Our markets
Downstream Access mail Business mail collected and processed by Whistl and delivered by Royal Mail through a Downstream Access agreement is the core activity of the company. Although the sector is seeing low single digit decline, largely driven by eSubstitution, we have continued to grow our market share in 2017 and have driven further operational e¤ciencies throughout the business. Today the UK Downstream Access market (DSA) is stable having remained at around 7.1bn items since 2011, with any volume reductions being o¦set by new volume being processed through Downstream Access. In the UK 58% of total mail volume goes through DSA, with c.5bn items delivered outside of DSA, presenting a significant opportunity for Whistl to obtain volumes from beyond the DSA market. The UK mail market is competitive and DSA customers are seeking value, whilst retaining a high-quality service. Whistl will continue to o¦er a high quality and reliable service and aim to be the DSA cost e¤cient leader. Whistl will also continue to serve a variety of sectors,(o¦ering protection against sectoral changes) including retailers, financial services, utilities, public sector, and mailing houses. We are proud to have a diversified customer base including both blue-chip and SME’s, built upon longevity of relationships and we continue to have a proven track record of winning new business and increasing cross sales throughout the client base, further embedding Whistl in the customer’s supply chain. Doordrop Media Whistl’s innovative Doordrop Media o¦erings help brands connect with their target customers in the home. We o¦er a full 360° service from brief to evaluation and utilise analytics to provide intelligent profiling of the client’s customers. We also deliver catalogues and sample products to UK homes via a range of doordrop channels including Royal Mail. The doordrop market has evolved as the circulation of free newspapers has changed in recent years. However, doordrop media is now being seen as an e¦ective medium to direct consumers online, or in conjunction with other advertising mediums, such as direct mail, social media or TV advertising. As a result, investment in doordrop media is starting to increase. The emergence of big data has enabled doordrop media providers to utilise more advanced data analytics to identify the most valuable target consumers and deliver more e¦ective doordrop campaigns. In 2017 we leveraged the growing demand for intelligent and targeted doordrop media and continued to deliver market leading performance, outperforming the rest of the market. We estimate that we currently carry around one in four of all UK doordrops.
Parcels Whistl has a significant opportunity to increase market share in a growing market driven by e-commerce. The UK parcel market has shown significant growth in value and volume in recent years, which has largely been driven by e-commerce. The UK market has grown by 62.9% since 2012, from £6.2 billion in 2012 to over £10 billion in 2016. This growth is expected to continue over the next five years, with the market forecast to exceed £13 billion by 2021. Currently, no single carrier o¦ers the full range of services from economy DSA to premium parcels, resulting in the need for multi-carrier relationships with high complexity and additional cost. This is where Whistl steps in as we o¦er an integrated one-stop broker delivery solution for large letters, packets and parcels for multi-channel retailers. This area o¦ers a significant growth opportunity and Whistl’s unique customer proposition means we are well positioned to acquire new customers and continue to cross sell within our existing customer base. International International distribution can typically require a business to maintain relationships with several di¦erent carriers to meet the needs of their customers worldwide. Moreover, there is increased complexity to overseas distribution because of custom clearance, duties and tax requirements. Whistl has developed flexible, reliable and convenient international outbound and inbound mail and parcel solutions providing a one-stop solution that covers the full range of delivery services and products including untracked, standard tracked and premium tracked. Although international inbound volume forecasts are not readily available, industry experts estimate the current volume to be c. 800m items per annum (sub 2kg) across letters, parcels and flats. The estimated size of the market is 870m and the decline in mail is o¦set by the growth in packets and parcels. During the year we have invested in the International team at Whistl with a remit to develop our International Mail and Parcels product portfolio and increase our carrier partner network to o¦er an unparalleled service.
CEO Business Review | Whistl Annual Report 2017
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