UNCOVER RUSSIA: LOGISTICS AND E-COMMERCE MARKET Tatiana Lyubimova, Managing Director DHL Global Mail

Transcription

1 UNCOVER RUSSIA: LOGISTICS AND E-COMMERCE MARKET Tatiana Lyubimova, Managing Director DHL Global Mail Global E-commerce Summit - Barcelona 3 rd June, 2013

2 AGENDA Uncover Russia: Market Overview Uncover Russia: Enabling Trade B2B and B2C Uncover Russia: B2C parcel solution for e-commerce Page 1

3 RUSSIA COUNTRY INFORMATION Total area: over 17 million sq. km 83 regions split into 8 Federal Districts Population: over 142 mn GDP growth forecast at 3-4% over the next years Key trade partners include the Netherlands, Italy, Germany, China, Turkey, Ukraine, Poland, Belarus, Finland, United Kingdom Single market for the Customs Union of Belarus, Kazakhstan and Russia envisioned WTO entry accomplished in 2012 Page 2

4 RUSSIAN E-TAILING MARKET 2012 Domestic market EUR 10 bln EUR 7 bln goods purchased on-line EUR 3 bln services purchased on-line Growth YOY 27% (2012 vs. 2011) 2012 Cross border market (Inbound) EUR 1 bln 8 mio orders 2 mio buyers e-tailing growth dynamics in various sectors reflects saturation of the market 40-50% (faster then market) 25-30% (similar to market) ~20% (slower then market) <5% (stagnation, decline) home décor & design goods for children sports & leisure electronics cosmetics accessories fashion and footwear food products books & CD s Source: Data Insight Research, 2013 Page 3

5 DISTANCE SELLING MARKET - RUSSIA In 2012, 22 million people in Russia (14%) have been buying on-line B2C PARCEL MARKET SIZE Forecast Market volume, Mio items Market value, Mio Euro (based on average delivery price of appr. 3 euro before 2011 and 4 euro after 2011) DISTANCE SELLING MARKET SIZE CAGR: 40 % The largest online population in Europe * CAGR: 20 30% * The Economist Mio Euro Source: Russian Post, NAMO, DataInsight, etc Page 4

6 DELIVERY LOGISTICS AND PAYMENTS In 2012, about 70% of all orders were purchased on-line with Cash-On-Delivery (COD) DHL Global Mail over 90% deliveries with COD Preferred delivery method in e-tailing differs from the one in mail order e-tailing 46% door delivery mail order 80% Russian Post Source: Data Insight Research, 2013; DHL Global Mail own statistics Page 5

7 AGENDA Uncover Russia: Market Overview Uncover Russia: Enabling Trade B2B and B2C Uncover Russia: B2C parcel solution for e-commerce Page 6

8 UNCOVER RUSSIA: ENABLING TRADE B2B AND B2C B2B logistics and commercial bulk clearance B2C transportation and individual parcel clearance Page 7

9 UNCOVER RUSSIA: ENABLING TRADE B2B AND B2C B2B logistics and commercial bulk clearance Requirements: Importer of Record in Russia Commercial contract Certificates Customs payments (duties and taxes) B2C transportation and individual parcel clearance Requirements: Import in the name of private individuals Terms and Conditions of delivery to be confirmed by customer Certificates normally not required Duty and tax free up to EUR 1,000 per private individual per month Page 8

10 UNCOVER RUSSIA: B2B SOLUTION B2B logistics and commercial bulk clearance Import to a business entity with further fulfilment and domestic distribution International freight forwarder Customs clearance broker Fulfilment provider B2C delivery partner Road and Rail Air and Ocean Licensed customs broker Pick & Pack production partner (e.g. DZB/Arvato, DHL Supply Chain) Russian Post Express carriers Alternative postal operators (e.g. DHL GM, local players) 9 Page

11 UNCOVER RUSSIA: B2C SOLUTION B2C transportation and individual parcel clearance Delivery of goods to a private individual for personal use (duty and tax free up to EUR 1,000 per individual per month) Zoll Douane Zoll Douane Terminal handling, export procedures and linehaul (ground or air) Import Clearance at destination Sorting at HUB Linehaul to station Destination Station Door Delivery Important! For customs compliance purposes, the entire delivery process E2E MUST be arranged by ONE partner (e.g. Russian Post, DHL GM etc.) Page

12 AGENDA Uncover Russia: Market Overview Uncover Russia: Enabling Trade B2B and B2C Uncover Russia: B2C parcel solution for e-commerce Page 11

13 UNCOVER RUSSIA: B2C Parcel Solution cross border and domestic B2C Parcel service by DHL Global Mail Russia offers international distance sellers a reliable & cost-efficient delivery method of their orders with a licensed postal operator Individual parcel clearance solution up to EUR 1,000 per receiver per month (duty-free) Own line hauls within Deutsche Post DHL + managed last mile delivery partner network Reliable & flexible door delivery service COD service and money transfer to the distance seller + reporting Easy-to-use and comprehensive T&T platform Management of rejections return to origin Always predictable transit times Reliability and peace of mind DHL brand and quality standards Easy to use service and billing Page 12

14 B2C PARCEL: SOLUTION DESCRIPTION B2C parcel delivery solution building blocks RELIABLE DOOR DELIVERY INDIVIDUAL CUSTOMS CLEARANCE CASH-ON- DELIVERY 1) TRACKING & RETURNS Door delivery to 250+ locations within the agreed transit times 2 delivery attempts with receiver s signature and possibility to open the parcel/try on the goods (for fashion) Customs clearance of individual parcels up to EUR 1,000 or 30 kilos per receiver per month (duty-free) Customs clearance within 24 hours, overall timeline from transport hub (DE) to final delivery starting at 7 days Cash-on-delivery transfer to the sender s bank account (international) within 10 work days Cash-on-delivery reports provided with each transfer Parcel tracking online at can be integrated with the e- shop tracking page Rejections return back to origin (DE transport hub for EU) 1) Cash-on-delivery (COD) is the most popular payment method in the Russian e-commerce, covering up to 90% of orders (as per DHL Global Mail own data) Page 13

15 B2C PARCEL: DELIVERY FEATURES Door delivery 2 attempts Date & time slot choice by customer Delivery address change 14 days storage at destination Cash-on-delivery for all parcels Parcel open, check contents, try-on Rejections management Page 14

16 B2C PARCEL: CUSTOMER SERVICE Customer service 2+ calls during 14 days Delivery address verified SMS reminders on the date Online & phone tracking Inbound call-centre + EXTRAS: MARKETING & UPSELLING COMPLAINTS HANDLING & CS Page 15

17 B2C PARCEL: KPIs & Reporting Service KPI s to measure and control quality: Lead time to end customer (Domestic linehaul to final destination city) Cash on Delivery transfer time Customer satisfaction (optional: measured by distance selling company) AGREED & SIGNED KPIs = PEACE OF MIND Page 16

18 B2C PARCEL: TRACK AND TRACE TRACK PARCELS VIA INTEGRATE TRACKING TO THE E-SHOP WEBSITE DOWNLOAD CUSTOM REPORTS FROM PERSONAL T&T ACCOUNT Page 17

19 UNCOVER RUSSIA, THANK YOU! AND QUESTIONS? Contacts: Tatiana Lyubimova Managing Director DHL Global Mail Russia Tel: ext 4023 visit DHL booth for a start Page 18

20 BACK UP Page 19

21 B2C INTO RUSSIA: PARCEL FLOW FROM EUROPE Day 0 Day 1 Day 5-6 Day 7+ EU country Mannheim Transport Hub Fulfilled & consolidated parcels delivered to DHL Global Mail transport hub in Mannheim, Germany Moscow Parcels delivered into Russia & cleared with customs Parcels processed and routed to B2C network provider customer Parcels transported to destination city for delivery by network provider Parcels out for final delivery signature required Page 20

22 UNCOVER RUSSIA: GEOGRAPHICAL COVERAGE Murmansk Nadym Surgut Petrozavodsk Syktyvkar St. Petersburg Nizhnevartovsk Kirov Perm Kostroma Izhevsk Yekaterinburg Pskov Yaroslavl Yoshkar-Ola Tver Cheboksary Ivanovo Kazan Neftekamsk Tyumen Tomsk Krasnoyarsk Klin Dubna N. Novgorod Nizhnekamsk Kemerovo Ufa Chelyabinsk Moscow Abakan Ulyanovsk Magnitogorsk Tula Omsk Novosibirsk Orsk Kaluga Novokuznetsk Kaliningrad Togliatti Irkutsk Samara Biysk Penza Briansk Lipetsk Barnaul Kyzyl Chita Kursk Orenburg Ulan-Ude Voronezh Saratov Gorno-Altaysk Belgorod Rostov-on-Don Volgograd Krasnodar Astrakhan Stavropol Sochi Pyatigorsk Khabarovsk Petropavlovsk- Kamchatskiy 250+ locations served in Russia. Covering 80-90% of customers orders. Injection into Russian Post possible for international parcels, dispatched to non-served areas Yakutsk Blagoveshchensk Ussuriysk Vladivostok Nakhodka Magadan Page 21

23 B2C PARCEL: IT PLATFORM Comprehensive IT platform to ensure full transparency in orders delivery to end customers: One Track &Trace platform for the whole delivery chain, starting from fulfillment Simple integration of the platform with the customer s fulfillment IT system Visibility of all activities through regular check points Availability of detailed history of single parcel Availability of parcels status report for the requested period Automatic parcel label creation Automatic dispatch documents generation (pre-alert, shipments summary, pallet label, etc.) Page 22

24 UNCOVER RUSSIA: LOGISTICS AND E-COMMERCE MARKET Tatiana Lyubimova, Managing Director DHL Global Mail Global E-commerce Summit - Barcelona 3 rd June, 2013