Lukasz Nowinski: easyPack 24/7: case study from Poland on last-mile delivery options.

1. easyPack 24/7: case study from Poland
on last-mile delivery options
Łukasz Nowiński
Managing Director
InPost

2. Agenda
 Company overview
 How did we start?
 Developing the service in Poland
 Expansion to other countries

3. Listening to customers’ needs and
observing market trends
Distribution of Postal services Financial and insurance MVNO operator
unaddressed mail largest alternative postal
services
Services for Carrefour Mova
market leader in operator in Poland Offer for businesses and and new service Freem
distribution for supermarket
individuals launched in Autumn 2010
chains
Distribution of UDM in Automated parcel Logistics services
Ukraine terminals InFlavo
logistics support to Group’s
Services in over 300cities Sending and collecting Internet shops on
subsidiaries
parcels 24/ 7 Facebook

4. InPost – wavemaker from Poland
 Listed on the Warsaw Stock Exchange
 The largest private postal group
in Poland
 World Mail Awards winner
 Growth (2010),
 Innovation (2011)
 e-comerce (2011)
 Business culture and Performance
reflected in earnings and recognised by
investors
2011

5. Integer.pl – financial results
Results (in
2005 2006 2007 2008 2009 2010 H1 2011
thousand EUR)
Net sales 7252 10307 14299 21854 32194 46625 26599
Operating costs 6725 9904 13557 20956 29887 42950 24308
EBIT 530 420 813 1958 3040 4836 3241
Net profit 442 365 633 1492 2355 3802 2663
Source: own data. Currency exchange from 13.09.11 – 1 PLN = 0,230175 EUR

6. Year 2009
Growth potential for e-commerce in
poland
 36.4% growth of e-commerce Wartość polskiego rynku e-commerce (w mln zł)
Sklepy internetowe Platformy aukcyjne
between 2008 / 2007 6480
4600 4530
3470
3000
 7,000 active e-retailers 980 921
1300
1800 2000
152 180 328 410
48 60
2001 2002 2003 2004 2005 2006 2007 2008
 6.9 mln Poles did online shopping
 Bright future for e-commerce
globally

7. Year 2011
19% growth of e-commerce per year
Source: Invesp

8. Year 2009
Parcel terminal answering needs
of customers
 Important factors for customers: Decision to do it on
 Speed of delivery our own
 Low price
 Easy ways for parcel collection
 No focus on B2C customers
 Bad quality postal services vs expensive
couriers
 A few APT providers – all very expensive

9. Year 2011
420 machines in Poland
Number Max dimensions
 Self-service pick-up points for Size
of boxes (in cm)
collecting and sending parcels
Size A 32 8 x 38 x 64 cm
 SMS / email notification about the
Size B 32 19 x 38 x 64 cm
parcel in the machine
Size C 12 41 x 38 x 64 cm
 User and producer of the machines
 Machines already contracted to 9
countries: Estonia, Cyprus, Czech
Republic Lithuania, Latvia, Russia,
Slovakia, Spain, Ukraine

10. How it works
Additional functions of easyPack by InPost:
 Credit card/cash acceptors
 Returns based on barcodes
 Sending of parcels directly from terminal

11. What we achieved in 2 years
 420 machines in over 100 cities in Poland
 8 countries contracted in 2011 … more to
come
 Over 500 active e-retailers
 New segments – MLM, return logistcs etc
 Customer database:
 >200.000 fans on Facebook
 >300.000 customers used the service
(registered and non-registered users)
 61% clients used easyPack 24/7 again

12. easyPack operating markets usage data
 74% prefer easyPack vs
37.45% - collection between 18:00 – 8:00
courier delivery
 51% parcels collected
within 6 hours
 17 sec average time
needed to pick up a
parcel
 97% of parcels
delivered next day
Source: CATI research 1Q 2011 Polish market, research sample 600 buyers, & own data

13. 77% of customers have easyPack
within 10km
Source: Own data collected from registered users

14. „Last mile” costs cut by 80%

15. … We know how to make it work
 Where to locate easyPack machines?
 How to convince shops and business partners to offer the service?
 How to attract customers?
 How to track customers behaviour and stimulate frequency?
 What may go wrong and how to avoid pitfals?

16. 16
What needs are satisfied?
 Cheap and convenient delivery (Cheapest service – saving money)
But the most important are COMFORT and CONFIDENCE
 Fastest option - 97% delivering day after posting
 Availability - 24h access
 Innovative service + modern solutions = unique experience
 Comfort - „just when I want it and how I need it”
 Security - Parcels are fully safe
 No queues - saving time – average time of collecting a parcel is 17
seconds

17. 17
Customers talk

18. 56% growth of easyPack deliveries
 Paatal.pl customers soft roll out
 56% growth of easyPack delivery after the
promotion (lack of materials for analysis before
the promotion- new shop)
 During action percentage easyPack relative to
other delivery option is 18% and after action 23%.
 Communication channels:
 On-line activities: banners + subpage
 E-mailings
 Posts and graphics on facebook.com/paczkomaty
 E-mailing statistics:
 Database 97 463
 Unique opens 18 499 – 18%
 Unique click 274 – 0,2 %
 Results:
 over 127 participants received a special gift-
product

19. Groupon sales up to 97% products via easyPack!
 Communication channels
 Standard daily e-mailings of Groupon
 On-line activities: banners + subpage
 Groupon application for iPhone
 Delivery options:
 UPS
 easyPack by InPost
 Results:
 Depending on the product that is offered
delivery option via easyPack goes from
37% up to 97%
 Average share of deliveries to easyPack
75%

20. We do have clients and we ……………
make profit on it
 The world’s most
chosen vendor in 2010
26-month Return on
Investment
4-month Time to market

21. Second largest
network globally
18 000 easyPack
by 2016

22. „If I had to guess, social commerce is the next to
blow up” – Marc Zuckerberg, CEO of Facebook
Facebook Mobile
E-commerce
commerce commerce
E-shops on MVNO – free access
easyPack 24/7 Facebook to internet via phone

23. Thank you for your attention
visit our stand no 4073
Łukasz Nowiński
Managing Director