parcel and E-commerce last mile:Business operating models including cross-bor
61、der.General or specific operations solutions.Hardware and software selection and contract negotiation.People and organisational development Research and benchmarking.Support in negotiating the best SLAs and commercial terms.Strategic as well as operational pricing and product portfolio management.Me
62、rgers&acquisitions including market reviews,pre-deal due diligence and post-deal advisory.E-commerce/Amazon and the last mile.Out of Home delivery options including APMs and HUBs(lockers)and PUDOs(access points).Strategic planning and commercial proposition.Interim/turnaround management.17AUTHORS,PA
63、RTNERS AND CONTRIBUTORSCO-AUTHOR-LAST MILE EXPERTS MANAGING PARTNERMAREK RYCKIExperience in courier industry Financial Controller-DHL Express Poland Financial Controller-DHL Express Poland 1990 Founder,Masterlink Express(now DPDB Polska)1991 Turnaround CEO Masterlink Express 1999-2004 CEO CEE,DPD 20
64、04-2006 CEO CSEE DPD 2006-2013 VP Amazon Logistics Europe 2014-2015 Deal Advisor SB Member Pekaes SA 2015-2017 Deal Advisor SB Member Advent InPost S.A 2016-2017 Deal Advisor SB Advisor Urgent Cargus S.A.2017-2019 Board Advisor Trendyol Turkey 2020 2022 Board Advisor eMAG/Sameday Romania 2020-Board
65、Advisor Nova Post Ukraine 2022-Achievements Created leading domestic CEP carrier in Poland(DPD Polska)Successful turnaround of 10+BUs Developed the most homogenous road based parcel network in CSEE Tripled DPD CSEE revenue from 2006-2013,with industry beating ROS Conceived and implemented IT4EM(ERP
66、for several DPD markets)Part of start up team for Amazon Flex,Fresh and Prime Now Participated in creating the successful post acquisition restructuring plan for InPost Supported implementation of OOH strategy for Trendyol(TR)and eMAG/Sameday(RO,HU,BG),PostNord(SE,DK)and Nova Post(UA)Selected Projec
67、ts Complete nationwide PUDO/locker implementation plan in CEE Restructuring of some 10 CEP businesses Launch of fuel surcharge throughout DPD CSEE Launch of PUDOs throughout CSEE IT4EM/IDM capability at DPD CSEE Helped acquire or sell over 10 CEP businessesSummary Entrepreneurial ex-regional CEOwith
68、 multicultural experience;a courier express parcel,restructuring and last mileE-commerce background.A team builder with a strongindustry network who hasoperated in various CEP markets,especially Poland,with a proventrack record of success even invery challenging circumstances.18AUTHORS,PARTNERS AND
69、CONTRIBUTORSExperience in courier industry Operations Supervisor,Oversea Courier Services 1992-1996 International Operations Manager,M.S.Stolica 1996-2003(GSA for Airborne Express,FedEx,Aramex/GDA,Net Express)Founder,COO of MACS brokerage&freight forv.1998-2004 Key Account Manager,Frans Maas Polska
70、2004 International Operations Manager,M.S.Stolica 2004-2005 Industrial Engineering Manager,UPS Polska 2005-2010 PM,UPS NE District 2010-2011 Industrial Engineering Manager,UPS EMEA Region 2011-2013 Outside Service Providers Manager,UPS Polska 2013-2014 PM,Central Hub construction,UPS Polska 2014-201
71、5 COO,UPS Polska 2015-2019 PRO Partner Last Mile Experts,CEP consultant 2020-2021 Partner,Vice President Last Mile Experts 2021-Operational advisor(external)for Nova Post Polska 2022-Achievements OCS,Airborne Express,FedEx and Aramex(GDA)next day international services implementation across the Pola
72、nd Full operational and IT integration of UPS and acquired M.S.Stolica UPS Nordics HQ and Stockholm package centre relocation UPS stage one integration with acquired Kiala B2C company UPS Poland central hub construction and distribution network redesign UPS Poland best operational performance worldw
73、ideCO-AUTHOR LAST MILE EXPERTS VPMIREK GRALSelected Projects Cofounder of Polish Express Carriers Forum GSE contracts with Airborne Express,FedEx and Aramex UPS Polska integration with M.S.Stolica and complete distribution network redesign Launching UPS intercontinental flights via Warsaw airport Fi
74、rst stage of Kiala B2C/PUDO business merge with UPS network Renegotiations of Polish UPS Outside Service Providers service agreements with new SLA implementation UPS Poland feeder&hubs network redesign BREXIT operational set up redesign for UPS Poland Subject matter expert during few DDs in CEE CEP
75、marketSummaryMore than 30 years of experiencein CEP industry supported byco-operation with the largest playersin the international market.Leader and team player withorganisational and planning skillsas well as experience of work abroadon multinational/multiculturalenvironment and time-critical proje
76、cts.19AUTHORS,PARTNERS AND CONTRIBUTORSSelected Projects Introduction of international courier services in Poland for Chronopost and DPD GSE contracts with Pony Express,New Silk Road and others.Board member of Polish Express Carriers Forum Purchase,integration and development of Air Cargo Poland(one
77、 of the largest Polish air freight forwarders and custom agencies)Building or adaptation of over 60 operational depots and Hubs Creation of several International delivery networks including Baltic Logistic System(Posten AB)and Road to Russia(DPD Polska)Experience in courier industry KN Air(Subsidary
78、 of Kuhne ubd Nagel)Customer service supervisor 1992-1994 FedEx Country Manager Masterlink Express 1994-1997 Regional Operations Director Masterlink Express 1997-1998 International Operations Department Director Masterlink Express (Owner Posten AB/GeoPost)1998-2005 International Department Director
79、DPD Polska and VP in Air Cargo Poland 2005-2014 Administrative Director DPD Polska 2005 2014 PPM,Central Hub construction,DPD Polska 2010-2012 Partner Last Mile Experts,CEP consultant 2016 CO-AUTHOR LAST MILE EXPERTS PARTNERGREG KRUPASummaryHas over 30 years of experience in the CEP industry and has
80、 a proven track record of success,even in challenging circumstances.Collaborated with the largest players in the international market,demonstrating strong leadership skills and the ability to work effectively as part of a team.With exceptional organisational and planning skills,they have overseen a
81、variety of time-critical projects.In addition to technical expertise,has extensive experience working in a multinational/multicultural environment,adapting seamlessly to diverse cultures and customs.Achievements Together with my operational team granted Circle of Excellence FedEx award for best oper
82、ational performance in the world.As ACP Vice President/Operations Manager,first restructured and then developed the company from a mid size,loss making,customs agency into one of the largest Freight Forwarders in Poland(c.100 MPLN turnover,8%ROS)Member of Masterlink Express restructuring team(after
83、two years,the company showing a loss at the level of 50%of its turnover,started to yield profit).The success achieved thanks attention to costs,quality and sales processes Over 20%reduction of international service costs per parcel within two years from takeover Creating a network of over 1000 Picku
84、p/Drop off facilities in Poland20AUTHORS,PARTNERS AND CONTRIBUTORSCO-AUTHOR EFFIGY CONSULTINGPhilippe Masquelier,general manager,has more than 20 years of expertise in logistics,market research and sales optimisation,including corporate global positions at major carriers.Customers rely on Effigy dat
85、a to measure their competitive performance and to plan strategies,commercial activities and operational investments.Effigy Consulting is the leading Courier,Express&Parcel(CEP)research company.Their activities include market data,providing extensive datasets and reports with breakdowns for more than
86、 40 country markets,multiple product segments and market shares of over 300 companies.Developed over more than 10 years,the database includes historical trends and forecasting.Effigy Consulting has developed internally a proven methodology that is continuously refined over the years and ensures data
87、 consistency across all regions and countries.The market data and reports are available for all countries in Europe and North America as well as a growing number of countries in Asia-Pacific and South America.With detailed information by product segment,Effigy Consultings clients rely on its data wh
88、en measuring their performance,developing their business plans and deciding on commercial,operational as well as strategic initiatives.In addition to logistics service providers,Effigy Consulting also works with eTailers and start-ups that have a growing interest in the logistics market,as well as c
89、onsulting firms and investment funds that need detailed insights on the CEP market structures and trends to further their projects and ventures.Effigy Consulting has world class customers and operates with a team of around 20 Senior Consultants that provides business,marketing&management consultancy
90、 services.Philippe MasquelierGeneral Manager of Effigy Consulting21AUTHORS,PARTNERS AND CONTRIBUTORSGLSDiscover three reasons why you should get to know us better-Great convenience,Locality&Sustainability!We are one of the leading providers in the Polish logistics market because,for us,parcels carry
91、 more than just items-they hold unique stories.Great convenience.Our customers are always our top priority.Thats why we continuously strive to enhance our service offerings,ensuring faster and more convenient shipping and receiving options for you.We provide the flexibility of setting a new delivery
92、 date,redirecting your shipment to a different address,or utilising our Szybka Paczka points for collection.Quality is a fundamental aspect of our work.We prioritise the use of cutting-edge IT technologies to streamline our operations and provide efficient services.In recognition of our efforts,we w
93、ere awarded the title of Logistics Leader 2022 in the Digital Communication Tools category.Furthermore,we are committed to actively expanding our network by investing in infrastructure.This enables us to consistently improve our capabilities and deliver an exceptional customer experience.Locality.In
94、 Poland,we are actively expanding our network to better serve our customers.Currently,we operate 50 branches across the country,with plans to open new ones in the future.Our network is further strengthened by the presence of over 5,000 Szybka Paczka points,strategically located in local shops,servic
95、e points,supermarkets,and petrol stations.Additionally,as part of the larger GLS Group,we have access to a European network of more than 44,000 PUDO points.Being part of the GLS Group allows us to have a local presence in nearly 40 European countries,as well as in Canada and the United States.This e
96、xtensive reach enables us to think globally and deliver parcels swiftly and reliably to any destination.Our well-developed road network plays a vital role in achieving timely deliveries.We take pride in our exceptional on-time delivery performance and strive to provide additional services to meet ou
97、r customers needs.This includes options such as delivery at a specific hour,ensuring maximum convenience and flexibility for our valued customers.22AUTHORS,PARTNERS AND CONTRIBUTORSGLSSustainability.As a socially responsible company,we at GLS are deeply committed to environmental protection.The enti
98、re GLS Group shares the ambition of achieving zero CO2 emissions by 2045.We have a clear plan in place to make this vision a reality.To start,we have taken significant steps to offset our CO2 emissions.In fact,last year we offset 100%of our emissions.By 2025,we aim to make substantial reductions in
99、CO2 emissions for each parcel we handle.We actively contribute to environmental conservation efforts within our own operations.This includes waste separation and energy-saving practices at our sites.We prioritise the use of renewable energy sources,with 80%of our energy coming from such sources.In t
100、erms of transportation,we employ a range of eco-friendly vehicles.Our parcels are delivered using electric vans,low-emission trucks,and since 2020,courier bikes.We are proud to be pioneers in the field of sustainable delivery in Poland,and our courier bikes with the GLS logo can already be seen in o
101、ver a dozen cities across the country.Every single day,GLS Group successfully delivers millions of parcels worldwide.With over two decades of operation in the Polish market,we have garnered the trust of more than 13,000 customers.Our approach to work is driven by passion and transparency,with an unw
102、avering focus on customer satisfaction.We understand that each package carries a unique story,and thats why we strive to provide fast,efficient,and flexible delivery services using modern and sustainable solutions.Our commitment to operational excellence and professionalism is exemplified by our exc
103、eptional NPS in the Logistics Operator of the Year survey.Additionally,we take pride in being recognised as a Great Place To Work,highlighting our dedication to creating a positive and fulfilling work environment for our employees.GLS GLS electric vanSource:GLS23AUTHORS,PARTNERS AND CONTRIBUTORSNOVA
104、 POST Nova Post is a group of companies that provides logistics and distribution services,delivering documents,parcels,and large cargo worldwide.The flagship company,Nova Post in Ukraine,has been operating in Ukraine for 22 years and is known as the countrys fastest delivery service.Their primary ob
105、jective is to offer convenient delivery solutions for individuals and businesses,whether its to a branch,post office,or specific address.With an annual delivery volume of over 300 million parcels,both domestically and internationally,Nova Post enables thousands of entrepreneurs to establish and expa
106、nd their businesses.To expedite the transportation of goods from overseas,Nova Post has recently launched its own airline called Supernova Airlines.The Nova Post network is the largest in Ukraine,encompassing 23,400 service points,including 9,400 branches and 14,000 parcel lockers.Nova Post branches
107、 operate seven days a week,as do the parcel lockers,allowing customers to pick up their parcels 24/7 at their convenience,without any queues.Additionally,the branches offer various services such as cash withdrawals,domestic and international money transfers,mobile phone top-ups,bill payments,and eve
108、n the option to obtain a loan for a parcel with goods.Nova Post has established a robust logistics infrastructure in Ukraine,comprising 110 sorting terminals and depots spread across every region of the country.Among these,the six largest terminals,located in Kyiv,Lviv,Kharkiv,Khmelnytskyi,Dnipro,an
109、d Zaporizhzhia,are innovative and automated.These terminals have the capability to process an impressive range of 20,000 to 50,000 parcels per hour.Nova Post Ukraine Kiev Innovation Terminal(KIT)Source:Nova Post24AUTHORS,PARTNERS AND CONTRIBUTORSNOVA POST Nova Post follows its own development strate
110、gy called Fast,Easy,Safe,which guides its operations on a daily basis.The company is committed to streamlining the customer experience by continuously enhancing its digital tools,including the website,mobile application,and business account features.With a workforce of 32,000 employees,Nova Post ope
111、rates with a shared set of values.Furthermore,the company ranks among the largest taxpayers in Ukraine.In 2022 alone,Nova Post contributed 7.1 billion hryvnias(approximately 180 million EUR)to budgets at all levels throughout the country.Nova Post not only offers logistics services but also demonstr
112、ates its commitment as a socially responsible corporate citizen in its country.The company has made a substantial investment of 10 million EUR towards various initiatives aimed at advancing the nations progress.This includes purchasing ammunition,generators,and other essential equipment for the Ukra
113、inian army,making donations to foundations,and acquiring equipment for hospitals and rehabilitation centers.Nova Post has also facilitated humanitarian aid delivery by allocating resources to 1,250 charitable foundations.In addition to its domestic operations,Nova Post expanded its business internat
114、ionally by entering the Moldovan market in 2014.Nova Post has established itself as the fastest postal operator in Moldova,boasting a well-developed network comprising 19 branches and 200 parcel lockers throughout the country.Nova Post in Ukraine Kyiv Innovation Terminal(KIT)Source:Nova Post25AUTHOR
115、S,PARTNERS AND CONTRIBUTORSNOVA POST In 2022,amid a full-scale war,Nova Post made history as the first Ukrainian company to venture into the Polish market.Within a span of six months,the company successfully opened 30 branches in the largest Polish cities,including Warsaw,Krakw,Wrocaw,Lublin,Gdask,R
116、zeszw,Pozna,Ld,and Katowice.By June 2023,Nova Post plans to have branches established in every major region of Poland.Between October 2022 and April 2023,Nova Post in Poland managed to deliver over 190,000 parcels for approximately 132,000 customers.As part of its operations,the company inaugurated
117、two sorting terminals in Poland,located in Rzeszw and Warsaw.Notably,Nova Post ensures swift international parcel delivery,allowing parcels to be sent from any branch in Poland to any destination in Ukraine within a remarkable three-day time-frame.On March 20,Nova Post made its entry into Lithuania
118、by inaugurating its first branch in Vilnius.Subsequently,in May,Nova Post will expand its presence by opening branches in Romania,followed by Germany and the Czech Republic.As part of its ambitious growth plans,Nova Post aims to establish 200 branches across 30 EU countries by the year 2025.On June
119、5,Nova Post entered the Czech market with two branches in Prague and more than 1,000 parcels delivered in a week.On June 26,the company started operations in Romania,where it opened its first branch in Bucharest.The core mission of Nova Post is to facilitate convenient and customer centric delivery
120、services for both personal and business purposes.To accomplish this,the dedicated team at Nova Post continually introduces new products and services that align with international standards and industry best practices.By staying innovative and adaptive,Nova Post strives to provide customers with an e
121、xceptional delivery experience.Nova Post branch in Lithuania,VilnusSource:Nova Post26AUTHORS,PARTNERS AND CONTRIBUTORSMODERN EXPOMODERN EXPO has been a top company in the creation of modern retail for more than 20 years.Today,its not just the physical store space,but also the solutions for E-commerc
122、e,warehouses,logistics and integrated supply chain.Therefore,one of the leading directions of Modern Expos work is developing products and services for the last mile,with a focus on parcel lockers solutions.Modern Expos team strongly believe that delivery is an invisible powerful force that brings t
123、hings together.Modern Expos product portfolio meets the requirements of all segments of the market.Modern Expo provide an integral solutions system with screen-operated lockers,screenless autonomous solutions,refrigerated lockers,DIY lockers,and even personal parcel lockers,all powered by in-house d
124、eveloped software.Modern Expos 83,500 m2 production facilities operate in accordance with the LEAN philosophy.With a capacity to produce over 1,000,000 parcel locker cells per year,Modern Expo ensures mass replication in roll-outs and guarantees that each product meets European safety and quality st
125、andards(EN and FEM).All their products undergo testing in Modern Expos certified laboratory,which complies with ISO/IEC 17025:2017 international standards.MODERN EXPO Various types of parcel lockersSource:Modern Expo 27AUTHORS,PARTNERS AND CONTRIBUTORSMODERN EXPODuring the last few years,Modern Expo
126、 has implemented various projects with market leaders all around Europe.Theyve successfully supplied 3,000 parcel lockers to Allegro,the leading E-commerce platform in Poland,while providing service according to strict SLA requirements.Modern Expo has produced over 1,500 lockers for Sameday,the larg
127、est carrier in the Balkansregion.Additionally,Modern Expo supplied more than 10,000 indoor and outdoor autonomouslockers for Nova Post,the market leader in Ukraine.They are also proud to serve esteemedclients such as Hungarian Post,Fox Post,and GLS.Modern Expos R&D team developed theunique solution
128、for Castorama(Kingfisher group)a parcel locker with oversized cells whichcan fit a trolley,a must-have solution for DIY retail.Furthermore,Modern Expos software teamdeveloped the APM interface and backend logic,ensuring the entire Castomat chain operateson Modern Expo software.These remarkable accom
129、plishments establish Modern Expo as oneof the leaders in the European Parcel Lockers market.Participating in exhibitions plays a crucial role in Modern Expos international expansion strategy.The company actively participates in major postal exhibitions in Europe,including the highly regarded Parcel+
130、Post Expo.Their booths are renowned for being the largest,most impressive,and most captivating.This trend will continue in 2023 as Modern Expo strives to maintain its presence and engage with industry professionals.Stay connected with Modern Expo on social media to ensure you dont miss out on the mo
131、st interesting details!With Modern Expos mission,We Create Retail New,the teams ultimate goal is to become the industrys leading supplier.Modern Expo possesses the necessary tools,capabilities,and dedication to achieve this level of success in the coming years.MODERN EXPO Various types of parcel loc
132、kersSource:Modern Expo 28AUTHORS,PARTNERS AND CONTRIBUTORSZebra Technologies is a well-established global company that has been providing innovative solutions for over 54 years.Zebras mission is to empower organisations to monitor,anticipate and accelerate workflows,ensuring that everything is visib
133、le,connected,and optimised.Our diverse portfolio of award-winning products and ranges from software to robotics,machine vision,automation,and digital decision-making,and is backed by a legacy in scanning,track-and-trace and mobile computing solutions.With a commitment to innovation and strong ecosys
134、tem of 10,000 partners across 100 countries,Zebra serves more than 80%of the Fortune 500 companies.In Ukraine,Zebra has established itself as a trusted and reliable leader in the industry,having served the countrys market for over a decade.Zebras presence in Ukraine is supported by a network of prof
135、essionally trained partners that provide exceptional customer service.Additionally,the companys service center in Kyiv offers fast and efficient repair services for Zebra devices,including troubleshooting,diagnostics,and replacement of faulty parts.The center is authorised to offer free repairs for
136、Zebra devices covered by Zebra OneCare contracts,ensuring that customers receive prompt and efficient repairs to minimise downtime and maximise productivity,protecting their assets and helping decrease TCO over time.Zebras postal and courier solutions provide enterprise visibility throughout the del
137、ivery process,including proof of pick-up or delivery,sortation,loading,and fleet management.Zebras broad portfolio offers technologies for couriers,parcel shops,and HUBs,enabling them to deliver packages on time,every time.Zebra has recently introduced an updated portfolio for front line workers,inc
138、luding game-changing technologies for courier companies.The TC53/TC58 mobile computer series,for example,features Zebra Dimensioning Certified Mobile Parcel an industry-first solution that uses an integrated ToF depth sensor to capture parcel dimensions and calculate shipping charges on Zebra mobile
139、 computers with the press of a button,helping save time that would otherwise be spent on researching prices or manually measuring packages.ZEBRA TECHNOLOGIES 29AUTHORS,PARTNERS AND CONTRIBUTORSZebras offer also addresses the needs of parcel shops,leveraging their growing interest in tablets to offer
140、 a tailored product.Our purpose-built tablets,such as ET4X series,ET5X series,ET8X series,provide rugged reliability,exceptional customisation and management control,the ability to maintain peak performance levels all day long,and exceptionally long lifecycles all packed in an environmentally sustai
141、nable design.Consumer-grade tablets may appear to be a cost-effective option,but when lacking the appropriate features or accessories,they can quickly turn into substantial hidden costs.Lastly,sorting centres run by courier company can benefit from Zebras acquisition of Matrox Imaging,which resulted
142、 in an expansion of their industrial automation portfolio.Zebras family of fixed industrial scanners is ideal for high-volume industrial scanning environments.These stationary devices follow items through production,storage,and fulfillment operations,delivering speed and accuracy.Zebras smart sensor
143、s and machine vision cameras enable a broad range of tasks,from simple track-and-trace to complex quality inspection.Moreover,smart vision sensor and smart camera solutions offer real-time data and actionable insights on critical operations.Find out more by visiting ZEBRA TECHNOLOGIES ZEBRA TECHNOLO
144、GIES Fixed industrial scannerSource:Zebra Technologies30AUTHORS,PARTNERS AND CONTRIBUTORSCONTRIBUTORMathilde Carlier,Transportation and Logistics research expert,StatistaMathilde Carlier is a research expert at Statista,specialising in vehicles and road traffic worldwide as well as sustainable trans
145、port and logistics.Having authored various Statista reports on topics such as the postal service market and electric vehicles worldwide,Mathilde mainly focuses on new energy vehicles,green trucking,and startup brands,and has a particular interest in how these will reshape the transport and logistics
146、 sector.Her research pairs industry insights with in-depth contextual analysis and structure.The transportation and logistics research team is a part of Statistas Editorial Research Intelligence department.As a team,their focus is on providing insights on dynamic market changes and developments in t
147、he transport industry,including maritime shipping,vehicles and road traffic,active mobility,metal manufacturing,and sustainable transportation.With more than 1 million statistics,Statista is one of the worlds leading data platforms for strategic market analysis,statistics,editorial research and data
148、 storytelling.S is a hub for data,insights and trends on 80,000 topics and 170 industries,composed of proprietary surveys,exclusive secondary sources and aggregated data from over 22,500 sources.Since 2007,Statista has grown to more than 1,200 employees at 14 locations worldwide and provides more th
149、an 2.5 million registered users from business,science,and the public sector with access to high-quality and reliable data and statistics.Statista also supports other companies with this expertise:Statista Q carries out analyses and studies for clients,while the Content and Information Design team co
150、nceives,realises and,graphically edits topics for specific target groups.31UKRAINIAN CEP MARKET BACKGROUNDUkrainianCEP marketbackgroundPartners:32UKRAINIAN CEP MARKET BACKGROUNDSUMMARYMarket context and trendsSome 3,194 postal and courier businesses were registered in Ukraine in 2021(source:State St
151、atistics Service of Ukraine),contributing to the growing economy at the time.The macroeconomic repercussions of Russias invasion of Ukraine in February 2022 can be felt across all sectors and have greatly impacted Ukraines growth.Between 2020 and 2021,the countrys real GDP increased to around 101.45
152、 billion in constant 2015 USD,equaling around 2,451.9 in constant 2015 USD per capita(source:World Bank).The World Bank estimates Ukraines real GDP growth slowed to a rate of-35%in 2022.The World Banks January 2023 forecast expects the Ukrainian economy to slowly recover from the impact of the war,w
153、ith a projected real GDP year-over-year growth rate of 3.3%in 2023 and 4.1%in 2024.At the height of the COVID-19 pandemic,E-commerce represented some 2.6%of Ukraines GDP(source:US Department of Commerce).The Ukrainian E-commerce sector recorded a similar boom to the global and European sectors throu
154、ghout 2020 and 2021.In March 2021,62%of internet users paid for goods and services online in the country,compared to 51%a year earlier(source:Kantar Ukraine).Russias invasion of Ukraine halted this dynamic market expansion,but E-commerce revenue is forecast to rebound in 2023 up to nearly 2.76 billi
155、on USD.Nova Post branch in Poland,WarsawSource:Nova Post33UKRAINIAN CEP MARKET BACKGROUNDIn 2022,the Ukrainian E-commerce revenue shrank by 91.79%year-over-year,down to 298.24 million USD(source:Statista).This decrease placed Ukraine as the 119th largest E-commerce market worldwide,a ranking it is e
156、xpected to outgrow in 2023,moving up to 58th.Pre-war forecasts projected a steady increase in Ukraines E-commerce user base,which amounted to an estimated 18.94 million users in 2021(source:Statista).However,the war led to many internally displaced people and refugees fleeing the country.As of the 4
157、th of April 2023,the UNHCR recorded around 8.16 million individual Ukrainian refugees across Europe.This ongoing refugee crisis impacts Ukraines E-commerce user base and internet usage.The average revenue per user plummeted in 2022 and is forecast to struggle to beat its 2021 value in the next years
158、.Statista projects the 2027 average revenue per online shopper to amount to 186.2 USD,5.6 dollars less than in 2021.Electronics and fashion were the top sellers,amounting to around 1.12 billion and 947.8 million USD in 2021(source:Statista).Revenue from these segments dropped dramatically in 2022 bu
159、t still represented roughly 53.78%of the Ukrainian E-commerce market.R.ua was the leading online store in the country in 2022,with online net sales revenue over twice that recorded by Apple which ranked second in the country.M.ua made the top three that year,based on eCommerceDB data.On a segment le
160、vel,Apple was the market leader for consumer electronics online sales,while R.ua topped the fashion rankings,followed by Z.While E-commerce was a booming market mainly within Ukraine,cross-border E-commerce also presents opportunities for service providers.A EU4Digital report highlighted the challen
161、ges the sector faced as of 2020,including the limited use of global marketplaces in Ukraine.It is also uncommon for local marketplaces to sell within the EU.Average E-commerce revenue forecast per user in UkraineNotes:Data shown is using current exchange rates and reflects market impacts of the Russ
162、ia-Ukraine war.Source:Statista,Feb 202334UKRAINIAN CEP MARKET BACKGROUNDOne of the main challenges faced by E-commerce in Ukraine comes from the logistics sector.Estimates as of the end of February 2023 by the Kyiv School of Economics report around 143.8 billion USD in direct damage caused by the Ru
163、ssian invasion,including 36.2 billion USD in damages to general infrastructure.Based on data from February 2022 to February 2023,the World Bank assesses Ukraines long-term postal reconstruction costs to reach 260 million USD between 2023 and 2033,95.3%of which would cover short-term needs between 20
164、23 and 2026.Postal service delivery restoration needs should amount to just under 1.89 billion USD across the same ten years.This evaluation is based on an estimated 0.2 billion USD in accumulated damage and 1.1 billion USD in accumulated loss to the Ukrainian postal sector since the beginning of th
165、e war.These pressures placed on Ukraines logistics sector must have an impact on E-commerce,particularly regarding goods delivery.National and international private postal services have committed to maintaining postal routes despite massive disruptions,with,for example,DHL sending more than 60,000 c
166、are packages between April 2022 and 2023 to a parcel point in Poland for redistribution by Ukrposhta in Ukraine.Additionally,Ukraines pre-war commitment to the digital transformation of its postal sector could help alleviate some of these pressures.External donors could also assist in this digitisat
167、ion.In 2021,this process was already underway:the EBRD issued a 13 million EUR loan to Nova PostUkraines leading private postal service providerto digitise their parcel logistics.A year earlier,the EBRD issued a 63 million EUR loan to Ukrposhtathe national postal operatorto increase their coverage o
168、f rural areas.As traditional postal routes within and connecting to Ukraine have been disrupted by Russias war on Ukraine and as Ukraine pushes towards increased digitalisation,the E-commerce and postal services sectors are facing rapid changes and new challenges.These emerging developments will con
169、siderably shape recovery.Nova Post parcel locker produced by Modern ExpoSource:Nova Post35UKRAINIAN CEP MARKET BACKGROUNDUKRAINIAN PARCEL MARKET BACKGROUNDMarket definitionThis report covers the market for parcel services in Ukraine.Items are typically small parcels,larger than a letter(for which pa
170、rcel service is generally considered not to be cost-effective)but can be handled by one person.The precise upper weight limits vary between operators but are typically in the region of 25-35kg.The markets largest operator Nova Post has set its upper limit for courier shipments at 30kg.Delivery may b
171、e next day or several days later,but not usually the same day the item was picked up on.Due to the size of the country and the long distances to be covered typically involve many hubs and spoke network.This usually consists of a network of local depots,which handle collections and customer deliverie
172、s and a central hub,acting as a clearing house to sort parcels sent between different local areas.Express parcels overlap with other segments such as mail,pallet distribution,groupage,freight forwarding,same day courier and contract logistics.36UKRAINIAN CEP MARKET BACKGROUNDCharacteristics of the m
173、arketCEP is a network type business where the overwhelming majority of costs relate to the provision of the service platform and are fixed in nature.Hence,the marginal cost of an additional customer or parcel is usually small;this is especially the case with OOH.As a service business,the largest cos
174、t item for a typical parcel operator is labour cost.Capital intensity is relatively low(except with lockers);hence returns on capital are generally high.Scale economies are important in certain areas but particularly in density of pickup and delivery routes.Reducing the time spent travelling between
175、 stops(both for collection and delivery)should lead directly to lower cost and increased profitability.Unless a carrier has some unique advantage,such as IDM,PUDOs or APMs,and/or is heavily integrated with the customer,switching costs are relatively low and,in most markets,there exists a range of al
176、ternative providers.As a consequence,customer churn rates are frequently high,in particular for larger B2C customers.37UKRAINIAN CEP MARKET BACKGROUNDBusiness vs.Consumer deliveryThere has been significant convergence in recent years between the traditional parcels segments of B2B,B2C and C2C.In the
177、 past,each was considered to be a distinct market.Business carriers were wary of the risks of home deliveries,fearing that they would not fit their models and would increase costs.Residential addresses,likely to be off the normal delivery routes,can often be harder to locate and present a high proba
178、bility of a failed delivery with no-one being available to receive or sign for the package.Home deliveries were largely carried out by specialist consumer carriers,many of whom had been set up by the catalogue mail order companies to enable them to serve their networks of agents.These carriers used
179、low-cost models which were often able to offer segment-specific features such as evening and weekend delivery but tended not to have the same level of parcel tracking and security as the business delivery models.Consumers and small businesses looking to send occasional or one-off parcels would drop
180、them off at their local post office.However,in recent years,many of the barriers have broken down.The expansion of home shopping has made consumer deliveries a faster-growing segment,attracting business carriers to the area.Increasing parcel density/volumes,developed PUDO or APM networks have enable
181、d more efficient collection and delivery consolidation.Together with improved routing,satellite navigation systems the above reduced costs and risks of consumer delivery to the point that it can be a scalable and profitable business as demonstrated by Nova Post in Ukraine.38UKRAINIAN CEP MARKET BACK
182、GROUND Most traditional B2C delivery carriers have invested in sophisticated tracking and tracing systems and,in some cases,lured B2B customers with low prices to improve their delivery density and hence their economics.As a result of the hostilities,most small companies have suspended operations or
183、 disappeared from the market altogether.At the end of 2022,Nova Post,UkrPoshta and Meest remained the only active operators of any significance.Nevertheless,it is still useful to consider online shopping as a distinct market driver.As a rule of thumb,the market growth model does this in tandem with
184、the overall level of economic activity measured in real GDP,which is important given that parcel carriers serve a wide range of customers in many different sectors of the economy.This was also the case in Ukraine until 24 February 2022.Unfortunately,the hostilities caused rapid changes in the market
185、 and purchasing trends due to the crisis situation across the country.Business deliveries no longer make up the majority of the market in most developed countries,where deliveries are mainly driven by the growth of online retail.However,Ukraine is in a different situation,before the war,during the d
186、ynamic development of many CEP/logistic companies,B2B deliveries accounted for a significant percentage of domestic shipments.In 2022,after the outbreak of war,the situation changed even more,as most companies from the CEP sector joined humanitarian or military transport operations.This,of course,di
187、storted many statistics regarding both the volume and turnover generated by these entities.At the same time,C2C volumes(examples include Vinted,OLX,etc.)are growing in Europe,and we see that Ukrainian consumers are also seeing the benefits of buying second-hand items.We expect that as soon as the wa
188、r ends,C2C will also become a significant factor in terms of volume growth.Nova Post Branch Source:Nova Post39UKRAINIAN CEP MARKET BACKGROUNDOther segmentations of the marketPREMIUM/ECONOMYPremium services are those which commit or“guarantee”to deliver a parcel on a specific date(typically next work
189、ing day for most domestic services)and/or by a specified time of day.Introduction of such services enabled carriers to charge premium prices.However,as operations have become more efficient,more carriers incorporated premium deliveries into their offer,thus reducing differentiation.The gradual shift
190、 towards premium services seen in the B2B segment has been offset by the faster growth of B2C segments.Initially skewed towards economy services,carriers are now increasingly moving towards next day as the default option INTERNATIONAL/DOMESTICThe percentage of international shipments fluctuates betw
191、een global carriers,such as DHL,FedEx,UPS,and local players.Due to the hostilities,global operators have completely suspended their air operations,or premium shipment service.Nonetheless,after the hiatus,international service via road transport,mainly in transit through Poland,has partially returned
192、.Historically,significant premiums could be charged for international traffic,and this was a clear area of differentiation between the global integrators/international networks and domestic operators.Nova Post parcel locker produced by Modern ExpoSource:Nova Post40UKRAINIAN CEP MARKET BACKGROUNDUkra
193、inianCEP markettrendsPartners:41UKRAINIAN CEP MARKET TRENDSSome of the key trends include:While the war is skewing some of the trends in favor of B2C and C2C aid type shipments.Continued development of PUDOs and,in particular,lockers.Changes in retail patterns with e-tailers and retailers paying mor
194、e attention to the last mile and even setting up their own capability here.Improvement in carrier IDM and a general increased use of technology in the last mile.Growth of same day delivery.Continued role of brokers to serve the C2X segment.Importance of C2C volume.Last mile is currently the fastest
195、growing major segment of logistics.Development of OOH The development and implementation of OOH points in Ukraine have encountered unique challenges over the past year.The ongoing war has impeded the growth of this sector,resulting in limited progress compared to previous years.The restoration of pr
196、e-war volumes is currently underway,but the market for PUDO and parcel lockers delivery services in Ukraine has not yet fully recovered.According to ,there is currently a variety of OOH locations in Ukraine,totalling 29,710 points(data from June 16th 2023)and it is estimated that by the end of 2022,
197、the number was approximately 28,000.In 2022 major CEP networks such as Ukrposhta,Meest,Delivery,and SAT have experienced significant declines in their networks.Ukrposhta,for instance,has witnessed a reduction of one-third,while Meest and Delivery have experienced declines of 45%and 40%respectively(s
198、ource:LME).Only Nova Post has managed to restore its network to pre-war levels,with approximately 24,000 service points across the country.However,around 1175 branches still remain in the occupied territories,and their current status is uncertain.The increase in the number of OOH delivery options in
199、 Ukraine has been driven by several factors.One significant factor is the formation of partnerships among businesses.Collaborative efforts,such as PUDO arrangements,have proven to be mutually beneficial.This collaboration allows stores to attract more customers,while delivery operators can expand th
200、eir network of service points,thereby transforming fixed costs into variables.Challenges specific to the Ukrainian market have impacted the growth of OOH delivery volume.The destruction of infrastructure facilities,the implementation of curfews,constant air alarms,and targeted attacks MARKET TRENDSL
201、OOKING AT THESE TRENDS IN TURN:142UKRAINIAN CEP MARKET TRENDSThe reason for locker(and to a similar degree PUDO)success is:More choices for the customer.High first-time delivery rates.Ease of locating and accessing by couriers.Highly efficient delivery method which increases last mile capacity by up
202、 to 5 times.Significant cost benefits vs D2D.Significantly less congestion.Some 2/3 less carbon emissions in urban areas and more in rural ones.ZEBRA TECHNOLOGIES Mobile computerSource:Zebra Technologieson Ukraines energy systems have all had adverse effects on the development or restoration of OOH
203、delivery services in the country.These challenges disrupted business operations and services,making it difficult to provide consistent and reliable delivery options.However,despite the challenges,OOH delivery in Ukraine presents new opportunities for business development.It offers increased market c
204、overage and meets the growing demand for convenient and flexible delivery services from consumers.Nova Post,for example,has responded to these challenges by introducing innovative solutions such as postal lockers powered by special batteries.These lockers allow customers to receive shipments 24/7,in
205、dependent of power outages,internet connectivity,or mobile network availability.Nova Posts branches have also been equipped with generators and“STARLINKs”,internet connections via satellite,to ensure uninterrupted delivery,providing a reliable service to customers.In conclusion,while the Ukrainian m
206、arket for OOH delivery has faced notable challenges,it remains an essential service with significant potential.The ongoing restoration efforts,combined with innovative solutions,enable businesses to overcome obstacles and offer convenient and flexible delivery options to customers throughout the cou
207、ntry.With almost 30,000 OOH locations available in Ukraine,the network continues to expand,providing a solid foundation for the future growth of OOH delivery services.43UKRAINIAN CEP MARKET TRENDSChanges in retail patterns2The Ukrainian E-commerce market was significantly impacted by the Russian inv
208、asion in 2022.Online stores experienced a dramatic 82.7%loss in sessions on the day of the invasion,resulting in a decline in online activity.However,there was a recovery observed in the following weeks.Interestingly,from mid-March 2022 onwards,there was a notable increase in transactions,which can
209、be attributed to the emotional stages experienced by individuals during times of war.As Ukrainians sought stability and safety,they turned to online platforms to purchase essential items and support the economy.The automotive sector also experienced a rise in sessions,likely due to the seasonal dema
210、nd for changing winter tires to summer ones.However,the impact on revenue was severe,as Ukrainian online retailers experienced an unprecedented average drop of 92%in revenue during the first week after the start of the war.This decline resulted in job losses,damage to infrastructure,warehouses,physi
211、cal stores,and delivery systems.Although there were signs of revenue growth by mid-March,the losses sustained by early April remained significant.The clothing sector was particularly affected,given the non-essential nature of these products during a war crisis.However,a remarkable 1,264.3%surge in t
212、ransactions was observed a month after the invasion,possibly driven by changing weather and the need for summer garments among displaced individualsE-commerce transaction statistics Source:P 44UKRAINIAN CEP MARKET TRENDSE-commerce transaction ratesSource:P E-commerce conversion rateSource:P On a pos
213、itive note,approximately a month after the invasion,the conversion rate for online purchases in Ukraine returned to nearly normal levels,indicating a resilient consumer base.The automotive sector also experienced an uptick in conversion rate due to seasonal demand.The Russian invasion has underscore
214、d the significance of investing in organic traffic and increasing brand awareness for online businesses.It has highlighted the need for ongoing efforts to bolster online presence and adapt to challenging circumstances.45UKRAINIAN CEP MARKET TRENDSThe migration crisis resulting from the war,which led
215、 to the largest wave of the 21st century and compelled over 5 million refugees to seek refuge in EU countries(Source:https:/war.ukraine.ua/),had a significant influence on the development of the E-commerce market in Ukraine.The volume of E-commerce(B2C)in Ukraine experienced a decline of nearly 29%i
216、n 2022 compared to 2021(Source:Effigy consulting).However,due to the migration of Ukrainians,mainly to neighbouring countries,some Ukrainian E-commerce demand has shifted to the those markets,resulting in additional growth there.On the contrary to B2C,the C2X segment,encompassing both C2C and C2B tr
217、ansactions,exhibited remarkable volume growth(+53.6%).Currently,the C2X segment constitutes 36.6%of the total Ukrainian CEP market(source:Effigy Consulting).A significant number of internally displaced people who relocated from the southern and eastern regions to western Ukraine have started purchas
218、ing household items online.This has led to a redistribution of shipment volumes,with an increase of 30%in shipments to the western regions and a decrease in shipments to the eastern regions(Source:Ukrposhta).The revenue in the E-commerce market is expected to reach between 2.8 billion USD(Source:Sta
219、tista)up to 3,5 billion(Source:Meest)in 2023.The future forecast includes annual growth rates of 13.84%by 2027,with a market volume of 5,860 million USD and an estimated 24.8 million E-commerce consumers by 2027.User penetration is predicted to be 58.8%in 2023 and 63.6%in 2027(source:Meest).In terms
220、 of retail structure,there has been a notable shift towards an omnichannel approach,combining online and offline sales for a seamless shopping experience.Additionally,there has been an increase in marketing collaborations between different businesses,aiming to offer unique and personalised services
221、to customers.This includes providing enhanced customer service for the delivery of items and products,even in cities where the retailer does not have a physical store presence.In terms of consumer behaviour,a growing trend of mobile shopping has been observed,with more consumers making purchases usi
222、ng their smartphones and tablets.Social networks have become popular channels for shopping,and consumers are taking advantage of social commerce opportunities for convenient online shopping experiences.E-Commerce is on the rise in Ukraine,and there is particularly high demand for delivery from onlin
223、e stores based in the EU,the US,and China.During the autumn and winter of 2022,when Ukraine faced deliberate power system disruptions caused by Russia,Ukrainians turned to international online stores to order essential items such as charging stations,generators,power banks,lights,and“STARLINKS”.The
224、domestic market couldnt fully meet the consumer needs at that time.To facilitate the delivery process,it would be beneficial for European stores to include Ukrainian carriers as a delivery option on their websites,potentially through the use of APIs.Data indicates a slight decrease in the number of
225、Ukrainians shopping in domestic online stores in 2022.However,this decrease was compensated by Ukrainians living abroad who continued to make online orders for their families remaining in Ukraine.Additionally,there was an increase in the number of first-time online shoppers and a rise in the frequen
226、cy of online purchases among occasional buyers.The most popular categories for online purchases among Ukrainians remained 46UKRAINIAN CEP MARKET TRENDSrelatively stable,including clothing and footwear,household goods,appliances and electronics,health and beauty products,tools and automotive products
227、.However,there was an increased interest in online purchases of pet products,goods for the countryside and garden,goods for tourism,and sporting goods.These changes in the retail structure have had a significant impact on the CEP sector in Ukraine.Firstly,there has been a recovery in the volume of d
228、eliveries from online stores,with the industry experiencing growth,especially during war crisis.Nova Post research indicates that the current E-commerce market is 12%lower than before the war,but there is a positive trend towards recovery and growth.Furthermore,many individuals in the de-occupied te
229、rritories of Ukraine rely on OOH delivery services to access essential goods that may not be readily available in regular stores.They use online platforms to order necessary items and have them delivered to APMs and PUDOs for convenient pick-up.Carriers have actively collaborated with overseas onlin
230、e retailers.For example,following the resumption of deliveries by Nova Post and Meest from E-commerce platforms such as AliExpress,NOTINO,ANSWEAR,iHerb,LPP,or MODIVO in May and June 2022,there was a significant increase in consumer orders for delivery to Ukraine.To facilitate the delivery process,it
231、 would be beneficial for European stores to include Ukrainian carriers as a delivery option on their websites,potentially through the use of APIs.Since March 2022,shipment volumes from Ukraine to European and North American countries have begun to recover and increase by 30%per month.The most common
232、 destinations include Poland,Germany,and the Czech Republic(source:Meest).We cross countries and even continents,but always with the aim of delivering a parcel to a specific door,to a specific person.The strength of GLS lies in the whole Group and in the cooperation of our companies in Europe,the Un
233、ited States and Canada.Despite our international reach,we operate locally everywhere,which has a positive impact on the quality of service and the satisfaction of our customers.We are focused on growth and look forward to Ukraine as a promising new market with huge potential.Every day,we deliver par
234、cels to millions of homes and workplaces.We do this with passion and openness because we know that every parcel is more than just a shipment.The key to our success is flexible,modern,and sustainable solutions.This enables us to deliver quickly and efficiently in more than 40 countries-whether in lar
235、ge metropolitan areas or small towns.The customer always comes first for us.Tomek Zwiercan Managing Director GLS Poland47UKRAINIAN CEP MARKET TRENDSIn 2022,there was an increase in the average online purchase amount.The average checkout in the E-commerce segment in Ukraine was 42,25 USD(source:Meest
236、)partially due to the fact that Ukrainians,during the war crisis,have started to make purchase decisions based on product availability and delivery times,whilst price remained an important but not determining factor.As a result of this change in demand,consumers currently show minimal brand preferen
237、ce and instead purchase whatever is readily accessible.Categories that meet essential needs,such as food,cigarettes,medicines,footwear and clothing,hygiene and household goods,and pet products,are still witnessing growth.In this scenario,the crucial factor for achieving success lies in guaranteeing
238、product availability and implementing efficient logistics systems.As the country progresses towards recovery,construction materials,household goods,electronics,and appliances are expected to be among the best-selling products.However,consumers will exhibit heightened price sensitivity,making it cruc
239、ial to incorporate economy segment products into the product assortment.As Ukraine continues its efforts to reclaim its territory from Russian invaders and sees positive developments in military actions,it is projected that by 2023,Ukraine will almost reach the level of 2020.By 2024,it is expected t
240、o surpass the indicators of 2021.Additionally,there is a forecast for ongoing growth in consumer spending,which will contribute to increased business revenues(source Meest).GLS GLS CourierSource:GLS48UKRAINIAN CEP MARKET TRENDSInteractive Delivery Management;the“secret sauce”in the last mile3Even th
241、e most exceptional OOH networks will struggle if they cannot communicate interactively and promptly with recipients.This is where IDM systems come into play,often referred to as the Uber app for parcels.These systems allow recipients to share their preferences for the time and location of collection
242、,track the progress of their deliveries in real-time,and make changes,even when a parcel is already in transit to their chosen delivery address.IDM not only enhances the customer experience but also maximises first-time delivery rates,which are the ultimate objective for any carrier.There is a succe
243、ss story in Ukraine related to the implementation of IDM systems.Nova Post has long used a proprietary IDM system based on identification,navigation and monitoring.Each parcel has its own schedule,which tracks its movement at every stage on the way to the consignee.Additionally,customers have the ca
244、pability to adjust the delivery plan.This feature gives customers complete control over their shipments as they can monitor their progress,precisely determine their location minute-by-minute,and anticipate their arrival time at each stage of the delivery chain.IDM Nova Post in UkraineSource:Nova Pos
245、t49UKRAINIAN CEP MARKET TRENDSIncreased use of technology in last mile operations4Nova Post parcel locker produced by Modern ExpoSource:Nova PostRegarding the impact of technological progress on last mile operations in Ukraine,operators encountered situations where certain technological advancements
246、 aimed at optimising delivery process had to be temporarily reversed due to military regulations.For instance,the real-time tracking of parcel routes on the map on mobile apps had to be disabled.However,a notable technological solution that has become widespread in last-mile delivery in Ukraine duri
247、ng 2022 is the implementation of mobile branches.As soon as Ukraine regains control over the de-occupied territories,this solution will allow for the prompt rebuilding of branches.Two types of mobile branches are available:custom-designed mobile branches housed in parcel shipping containers equipped
248、 with air conditioning,solar panels,generators,or regular vehicles transformed into mobile branches.Approximately 80%of carriers branches in the liberated territories have been destroyed or severely damaged,necessitating significant time for reconstruction.To facilitate quick service restoration in
249、these areas,the establishment of new premises and the deployment of mobile branches will serve as effective remedies(source:Nova Post).Fixed industrial scanning(which goes hand in hand with machine vision)is a technology that allows to scan barcodes,parcels or objects more or less automatically.The
250、fixed industrial scanner is a robust device designed to be mounted on top of a conveyor belt or table.It automatically reads barcodes on objects passing by and transfers the data to the back-end system,streamlining the process and making it more efficient.Implementing technology in last mile operati
251、ons brings several advantages.Firstly,it enhances efficiency by automating processes,optimising routes,and allocating resources,resulting in more efficient delivery and lower costs.50UKRAINIAN CEP MARKET TRENDSSameday(Romania)parcel locker battery powered developed by Modern ExpoSource:Modern ExpoSe
252、veral other technologies are likely to develop in the Ukrainian last mile,including AGVs or delivery robots.Estonian companies Cleveron and US Starship Technologies are at the forefront of AGV development,although significant tests in Ukraine are yet to be conducted.The current technology for small
253、machines that carry only one or two standard parcels may not be cost-effective or efficient for local delivery models.However,we can expect AGVs in the form of standard last mile vans or larger linehaul vehicles that eliminate the need for a human driver,allowing for longer uninterrupted driving tim
254、es and more efficient machine driving for linehaul operations.Last mile vans offer even more compelling advantages as the courier can focus on planning deliveries and does not require a driving license;the van simply transports them to an optimal location near their stop and waits in a safe and conv
255、enient place.UAVs are used for transporting smaller parcels or medication and have gained considerable attention.However,their utilisation in the Ukrainian last mile is limited,and their application at scale for non-specialist cases is not expected in the near future,especially when war activity in
256、place.While specific use cases such as urgent deliveries of medical supplies or circumventing natural obstructions or poor infrastructure hold promise,broader implementation is hampered by various factors.In terms of emerging technologies,smart locks and blockchain systems are showing potential in t
257、he last mile.Smart locks,which allow controlled and safe access to couriers for successful first-time deliveries,are gaining credibility,particularly for heavy and bulky items that cannot be served by PUDOs or parcel lockers.While smart locks are still rare in the Ukrainian last mile,their benefits
258、are evident.Similarly,blockchain-based systems have the potential to track shipments and deliveries handled by multiple third-party carriers,offering benefits such as automated invoicing and reduced disputed billing.However,these technologies are currently not widely adopted in the Ukrainian last mi
259、le,and their mass implementation is not anticipated in the near future.51UKRAINIAN CEP MARKET TRENDSFor over a decade,we have been providing support to our valued customers in Ukraine by empowering their businesses with cutting-edge products and solutions designed to identify,track,and manage assets
260、.We take a customer-centric approach by actively listening to their needs and offering expert advice on innovative technologies that can significantly improve their productivity and enhance customer satisfaction.Our local team and our partners are committed to delivering solutions that meet the need
261、s of today and tomorrow,ensuring that our clients are always ahead of the curve.Marian ramko,Vice President Sales Eastern Europe&Middle East,Zebra TechnologiesZEBRA TECHNOLOGIES Fixed industrial scannerSource:Zebra Technologies52UKRAINIAN CEP MARKET TRENDSSameday shipping and premium deliveryAt the
262、beginning of the war and throughout 2022,the prompt delivery of vital medicines became a crucial and challenging task in Ukraine.The speed of delivering medical equipment and supplies became critically important for patients and medical facilities.Same-day delivery and premium delivery services play
263、ed a significant role in ensuring that these essential healthcare items reached their destinations quickly and efficiently.Medical organisations,pharmacies,and individuals in need of urgent medical supplies relied heavily on these services to meet their immediate requirements.The E-commerce industry
264、 in Ukraine has witnessed a surge in demand for same-day and premium delivery services.As more consumers turn to online shopping,there is a growing expectation for fast and convenient delivery options.Young and affluent consumers,in particular,are willing to pay more for the convenience of receiving
265、 their orders on the same day.This trend is especially evident for higher-value items such as mobile phones,where customers value prompt delivery and immediate access to their purchases.Furthermore,the food and grocery delivery sector has seen a significant increase in the popularity of same-day and
266、 premium delivery services.The ability to provide timely and convenient service has made them popular choices for those seeking immediate gratification or dealing with time-sensitive situations.In major cities of Ukraine,there has been a significant rise in the popularity of same-day and premium del
267、ivery services.Particularly,these services have gained traction in the medical sector,E-commerce industry,and food/grocery delivery segment.They are specifically designed to meet the urgent needs and expectations of customers who value promptness and convenience in their deliveries.This trend reflec
268、ts the growing demand for fast and efficient service in these key sectors within urban areas of Ukraine.5Nova Post UAVSource:Nova Post53UKRAINIAN CEP MARKET TRENDS Changing situation in Nova Post 6Nova Post,is the leading Ukrainian CEP company,with an over 85%parcel volume market share.It has been a
269、dapting to the changing situation and demonstrating resilience despite the challenges posed by the war.With 22 years of experience,Nova Post has established itself as a trusted provider of global document,parcel,and cargo delivery services.In 2022,Nova Post achieved impressive milestones,delivering
270、315 million parcels and contributing 180 million euros in taxes to the Ukrainian budget.Despite the wars impact,the company remained committed to expansion,opening 1,000 new branches and 1,330 post lockers,resulting in a total of approximately 24,000 service points.To ensure operational stability an
271、d prompt service resumption after the war,Nova Post made strategic adjustments to its logistics.The company implemented new storage technology to accommodate the increased weight of parcels as people left the country with their belongings.Furthermore,Nova Post equipped its branches and sorting termi
272、nals with generators and fuel supplies,demonstrating preparedness for a challenging winter and a commitment to providing reliable services.During the war,Nova Post actively engaged in supporting the recovery of online stores and partnered with various entities to hold over 100 marketing activities.T
273、hese efforts included offering free shipping and promoting the revival of the E-commerce sector.In a testament to their commitment to the countrys well-being,company invested approximately 10 million EUR in supporting Ukraines victory.This included contributions to the Armed Forces,charitable founda
274、tions,hospitals,and rehabilitation centres.Moreover,Nova Posts commitment to humanitarian aid extended to de-occupied territories.The company established innovative mobile branches that could operate using solar panels and generators,ensuring the provision of essential services in these regions.Desp
275、ite the challenging circumstances Nova Post and other Ukrainian CEP players have demonstrated its determination to adapt,expand,and support Ukraines recovery.With their continuous efforts and investments,company remains a reliable and vital player in the logistics and distribution industry,contribut
276、ing to the countrys economic growth and development.54UKRAINIAN CEP MARKET TRENDSBrokers and consolidators7In Ukraine,there are several notable companies that operate as CEP brokers and consolidators,including Meest,Eurosender,and Delengine.These companies provide valuable services in the logistics
277、and shipping industry by offering convenient solutions for both small shippers and carriers.CEP brokers act as intermediaries between shippers and carriers,consolidating multiple orders and shipments to achieve cost efficiencies.They negotiate competitive rates with carriers and pass on these benefi
278、ts to small shippers,who may not have the volume or resources to negotiate favourable terms on their own.By leveraging their expertise and network,brokers help streamline the shipping process for their clients.For small shippers,using a broker offers numerous advantages.Firstly,they can access a wid
279、er range of shipping options from different carriers,enabling them to choose the most suitable service based on factors such as price,speed,and reliability.This increased flexibility allows small shippers to optimise their shipping strategies and better meet the needs of their customers.Additionally
280、,brokers and consolidators provide transparency and convenience.Customers can compare prices and services from multiple carriers through a single platform,simplifying the decision-making process.Companies also handle administrative tasks such as documentation,tracking,and customer support,reducing t
281、he workload for shippers and allowing them to focus on their core business operations.Carriers also benefit from working with brokers and consolidators.By consolidating multiple shipments,they provide carriers with higher volumes,which can lead to more cost-effective operations.This volume consolida
282、tion helps carriers optimise their routes and capacity utilisation,resulting in improved efficiency and reduced costs.55UKRAINIAN CEP MARKET TRENDSC2C and Second Life8C2C is becoming the next big thing in Europe,courtesy of companies such as Vinted and,to a lesser degree,OLX.This is significant as C
283、2C,more than any other segment requires low-cost OOH options including exchange services where a parcel may even be delivered to and collected from the same access point or locker.This same exchange service fits well with in-car delivery(especially if enhanced with a camera option,for added security
284、).C2C volumes in Ukraine have experienced remarkable growth of 53.6%in 2022 compared to 2021(source:Effigy Consulting),and this trend is expected to continue due to the economic necessity driving a shift in purchasing habits.Vinted Go parcel locked developed by Bloq.itSource:Bloq.itWhat will the new
285、 last mile be like?APMs or PUDOs Smart locks enabling in-home/in-garage/in-fridge delivery AGVs&UAVs Crowdsourcing(Amazon Flex)Smart cities and the sharing economy On demand(Amazon Now)Grocery&fresh disruption ahead Technology will be key:IDM&AI White Gloves(Heavy&Bulky)3D printing(limited use cases
286、 for now)56UKRAINIAN CEP MARKET TRENDS“Business in Ukraine is actively working and developing.We experienced a severe disruption in the first two months of the full-scale war,but all those who recovered have redoubled their efforts to expand their business formats and enter international markets.The
287、re are 30 million active consumers in Ukraine.Ukrainians have started to buy online even more than before the war,as not all offline stores were able to recover and timely restock their product range.This provides a powerful incentive for the development of online commerce and express delivery.Nova
288、Post is doing everything possible to be a backbone for business and every Ukrainian consumer.We are opening new branches,parcel lockers and PUDOs in towns and villages to be as close to our customers as possible and provide access to an expanded range of Ukrainian and foreign online stores in the mo
289、st remote regions.We deliver parcels and cargo around the world so that local businesses can quickly deliver to their customers all over the world.In addition,we are actively developing a network of branches in Europe-Poland,Lithuania,Moldova,Czech Republic,and soon-in Germany and Romania.This allow
290、s Ukrainians to support and take care of each other even at a distance,and international businesses to enter the Ukrainian market.”Oleksii Taranenko,Nova Post Chief Business Development OfficerNova Post terminal in MykolaivSource:Nova Post57UKRAINIAN CEP MARKET BACKGROUNDMarket shareby carrier,volum
291、e andvaluePartners:58MARKET SHARE BY CARRIER,VOLUME AND VALUEINTRODUCTIONThis chapter constitutes a summary of the review of the Ukrainian CEP Market on 2020 to 2022 data.The research has been undertaken by Effigy Consulting.The Ukrainian CEP market review involves extensive desk research,assessment
292、s and interviews.Our methodology and consistency of approach has enabled us to cross-reference several sources and data points,creating improved transparency and accuracy.Details on the methodology,including the parcel items in scope as well as the definitions,are available upon request.The study pr
293、ovides the following market dimensions:Revenue and Volume from 2020 to 2022.Products:Express and Deferred.Flows:Import and Export.Destinations:Domestic,Intra-Continent,and Extra-Continent.Recipients:B2B,B2C and C2X.Weight:0-31.5kg(0-68 lbs).Year-on-Year Growth.CEP Market extension including Small Pa
294、ckets.*The CEP market in this study is defined in terms of 4 main parameters:Parcels:Individual boxes or packages that can be carried by one man.Network visibility and traceability:the item is tracked through the delivery chain.Network Operations:the item is transported through a regular transport n
295、etwork.Brand view:the carriers are grouped at Corporate level under the same brand footprint.This definition excludes Pallets,Freight,Same Day and any other Logistics and Value-Added Services.The allocation of CEP products has been reviewed by country and by carrier.The main carrier products have be
296、en mapped against the service levels.Express:Timed delivery guaranteed by the next business day.Deferred:More economical product,within the above-mentioned CEP market boundaries.*A review of Small Packets is available in the Extended CEP market section.59MARKET SHARE BY CARRIER,VOLUME AND VALUEMETHO
297、DOLOGYMETHODOLOGY INTRODUCTIONThe methodology in place is a combination of Primary Research by doing extensive market interviews and Secondary Desk Research.Primary Research:Interviews are managed through Last Mile Experts team,local market consultants,multiple carriers and regional experts.The bene
298、fit of interviews is to cross-reference the information collected,to confirm country trends in specific segments,to review specific data points and to consider local news articles.Our preferred modus operandi is to use local consultants.It is also worth noting that we run multiple interviews each ye
299、ar with country experts.We have developed our own network to ensure in-depth market knowledge built up through multiple years of experience.Our network provides the capability to launch analyses in all European countries with a panel of more than 200 carriers,including all Postal operators.Secondary
300、 Desk Research:we are continuously screening news articles and storing information related to the CEP market and we combine them with financial sources.Our main sources are:Web reports and news articles,Chamber of Commerce and other financial data,Dun&Bradstreet and UPU,Country regulators and Local
301、reports,Airport and Airline information(database,reports,etc.),etc.Our methodology also includes the following steps:We build dedicated business cases to determine the segmentation of each companys revenue and volumes into various dimensions such as destination,recipient,flow,product,etc.We validate
302、 with local and European market experts the positioning of each player in various segments in terms of market share,growth and ranking.We permanently update our database(retroactively when needed)to ensure quality of information:official information is often published a few years later,which enables
303、 us to backtrack on our assumptions and to take corrective actions if necessary.Our market assessments are not limited to Europe;we often review other key regions such as China and the US(among many others).Indeed,these destinations have a strong impact on the European CEP market.Such reviews includ
304、e,for example in China,interviews with multiple players such as China Post,SF Express,Alibaba,Amazon and Integrators active in the region.We have developed our own business intelligence tool for CEP data modelling.The tool is continuously updated and is focused on improving the quantity and quality
305、of the data through various checks,benchmarks,market insights,backtracking,performance scenarios across the various segments of the market(e.g.Domestic/International,B2B/B2C,Time Definite/Day Definite/Day Probable/Deferred,etc.),addition of new dimensions,etc.Good relationships and networking with p
306、layers in the parcels market throughout the regions are also key to ensure high-quality data.60MARKET SHARE BY CARRIER,VOLUME AND VALUEWe have made specific choices for special cases/situations:It is difficult to gather information on Direct Injections.Carriers themselves are not always aware of cer
307、tain internal practices/behaviours.Where we find information related to a Direct Injection from one country to another(without using the standard network),we report it accordingly.Otherwise,we assume that Direct Injections are mostly included within domestic activities.We use discounting techniques
308、to offset potential grey areas for activities that do not belong in our CEP Market perimeter,such as Same Day,Mail,Heavy Weight,Freight,Warehousing,other logistics activities,etc.We run a specific assessment on the Small Packets which can be hidden in the parcel activities of carriers.Small Packets
309、are light items carried through Mail networks.If the carrier officially declares the Small Packets as Parcels,we follow their input,if not they are processed in a separate database.Such information is important in order to better determine the revenue per piece(RPP)which could be low for certain car
310、riers.PERIMETERThe CEP market perimeter is defined in terms of 4 drivers:Parcels:Individual boxes or packages that can be carried by one man.Network visibility and traceability:the item is tracked through a barcode or potentially any other device(unlike“Mail items”that are typically untracked).Netwo
311、rk Operations:the item is transported through a regular transport network,with regular daily connections,routes and tours.Brand view:the carriers are grouped at Corporate level under the same brand footprint.This definition excludes Pallets,Freight,Contract Logistic,Innight service,Air Cargo Linehau
312、ls,etc.Please note that an extension to the CEP Market is provided in a dedicated section(Extended CEP Market)in which we also consider Small Packets(light items carried through Mail Networks).DIMENSIONSThe perimeter of the CEP Market study includes the following dimensions:Revenue and Volume Revenu
313、e is calculated in EUR We track all revenues in local currency,and we apply the same exchange rate to all years to avoid a currency conversion effect.Volume is calculated in parcels All volumes are allocated to the carrier with commercial ownership of the customer.Sub-contracted volumes have been re
314、moved as far as possible to avoid double counting.61MARKET SHARE BY CARRIER,VOLUME AND VALUE Product split by volume and revenue Express(Time Definite)Deferred(Day Definite+Day Probable)Small Packets-not in standard CEP perimeter see additional dimensions below Destination split by volume and revenu
315、e Domestic International Intra-Continent(EU countries+European countries outside of the EU,i.e.UK,CH,NO,RU,UA,TR,RS,and IS)International Extra-Continent(non-European countries)Recipient split by volume and revenue B2B B2C C2X(C2C and C2B(Returns)Flow split by volume and revenue Import Export Years i
316、n scope 2020 2021 2022 Weight break 0-31.5 kg(equivalent to 0-68 lbs)31.5-70kg(equivalent to 68-155 lbs)-not in standard CEP perimeter see additional dimensions below Additional dimensions:these are items that are not yet considered as part of the existing standard CEP perimeter.We include them as t
317、hey may become part of standard CEP in the future.Small Packets(light weight items(2kg;4.4 lbs)carried through postal mail networks)are not in the standard data set,unless the carrier has counted them as parcels.Small Packets are treated as an extension and are addressed in a dedicated section(Exten
318、ded CEP Market).Heavier Weight parcels:31.5 to 70kg.(equivalent to 68-155 lbs)Certain carriers set a limit at 68kg(150 lbs)for heavy-weight parcels.A weight over 31.5kg(68 lbs)requires either 2-Man delivery or the use of a forklift to deliver the parcel to the clients front door.Please note that cer
319、tain carriers extend the weight of a parcel to 300kg(660 lbs).We have not taken these items into consideration as the delineation between parcels and pallets/freight is already blurred at 31.5-70kg and can be misleading up to 300kg.Furthermore,the Revenue allocated to such parcels can be very high a
320、nd it is therefore appropriate to exclude them.Heavier Weight parcels are treated as an extension and are addressed in a dedicated section(Extended CEP Market).62MARKET SHARE BY CARRIER,VOLUME AND VALUEDEFINITIONS Revenue Calculated in EUR generated from the collection and delivery of parcels to fin
321、al addressee,or in case of Import,the delivery from the gateway to the consignee.The revenue figures provided include Fuel Charges and other Value-Added Services related to the delivery of the parcel items.Volume Measured in number of parcel items(domestic,outbound or inbound);all volumes are alloca
322、ted to the carrier with commercial ownership of the customer.Sub-contracted volumes are to be removed(as much as possible)to avoid double counting.In case of Import,the delivery of the parcels from the gateway to the consignee are attributed to the operator with responsibility for the last mile deli
323、very.Flow Import Inbound parcels are delivered into a country typically through an owned network(but can be via a 3rd party for carriers without a pan-European network).Export Outbound parcels delivered into the country of destination.Recipient B2B Traditional Business to Business activities.B2C Tra
324、ditional Business including Retailer to final Consumer activities and including e-traders,marketplaces,power-sellers(former consumers who have become E-commerce professionals).C2X C2C:Activities between private individuals,i.e.parcels sent to friends and family and those generated via platforms such
325、 as eBay.C2B:Return of items initially purchased through distance selling and to be dropped off by the consumer/individual at a collection point(e.g.post office or parcel shop).Return costs may be paid by the consumer,however these costs are increasingly covered by the retailer or even sometimes sha
326、red between the consumers and the retailer.Product Express(Time Definite)Guaranteed timed deliveries,such as 09:00,12:00,EOB delivery;typically,next business day(domestic and international)and with a money-back guarantee.Deferred(including Day Definite and Day Probable)Economy-type products,but stil
327、l with a specific date or number of days commitment;deliveries without a specific delivery time,typically more than 1 business day for 63MARKET SHARE BY CARRIER,VOLUME AND VALUEinternational services.This often represents the road-based transportation products.Small Packets Small parcels with a weig
328、ht limit up to 2kg(4.4 lbs)and commercialised by Mail divisions-most of the time accounted for in the Mail division.DestinationDestination is split into Domestic,Intra-Continent and Extra-Continent.Direct Injections are generally treated as Domestic.LIST OF CARRIERS CONSIDERED IN THIS STUDYThe carri
329、ers considered for the review of the Ukrainian CEP market are the following:Carrier level Brand name:CATDHL ExpressFedEx/TNTMeestNochnoy ExpressNova PostUkrposhtaUPSOthers1AVAILABILITY OF THE UKRAINIAN CEP MARKET FULL DATASET The views provided in this report only represent part of the Ukrainian CEP
330、 market data contained in the full dataset.The full report provides:a top-line view of the total Ukrainian CEP market from 2020 to 2022 in both revenue andvolume.a view of the markets evolution by segment from 2020-2022 in both revenue and volume.a top-line view by carrier for 2022,including year-on
331、-year growth,in both revenue andvolume.a drill-down in volume on the various segments split by carrier brand view.an extended view of the market providing Small Packet and Heavy-weight volumes.a 2023-2027 Forecast in volume of the total Ukrainian CEP market and with a B2B vs.B2C/C2X split.1 Others r
332、epresents the consolidation all other carriers and rest of market64MARKET SHARE BY CARRIER,VOLUME AND VALUEThe goal of this report is to provide you with a good understanding of the Ukrainian CEP market and of its evolution in recent years.If you wish to have access to all the data dimensions availa
333、ble,such asa breakdown of the carriers revenue by segment.additional years(from 2014).segments mix details,e.g.carriers revenue and volume for B2C Domestic Deferred,B2B.International Export,B2C/C2X International Intra EU,etc.Our full Ukrainian CEP market dataset is also available for purchase.The dataset is provided in a flat-file format(Ms-Excel),enabling you to make your own simulations,select a