1. WE KNOW THE REGION INSIDE OUT_____________
Changing customers’ habits and
changing postal operations
Levente Laszlo, Magyar Posta
Dubrovnik, April 13, 2011
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2. Changing communications habits
Changing purchase habits
Changing postal operations
Future: „to be ahead of the game”
2

3. Communication trends are changing!
World – mobile phone users 5,2 billion (2010)
Hungary – mobile phone users 12 million (2010)
3

4. Mobile users / subscriptions
There are 76,3 mobile subscriptions / 100 inhabitants
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5. Internet users in Europe, 2010
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6. CEE - Internet penetration 2010 vs. 2009 (%)
TOP European internet penetration 2010 - Estonia
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7. CEE - Internet users growth 2009 – 2010 (%)
TOP European internet growth 2010 – Ukraine
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8. World internet users are increasing …
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9. „PostEurop … we have a problem ...”
1,966,514,816 internet connections
255 million homepages
2,9 billion email-addresses
294 trillion email / day
600 million Facebook-members
Will the physical
letter survive ?
9

10. e-commerce spend on the 13th April 2011
April 13, 2011
E-commerce spending: 154,1 b EUR
Broadband users: 310 million
Internet access increase yoy : 29,7%
M-commerce users: Japan 58%
E-commerce spending in 2010
591 billion EUR
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11. eBay spending on m-commerce, 2010
11

12. Mobile is revolutionizing e-commerce => m-commerce
Constant product developments
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13. And there is the f-commerce …
REMEMBER : there are 600 million facebook-members !
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14. World is changing … very fast … too fast …
ARE WE
FOLLOWING THE
CHANGING
COMMUNICATION
AND SHOPPING
HABBITS OF OUR
CUSTOMERS ?
14

15. E-commerce in Hungary
By the end of 2010 e-commerce spending was 480 million EUR
(+35% increase yoy)
15

16. Magyar Posta „all inclusive e-commerce” business model
Distribution of unaddressed
1 items
4 COD
2 Distribution of addressed items
Reverse Logistics
5 Management
3 Distribution of parcel items
6 Reports
.
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17. Briefly about the complex business model
Case Study
Distant Seller (DS) located in Germany is selling via catalogues
and internet goods on the Romanian market
Magyar Posta offers all inclusive e-commerce service
(operations and liability)
The business model = full controll on the processes
Local distribution of unaddressed items (flyers)
Local distribution of addressed items (catalogues and DM)
Local distribution of parcels with / without COD
Cash collection and transfer
Return of undelivered items
Return logistics management (RLM)
Other linked services (GIS, reports, etc.)
17

18. New business model: geomarketing
Egy
háztartá
Háztartások Összes
Kerület Népesség sra jutó
száma vásárlóerı
index / Családi
vásárlóe
rı New ways for building customers /
€ / háztartá házas
fı db millió € háztartá s címhely buyers databases:
s Mo.=10 ek
0 száma
Budapest I. kerület 24 665 13 770 184,8 13 421 113,7 6
Offering GIS modells
Budapest II. kerület 88 187 42 114 668,6 15 875 134,5 8 327
123
Budapest III. kerület 737 54 464 842,8 15 474 131,1 11 751
Budapest IV. kerület 98 381 42 328 648,8 15 329 129,9 5 086
Budapest V. kerület 27 023 14 309 194,1 13 568 115,0 0
Budapest VI. kerület 41 784 22 534 250,7 11 127 94,3 0
Budapest VII.
kerület 62 034 34 263 350,1 10 218 86,6 0
Budapest VIII.
kerület 81 447 40 351 415,5 10 297 87,2 263
Budapest IX. kerület 60 892 31 671 350,3 11 060 93,7 490
Budapest X. kerület 78 484 34 961 446,3 12 765 108,2 3 670
137
Budapest XI. kerület 426 65 691 921,5 14 028 118,9 7 198
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19. The operational process (parcels)
Parcels are delivered from Germany for distribution (last mile) into
Romania. All items are tracked and with COD.
Distance Receiving Delivering End
Seller Post operator Customer
xml file
Transfer
report
Comment:
->24-48 h preadvice / database-xml file
->Magyar Posta processing the xml-file
->Magyar Posta sends the output-file to
the subcontractor with 24 h before
shipment
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20. XML, Extensible Markup Language
<sorszam> 1
<azonosito> CU1005NI0033508152510008990
<alapszolg> A_173_EKP
<iranyitoszam> 525100 | Covasna
<suly> 370
<tobb_kuld> 1
<kulonszolgok> K_UVT,K_ORZ
<uv_osszeg> 89.90
<eny_osszeg> 0
<kezelesi_mod> 2
<alapdij> 9.45
<tobbletdij> 0.50
<címzett> MARIA-GYOPARKA BENKO
<cimzett_hely> Baraolt
<cimzett_ertcsat> 0745163465
<cimzett_ertcim> bgyoparka@yahoo.com
<orz_ido> 5
<díj> 9.95
<kozelebbi_cim> KOSSUTH LAJOS | 249 | BL / ANL AP / 2
<megjegyzes>
<ugyfadat1> 56201419
<ugyfadat2> 2187754
XML is considered a world-wide standard for the exchange of data between two systems.
It is flexible and extensible – block can be added and removed without breaking the full
xml document
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21. „mandatory” services linked to e-commerce activity
All items are tracked !!!
Including reverse logistics (only Hungary)
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22. COD collection and reports
The COD amounts are collected at distribution (last mile) and are
transferred on the distant seller’s (DS) bank account
All inclusive monitoring system
All inclusive reporting -system
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23. Magyar Posta – Office of Exchange, operations
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24. New business model is about partneship and alliances
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25. Customers Need vs. Customer Value
What does the customers need from POST ?
I want simple and clear processes
I want a good price
I want the best quality
I want to be considered as important
I want business models adapted to my needs
I WANT IT NOW !
Value of a customer is not what they have spent
with you, but what they will spend with you over
the relationship…
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26. What we have to do ?
TODAY
In real-terms we are used to things being "planned then executed„
- but our world today is “constant change”!
TOMORROW
1. We are required to improve our agility, speed, assurance and
openness to manage this constant change.
2. We must be integrated in our approach and our thinking.
We have to be constantly inventing new models
„to be ahead of the game”!
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27. Thank you for your kind attention !
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