A report recently published by Market Growth Reports [1], an independent market research firm, analysing the effects of COVID-19 on the global courier, express and parcel market has indicated significant compound annual growth within the industry which is likely to continue for the foreseeable future, securing courier jobs and allowing for innovative new delivery solutions to become embedded in everyday life.
Strategy
The report assessed data pertaining to 20 countries from the six major regions in the world (North and South America, Europe, Asia, the Middle East and Africa) with an aim of establishing how courier services in each country are delivered and how the key players operating in each of these regions evolved their delivery solutions throughout the pandemic. It also reviews and analyses the planned improvements that they intend to deliver over the coming four years.
The report considers the political, social, economic and technological factors involved in decisions made during the pandemic and proposed future investments to determine the likelihood of success. It covers all types of postal transactions, including business to business, business to consumer and consumer to consumer and explores how modernisations to technology and the requirement for shorter delivery timescales have affected businesses within the delivery services market.
Findings
The report aimed to identify and explain the key features that drive increased revenue and potential growth within the industry. It identified that COVID-19 had a threefold impact:
1) Delivery companies worldwide responded swiftly to the increased supply and demand when high street shops were closed.
2) Supply chains were rapidly subjected to increased security and tracking technology to meet customer requirements.
3) Firms capitalised on the increased throughput to deliver investment into streamlining services and increasing profits.
The report established that COVID-19 had a highly positive effect on the industry, with consumers turning to internet shopping to satisfy their needs as the high street shops were closed in accordance with local lockdown restrictions. In order to adapt to this increased traffic, retailers and delivery companies alike embraced innovative solutions for delivering their services, including real-time parcel monitoring, providing delivery guarantees and enabling safe and secure customer returns.
Future Investment
As governments worldwide begin to mandate reductions in carbon emissions, it is likely that courier companies will continue to invest in green technologies, actively pursuing methods of reducing their carbon footprint whilst delivering increased levels of customer satisfaction and profitability. It is anticipated that drone deliveries will become commonplace over the next few years, as well as increased investment in electric vehicles, reducing the number of polluting diesel and petrol light commercial vehicles in use on our roads and saving businesses money in the long term.
The report findings are welcomed within the industry, demonstrating that investments made during the pandemic have had the desired effect, which looks set to continue into the future. Further, planned investments that aim to improve customer satisfaction, increase profits and achieve challenging government and environmental targets look set to deliver the intended results.