TRENDS IN CROSS-BORDER E-COMMERCE

Next wave solutions in cross border e-commerce

Oliver Sukowski,
MD DHL Parcel Europe,
Customer Solutions

WIK Postal Seminar 2018

Königswinter, February 7th, 2018

DHL Parcel
EUROPEAN E-COMMERCE
Grows… …beyond expectations… …with no end in sight
2016 2025
Difference between expected and real In B2C parcels per capita p.a.
e-Commerce growth
Annual growth of distance selling in percent, GMV Low
2013-2016, expectation in 2013 vs. actuals penetration 1-3 15
23% markets
Poland 14%
22%
Romania 11%
19%
Italy 16% Medium
19% penetration 4-7 15
Germany 13% markets
16%
Sweden 13%
Cross-border B2C Czech Republic 15%
11%
e-commerce sales in 9%
High
Spain penetration
Europe will rise by 6% ≥8 30
Average “mature”
double-digit figures 18%
of selected countries 12% markets
(2016-2020)
Growth as-is Growth expected in 2013

Source: CEP Research, E-commerce news, Financial Times, World Market Monitor, Worldbank, eCommerce Europe, EuroMonitor; Quick-Report Ø highly penetrated “mature” markets 2016

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 2
CROSS BORDER E-COMMERCE

Cross border e-commerce is expected to grow … and globally

in Europe …
Cross border e-commerce market forecast Development of global cross-border
Western Europe e-commerce share
US$bn 217 Percent

184
+20%
156 2015 15% 100%
131
112
92
73
2020E ~22% 100%

Cross-border share
2014 2015 2016 2017 2018 2019 2020
Source: Accenture / Aliresearch Source: Alipay, McKinsey

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 3
CHALLENGES AND LEVERS TO SUCCEED
 Return of protectionism and stagnant
Rising trade free trade deals
Reach

Levers to succeed
barriers  UK: Uncertainty about Brexit
implications
Challenges

Labour force  Increasing shortage of labour

Performance
scarcity  UK: Uncertainty of EU workers in UK

Environmental  Rising (delivery) traffic

 Germany: Potential driving ban for Innovation
concerns
diesel powered vehicles

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 4
REACH: EUROPEAN NETWORK AND DOMESTIC SOLUTIONS
Connecting customers to Local fulfilment Strong domestic presence
ONE EUROPE

 25 countries  Decentral inventory;  Premium B2B and B2C provider

 One DHL Parcel dedicated or multi-client  Major investments in hub
Europe network  Continent and UK upgrade and depots
 “Domestic European’’  On par with e-commerce  Europe-wide ServicePoint
experience giants network of >50,000 shops

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 5
PERFORMANCE: THE BEST B2C OFFER FOR EUROPEAN E-COMMERCE:
DHL Parcel Connect
Harmonized
OneOne Label forlabel
harmonized all features and destinations
for all features and destinations label

CoreCore
features available
features across
available the DHL
across Parcel network
the network

Online shipping API Transport Standard Pick up Reliable Pre-notification Delivery Mo-
tool interface insurance 500€ dimensions delivery times Sa *

Doorstep Delivery to Track & Not-at-home Customer

Proof of Return of Return solution*
Delivery* Servicepoint Trace Rerouting Service
delivery undeli-verables

Against
surcharge
Insurance up to Bulky
Lithium batteries
Limited
25k € Shipments quantities

CONNECTING YOU TO ONE EUROPE. Country

Localspecific
servicesfeatures
tailoredtailored to market
to specific needs
customer needs

Sender
Services GoGreen Drop-off Cash on Electr.proof of
solutions delivery delivery

Recipient
Services Choice of Change of
Time Window
Further de-livery Delivery to
delivery day address attempt Lockers
*Some exceptions apply

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 6
 INNOVATION: Next wave solutions
Drones
Last mile
Streetscooter
options

E-vehicles Automation
last mile

Automated customer
Data analytics touch points

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

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 8
Cross Border e-commerce: Answers by DHL Parcel
Key levers to succeed

Reach > European wide coverage

Performance > Best in class B2C offer

Innovation > Next wave solutions

Cross Border e-commerce in Europe | WIK Postal Seminar 2018 | Königswinter | February 7th, 2018 9
THANK YOU