Global Parcel Shops and Locker Networks: Market Insight Report 2019

£2,275£4,375

Published: September 2019
Pages: 111
Format: PDF, XLS + expert call

 

 

 

 

 

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Description

Global Parcel Shops and Locker Networks: Market Insight Report 2019, including Parcel Shops and Locker Networks Database

This report includes:

  • The main report, which covers parcel shops and locker networks worldwide, giving a detailed view of networks currently in operation, the historical growth of outlet numbers and sets out probable scenarios for future growth.
  • An excel spreadsheet containing our full database of 254 networks with 1.2m locations worldwide
  • A conference call with our analysts to address your questions arising from the report.

The final mile component of internet retail, from the depot to the consumer, is the most labour-intensive, and therefore expensive, part of the overall cost of delivering a parcel. In our work in the market over several years we have found that, for leading UK carriers, it represents an average of around 45% of their total costs. Figures are likely to be similar in other markets.

This report focuses on retail collection points, i.e. parcel shops and parcel locker networks, worldwide.  It gives a detailed view of networks currently in operation, the historical growth of location numbers and sets out realistic scenarios for future growth. It includes profiles of:

  • 48 leading networks including Hive Box, InPost and DHL Pakstation
  • 13 locker manufacturers including KEBA, TZ and Zhilai

Our forecast scenario for growth in the number of outlets and the revenue that they generate is supported by analysis of the key drivers of growth – in particular online retail spend and its share of total retail spend – setting out historical changes and available forecasts, by country.

There is also an appendix describing other last mile delivery methods such as in-boot delivery, courier networks and drone delivery.
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Summary

Market background
This report focuses on the development of parcel shops and lockers to facilitate delivery of items to – or collection from – the consumer.

  • Parcel shops are staffed outlets, most commonly convenience stores or other shops with long opening hours, including florists, petrol stations and other outlets.
  • Secure locker banks are generally found in places which are accessible from early until late and are able to provide an adequate level of security, such as railway stations, supermarket car parks and petrol station forecourts.

These networks are now being rolled-out rapidly in most countries worldwide, to increase consumer convenience and reduce delivery costs. A high proportion of the population is now within a short travel time of one or more such locations.

The networks have the potential to offer benefits to a range of different parties including consumers, parcel carriers, internet retailers, field service companies and site hosts by providing a combination of increased convenience and lower costs. In particular they:

  • Improve the economics of typical parcels operations by increasing consolidation and hence reducing cost.
  • Improve the success rate of consumer deliveries and hence satisfaction levels and delivery costs.
  • Reduce the environmental impact of, and congestion caused by, delivery by reducing total vehicle miles travelled.
  • Provide additional footfall and hence revenue for host locations, supporting their economics in a challenging retail environment.
  • Reduce time lost by field engineers travelling to the depot for spare parts.

Market size and growth
We have identified more than 1.2m parcel shop and locker locations worldwide. This includes over 890,000 parcel shops and more than 350,000 locker locations.  China is by far the largest market with over half the global total of both parcel shop and locker locations. It is also a leader in development and deployment of the latest locker and consumer app technology.

Since 2018 the total global number of locations has increased by 36% as existing networks have rolled out further locations and new networks have been set up. Growth has, to a very small extent, been offset by the closure or contraction of some networks which had struggled to get their business model right and been lossmaking.

Revenue per location varies significantly between countries and according to the size, utilisation and business model of networks.

The most important driver of demand for locations is the level of business-to-consumer parcels generated by home shopping. Home shopping has grown in all countries covered by this report in recent years having more than doubled overall in the last five years.

Competitive landscape
A series of organisations, including established parcel carriers and independents, is rolling out networks within countries and internationally. Leading networks include the following:

  • Deutsche Post DHL’s Packstation locker network in Germany is the oldest and most successful parcel locker network in the world.  It is also the largest locker network in Europe, with 3,500 locations.
  • HiveBox, the largest locker network in China. It has secured funding to significantly expand its network locations as well as acquiring the CIMC locker network. Its network now extends to nearly 150,000 lockers.
  • Amazon, which is rapidly expanding its pick up location networks, as well as its parcel locker networks in the US and Europe. Its locker network locations in the US and the UK have increased by 50%.
  • Other major operators of last mile networks, which include Best, UPS Access Point, InPost, FedEx, Sposter/China Post, Hermes, DPD (La Poste) and GLS (Royal Mail).

Business models differ between operators:

  • Most (but not all) carrier-owned networks handle only their own volumes
  • Most independent networks are open to a range of carriers. In some cases they act as first tier supplier, working directly with retailers, while in other cases they act as a subcontractor to their carrier partners

There are four key success factors that an independent network needs to achieve in order for its locations to be consistently selected by consumers:

  • Open / agnostic network: to enable a consumer’s preferred, local site to be open to them for use with any retailer or carrier
  • Many locations: to ensure there is one close enough to every consumer
  • Long hours: open when the consumer wants access
  • Awareness: requiring significant consumer marketing effort and expenditure.

Outlook
Demand for online shopping and convenient and cheap delivery options continues to grow. In this environment, we expect growth in demand for parcel shops and lockers to continue. The growth of ‘Click-and-Collect’ type models which allow consumers to select a parcel shop or locker as an alternative to delivery to the home, could well experience faster growth than that of overall internet retail sales. Many parcel shop and network operators, such as Hivebox, UPS, Amazon, and DHL, have plans in place to grow location numbers.

Penetration levels vary dramatically between countries. For example:

  • Poland currently has one location for every $220k of internet retail spend and other European countries, such as Denmark and Germany, also have high densities.
  • The equivalent figure for the US is one location for every $20m of spend, indicating the potential for further growth.

Key challenges in achieving further growth include:

  • Acceptance of by consumers beyond early-adopters which may require improved user experience, better consumer apps and improved processes
  • Availability of sufficient sites
  • Availability of necessary capacity at the sites to cope with anticipated levels of demand.

What does the database contain?

Database Fields:

– Network Name
– Country
– Region
– Website
– Owner
– Operation type (locker, parcel shop)
– Solution partner (e.g. locker manufacturer)
– Number of locations
– Transport partners
– Location partners (e.g. where shops or lockers are based)
– Customers (e.g. retailers)
– Business model (open vs closed)
– Notes (other information)

What are the sources and methodology?

The main sources for the report are
– Extensive desk research on parcel shop and locker networks and locker manufacturers worldwide covering company accounts, websites, press reports and other sources
– Apex Insight’s ongoing work on online retail and the parcel delivey market worldwide
– Interviews with senior-level contacts in the market

The key input to our market size estimates is our database of locations, which is included with this report.  We look at number of locations relative to online retail spending and population on a country by country basis to help evaluate the market potential, which guides our market forecasts.

Who is it useful for?

The report is intended for:
– Owners and operators of parcel hop and locker networks
– Locker system manufacturers and suppliers
– Customers of parcel shop and locker networks, in particular, retailers who sell via the internet
– Buyers or potential buyers of locker systems looking to choose the best option for their needs
– Investors in these businesses
– Market regulators and policymakers
– Banks, analysts, consultants and other parties with interests in the sector

Who was it written by?

The report was written by Frank Proud and Paul Chapman

Frank founded Apex Insight in 2012 and set up our Parcels and Delivery practice
His background is strategy consulting, with two firms, Bridgewater and Burlington, which were originally founded by ex-Bain teams. He has advised many clients across the logistics industry, from start-ups to global leaders.
Subsequently, he was a senior member of the Transaction Support team at EY, advising private equity firms and corporate acquirers on commercial due diligence and other acquisition-related issues.
He leads Apex Insight’s consulting work for investors and clients in the logistics industry.
He has an MA in Economics from Cambridge University.

Paul has extensive experience across a wide range of parcels, delivery and logistics markets
As well as having a leading role in Apex Insight’s research, he has worked on consulting assignments for clients and investors in the sector.
His previous experience includes being Logistics Research Manager at Datamonitor, co-founder of Analytiqa and a marketing / strategy role at Christian Salvesen.
He has a BA in Modern Languages with Business Studies from Swansea University

Database Fields:

– Network Name
– Country
– Region
– Website
– Owner
– Operation type (locker, parcel shop)
– Solution partner (e.g. locker manufacturer)
– Number of locations
– Transport partners
– Location partners (e.g. where shops or lockers are based)
– Customers (e.g. retailers)
– Business model (open vs closed)
– Notes (other information)

Report Contents:

About this report
Summary
About Apex Insight

Market Background
- Definition
- Benefits of specialist last mile delivery networks
- History
- Business models
- Critical success factors
- Invesment requirenents and entry barriers
Review of Pick-up / Delivery Points
- Parcel shops / retail collection points
- Parcel lockers
- Home parcel boxes
- Residential block lockers

Parcel Locker System Suppliers Review 28
- Locker hardware 28
- Locker operating systems 30
- Pricing 31
- Security and Safety 31
- Installation, Maintenance and Support 32
- Parcel locker manufacturers by installed base 33
- Business models 33
Locker Manufacturer Profiles 35
- Keba AG 36
- Integer.pl 39
- TZ Limited 42
- SmarteCarte 45
- SwipBox 47
- Grupo Azkoyen 49
- Cleveron 51
- ByBox 54
- Kern Lockers 57
- Shenzhen Zhilai Sci and Tech Co Ltd 59
- SNBC (Shandong New Beiyang Information Technology Co., Ltd) 61
- Vlocker Pty Ltd 62
- Hangzhou Dongcheng Electronic Co., Ltd 64

Network Size and Growth 65
- About the Apex Insight parcel shop and locker database 65
- Total locations split by region (lockers + shops) 65
- Total locations by country (lockers + shops) 66
- Parcel locker locations 67
- Parcel shop locations 69
- Growth in number of locations 70
- Location penetration relative to population and internet sales level 73
- Revenue 75
- Market potential 76
- Potential revenues under the growth scenarios 77
- Projected locations and revenue by 2022 77

Profiles of Largest Network Operators 78
- Best Express 80
- HiveBox 80
- China Post / Sposter 82
- Cainaio 82
- JD.com 82
- Japan Post 83
- Deutsche Post DHL 84
- La Poste / DPD 86
- Hermes / Otto 87
- UPS 88
- CJ Express 89
- SF Express 90
- Amazon 90
- GeGeBox 91
- Royal Mail 91
- InPost 92
- Shuohuobao 92
- FedEx 92
- Flipkart / Ekart 93
- Poczta Polska 93
- CVSnet 94
- Collect+ / Yodel 94
- LS Distribution Logistics Benelux 95
- Relais Colis 96
- Canada Post 96
- Correos 96
- HubBox 96
- Australia Post 97
- Yamato Transport 97
- PickPoint 98
- Swiss Post 98
- bpost 98
- Fastway Couriers 99
- Parcelly 99
- Posti 99
- Walmart Pickup 100
- PostNL 100
- PostNord 101
- PPL CZ s.r.o. 102
- ParcelPoint 102
- Hubbed 102
- MBE 102
- PostCo 102

Appendix: Review of other last mile delivery methods
- Improved carrier systems and development of consumer apps
- Drone deliveries
- Autonomous robot vehicles
- In-boot delivery
- Peer to peer delivery models
- Self-employed courier models

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