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Direct Mail Future Bright

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Uno sguardo al futuro del DM da Weening & Partners

Uno sguardo al futuro del DM da Weening & Partners


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  • 1. Direct Mail: The Future is still bright? UPU Direct Mail Advisory Board Aad Weening Weening & Partners Berne, 22 January 2008
  • 2. AGENDA Distance Selling On Line Issues Trends in Mail Challenges and Opportunities
  • 3. Quote Lies Damn Lies Statistics!! Mark Twain
  • 4. SALES compared: USA – Japan - Europe TOTAL 127 144 24 263 27 326 17 20 79 106 44 51 160 193 66 73 1995 2000 2005 2006 In billion euro USA Europe Japan
  • 5. U SA Ja 641 pa Eu n ro 200 W pe es t 155 Ea E u st ro Eu pe ro 261 pe 13 G er UK m 715 an y It 320 al R y us si a 12 7 Per Capita Distance Selling
  • 6. ON-Line % 78.9 76.4 66 60.5 58.6 2006 USA Europe UK NL France
  • 7. PENETRATION...... differs from country to country, due to consumer mentality retail network performance Post maturity internet legislation
  • 8. Leaders B2C 2001 - 2006 13.2 In billion € Quelle: €4.2 Neckermann: €1.3 9.3 8.5 7.8 5.5 4.8 4.8 2001 4.4 4.5 3.8 2006 3.3 2.9 2.2 0.8 o ts m on y hD ay ne tt N ca eB az O S u/ en ed LW m Q P A R JC
  • 9. TREND Mail Order Distance Selling Multi Channel Retail
  • 10. Multi-Channel experience
  • 11. Multi - channel approach Company Ordering channels Marketing channels Internet Live inbound Internet Catalogues Interactive Mass / Paper order Live voice E-mail E-mail Direct form outbound response marketing Customers Internet: a marketing and ordering channel
  • 12. Benefits of Adopting a Multi-Channel Strategy Customer Retailer Improved relation More Choice Reduced costs Convenience Improved loyalty Improved Service Increased spend/penetration Enhanced brand Increased experience sales/profit
  • 13. Trends in Distance Selling Internet is becoming the dominating channel The traditional « big book » has come to its end (?) Instead magazine-like guides to come closer to the (internet) customer Focus on consumer confidence
  • 14. Confirmed Trend: Integration Overall, the KarstadtQuelle portals benefited particularly The outdoor apparel and gear strongly from the close maker mails more than 200 interrelation of stationary, million catalogs per year. L.L. catalogue and Internet Bean's library includes about 10 distribution. specialty catalogs offering For example, 6 percent of products in categories such as purchases in a Karstadt children's, fly-fishing, outerwear, department store are triggered sportswear, housewares, by karstadt.de. footwear, etc.etc. Quelle too realized strong multi- L.L. Bean also operates channel effects. a dozen retail stores and about The Quelle catalogue generated 15 factory outlets throughout the 40 percent of orders on quelle.de. Northeast. It also sells online Conversely, the online shop through English- and Japanese- generated 28 percent of orders language Web sites. from the Quelle catalogue.
  • 15. Trends on the Internet Communities and Platforms (Web 2.0) Microsoft, Amazon, eBay, Google, Yahoo etc. Traditional Retailers and Distance Sellers Niche Players offering web-adapted services
  • 16. EXAMPLE
  • 17. eBay and traditional...
  • 18. Eurostar and the Da Vinci Code An online competition to win the ultimate prize including $ 200.000 worth of free Eurostart travel The integration comes from the books, the film and the digital activities Eurostar bookings went up 15% since the campaign and generated 2 million game plays
  • 19. bol.com Digitalized e- magazine Full of information, sound, interviews, spoken information etc. Uses all media: print, sound, picture etc.
  • 20. Anttilla Mail Order - Finland Anttila is a leading mailorder company, Operating in Finland, Estonia and Latvia Loyalty club to increase brandawareness and to gain new customers Campaigns generated high revenues, catalogue Requests and synergies between the channels
  • 21. E-shoppers turn to catalogue Most British home shoppers (80%) now report browsing through printed catalogues before ordering online, according to research from Experian, which found that the home shopping market is home to a growing number of brands that have integrated their offline catalogue marketing with online sales features. (Experian August 2007)
  • 22. Example: Corendon Corendon started as a lowcost airline
  • 23. N or t h Am W er ic es a tE 71 ur op Au e 57 st Ea ra lia st 57 Eu So ro ut pe h Am 24 W er or ic ld a Av 22 er M ag e id dl e 19 Ea st 17 As ia 12 Af ri Internet Access Nov 2007 ca 5 Source: Internetworldstats
  • 24. ONLINE Issues Security and Confidence: -the offer must be truthful -delivery must be on time -secure payment -secure data -trustscheme -spam EU: only 6% cross-border eBay: 80 mln. active users
  • 25. TREND The number of Europeans shopping online has increased with 37% over the last two years The next 5 years they will grow from 100 million to 174 million Overall e-commerce in Europe will grow to $407 billion in 2011 from $133 billion in 2006 Main products: travel, clothing, media, white goods, electronics, events tickets, food, DIY (Forrester Research and eMarketer) Internet is rapidly becoming the leading channel (according to the maturity of internet)
  • 26. Delivery is vital! The Daily Mail 24 December 2007
  • 27. Secure Payment is vital Initiative of PayDutch Group and TNT Post in the Netherlands and Belgium PayDutch is the go- between between Customer and Online Supplier
  • 28. POSTAL SERVICES Postal Services remain of the utmost importance in spite of or rather thanks to the growing importance of the Internet: At the front end: Catalogues and mailings At the back end: parcels
  • 29. Trends No overall transfer between paper and electronic mailings as both continue to grow Companies are able to better target their mailings and thereby reduce mail volumes Internet players are using traditional mail (eBay and others) Logistics and delivery remain vital (source, FEVAD, USDMA and others)
  • 30. France: Development of catalogues and mailings (in million items) 4750 4601 No transfer between paper and electronic mailings as both continue to grow 4370 4361 4324 Companies are able to better target their mailings and thereby reduce mail volumes 00 01 02 03 04 SOURCE: FEVAD 20 20 20 20 20
  • 31. Letter Post per capita 68.3 67.7 66.7 2004 2005 2006
  • 32. Number of Parcels per 1000 inhabitants 924 947 854 2004 2005 2006
  • 33. Annual 5 th World Postal Survey 2007 Courtesy: E-biss Solutions
  • 34. Q: Your volume of domestic letter mail will... Grow 42% 45 42% 40 34% 35% 35 30% 30 25 20 15 10 5 0 2003 2004 2005 2006 2007
  • 35. Q: Your volume of direct mail will... grow same decline 2007 65 10 25 % % % 2006 68 22 10 % % % 78 17 2005 5% % %
  • 36. Q: Your volume of Courier & Express will... Your expectations in %? 68 65 2006 27 2007 22 8 10 grow same decline
  • 37. Overall, your confidence for the future of your organisation is... Confidence High explosion 70 63% 60 59% 47% 51% 50 43% 40 30 20 10 0 2003 2004 2005 2006 2007
  • 38. Future of Direct Mail Source: Winterberry
  • 39. The inherent strengths of mail Personal Universal Tailored Targeted Direct Flexible & Creative Measurable Portable Physical Complementary UK – Source DMIS UK
  • 40. DM Germany (billion euro) Tendencies: Internet higher Mail slightly lower 32 32 32.5 31.2 30.8 29 21.5 21.2 20.3 18.9 17.1 97 98 99 00 01 02 03 04 05 06 07 19 19 19 20 20 20 20 20 20 20 20
  • 41. Challenges and Opportunities Although Internet expenditures are rapidly rising, there is still an opportunity for direct mail Go into internet solutions (PayDutch, certifications) Access to markets Promote DM in general in order to create market Growing competition Slowing economy substitution
  • 42. Some examples
  • 43. Conclusion If you believe in the future, the future will be bright!