Russian CEP market to maintain double-digit growth despite financial crisis

Hamburg, December 3rd, 2008 – As one of the four fast-growing BRIC economies (Brazil, Russia, India, China), Russia has moved into the focus of international investors’ and multinational companies’ attention in recent years. The world’s sixth-largest economy has benefited from exploding world market prices for its main export commodities (crude oil and natural gas), high single-digit GDP growth and a relatively stable political climate that helped restore the trust of foreign investors, even though substantial regulatory hurdles and risks still remain.

However, the ongoing financial crisis and the simultaneous slump of commodity prices have made previous forecasts for annual economic growth of 5-6% in the next few years less certain. Sharply falling world market prices for oil (down by 68% since July) and gas have dragged the Russian RTS stock index down by almost 75% since July. The World Bank has also observed a substantial drop in capital flows to BRIC economies since the beginning of the crisis.

The Russian courier, express and parcel (CEP) market is not immune to these trends, the Hamburg-based market researchers highlight in their report. With annual growth rates in the 30% - 40% range in recent years, the sector benefited strongly from booming demand, the country’s economic growth and heavy foreign investment and reached an estimated value of €670 million in 2007. There has been a slight cooling this year, however, pushing growth downwards towards the 20% level, and this weakening is expected to continue in the short term.

Based on the latest trends and data, the Russian express and parcels market will thus decelerate to grow at an average annual rate of 10% over the next few years, CEP-Research predicts. Positive factors such as the influx of foreign direct investment, logistics infrastructure improvements and service and network expansion by CEP providers will nevertheless outweigh the uncertain macro-economic environment. Moreover, the domestic market, which accounts for the lion’s share of the overall CEP sector, is expected to be less affected by the economic crisis than the international market, where growth is likely to slow substantially.

With an overall market share of around 26%, DHL is the undisputed leader in both the international and the domestic segments, the CEP Market Report Russia reveals. While international CEP flows in Russia are dominated by the integrators, Russian players have been able to maintain leading positions in the domestic market. As well as presenting detailed market shares, the report also profiles the positioning, product portfolio and networks of the major CEP operators.

In addition, the CEP Market Report Russia outlines the key macro-economic trends and driving forces in Russia, examines the wider logistics sector, and details the development and structure of the country’s CEP market as well as the key market trends.

The market report is targeted at strategic decision-makers, sales executives and operational managers in international and regional express and parcel companies, as well as the wider transport and logistics industry and other interested parties. The 24-page report can be ordered online under www.cep-research.com. The price of the study is € 950.-.

ITA Consulting, located in Hamburg, launched CEP-Research - the first online platform with detailed information about the worldwide Courier, Express and Postal market. CEP-Research focuses on the following areas:

• Industry news: daily news, daily and weekly newsletters, monthly exclusive briefings
• Market Research: market reports & studies, financial reports & presentations, market & carrier fact sheets

CEP-Research also offers customer-based information products and research. These are tailor-made and individualised solutions – research, monitoring, and analysis of selected markets, segments or competitors, as well as the collection and evaluation of data about the Courier, Express and Postal market.

The CEP-Research team consists of international researchers, analysts and consultants with extensive professional know-how within the industry. Our team members speak more than 20 languages including key European languages. The news and research activities are supported by a worldwide network of contacts.

To obtain more information about our products & services please visit our website at www.cep-research.com.

CEP-Research
ITA Consulting GmbH
Hans-Henny-Jahnn-Weg 29
D-22085 Hamburg
Tel: 0049 (0)40 38087917
Fax: 0049 (0)40 38087979
E-Mail: marketing@cep-research.com
Website: www.cep-research.com

This release was published on openPR.