The trend of online shopping supports speedy revenue growth
Melbourne, Australia (PRWEB) November 03, 2012
The Courier Pick-up and Delivery Services industry in Australia has experienced rapid growth in demand. In the decade through 2012-13, online retail has grown strongly. Retail markets have grown in importance for the industry traditionally oriented more at delivery to businesses than consumers. According to IBISWorld industry analyst Caroline Finch, “much of this growth has come from international e-commerce sites that have relied on the industry to deliver goods within Australia.” The demand for parcel delivery services has been a boon for the industry, which is in a growth cycle. The past five years have been marked by increased investment in technology and new products. The industry is expected to grow at a compound annual rate of 2.4% in the five years through 2012-13, to be worth an estimated $6.62 billion in 2012-13. Revenue in 2012-13 is expected to be 1.5% higher than in 2011-12.
The industry faces strong external competition from the related Postal Services industry. The operations of Australia Post are largely excluded from the industry, with the exception of subsidiary Star Track Express Holdings Limited. Participants in the Courier Pick-up and Delivery Services industry are often unable to compete on price due to regulation, traditionally competing on service. Increasingly, industry participants are forging new delivery networks, which will increase their competitiveness. “The move of major retailers such as Woolworths and Wesfarmers to expand their online presence will further increase the geographic presence of the industry,” Finch adds. The increasing adoption of e-commerce platforms by Australian retailers is expected to support growth in the five years through 2017-18. Compared with international retail industries, the Australian retail sector has been relatively slow to move on online retailing. Demand for transport of international items is expected to continue to grow in the coming years, further supporting industry growth.
Like the broader Road Freight industry, the Courier Pick-Up and Delivery Services industry in Australia is highly fragmented and has a low level of market share concentration. Small players dominate the industry, as the barriers to entry are low. The top four players are Toll Holdings, DHL Express Australia and UPS. However, they are more influential than their share of revenue indicates. Subcontracting of work is common in this industry. The industry's major players sit at the top of a subcontracting chain as they have contracts with large clients. The recent merger of TNT and UPS illustrates the trend towards increasing concentration in the industry. Increasing sophistication of systems and technology is increasing the economies of scale achieved by large operators, creating incentives to merge and expand.
For more information, visit IBISWorld’s Courier Pick-up and Delivery Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in the industry engage in door-to-door pick-up (i.e. from residences or places of business), transport and delivery of letters, documents, parcels and other items weighing less than 30 kilograms.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.