TRENDS IN CROSS-BORDER E-COMMERCE

DHL Parcel

Next wave solutions in cross border e-commerce

Oliver Sukowski,

MD DHL Parcel Europe,

Customer Solutions

WIK Postal Seminar 2018

Königswinter, February 7th, 2018

2

EUROPEAN E-COMMERCE

Source: CEP Research, E-commerce news, Financial Times, World Market Monitor, Worldbank, eCommerce Europe, EuroMonitor; Quick-Report

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

Grows…

19%

Italy 16%

19%

Romania

Germany

9%

16%

13%

11% 15%

6%

Sweden 13%

Czech Republic

11%

Poland

22%

14% 23%

Average

of selected countries 12% 18%

Spain

Growth expected in 2013 Growth as-is

…beyond expectations…

Difference between expected and real

e-Commerce growth

Annual growth of distance selling in percent, GMV

2013-2016, expectation in 2013 vs. actuals

Ø highly penetrated “mature” markets 2016

High

penetration

“mature”

markets

30 ≥ 8

Medium

penetration

markets 15 4-7

Low

penetration

markets 15 1-3

2025 2016

…with no end in sight

In B2C parcels per capita p.a.

Cross-border B2C

e-commerce sales in

Europe will rise by

double-digit figures

(2016-2020)

3

CROSS BORDER E-COMMERCE

Source: Alipay, McKinsey

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

100% 2020E

2015

~22%

15% 100%

Development of global cross-border

e-commerce share

Percent

Cross-border share

Cross border e-commerce is expected to grow in Europe …

217

184

156

131112

9273

2016 2019 2017 2018 2015 2014 2020

+20%

Source: Accenture / Aliresearch

Cross border e-commerce market forecast

Western Europe

US$bn

… and globally

4

CHALLENGES AND LEVERS TO SUCCEED

Labour force

scarcity

Environmental

concerns

Rising trade

barriers

Return of protectionism and stagnant

free trade deals

UK: Uncertainty about Brexit

implications

Increasing shortage of labour

UK: Uncertainty of EU workers in UK

Rising (delivery) traffic

Germany: Potential driving ban for

diesel powered vehicles

Performance

Innovation

Reach

Ch

alle

ng

es

Le

ve

rs t

o s

uc

ce

ed

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

5

REACH: EUROPEAN NETWORK AND DOMESTIC SOLUTIONS

25 countries

One DHL Parcel

Europe network

“Domestic European’’

experience

Connecting customers to ONE EUROPE

Local fulfilment Strong domestic presence

Premium B2B and B2C provider

Major investments in hub

upgrade and depots

Europe-wide ServicePoint

network of >50,000 shops

Decentral inventory;

dedicated or multi-client

Continent and UK

On par with e-commerce

giants

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

6

PERFORMANCE: THE BEST B2C OFFER FOR EUROPEAN E-COMMERCE:

DHL Parcel Connect

Against

surcharge

One Label for all features and destinations

Core features available across the network

Local services tailored to specific customer needs

One harmonized label for all features and destinations

Core features available across the DHL Parcel network

Country specific features tailored to market needs

*Some exceptions apply

Track &

Trace

Cash on

delivery

Delivery to

Servicepoint

Doorstep

Delivery*

Delivery Mo-

Sa *

Reliable

delivery times

Proof of

delivery

Pick up Transport

insurance 500€

Pre-notification

Customer

Service

GoGreen

Lithium batteries Limited

quantities

Change of

address

Return of

undeli-verables

Choice of

delivery day Time Window

Electr.proof of

delivery

Insurance up to

25k €

Not-at-home

Rerouting

Delivery to

Lockers

Drop-off

solutions

Bulky

Shipments

Further de-livery

attempt

Return solution*

API

interface

Online shipping

tool

Recipient

Services

Sender

Services

Harmonized

label

Standard

dimensions

CONNECTING YOU TO ONE EUROPE.

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

7

E-vehicles

Last mile

options

Automation

last mile

Drones

INNOVATION: Next wave solutions

Data analytics Automated customer

touch points

Streetscooter

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

8

StreetScooter – the best way to deliver parcels – carbon-free and silent

100% acquisition in 2014

Large model range

E-Bike

E-Trike

Different types of

StreetScooters

Start of third party sales

Continuous product

improvement

8 Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

9

Cross Border e-commerce: Answers by DHL Parcel

Performance

Innovation

Reach > European wide coverage

Ke

y l

eve

rs t

o s

uc

ce

ed

> Best in class B2C offer

> Next wave solutions

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018

THANK YOU