Turkish Parcel Delivery Market to Keep up Double Digit Growth Rates

Creating brand identity will be fundamental to exploring market potential in this highly consolidated domain

24 Nov, 2015, 08:30 ET from Frost & Sullivan

LONDON, Nov. 24, 2015 /PRNewswire/ -- The rising popularity of eCommerce and product sales through online channels is expected to accelerate the growth of the parcel delivery market in Turkey. The development of the retail sector will boost demand volumes, while eCommerce adoption will increase the rate of parcel deliveries. The intensifying need to ensure on-time delivery and reduce storage will also prompt distributors and retailers to use parcel companies to deliver products to their customers and partners.

New analysis from Frost & Sullivan, Executive Insights on the Turkish Parcel Delivery Market (http://ow.ly/TZzf5), finds that unit shipments stood at 448 million in 2014 and estimates this to reach 812 million by 2020 at a compound annual growth rate of 10.4 percent.

For complimentary access to more information on this research, please visit: http://ow.ly/TZznA.

"The mandatory tracking of deliveries that weigh up to 30 kilograms will boost accountability among participants and eventually, ensure more reliable positioning of market participants," said Frost & Sullivan Consulting Analyst Melek Ozturk. "This, in turn, will attract foreign investors to the market as well as strengthen partnership opportunities and market prospects."

The certificate and service fees that will be levied after the enforcement of the latest Postal Act will raise parcel delivery charges and slow down market revenues in the short term. Further, the country-wide networks of the four established participants have endowed them with a strong advantage and will deter entrants from venturing into the market. Therefore, new companies must explore alternative partnership models to integrate with the market leaders.

The major providers, for their part, need to create a robust brand identity to stay afloat in the highly consolidated and competitive market. Deploying smaller but rapidly emerging business models such as business-to-consumer (B2C) and consumer-to-consumer (C2C) will distinguish them from the competition.

Meanwhile, the business to business (B2B) segment of parcel delivery is flourishing. The parcel sector is now an inseparable solution partner to the Turkish reel sector, which grew by ten percent in 2014 and thus affords higher volumes of business in the B2B segment. Investing in continuous technology developments and service upgrades will also help parcel delivery firms fully tap the market's potential.

"Operating in a price-sensitive market, parcel delivery service vendors must adopt strategic pricing methods and incorporate advanced communication lines with businesses and online retailers," suggested Ozturk. "Expanding technology transfer centres that offer auto separation services and ensure faster delivery is another avenue that will allow parcel delivery organisations to entrench themselves in the Turkish market."

Executive Insights on the Turkish Parcel Delivery Market (MB60-13) is a Strategic Insight that is part of the Transportation & Logistics (http://ow.ly/TZzM3) Growth Partnership Service program. This research offers a segment-wise analysis of the parcel delivery market in Turkey. The study includes a market overview, drivers, restraints, market size, forecasts and the current trends and dynamics in the domestic market. The study also profiles the top four participants, highlighting their market strategies and the impact of these strategies on growth and performance.

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