IBISWorld Market Research
Industry players have had to change their business models in response to declining letter volumes.
Melbourne, Australia (PRWEB) October 16, 2014
Operators in the Postal Services industry in Australia used to be the main vehicle for communication in Australia. With changes in technology, this monopoly on communications is long gone.
According to IBISWorld industry analyst Caroline Finch, “The industry is in a state of transition, as participants adapt to a long-term decline in traditional mail volumes.” The industry is dominated by Australia Post, Australia's largest logistics company and a monopoly provider of certain mail services. Other players in the industry are focused on third-party communications services, of which bulk mail-outs are one communications channel, among many. Uniting these different entities is their participation in a delivery chain that begins with centralised collection and ends at the recipient. By contrast, the related Courier Pick-up and Delivery Services industry provides door-to-door services.
Both Australia Post and bulk mail houses have had to change their business models in response to declining letter volumes, but they have each followed their customers down different paths. “Australia Post is investing heavily in infrastructure to make inroads into the growing parcel delivery market, and to try and contain letter-handling costs,” says Finch. Smaller operators have shifted focus to other areas of communications, with some pulling out of the industry altogether, as they tailor services to their clients' digital needs. The industry exhibits high levels of market share concentration. Major players include Australian Postal Corporation.
The Postal Services industry has returned to growth over the five years through 2014-15, after declines in the past decade. Revenue is forecast to expand by a compound annual 2.3%. Bulk mail houses have continued to reduce their exposure to the industry, increasing Australia Post's role. In the current year, revenue is forecast to grow by 1.9% to $6.3 billion, boosted by a 16.7% rise in stamp prices in most mail categories. The increase, which came into effect in January 2014, is expected increase net revenue in 2014-15. However, it is likely that this price rise will accelerate mail volume declines, which are already putting downward pressure on industry profit margins. Despite stronger performance in the parcel segment, the future of Australia Post's business remains uncertain. Strong growth in parcel delivery is expected over the next two years, slowing later in the period. As the explosive growth in parcels eases, industry performance is forecast to lag, with declines in letter volumes and in industry participation numbers cutting into growth.
For more information, visit IBISWorld’s Postal Services industry in Australia report page.
Organisations in the industry pick up and deliver letters, documents and parcels, which usually weigh less than 30 kilograms. Pick-up is from predetermined collection points such as post offices and postal agencies, and excludes the activities of couriers. Organisations that operate the collection points are also included in the industry, as are bulk mail houses.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
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.