Romania's e-commerce boom is expected to double the value of contracts sealed between online sellers and parcel shipping companies by the end of the year, and could account for 10% of couriers' turnovers on the short term.
The boom has been anticipated on the market, with Internet sales and home delivery pushing up couriers' turnovers. Sensing the business potential, the majority of delivery firms have started developing services specialising in this field.
Fan Courier, a major firm on the domestic courier market, expects the value of contracts sealed via online sales to double this year. As a result, the company will collect around 2m euros from e-commerce companies in 2007. Fan Courier's manager, Adrian Mihai, believes deliveries generated by e-commerce have advanced at a rate of 400%-500% over the past 2 years. Thus, e-commerce accounted for 5%, namely 1m euros, of the company's 21.5m-euro turnover last year.
"This year, e-commerce expanded, accounting for 7.5% in the company's turnover," said Mihai. Therefore, for turnover estimated at 32m euros this year, e-commerce is expected to account for 2.4m euros. In addition, the rapid growth rate is also expected to continue.
"E-commerce is still in its early stages in Romania, whilst statistics indicate we could double compared with 2006. Taking into consideration the future growth rate, e-commerce could account for 8%-10% of the company's turnover next year," says Mihai.
TCE Logistica, which operates on the internal courier services market, also expects the value of contracts signed with e-commerce firms to account for 10% in turnover. "At present, the value of contracts sealed with e-commerce firms weighs 4% in turnover, an increase from 3% last year," says Sorin Sofian, the company's manager. Last year, TCE Logistica generated turnover worth 8.5m euros and forecasts a 30% increase this year.
Curiero, which also operates on this market, is also increasing its focus on online sales. "Their weight in turnover has increased by 3-4% annually, reaching almost 15%," says Bogdan Carcu, Curiero chairman, who puts this year's turnover at 16m euros.
Even TNT, which primarily focuses on business-to-business services, has introduced a special type of service for its on-line customers. TCE has expanded its activities by tapping into cities, which should considerably boost the value of its contracts.
Another firm centred on international delivery services, Trans Courier Service, an exclusive UPS agent, in the first 9 months of this year generated 1m euros from contracts with e-commerce firms.
Through economic growth and development, the private courier services market is expected to reach 170-180m euros this year, up from 130m euros in 2006.
Courier services market
Forecast to reach 180 million euros this year
This year, advanced at 40% against 2006
Growth drivers include economic growth, the development of new fields of activity and electronic commerce
Competition among couriers will become tougher
International delivery firms include TNT, DHL, UPS
Internal courier firms include Cargus, Fan Courier, Curiero, TCE Logistica
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