The increase in Swiss Post's package business will soon pass. After Amazon delivers packages in Vienna itself, the decline in the post office is felt.
The period of double-digit growth rates in the package business of Österreichische Post AG will soon be a thing of the past. "Growth in the package industry will certainly go into the literary field next year, because in that sense we will have an Amazon effect," said Foreign Ministry Director-General Georges Faulzl today when presenting the quarterly data.
Amazon supplies in Vienna itself
The online mail company began supplying packages in Vienna in early October. A similar effect was also the entry of the German package delivery market DHL. "But we also grew from 2015-2015, when DHL entered the market," said Pölzl. On Amazon it was something else, "but we can live with it very well," continued the boss. You are in competition with Amazon, but there is also a very good collaboration in the online mail company to invite the largest customer of the message.
In the first three quarters of 2018, Swiss Post's package business grew by 11.5%. In each previous year it was 20 percent: "It was crazy with a 15 percent market growth," says Pölzl. 10%, which is expected to be this year, are still "madness". Between 2013 and 2017, according to company data, the average was around 8 percent.
In its quarterly report, the Swiss post-contract growth in "low to mid-digit" range of packages in 2019.
High investments in the post office
According to Pölzl, the package business is also the Swiss post reason of the high level of investment at the moment: "With our current capabilities we are working beyond the economic optimum." In the first nine months of the year, Switzerland Post spent € 29.3 million on capacity expansion, in addition to € 56.9 million in maintenance. In the next four to five years, the investment requirement will "double well," Polzell expects.
In the branch network, Switzerland Post is currently in the process of separating its cooperation with its former banking partner BAWAG. In the future, Post's new financial services partner will be German FinTech Group. With one new partner working intensively on preparations for the bank, "This is a very exciting enterprise, very difficult," said Pölzl. You do not have a bank license, it will take some time. However, the post-CEO did not want to name her.
Thoughts on the plan, if one does not get a banking license with FinTech Group, does not do the mail however: "For me failure is not an option," Pölzl said. The goal is to launch a bank in the middle of next year.
Post: Business e-hard
It is currently difficult in the mail business. In the letter, by mail and postage, there was a decrease of 2.6 percent in the first nine months. However, in the third quarter, the Swiss Post enjoyed the provisions of data protection rules (DSGVO). Many companies have sent information or sought the consent of their customers for storing data and processing them by letter. At the same time, however, the GDP also had negative effects: in the publication referred to, the forwarders became more cautious. "Financially it had a positive effect that the letter referred to more attractive to us than the advertising referred to," Pölzl said.
In the nine-month display, the Swiss Post also introduced a new offer to customers: under the name of "AllesPost," customers should be able to receive packages from the post office by March 2019 – regardless of the package service the launcher used to send the order. In the process, the first commissioned package service provides to the post office and then provides the package to the client at the desired time. Pölzl admitted that this would result in an additional delay for the client: "The customer needs to decide whether he prefers fast delivery by someone or delivery focused on agreed time with the mail." The shipment is paid by the customer. Pölzl does not want to say anything about the cost.