Analysis of the postal services market in India
The relevance of research
The postal services market is a set of economic relations regarding the production and consumption of postal services, as well as a mechanism for interaction between the producers of these services and their consumers, based on the relationship of supply and demand. The demand for postal services is understood as the willingness of users to pay for a certain number of postal services of a particular type, taking into account the current tariffs.
Purpose of the study
Analysis of the state of the postal services market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of postal services.
Content
Part 1. Overview of the Indian postal market
1.1. Definition and Characteristics of the Indian Postal Services Market
1.2. Dynamics of the volume of the Indian postal services market, 2013-2017
1.3. Market structure by type of service provided in India
1.4. Structure of the postal services market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis of the Postal Service Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of postal services. Identification of potential customers interested in the service
3.1. Estimated per capita consumption of postal services
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the postal services market until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations to existing market operators
Research excerpt
Part 1. Overview of the Indian postal market
1.1. Definition and Characteristics of the Indian Postal Services Market
The main task of the postal service is to ensure the reception, processing, forwarding and delivery of various kinds of mail and periodicals between subscribers within the country and abroad. The end result of the postal business is a service.
The postal services market is a set of economic relations regarding the production and consumption of postal services, as well as a mechanism for interaction between the producers of these services and their consumers, based on the relationship of supply and demand. The demand for postal services is understood as the willingness of users to pay for a certain number of postal services of a particular type, taking into account the current tariffs.
The structure of the postal services market includes: ...
Diagram 1. Distribution of postal items by means of transport, %
1.2. Dynamics of the volume of the Indian postal services market, 2013-2017
Consider the dynamics of changes in the volume of the postal services market in India for the period 2013 - 2017.
During 2013-2017 The volume of the market in monetary terms has steadily increased. The volume of the postal services market in India in 2017 in monetary terms amounted to … billion Rs., … the level of 2016 by …%.
The average annual increase in the market volume for the analyzed period amounted to …%. At the same time, the rates …for 2014 and 2017 differs from the others presented in the diagram by … times. These figures show…
Diagram 2. Dynamics of the market volume of postal services in India, 2013-2017, million Rs.
1.3. Market structure by type of service provided in India
According to the Federal Law of July 17.07.99, 176 No. -FZ ""On Postal Communication"", postal communication is a type of communication that is a single production and technological complex of technical and transport vehicles that provides reception, processing, transportation, delivery (delivery) of postal items (addressed written correspondence, parcels, direct mail containers), as well as the implementation of postal money transfers. The listed postal services are provided on the basis of licenses for the provision of postal services.
Diagram 3. Structure of postal services, %
1.4. Structure of the postal services market by Union Territories
According to the results of 2017, the main share of postal services is accounted for by … Union Territories (…%), because is a major logistics and distribution center, where consolidated consignments arrive and from there go to other cities in India, and ... in general, it has the largest population size and concentration and, consequently, high economic performance. The share of … Union Territories and … Union Territories accounts for …% and …% of the market, respectively. The North-Western Union Territories accounts for …% of the postal services market...
1.5. Assessment of current trends and development prospects of the studied market
The main trend in the postal services market is the growth in demand for this type of service during the analyzed period...
1.6. Assessment of factors affecting the market
Social (demographic)
During 2013-2017 India's population is on the rise. The increase in the population in 2014 occurred not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol. At the same time, since 2013, there has been a positive natural increase in the population. However, according to the results of 2017, natural growth has a negative value.
Chart 5. Dynamics of the population of India, 2013-March 2018
The increase in population points to patterns in the growth in the use of postal services provided by the market. The emerging stable positive trend is observed both in business and in the private life of Indian citizens.
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
Diagram 6. Dynamics of India's GDP, 2013-March 2018, % to the previous year
Rate of inflation.
Annual inflation in India at the end of 2016 amounted to 5,38%, with the key rate of the Central Bank of India at the end of the year at 10,0%. It should be noted that such a record low inflation in India has become the lowest in the history of the country. The inflation rate against 2015 decreased by more than half - inflation for 2015 was 12,91%. In 2017, annual inflation continued to slow down and amounted to 2,51%. The decline in inflation is a positive factor contributing to the development of the postal industry in India.
Chart 7. Dynamics of the inflation rate in India, 2013-May 2018
Level of real incomes of the population. The average monthly nominal accrued wages for the Indian economy as a whole in 2017 amounted to Rs 39,14 thousand. The growth of nominal accrued wages for 2017 amounted to 6,6%.
Chart 8. Dynamics of real incomes of the population of India, 2013 - March 2018
1.7. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic indicators for the postal services industry in comparison with the indicators for all sectors of the Indian economy, in dynamics, for 2013-2017.
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Part 2: Competitive Analysis of the Postal Service Market in India
2.1. Major players in the market
Postal organizations providing postal services in India in accordance with licenses can be divided into 3 groups: ...
2.2. Market shares of the largest competitors
The market share of FSUE Indian Post in the postal services market in 2017 amounted to …%. This value indicates that the company occupies a leading position in the market. The share of … accounts for …% of the market. … and … each occupy …% of the postal services market. … owns only …% of the market. Other companies account for about …% of the market.
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2.3. Profiles of major players
FSPU ""India Post""
FSUE Indian Post is an Indian state-owned company, the operator of the Indian state postal network. It is administered by the Ministry of Communications of India (until April 2013 it was administered by Rossvyaz). March 29, 2013 entered the List of Strategic Enterprises of India. In 2015, India Post entered the list of backbone enterprises in India.
FSUE ""India Post"" was established by order of the Government of India dated September 5, 2002.
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Part 3. Analysis of the consumption of postal services. Identification of potential customers interested in the service
3.1. Estimated per capita consumption of postal services
During 2013-2017 per capita consumption of postal services has steadily increased. In 2017, this indicator amounted to … Rs./person, which is by …% … the value of the indicator in 2016. Relative to 2013, the volume of consumption of postal services per capita in 2017 increased by 38%.
Diagram 11. Consumption of postal services per capita, 2013-2017, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
As part of the market review of postal services, three main established segments of such services are considered: ...
3.3. Description of consumer preferences
The main consumer of postal services ...
3.4. Price analysis
Prices for postal services depend on the cost of providing services. The cost structure of FSUE ""India Post"" contains: ...
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Chart 12. Consumer price indices for postal services in India in 2013 - May 2018, %
Part 4. Assessment of factors of investment attractiveness of the market
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Part 5. Forecast for the development of the postal services market until 2022
The further development of the postal services market will largely be determined by the gradual normalization of the economic situation in India, the stabilization of the rupee against the background of a moderate increase in oil prices and the growth of business confidence ...
Diagrams
Diagram 1. Distribution of postal items by means of transport, %
Diagram 2. Dynamics of the volume of the market of postal services in India, 2013-2017, million Rs.
Diagram 3. Structure of postal services, %
Diagram 4. Segmentation of mail delivery services by region, 2017
Diagram 5. Dynamics of India's GDP, 2013-March 2018, % to the previous year
Diagram 6. The dynamics of the US dollar against the rupee, Jan. 2015-May. 2018, Rs. for 1 US dollar
Diagram 7. Inflation rate dynamics in India, 2013-May 2018
Diagram 8. Dynamics of real incomes of the population of India, 2013 - March 2018
Diagram 9. The volume of retail trade in India, trillion Rs., 2012 - March 2018
Diagram 10. Shares of the largest competitors in the market of postal services in India in 2017, in %
Diagram 11. Consumption of postal services per capita, 2013-2017, Rs./person
Diagram 12. Consumer price indices for postal services in India in 2013 - May 2018, %
Diagram 13. Forecast of the volume of the postal services market in 2018 - 2022, billion Rs.
Tables
Table 1. Industrial production index by state of India (in % of the previous year), 2013 - March 2018
Table 2. The dynamics of the US dollar against the rupee, Jan. 2015-May. 2018, Rs. for 1 US dollar
Table 3. STEP-analysis of factors affecting the postal services market
Table 4. Profit (loss) from the sale of postal services for the period 2013 - 2017, million Rs.
Table 5. Gross margin of the postal services industry in comparison with all sectors of the Indian economy, 2013-2017, %
Table 6. Profitability before tax (profit of the reporting period) in the field of postal services in comparison with all sectors of the Indian economy, 2013-2017, %
Table 7.Current liquidity (total coverage) in the field of postal services for 2013-2017, times
Table 8. Absolute liquidity in the postal services sector compared to all sectors of the Indian economy, 2013-2017, times
Table 9. Business activity (average period of receivables turnover) in the field of postal services, for 2013-2017, days.
Table 10. Financial stability (security of own working capital) in the field of postal services, in comparison with all sectors of the Indian economy, 2013-2017, %
Table 11. The main companies participating in the postal services market in 2017
Table 12. Dynamics of the revenue volume of the largest operators of the mail services market (TOP-5) in India, 2013-2017, million Rs.
Table 13. Service provider selection criteria
Table 14. Average consumer prices for forwarding a simple letter within India, weighing up to 20 g, 2013-2017
Table 15. Average consumer prices for sending an ordinary domestic telegram, 2013-2017
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