News 2017

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Focus on Africa: a growing economy connecting to the world

EMS in Africa

EMS Cooperative member posts in Africa are taking advantage of the growth in global e-commerce and the potential offered through further expansion.  
 
Approximately 450 million people will enter the African workforce over the next 20 years - more than all other countries combined. Africa’s younger generation of workers are tech-savvy and increasingly entering the middle-class with the means to shop online.
 
Increased internet access and the affordability of smartphones have allowed African customers to look beyond local shopping options to the increased choice and price options available through cross-border e-commerce. By 2019, online sales in the region are projected to reach US$34.7 billion which yields a compound annual growth rate of 23.9%.
 
Small and medium enterprises (SMEs) are the catalyst for Africa’s economic surge. 95% of all businesses can be classified as SMEs, employing 80% of the active workforce and contributing 50% of the African GDP. As a result, these businesses are the source of income for the rising middle class with a growing demand for new consumer goods.
 
African Posts are well positioned to facilitate the growth of global e-commerce through first mile access and delivery to every citizen and business in Africa. By meeting customers’ needs, particularly SMEs, select EMS Cooperative member posts in Africa are already realizing the growth potential by offering their customers high quality, visible, and affordable EMS services.
 
For more information:

Sources: The Colography Group, International Monetary Fund, World Economic Outlook Database 2015; eMarketer, Worldwide Retail Ecommerce Sales, December 2015; Bloomberg, Africa to Add More to Workforce in 2015 Than World Combined, April 2015; World Economic Forum, Why SMEs Are Key to Growth in Africa, August 2015

6 February 2017
 

EMS four-year outlook

EMS online shopping

Market conditions favour increased growth of EMS over the next four year cycle. While there is a risk of increased national protectionism which could adversely affect global trade, the continued growth in demand driven by cross-border e-commerce coupled with the execution of the EMS Business Plan 2017-2020 is expected to result in increased market share across the EMS global network.
 
By the end of 2020, global air package export traffic will exceed one billion items, averaging 6% annual growth over the next four years driven by changes in consumer behaviour. For example, an estimated 45% of total online shoppers are expected to participate in cross-border shopping by 2020, growing four times higher than overall export package projections. In addition, it is estimated that by 2020 there will be over 3.2 billion people in the global middle class compared to about 2.5 billion in 2015 with requisite purchasing power.
 
Around 76% of the total population in the more developed regions of Europe and North America are internet users; and more than half of those users shop online. While online shopping in developed markets around the globe continues to grow, baselines in other regions are much lower and thus are poised for even more explosive growth in online shopping, due to rising incomes, tech-savvy young people and the growing proliferation of technical infrastructure required to ensure increased internet penetration. By 2020, the number of e-shoppers is projected to be more than 2 billion people worldwide. In addition, small and medium sized businesses will continue to drive growth, particularly for intra-regional trade.
 
While competitors are also focused on the growing business to consumer e-commerce market, if EMS Cooperative members ensure high quality of service through consistent reliability and visibility, give customers the value-added features they want, ensure ease of use and price right to deliver a strong value proposition, we expect that during the next four-year period global EMS market share is projected to grow greater than the market rate of growth.
 
For more information:

Sources: The Colography Group, United Nations Conference on Trade and Development, Alizila, Accenture/AliResearch, Brookings Institute, International Labour Office, World Bank, Ipsos/Paypal, UPU EMS Unit analysis. Image courtesy of Hongkong Post. 

25 January 2017

New year, new EMS Cooperative Business Plan 

EMS Cooperative Business Plan

2017 marks the start the new EMS Cooperative Business Plan 2017-2020, 'Positioning EMS for Growth'. The Plan was approved by all EMS Cooperative members by consensus as it represents a way to provide customers with a express mail service that meets their needs.
 
It’s now time for members to act to meet the vision for EMS a 'A global postal network with end-to-end, date-certain reliability.' EMS is the fastest postal product and the KPIs in the Business Plan reflect the key product features required by EMS customers: reliability, visibility, customer responsiveness and value for money.

To further reinforce the importance of the new Business Plan, during 2017 all six regional symposia for senior managers will take its title ‘Positioning EMS for Growth’. The meetings will emphasize meeting Business Plan KPIs and end-to-end service performance excellence, particularly transport improvement. Business Plan symposia are planned to support members around the world: Arab regions (March); Africa (April); Europe (April); Caribbean: (May); Americas (June) and Asia Pacific (July).

The global growth in e-commerce offers a significant opportunity for EMS operators and the plan sets out a clear vision on the way to grow EMS global business. EMS Cooperative members should to contact their EMS Regional Coordinator if they need any further information and assistance.
 
For more information:
11 January 2017